Businessmodel of MongoDB

Customer Segments

MongoDB has a mass market business model, with no significant differentiation between customers. The company targets organizations across industries that wish to more effectively store and scale their data. Key industry users include Retail, Technology, Financial Services, and Government.

Value Proposition

MongoDB offers two primary value propositions: performance and brand/status.

The company’s solution has demonstrated powerful performance. A study by United Software Associates (using Yahoo’s Cloud Serving Benchmark as a basis) found that it performed better than other systems such as Cassandra and Couchbase Server, in some cases 25 times more strongly.

The company has developed a strong brand as a result of its performance. The DB-Engines Ranking website often identifies it as the fourth most popular database management system, as well as the most liked one for document stores. MongoDB has 15 million downloads, over 1,000 partners, and thousands of customers. Prominent clients include Adobe, Craigslist, eBay, LinkedIn, McAfee, MetLife, and SAP. In 2012 it was included on The Wall Street Journal’s list, “The Next Big Thing 2012.“

Channels

MongoDB’s main channels are its direct sales team and its website, through which it acquires most customers. The company promotes its offering through its social media pages, event attendance, and its hosting of MongoDB World, an annual developer conference. In addition, it offers free public courses about its system through MongoDB University, a training program. Over 300,000 students have taken the classes, which are offered online, on-site, and in public spaces around the world.

Customer Relationships

MongoDB’s customer relationship is primarily of a personal assistance nature. The company offers a wide range of services in order to assist customers with use of its product:

Private Training – The company offers a training program for a client’s employees that is customized to a given division’s goals. Students receive on-site, interactive, hands-on instruction from a MongoDB engineer. Typical student types include developers and administrators.

Certification – The company offers an exam that individuals can take in order to become MongoDB Certified Professionals. This status indicates that these employees have the expertise necessary to develop and maintain MongoDB applications. The cost is $150 per exam.

Consulting – The company offers consulting services to provide in-depth support for companies at various critical stages of a project’s lifecycle. These stages include development, production, and deployment. Consultants also provide access to the firm’s 1,000+ partners.

Despite this personal orientation, there is also a self-service component. MongoDB’s website includes a Resource Center that features numerous self-help resources, including white papers, datasheets, presentations, webinars, documentation, and answers to frequently asked questions.

Key Activities

MongoDB’s business model entails maintaining a robust platform for its customers.

Key Partners

MongoDB operates the MongoDB Partner Network, which includes over 1,000 organizations. They fall into the following categories:

Technology – Partners that have a cloud service, software application, or hardware platform that they want to integrate with the MongoDB database.

System Integrator – Partners that provide MongoDB-based solutions and services to customers who want to leverage the company‘s technology.

Reseller – Partners that purchase and resell MongoDB’s offerings to their customers.

OEMs – Original equipment manufacturers that want to embed MongoDB’s solution into their hardware, appliances, or applications.

Partners receive sales benefits such as premium discounts and invitations to sales meetings; marketing benefits such as newsletters, invitations to promotional events, and access to certified logos; and technical benefits such as access to the partner portal and engineering co-development. Specific current partners include Amazon Web Services, Bosch, C24 Technologies, and FastConnect.

Key Resources

MongoDB’s main resource is its proprietary software platform, which serves thousands of customers.  It also depends on human resources in the form of its engineering employees to maintain the platform and its training/consulting staff to provide instruction. Lastly, as a start-up it has relied heavily on funding from outside parties, raising $311.1 million from 13 investors as of January 2015.

Cost Structure

MongoDB has a value-driven structure, aiming to provide a premium proposition through extensive personal service. Its biggest cost driver is likely employee related expenses. Other major drivers are in the areas of sales/marketing and customer support/operations, also fixed expenses.

Revenue Streams

MongoDB has two revenue streams:

Subscription Fees – Revenues generated from the fees the company charges for monthly access to its platform; sales staff must be contacted for specific pricing.

Service Fees – Revenues generated from fees the company charges for usage of its training, certification, and consulting service offerings; sales staff must be contacted for pricing.