Fenix Alliance S.A.S

Business Model Showcase

Created by
Daniel Lozano Navas
Chief Executive Officer

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Today, Digitalization is the business

Digitization has continued to change every business and every industry in the world. New technologies allow organizations to interact with their customers in a profound way and change the way that organizations relate to their customers, deliver products and services, perform preventive maintenance and add totally new functions and features to their existing offerings.

Cloud computing at a glance

Any discussion about the technology industry today must begin and end with cloud computing. The way technology is consumed around the world is changing, and the entire technology industry with it. A general term for anything that involves delivering a particular form of technology infrastructure or software application over the Internet, with multiple companies sharing applications and hardware resources. Cloud computing is experiencing 5-year composite annual growth rates (CAGR) of 5%. times the growth of the IT industry in general. IDC predicts that spending in the "Whole Cloud" Revenues Will Reach $554 Billion in 2021.

The raw opportunity

Through Information Technology and telecommunications, it is possible to increase the efficiency of operations, create cost savings and generate a competitive advantage through new business models, products and services enabled by technology. Thus, the growing demand and infrastructure of information and communications technology services has focused, mainly, on the Cloud.


Understanding the opportunity.

IDC predicts that spending in the "Whole Cloud" Revenues Will Reach $554 Billion in 2021. This includes SaaS, PaaS, IaaS, plus all professional and managed services around the cloud technology (both public and private), as well as the Support software and hardware to make the implementation of the cloud happen.

Our opportunity

Fenix Alliance is well positioned to capitalize on this demand. We are leaders in the provision of integrated IT solutions outsourced to small and medium-sized companies, we have a strong presence in the market, an attractive set of offers and the technical means to exploit this commercial opportunity.

Our target market

Over the years, Fenix Alliance has worked extensively and has developed solid practices and a particular knowledge of the unique business and organizational challenges faced by small and medium businesses over 6 industries. We firmly intend to take full advantage of this experience in the future, as customers expect solutions in the cloud that are ready to use in specific sectors of the industry.

This presentation's purpose

To maximize our commercial potential, we need additional financing to aggressively acquire Cloud customers and crystallize our market share before our potential competitors. This Business Plan will detail how we intend to capitalize on this opportunity, the funds we will require and the economic benefit that will result if we succeed. This is a critical moment, since cloud computing has become the mainstream. Those who first obtain strong positions in their chosen niches will be very difficult to move later.


Main reasons for the fundamental change in customer demand towards cloud computing:

Cloud solutions require little or no capital outlay by the customer.

Offers in the cloud are consumed by subscription, with all aspects of the offer provided by the provider, so they do not require large initial investments, whether in software or other licenses, or hardware.

Cloud solutions cost less.

Because Cloud offerings are provided by larger entities that add volumes effectively and therefore achieve economies of scale that are not available to any medium-sized company, a customer can generally reduce their overall technology costs.

Cloud solutions are more flexible.

An organization can use as little or as much cloud technology as necessary, increasing capacity up and down without additional infrastructure costs.

Cloud solutions reduce risk.

Because the cloud offerings are "perennial" services, there is no risk of the technology becoming obsolete. A customer is always using the most recent version of any particular technology.

About our company

Over the last 10 years, Fenix Alliance has developed solid practices on provisioning, development, and support of outsourced cloud-based digital solutions for small and medium enterprises, while supporting and helping them to drive their digital transformation path at their own pace through a complementary technology-only related e-commerce service to help personal and corporate customers in their technology acquisition process.

Who we are

Our cross-discipline expert teams around cloud computing infrastructure, digital strategies, software engineering, user experience, design and more, are big enough to help you conquer any challenge, regardless of the size, and still small enough to deeply care about your particular vision.

What we do

Whether it is a proof of concept, a prototype or business-critical system, we deliver results in days or weeks, not months! We’ll help you get faster, more responsive and gain the confidence to start doing things you never thought possible before!

How we do it

We only take projects from customers when we are certain that we can exceed their expectations. We organize our teams of specialists around their projects to fulfill their vision and we work closely to our clients to create a virtuous feedback loop around their employees, operations, products, and customers.

Why we do it

We have established a solid and respectable business that provides our clients with the technological infrastructure they need to remain competitive and develop a culture of collaboration, efficiency and innovation within the organization.

Where we are

Headquartered in Tunja, Colombia, our workforce is ready to serve customers located in and around Colombia and given the great advantages of our online presence and cloud computing that powers our business, we hope to develop our operations at a global scale.

Our partners

We believe...

that together...

we are unstoppable.

In order to obtain the highest margins, direct support and exclusive benefits for business partners, we have established formal partnerships with several of the most recognized companies in the world in the manufacture of technological products and services, among which we can highlight (but not limited to):

Our MSP business practices

Our cross-discipline expert teams on cloud computing infrastructure, digital strategies, software engineering, user experience, design and more, are big enough to help you conquer any challenge, regardless of the size, and still small enough to deeply care about your vision and help you assess and realize your digital transformation path.

We differentiate ourselves by our practices around AI, data, dev-ops, automation, and cloud-native application design. We use the best existing cloud features while designing new solutions in order to meet our customers’ unique business demands. Essentially, we serve as a one-stopshop for customers by providing a common support, provisioning and billing experience—all with a flexible Pay-as-you-Go business model.

We don’t see don't see managed services practice as separate from hosting, SI, resale, or app design business streams. Instead, we incorporate all of these valuable services as a unified managed services offering to our customers.

AI and Cognitive Services

We are using smart technology to expand and develop human's capabilities, freeing everyone to amplify their ingenuity and allowing companies and organizations be more strategic and productive through AI.

Cloud Application DevOps

We've been helping our customers for 10 Years to build the next generation of intelligent applications, to leverage comprehensive solutions and enable the tremendous power of a Cloud that's always ready to exceed their expectations.

Managed Cloud Infrastructure

We architect, deploy, and manage cloud solutions to provide faster innovation with optimal control and security through new native/hybrid cloud practices and capabilities that span through infrastructure, applications, data and users.

Analytics, BI and Data Platforms

We work with a wide portfolio of data solutions, hybrid and in your cloud of trust to create rich offers that transform data into ideas, allowing our customers to take better decisions and faster decisions.

IoT Original Equipment Manufacturing.

Our group of experts help you connect your business directly with a large ecosystem of design manufacturers all over the world to design and develop custom devices for your organization that perfectly fit your needs, budget and specifications.

Security and Mobility solutions.

We support and insure our clients as they take advantage of the opportunities presented by mobile and cloud computing to connect and optimize operations, guaranteeing security, privacy and compliance.

Our Departments

At Infinity Comex we are deeply commited to deliver the very best technology products to meet the exact needs of thousand of our customers all over the world. Our smart eCommerce platform integrates seemlesly with out business suites to help our customers take advantage from our technology offerings like a business.

At Infinity Comex we offer technology for the modern customer, businesses and enterprise, where they can access thousands of products from leading brands such as Intel, Microsoft, MSI, Nvidia, Samsung and more.

Meet the experience and technology that your organization needs to reach way beyond expectations.

We design, create and implement intelligent cloud-based solutions that unleash the power of collaboration in organizations, increase productivity and help reduce the cost of technology.

We've been helping our customers for 10 Years to build the next generation of intelligent applications, to leverage comprehensive solutions and enable the tremendous power of a Cloud that's always ready to exceed their expectations.

We are committed to help grow your business in the cloud and provide the best service by offering flexible support options designed to meet your needs.

Our suite of proactive services and advanced technical support reagents for cloud-based devices and services is designed to provide proactive guidance and support assistance for your most critical IT cases, as well as help identify and execute your top priorities and projects in Cloud.

We firmly believe that the key to a better future is education. We work together with world leaders in the provision of services and solutions to educational institutions, at affordable prices for institutions of all sizes.

At Learn Alliance, we help boost the growth of our academic clients through solutions that help reimagine education in the digital era, helping to deliver a cognitive and quality education, always focused on the growth of students.

Differentiation strategy

Unlike its competitors, Fenix Alliance has the following competitive advantages:

Presence in the market.

In an industry that sees new entrants entering and leaving relatively frequently, few players manage to achieve the longevity required to build a true market awareness. Fenix Alliance, with more than 9 years in the business, has such a presence in the market. In the highly competitive IT industry, this presence in the market directly translates into the ability to obtain new prospects for your products and services more easily and economically than its competitors. Fenix Alliance is also in a better position to compete without high costs, resulting in higher margins.

Scalability

Thanks to the fiscal policies of our country, most of our activities are exempt from taxes, given their nature, by article 476 of the Colombian Tax Statute. This supposes a competitive advantage in front of international competitors, as well as a possibility of global expansion that contributes to the local development of our communities.

These structures and controls reduce unit costs with respect to the delivery of products and services, and give the organization more financial leverage and greater stability against other players in the industry.

In addition, due to the anticipated wave of consolidation within the IT industry, larger players like Fenix Alliance are in a much better position to grow their businesses, both organically and through acquisitions.

Industry Experience

A key factor in meeting customer expectations lies in the ability to provide industry-specific solutions, either "ready to use" or through their development or customization. Fenix Alliance has the depth and breadth of experience to provide these solutions to manufacturers, distributors, professional service organizations and field service operators, among the most attractive market segments both in terms of total market demand and profitability.

Management in depth

When it comes to achieving a much larger broad of goals than the average scale, the depth of management required is tremendous. Smaller IT service providers rely much more on the owner's continued presence, both to continue delivering consistent revenue streams and to keep the entity profitable. Fenix Alliance has been developing a fully automated management system infused with AI to continuously align our teams, processes, and products with financial performance.

Co-Marketing

With the intention of boosting our commercial activity with service providers, suppliers and distributors, in Fenix Alliance Group we carry out joint marketing campaigns co-financed by our business partners worldwide, thereby developing a competitive advantage over our partnerless competitors.

Operation Automation

At Fenix Alliance Group we understand the importance and power of automation in a business practice designed for the digital age.

Whenever we can, we turn repetitive tasks into multistep workflows. Then we use and share this automated approval workflows to quickly respond to and process requests, from time off and travel plans to documents and sales opportunities.

Thanks to our data unification strategies, we gather data from many sources to create interactive, immersive dashboards and reports that provide actionable insights and drive business results, helping us to reduce development costs and increase overall business efficiency and ROI.

Loyalty programs

At Fenix Alliance, we reward loyalty more than anything else. For our clients, associates, collaborators and employees, we have adopted a commitment to help them realize and extend their capabilities, and for this matter we have designed ingenious tools and rewards programs.

Cognitive Solutions

We recognize the fundamental role that delivering next-generation experiences means for our organization. Due to the above, we have dedicated ourselves to the task of developing cognitive solutions that allow our users to interact with our services in a way that is much closer to the way in which we interact with other humans. All this through technologies that build on the power of Machine Learning to deliver applied AI solutions that allow us to connect effectively with our customers and prospects

Our Strategies

Our Sales strategy

The increase in demand for Cloud solutions has been accompanied by a significant change in purchasing behavior. Today's buyer not only expects to find potential suppliers online, but also undertakes considerable research before communicating with them, and, above all, wants to maintain control of their purchasing process at all times. In essence, this is the main reason for the investment in marketing infrastructure that we have just described.

But just as important is the need for a different sales methodology focused on the cloud, compensation structures and in fact the sellers themselves. The industry's solid experience is that the processes and sales resources of the "old school" simply do not transform well into a world in which the cloud comes first.

Our strategy is to aggressively build a largely remote sales force by making the investments mentioned below, and by hiring dedicated sales resources in the cloud.

Our Marketing strategy

As the demand for solutions in the cloud is created, Fenix Alliance needs to strengthen its online demand generation capacity in order to aggressively acquire cloud customers and crystallize our market share before potential competitors. This is a critical moment, since cloud computing moves into the mainstream. Those who obtain strong positions in their chosen niches will first be very difficult to move later, and we wish to be among the first group.

Fenix Alliance anticipates the requirement to invest USD 50.000 per year in the next 4 years to meet the projections of adding customers described later in this document.

Our Delivery strategy

Although Fenix Alliance does not foresee the need to contract large-scale technical resources to meet the income and addition goals of its clients, it must invest in the training of existing resources. In addition, you must simplify and adapt many of your existing implementation and support business processes to be fully relevant to the cloud.

Our Financial Projections

Our Capital Requirements

Sales investments

• Recruitment, hiring and training of exclusive sales resources for the cloud. • Adaptation of a CRM system to dispose perfectly throughout the purchase cycle, as well as integrate marketing with sales.

• Continuous monitoring of the administration of the sales function of the cloud.
Fenix Alliance anticipates the requirement to invest USD 200.000 over the next 4 years to finance our sales infrastructure and strategy.

Marketing investments

• Optimization of the search engine on the page (keyword search, keyword placement, title tags, meta descriptions, content design, etc.)
• Off-page search engine marketing (writing articles, creating links, press releases, etc.)
• Social network configuration, training and continuous administration
• Creation of exclusive content (electronic books, guides, white papers, case studies, home pages, new products, blogs)
• Creation of multimedia content (webinars, videos, infographics, slide shows)
• Nurture marketing (email campaigns to nurture potential customers)
• Co-marketing with partners
• Marketing automation

Fenix Alliance anticipates the requirement to invest USD 50.000 per year over the next 4 years to meet our projections of adding customers described later in this document.

Delivery investments


• Hiring, training and re-training talent in the latest cloud technologies.
• A modernization of our traditional implementation processes to be more agile and deliverable in a totally remote way.
• A renewal of our support function to support the latest technologies continuously.
• Training our support function to make cross-selling more effective and increase additional offers.

Fenix Alliance anticipates the requirement to invest USD 300.000 over the next 4 years to finance this initiatives.

Infrastructure investments


• Internal Cloud ingrastructure for our digital services and solutions.
• Licensing from external sources like Autodesk, Adobe, SAP and others.

Fenix Alliance anticipates the requirement to invest USD 300.000 over the next 4 years to finance our business' infrastructure.

Customer Lifetime Value

valuation impact

In part, Fenix Alliance intends to pursue an aggressive cloud strategy because the increase in this type of computing has caused a dramatic change in the way companies in the IT industry are valued. Because cloud solutions involve the purchase of ongoing subscriptions rather than initial investments in hardware, software, and configuration services, valuation metrics tend to be driven by recurring revenue levels and margins driven by those revenue sources. Revenues from one-time project services, or unique software revenues, are less valued. In the current market, IDC considers the following valuation differentials for private IT service providers.

Potential valuation Traditional income business Recurring revenue business
Revenue Multiple 0.2-1.5x 2-6x
EBITDA Multiple 2-2.5x 5-14x

Risk and mitigation

The following are the potential risks associated with this Business Plan and how we plan to mitigate them.

Customer acquisition costs

The acquisition of clients for cloud solutions requires a significant investment in sales and marketing capacity, as detailed above. If these investments do not generate the expected volume of clients, the acquisition costs of the clients will be higher than expected, in relation to the generated revenues, and would create a cash flow deficit higher than anticipated.

To mitigate this risk, we have adjusted the capital that we consider necessary to resist this event.

Client retention

Because the long-term financial returns for a cloud business depend a lot on customers renewing their subscriptions and buying others, any customer "material change" of the customer will have a negative impact on the overall financial results.

To mitigate this risk, we plan to strengthen our customer service and nurture marketing capabilities with the capital raised.

Adverse economic conditions

Although the demand for solutions in the cloud is solid and is currently growing, adverse economic conditions could negatively affect this demand and, therefore, financial projections not achieved.

There is also the possibility that we can face the pressure on the prices of competitors that seek to establish themselves in our target markets, and effectively buy market share with lower prices than we can match for ourselves, or even maintain in the long term.

To mitigate this risk, we plan the rapid execution of this Business Plan, once the necessary funds have been collected.

Security and data privacy

The solutions in the cloud must be considered safe to be sold. Specifically, customers should feel that their data is safe and kept private. Any commitment to data security and / or privacy, even if it is not our direct responsibility, will have a negative impact on our ability to sell and market our solutions.

To mitigate this risk, we will offer products based on world-class technologies that comply with the most stringent regulations and are also recognized as the safest available.

Service interruptions

Cloud solutions must be available 24 hours a day, every day of the week, and any interruption in service will have a negative impact on our business. In addition, as with the security and privacy of the data, we rely on the 3rd. Party providers to provide our customers with continuous access to their applications and IT infrastructure.

To mitigate this risk, we have chosen to enhance our services through world-class technologies such as Microsoft Azure, Google Cloud Platform and Amazon Web Services for their reliability.

Organizational Transition and Control

Moving to a delivery model in the cloud is a significant organizational change, and represents a migration to a materially different business model. To fully complete this transition, management must be very skilled, as well as maintain control over the organization in the meantime.

We are sure that we have the required talent and controls of the organization.