1.
How to Create an
Industry Cloud
Leader
Going Vertical - Industry Cloud Forum Keynote
Gordon Ritter Ÿ November 12, 2015

2.
ABOUT EMERGENCE
§ MISSION: To invest in visionaries who are building the
most important enterprise technology companies
§ Firm was founded in 2003 with the thesis that
enterprise software would move to the cloud
§ Industry focused cloud companies are just getting started

3.
$114 Billion

4.
2.5x Faster

5.
OPPORTUNITY
§ $114 Billion: dollars spent on vertical-specific
software in 2014, growing 2.5x faster than next
largest software category (CRM) (Gartner, March 2015)
§ Huge opportunity to build the cloud solutions that
will power the world’s largest industries for the
next several decades
§ Horizontal cloud leaders can’t effectively compete
§ New “Industry Cloud” companies are emerging to
lead this transformation
§ Emergence Capital is investing in these companies

6.
TWO TYPES OF INDUSTRY
CLOUD COMPANIES
ENABLERS:
Work with existing
industry model
DISRUPTORS:
Disrupt the existing
industry model
&
• Feared by the industry
• Build marketplaces
• Dismantle high margins
• Often take over direct
consumer relationships
• Reach a tipping point..or
not.
• Partner to the industry
• Focus on applications,
data, and services
• Layer cake product
strategy
• Talent trifecta in
executive team
• High market share is
attainable

7.
WHAT WILL IT
TAKE FOR
ENABLERS TO
WIN?

8.
CUSTOMER
INTIMACY

9.
INDUSTRY CLOUD
“CUSTOMER INTIMACY” AUDIT
How do you
know if you are
on the right
track?
10
QUESTIONS
TO ASK
YOURSELF
ABOUT THE
RELATIONSHIP
BETWEEN YOU
AND YOUR
BUYER

10.
ARE YOUR CUSTOMERS?
3
Recognizing
your
ROI
case
on
mul3ple
dimensions
including
growth,
cost
savings,
and
customer
reten3on?
1
Spending
the
majority
of
their
day
working
in
your
products?
2
Buying
your
core
product
ini3ally,
and
later
purchasing
your
addi3onal
products
that
address
mul3ple
aspects
of
their
business?
4
Discussing
you
posi3vely
at
their
board
mee3ngs?
5
Relying
on
you
as
the
“source
of
truth”
or
“system
of
record”
for
their
most
cri3cal
data?
Industry
Cloud
Audit

11.
ARE YOUR CUSTOMERS?
8
6
7
Leveraging
your
deep
domain
datasets
and
exper3se
to
generate
insights
about
their
own
customers?
9
10
Invi3ng
you
to
speak
at
their
conferences,
offsites,
and
other
strategic
events?
And
sending
their
C-­‐
Level
execs
to
your
events?
Considering
you
as
a
plaKorm
where
other
applica3ons
can
be
built
and
launched?
Using
your
“last
mile”
solu3on
to
help
them
beMer
reach
and
understand
their
customers?
Asking
for
your
input
on
their
own
product
development
and
rollout?
Industry
Cloud
Audit

12.
INDUSTRY CLOUD
FORUM
=
OPPORTUNITY TO
LEARN FROM THE
LEADERS

13.
AGENDA
9:45 Becoming the Most Important Strategic Partner for our Customers
Peter Gassner, CEO, Veeva Systems
10:30 Lessons Learned from LoopNet's Vertical Ascent
Rich Boyle, Former CEO, LoopNet
11:00 Vertical Go-to-Market Strategies
Charles Thornburgh, CEO, Civitas Learning & Katy Keim, CMO, Lithium
11:30 Reaching the End-customer: Strategies for the “Last Mile”
Marcus Ryu, CEO, Guidewire
12:00 Lunch (industry round tables)
1:00 Leveraging Platforms to Build Vertical Solutions
Aaron Levie, CEO, Box
1:30 Moving from Horizontal to Vertical
Greg Smirin, Former COO, ClimateCorp
2:00 Building Credibility as a Start-up in a “Traditional" Industry
Nima Ghamsari, CEO, Blend
2:30 Fostering Partnerships Across an Industry
Andy Hurd, CEO, MedeAnalytics
3:00 Cookie Bar Reception with Speakers, Sponsors & Platforms

14.
ABOUT EMERGENCE CAPITAL
@emergencecap
Emergence Capital, based in San Mateo CA, is the leading venture capital firm focused
on early and growth-stage enterprise cloud companies. Its mission is to invest in the
cloud visionaries who are building the most important business applications. The firm's
investments include Salesforce.com (CRM), SuccessFactors (SFSF, acquired by SAP),
Veeva Systems (VEEV), Yammer (acquired by Microsoft), and Box (BOX). Emergence
Capital has over $910 million under management. More information on Emergence
Capital can be found at www.emcap.com.
Gordon Ritter, General Partner, Emergence Capital, @gordonritter
gritter@emcap.com
ABOUT EMERGENCE CAPITAL