Support.com 2007 Annual Report Download - page 8

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Inside businesses, IT departments are tasked with managing, supporting and servicing an expanding array of technologies used by employees. This
challenge, combined with a redefinition of the workplace to include the office, the home and any point between, has made keeping the enterprise secure from
virus attacks, maintaining business critical applications and responding to end-user requests for assistance an increasingly difficult and expensive task.
The traditional approach to addressing these challenges relies upon call centers and help desks resolving problems in a largely manual fashion. This
approach has often proven inadequate for consumers, who require an increasing amount of assistance to help them manage the technology that now pervades
their lives. This approach to meeting technical support needs has also been ineffective for many organizations, given its costly and time-intensive nature.
Strategy
SupportSoft provides software and services designed to make technology work. Our strategy includes the following goals:
Expand Revenues in Consumer Segment
We launched our consumer business in 2007, building on the offerings and market knowledge we developed in our traditional enterprise business. We
sought to establish the business in two primary ways: by developing alliances with other companies through which our offerings could reach consumers, and by
establishing a direct-to-consumer business under the support.com brand. In 2008, our goal is to develop these existing alliances, increase revenue from them and
add new alliances for our consumer offerings. We also plan to continue to invest in support.com in an effort to drive steady improvements in our
direct-to-consumer business.
Operate Enterprise Segment in a Profitable Manner
During 2008, our principal goal in the enterprise segment is to operate in a profitable fashion on a non-GAAP basis (exclusive of stock-based compensation
expenses, restructuring charges and amortization/write offs of intangible assets). The key elements of our strategy to achieve this goal are cost reductions,
increasing satisfaction of existing customers, and obtaining new customers. With respect to cost reductions, we completed a reduction in force in the fourth
quarter of 2007 that will lower expenses in this segment, and we expect to maintain the reduced spending level unless and until this segment experiences
substantial growth. With respect to customer satisfaction, we are operating with a series of tailored account plans designed to enable our customers to achieve
maximum value from their investment in our products. With respect to new customers, we have targeted initiatives in specific market areas designed to expand
our customer base.
Expand Consumer Service Delivery Capability
We launched our consumer business with a limited number of outsourced customer support agents. In 2007, we increased the number of agents throughout
the year and are continuing to do so in 2008. We are now supplementing outsourced agents with agents who are Supportsoft employees. Because our technology
support services are delivered remotely, by telephone and over the internet, our customer support agents can be geographically distributed and can work from
home offices, as well as physical call centers.
Differentiate Consumer Offerings Through Technology
In the consumer segment, our research and development activities are focused on technology that increases the efficiency and improves the effectiveness of
service delivery. To date, these activities have been focused on the Service Delivery Management System, a platform for multi-channel sale and
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Source: SUPPORTSOFT INC, 10-K, March 13, 2008