Enom 2015 Annual Report Download - page 9

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Saatchi Art. Saatchi Art is an online art gallery that provides a global community of artists a curated environment
in which to exhibit and sell their artworks, including paintings, drawings, sculptures and photographs, directly to
customers around the world. Saatchi Art’s art advisory service provides individual collectors and trade professionals
with complimentary access to an art curator who will select works for the customer to browse that are tailored to the
customer's needs, space and style. There are currently more than 500,000 original, unique artworks created by over
60,000 artists available on the Saatchi Art platform. In addition, artists can choose to sell prints of the artworks they post
on Saatchi Art and we contract with third-party vendors to produce and ship the prints directly to the purchaser. Saatchi
Art customers are located in over 80 countries and approximately 20% of Saatchi Art’s customers have made repeat
purchases, evidencing the high quality of the artwork and their purchasing experience.
Technology
Our technologies include software applications built to run on independent clusters of standard and commercially
available servers located at co-location facilities located in North America. We make substantial use of off-the-shelf
available open-source technologies such as Linux, PHP, MySQL, Redis, mongoDB, Memcache, and Lucene in addition
to commercial platforms such as Microsoft, including Windows Operating Systems, SQL Server, and .NET. These
systems are connected to the Internet via load balancers, firewalls, and routers installed in multiple redundant pairs. We
also utilize third-party services to geographically deliver data using major content delivery network (“CDN”)
providers. Virtualization is heavily deployed throughout our technology architecture, which affords scaling numerous
properties in an efficient and cost effective manner. Enterprise class storage systems provide redundancy in order to
maintain continued and seamless system availability in the event of most component failures.
Our data centers host most of our public-facing websites and applications, as well as many of our back-end
business intelligence and financial systems. Some of our websites are hosted with a third-party cloud hosting provider.
Each of our significant websites is designed to be fault-tolerant, with collections of application servers, typically
configured in a load balanced state, in order to provide additional resiliency. Our environment is staffed and equipped
with a full scale monitoring solution, which includes a Network Operations Center that is continuously staffed.
International Operations
We provide our products and services to consumers around the world. Our Content & Media service offering
includes eHow en Español, Livestrong.com en Español and eHow Brasil (Spanish and Portuguese language sites that
target both the U.S. and the worldwide Spanish/Portuguese-speaking markets), as well as eHow UK (an eHow site in the
United Kingdom). Our marketplaces are available to artists and buyers globally. Information regarding financial data by
geographic areas is set forth in Note 16 of our Notes to Consolidated Financial Statements included in Part III, Item 15,
“Exhibits, Financial Statement Schedules” of this Annual Report on Form 10-K, and additional information regarding
certain risks associated with our international operations is provided under the heading “Risk Factors” in Part I, Item 1A
of this Annual Report on Form 10-K.
Customers
Our content & media customers currently include advertisers and advertising providers that purchase advertising
space on our online properties, as well as third-party brands, publishers and advertisers for whom we provide content
marketing solutions and/or create and host content on content channels as part of our studioD services. Our advertising
strategy is currently focused on programmatic offerings that utilize various advertising network exchanges to manage
our ad stack. We have also recently re-implemented direct sales channels to improve our advertising sales with brands
and advertising agencies, particularly with respect to native and sponsored ad campaigns.
The products and artworks sold through our marketplaces are sold directly to consumers.
Competition
We operate in highly competitive and developing industries that are characterized by rapid technological change,
various business models and frequent disruption of incumbents by innovative entrants.