Support.com 2008 Annual Report Download - page 8

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Table of Contents
service offerings. With respect to channels, we are seeking to expand existing programs, convert our most promising pilots into full programs, add new partners
and grow our direct support.com business. We aim to diversify revenue by expanding smaller programs, developing partnerships with additional companies
through which our offerings can reach consumers and growing our direct business. With respect to service offerings, we recently introduced subscription-based
offerings at support.com and began offering them through channel partners in early 2009. We have also introduced new services such as online backup and data
migration, and plan to continue to expand our offerings to include educational services and support for additional devices.
We aim to improve service delivery efficiency in the Consumer segment by optimizing our service delivery operations through increased automation,
process improvement, performance management, improved forecasting, revenue scale and labor cost optimization. We are focusing a substantial part of our
research and development activities on technology that increases the efficiency and improves the effectiveness of our technical support agents. To date, these
activities have been focused on our Solutions Toolkit, an integrated set of tools for delivery of premium technology services, and we have an extensive roadmap
for these technologies. In addition, we have introduced significant process improvements into our service delivery operations and augmented our call center
management team to drive efficiency gains and productivity increases, and we expect to continue these efforts. We also expect improved forecasting and revenue
scale to enable resource optimization. To further enhance service delivery efficiency, we are exploring a number of means of optimizing labor costs.
Enterprise
The key goals of our strategy in the Enterprise segment are to continue operating profitability in this segment in the current macroeconomic climate and to
introduce new products to sustain and grow revenue. For these purposes, we measure segment operating profitability on a non-GAAP basis; excluding common
corporate expenses, stock-based compensation expenses, restructuring charges and amortization/write off of intangible assets (“Segment Operating
Profitability”). See Note 2 of Notes to Consolidated Financial Statements for further information about segment reporting.
In order to continue Segment Operating Profitability in the Enterprise segment, we are carefully managing costs given the current macroeconomic
environment. As a result, we completed reductions in force in the fourth quarter of 2008 and in the first quarter of 2009. In addition to reducing headcount, we
have also reduced facilities expenses by closing certain of our physical offices and moving to a work-from-home model in certain geographies.
In expanding our product offerings, our new Dynamic Agent will build on the desktop software agent our customers have deployed to more than
50 million end-users worldwide, and will allow customers to offer content that is targeted and personalized for specific end-users based on diagnostic information
gleaned from their computers. When combined with new capabilities for presenting marketing offers and downloading digital goods, the Dynamic Agent will
allow customers to use our platform for revenue generation as well as support services. Our RemoteTango product, expected to be released in late 2009, will be
remote control software delivered in a hosted, Software-as-a-Service (“SaaS”) model. Remote control software enables one computer user to control another’s
machine; it is used heavily in technical support and remote infrastructure management. We have had remote control in our product portfolio for some time, but
our new product has been redesigned for SaaS delivery and will be offered on a standalone basis rather than as part of a larger suite of products and services.
While we have invested significant resources in the new Dynamic Agent and RemoteTango offerings, no assurance can be given that they will be introduced
successfully, gain market acceptance or generate material revenue for us.
Consumer Services
We currently offer premium technology services through channel relationships with retailers, anti-virus providers and other companies, and directly
through support.com. Our services are provided by home-based
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Source: SUPPORTSOFT INC, 10-K, March 11, 2009