Our strategic acquisitions have helped enhance our service and product offerings,
increase and diversify our customer base and reduce our reliance on individually
significant customers. Service revenue from our five largest customers, as a
percentage of total service revenue, was 13.9%
In today’s rapidly shifting macro business environment, businesses are
demanding that financial and operational strategies be implemented in the most
efficient and complete manner possible. The classic providers, such as the large
management consulting firms, large accounting firms and multinational integrators,
tend to provide solution services exclusively on large complex platforms, encompassing
many players of mixed experience levels and in a myriad of locations. Edgewater’s
services are focused and quickly deployed onsite in a specialized solution package,
more appropriate to today’s need for faster innovation rollout, pushed
deeper into subsidiaries of multinational corporations as well as middle market
growth companies.
Expenditures in the information technology market have become a critical success
factor in every company’s successful growth. As such, IT expenditures
are receiving the scrutiny of the “C-level” officers, when specifically
focused on transformational change. Our C-level buyers are looking to purchase
rapidly deployable, risk-managed, product-based technology solutions. These
solutions maintain the ability for a company to differentiate itself from its
competitors with proprietary business process, combined with the leverage of
product customization. Edgewater assists clients with these solutions primarily
in the Oracle Corporation (“Oracle”) and Microsoft Corporation (“Microsoft”)
product channels, while providing the opportunity for a customer to customize
its solutions through the utilization of its custom technology consulting services.
Sales. Our sales approach is to combine traditional sales with our strength
in industries and technology. Our traditional sales function is composed of
direct sales professionals and inside sales professionals. Both work closely
with our practice directors to identify potential opportunities within each
account. Using a consultative selling methodology, we identify target prospects
and develop a pursuit plan for each key account. When contact with a target
is established, we utilize a blended sales model to demonstrate our expertise,
combining consultative selling with traditional sales methods. Once the customer
has engaged us, our sales professionals maintain their relationships with the
customer by working collaboratively with the consulting professionals who are
assigned to the customer.
Strategic Alliances. As part of our sales and marketing effort, we have established
working relationships with a number of companies, including: Informatica Corporation,
Keyteach, Microsoft, Oracle, Cloudera, Hortonworks, SiteCore, Accelatis, Amazon,
and Webtrends. These alliances generally entail sharing sales leads, joint marketing
efforts, making joint customer presentations, negotiating discounts on license
fees or other charges and conducting similar activities. Our arrangements with
many of these companies are informal and are not subject to definitive written
agreements. For those companies with whom we do have definitive written agreements,
those agreements are either terminable at will by either party or are for terms
of one year or less. We believe we have been successful in establishing alliances
with a strong group of companies who are either industry leaders or well-regarded
new entrants.
