A Business Continuity SaaS Success Story
MessageOne was a Business Continuity SaaS company with a charter to ensure that no client would ever lose access to their email services, even in the face of system failures or disasters. The company offered a mission-critical service in an era where email was the backbone of communication for businesses. However, despite its innovative product, the company lacked key operational infrastructure and leadership in several areas.
This case study examines how MessageOne overcame these challenges, scaled its operations, and eventually became a highly sought-after acquisition target, ultimately being purchased by Dell Technologies as its first venture into the SaaS space.
Initial Challenges
When MessageOne began its journey, it faced several critical deficiencies:
- Absence of Operations Leadership
The company lacked a dedicated leader to build and manage essential teams. - No Customer Support Team
There was no structured approach to handle customer queries, troubleshooting, or service management. - No Integrations Team
As a SaaS provider, MessageOne needed a team to manage integration with client systems and other third-party software.
- IT Operations Deficiency
Internal IT operations were underdeveloped, creating risks for both product reliability and internal functionality. There was little to no operational performance metrics in place to gauge success and client (external and internal) satisfaction. - Lack of a Security Organization
With no formal security team, MessageOne was exposed to risks related to data protection and cyber threats, a particularly significant issue given its role in business continuity for email services.
Spotlight Operator
Director of Operations
Known for his adeptness in strategic decision-making and operational finesse, Jeff’s hands-on approach and insightful guidance have been pivotal in fostering profound growth and driving operational excellence within the companies he has served. His wealth of experience and proven track record make him a seasoned authority in the realms of business expansion, turnaround strategies, and financial acumen.
Building the Operations Infrastructure
To address these deficiencies, MessageOne embarked on an ambitious plan to build out its internal operations from the ground up. The company focused on the following key areas:
Customer Support Team
A dedicated customer support team was created to ensure clients received timely and effective assistance. The support team became a cornerstone of the company’s success, providing a high level of service reliability and satisfaction.
Integrations Team
A specialized integrations team was established to streamline the onboarding process and ensure seamless integration with client environments. This team’s efforts allowed MessageOne to enhance its value proposition by offering flexible and reliable integrations.
Security Organization
Given the sensitive nature of email communication and business continuity, a comprehensive security program was built. This included hiring security experts, implementing best practices, and ensuring compliance with industry standards to protect both MessageOne’s and its clients’ data. In addition to providing the needed security elements for our clients’ safety, this allowed us to then perform, and pass, audits such as SOC and ISO.
IT Operations
The IT operations function was transformed, with new hires and investments in technology aimed at improving infrastructure stability and minimizing downtime. This development was critical to the company’s ability to provide a reliable business continuity solution. We needed to modernize legacy systems by making capital investments in equipment, redesign the network, and find areas that could and should be automated, such as site failover if needed. Updated monitoring of systems and usage provided a baseline to begin and ongoing methods to measure our performance.
A portion of the success in this area was the decision to provide multiple hosting facilities operated by IBM and SunGard. This ensured a critical component of our disaster recovery plans. All of these activities allowed us to achieve a 99.9 uptime for all IT systems.
In total, the company grew its operations team to over 40 people, covering all the key areas needed to support the company’s growth and deliver on its promise of uninterrupted email service for its clients.
Revenue Growth & Profitability
Through these operational improvements and a focus on customer satisfaction, MessageOne achieved impressive financial growth. The company expanded from generating $100,000 a year in recurring revenue to over $15 million annually. In addition to increasing revenue, the company maintained strong profitability, making it an attractive target for acquisition.
During this time, we also expanded our relationships to companies like SunGard and IBM who white-labled the solution and resold it to their customers as well.
Acquired by
Dell Technologies
As MessageOne continued to grow, its success drew the attention of major players looking to expand into the SaaS market. After six months of negotiations, the company was acquired by Dell Technologies, marking Dell’s first major foray into the SaaS space.
The acquisition was significant for both parties:
For MessageOne:
It provided the opportunity to scale operations and leverage Dell’s extensive resources.
For Dell Technologies:
The acquisition allowed Dell to enter the growing SaaS market with a proven product and operational foundation.
Post-Acquisition Integration
Following the acquisition, the integration process took approximately 12 months. During this time, MessageOne’s teams worked closely with Dell to align operations, systems, and processes.
The successful integration allowed MessageOne’s business continuity service to thrive within Dell’s portfolio, and the SaaS division continued to grow under Dell’s leadership.
The Journey From Deficiencies To Acquisition
MessageOne’s journey from a small SaaS company with operational deficiencies to a profitable acquisition by Dell Technologies is a testament to the power of strategic operational growth and leadership.
By focusing on building a strong internal infrastructure, delivering excellent customer service, and maintaining a reliable and secure product, MessageOne positioned itself as a leader in business continuity and became an attractive acquisition target in the growing SaaS market.
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