Its not all doom and gloom
Economic downturns can encourage organisations to look at new ways of doing business that they previously hadn't considered because they have had the economic freedom to maintain the status quo, even if it wasn't the most efficient method.
Tightened budgets and a renewed focus on core business can drive organisations to make the leap but risk aversion can still stand in the way. For Mimecast it seems that many organisations are turning to us in the current economic downturn to outsource the management of email risk and compliance, allowing them to turn their attention - and budgets - to more constructive IT projects.
In our quarterly results announced yesterday, revenue over the nine months to December had grown by 318% compared to last year. In the past twelve months over 1,000 new organisations, representing an additional fifth of a million users, have turned to Mimecast to remove the burden of their email management issues.
The key to Mimecast continuing to achieve these astronomical levels of growth even in these troubled times is to ensure our existing customers don't want to leave the service. Mimecast, in common with all Software-as-a-Service vendors, relies on a subscription-based revenue model. For every 10% of our customer base lost we would have to increase sales by 11% just to grow our revenues by 1%.
In reality Mimecast has some of the highest customer retention rates for any Software-as-a-Service vendor - an astonishing 99%. This level of customer satisfaction is achieved through a combination of strong focus on customer service and a constant stream of technical innovation.
The peace of mind of some of the most rigid Service Level Agreements provided by any email management vendor (100% virus protection, 99.5% spam protection and 99.999% availability) has satisfied the risk aversion of many organisations, allowing them to take that leap-of-faith to the Software-as-a-Service model.
So Mimecast continues to grow, customers free-up budget and staff to concentrate on more urgent matters while continuing to deliver enterprise-grade email services to their users. That, my friends, is what you call a win-win situation.