Extracting Objective Insights from Enterprise Data
In Sophic Capital’s Diving into the Data report, we learned:
- enterprises are drowning in data and cannot leverage valuable hidden insights to improve revenues and costs;
- bad data can waste up to 30% of employee time, and;
- although solutions exist to make use of the vast data, very few can centralize data from all operations and extract crucial business intelligence insights.
In this report, we introduce Sophic Capital client Edge Total Intelligence (“edgeTI”) (TSXV:CTRL) who helps enterprises experience significantly improved returns by centralizing data and extracting business insights for objective decision making.
Edging Into the Company
edgeTI is a software company providing single point of control software enabling large enterprises, service providers, and governments to rapidly coordinate and execute informed decisions. edgeTI’s flagship edgeCore™ Platform integrates a customer’s existing systems with new digital innovations to speed operations, meet goals, and create competitive advantage.
edgeTI’s edgeCore intelligence software centralizes business data/information into a single control platform. edgeCore tracks existing enterprise data systems to deliver real-time, secure, connected, role-based data aggregation, digital process orchestration, and information visualization. Through its real-time, single point of control platform, edgeTI helps enterprises to improve business outcomes through better decision making and strategizing, process automations, and cost reductions.
edgeTI’s platform is deployable in the cloud, so all customers benefit from software improvements and new features. However, there are many industries (for example defense, airlines, healthcare) that operate on-premise servers for security and protection of intellectual property. For these companies, edgeTI also offers on-premise solutions to help automate and extract valuable insights from extensive and growing data sets.
Source: Edge Total Intelligence
Competitors and Collaborators
Given edgeTI’s focus on how people engage with technology, DXP is the closest market definition to what the Company does. DXPs provide seamless integration across multiple business systems, customer activity monitoring components, and analytical capabilities. As mentioned in Sophic Capital’s Diving into the Data report, the 2020 DXP market size was estimated at US$9.2 billion and forecasted to grow to US$22.9 billion by 2028. However, in Sophic Capital’s Diving into the Data report, we highlighted other technologies that compete against DXP (iPaaS, ABI, DSML). Here are some of the leaders in those alternate technologies:
Integration-Platform-as-a-Service (iPaaS) solutions include Informatica, Salesforce, Oracle, Boomi, and SAP. Most common integrations are performed at an Application Programming Interface (API) layer. An API is software that allows other software to communicate with an application. These communications can be at a data layer, action layer, or at an experience layer. The iPaaS is a connector of systems. edgeTI has unique IP and capabilities that enables customers to connect legacy systems that either have no API or when connecting to the API is considered too large of a risk. TIBCO Software has a broad range of software solutions across five segments. The primary difference between TIBCO and edgeTI is TIBCO offers multiple products that need to be integrated from a single vendor. edgeTI, on the other hand, deploys against what a customer has today to produce a rapid return on investment.
Enterprise Data Management (EDM) solutions include renowned software houses like Microsoft (NASDAQ:MSFT), Oracle (NYSE:ORCL), Amazon (NASDAQ:AMZN), SAP (NYSE:SAP), and Google (NASDAQ:GOOG). Likewise, common connections also include fast movers like Alibaba, MongoDB, Snowflake (NYSE:SNOW), Databricks, and Talend. All of these and many others come into play when trying to corral and reach or feed data. Most common above all, edgeTI reaches real-time data from the authoritative applications themselves and blends that with historical data.
Analytics and Business Intelligence (ABI) solutions include powerhouses like Microsoft’s PowerBI, Salesforce’s Tableau as well as SAP, SAS, and ESRI (the location intelligence mapping leader). Fast movers like (NASDAQ:PLTR) provides big data analytics solutions and has two flagship products: Gotham is the deployment and visualization element, and Foundry automates the collection and preparation. The primary difference between Palantir and edgeTI in the former’s data science focus versus the latter’s open approach to applying AI and machine learning from any source. Open-Source solutions also abound in this space with Grafana Labs. edgeTI is often confused with Business Intelligence (BI) systems, yet has conducted multiple projects with PowerBI and Grafana, increasing their contribution and creating more fluid experiences.
Intelligent Automation (IA) solutions include technology automation and business process automation while including business rule systems. IBM’s (NYSE:IBM) acquisition of RedHat among others propelled them to be among the largest in the space alongside UiPath, Automation Anywhere, Blue Prism. Microsoft made rapid strides with additions to its Power Suite. edgeCore platform has native capabilities and can orchestrate actions of complex and simple automation tools enabling customers to use the right tool for the right job.
Digital Experience Platforms (DXP) companies include LifeRay, Inc. is an open-source company that provides free documentation and paid professional service to users of its software. Much like edgeTI, LifeRay creates Digital Experiences for service operations. edgeTI differs from LifeRay in its embedded capabilities for multi-tenancy and unique abilities to work with Citrix.
Source: Edge Total Intelligence
Revenue Model
edgeTI generates revenues largely from edgeCore, software that connects customer software and data systems using cloud infrastructure through a single, secure, point of control. edgeCore revenues can be via perpetual and subscription licensing, updates and maintenance fees, and professional consulting services. The Company has been migrating its base to Subscription licenses as customers upgrade.
- Subscription licenses permit customers access to edgeCore for a defined term. Typically, terms range from one to three years, and edgeTI recognizes subscription revenue monthly (although subscription licenses are prepaid annually).
- Professional consulting fees come from services edgeTI performs, including software set-up, development, implementation, and integration. Professional consulting service contracts can be either fixed price contracts or billed hourly. Fixed fee project revenues are recognized monthly and based upon the ratio of hours expended to the total estimated hours. Time-based contracts recognize revenue depending upon the number of hours edgeTI professionals expend in the performance of the project multiple by the rate identified in the contract.
- Perpetual licenses allow customers to use the edgeCore indefinitely, edgeTI collects an upfront fee and recognizes revenue when the related performance obligation is satisfied by transferring the software product to the customer.
- Maintenance and Support revenue is deferred and recognized monthly over the term of the contract which is typically one year.
Customer Validation
North Wind Group, a Cook Inlet Region Inc. subsidiary, recently engaged edgeTI to address their unique challenge of gaining actionable insight across their multiple companies that perform environmental services, building, and information services. Given the sensitive nature of the work North Wind Group performs, multiple HR systems and financial systems needed to be combined to create a holistic picture. After months of using other software, edgeTI delivered a working solution that continues to create value and insights that would have gone unnoticed.
“edgeTI gave my organization at North Wind the kind of digital agility we had envisioned. We know the value of moving swiftly with data-driven accuracy – especially in our lines of work. With this latest challenge, the proof was in the insight we had in just a few days – insights that continue to deliver as COVID 19 lingers and new challenges arise,” said James Furr, North Wind Group CIO.
Beyond this unique case, which is dominantly executive awareness, edgeTI delivers technical and business solutions to financial, U.S. Defense, consulting, and business processing outsourcers.
Pipeline
Pipeline deals continue to evolve with world-wide events, disrupting typical business patterns in the form of good growth of value and diversification. edgeTI is seeding this growth with the return of in person events and targeting strategic build partners that have unique customer sets and individual value they bring.
What’s Next?
Sophic Capital client Edge Total Intelligence (“edgeTI”) (TSXV:CTRL) is a leader in centralizing data from enterprise software systems to extract objective, value-creating insights. Led by a management team with decades of experience across IT software and services organizations, edgeTI has grown extensively in capabilities that enable the adoption and use of digital tools for intelligence and automation. Already adopted by a global customer base of service providers, enterprise customers, and government teams, edgeTI solutions compete in a global industry that could be worth almost US$23 billion by 2028. Investors seeking to invest in this trend should consider Edge Total Intelligence.
Access more Edge Total Intelligence research
Sign up for Sophic Capital’s reports at https://sophiccapital.com/subscribe/