The company is nearing 1M registered users. The vast majority of the users are Windows Mobile users, but a growing number of applications for Symbian S60, BlackBerry and iPhone attracts more and more users of these platforms.
Twenty people are working at SBSH, with an R&D team of 12 developers, most of which are working from outside of Israel.
"I’m a firm believer of the old-economy ... Our goal was never an early exit and instead we try to become a major player in the mobile content emerging market."IBI: What is your business model? How do you generate income?
AR: SBSH specializes in development for mobile platforms. We have an experienced team that is familiar with the ins and outs of mobile devices development, backed by market leading designers. Together we develop every-day applications for the professional end-user designed to enrich the user’s mobile experience, bring new capabilities to user’s smart-phones and enrich users’ experience.
Our applications are distributed in several different channels, those include our company’s web-site (http://www.sbsh.net) which is designed especially for every day user navigation and guide users between our different apps catalog; The second channel is our distribution partners that offer our apps for sale, among them you can find companies such as: Handango.com, Mobihand.com, Pocketland.de and more; a third and new channel for us is the actual OS developers that are launching dedicated AppStores for the different platforms such as Apple’s AppStore, RIM’s App World, Nokia’s OVI and upcoming launch of Microsoft’s Software Market for Mobile™; The final channel for us is OEM deals where our apps are bundled and shipped in with new devices directly to users.
We had no capital raised up-to-date and the company operates based on the old-economy that enforce us to stay profitable.
IBI: Most mobile software companies now create programs that fit into the various online shops such as Microsoft’s Market Place. Will SBSH develop products for these platforms?
AR: The upcoming AppStores-alike launched by OS companies themselves opens great new opportunities for us. First and foremost we are predicting a vast increase in the amount of exposure our apps will receive to every day end-users. Apple’s AppStore brings a great success story that proves end-users are in the look for mobile-apps, but since this content was out of reach for most basic end-users up until today, these new developments that help bring third-party apps for basic end-users wrapped in one very simple solution is exactly the kind of developments in the mobile market that we’ve been waiting for years now.
Considering that just a few years ago ringtones were selling in massive figures, I’m positive that as technology advances and end-users get exposed to new technologies we will see third-party apps and games as the next largest value-added service that mobile devices bring to users. We are excited to be part of this change in the market and taking all the steps needed to be included with all upcoming AppStore-alikes launched by RIM, Micorosft and Nokia.
RIM was the first to release their applications store a few weeks ago (the BlackBerry App World™) and I’m pleased to say that our first BlackBerry application (SafeWallet Pro) is already available through the BlackBerry App World™.
Microsoft is due to launch Marketplace for Mobile within the next several weeks and we gave our endorsement to the upcoming release of Marketplace as part of Microsoft’s announcement at the latest CTIA show in Vegas this March.
Our first iPhone application is already listed on Apple’s AppStore and we target to have two new apps available before end of Q3 2009.
IBI: How is the current crisis affecting your business?
AR: Third party applications for smart-phones are categorized as luxuries and not a necessity,and therefore during days of crises people are more cautious when spending money on luxuries such as third party apps. In such days of crises we are all working much harder to achieve similar results that we were seeing just a year ago. Personally I believe that crises, such as the one we are experiencing these days, can also be considered as a well-needed shake to the global markets that eventually result in an healthier market and better working practices.
I believe the current crises gives us all a good lessons that only hard work yields success and a lot of the markets “bloating” effect is caving in for the past year or so, so we are most likely to have an healthier market at the end of this crises – until the next time.
IBI: What is your growth strategy?
AR: For the past few months we have been recruiting new developers while trying to keep the corporate team at a relatively small size. The target is to try and increase our apps catalog and reach new mobile markets without taking too many risks at these times. With the right plan and implementation we should be able to get out of the recent crisis much stronger, which is one of the benefits that small players have as the underdog.
IBI: Many Israeli Start ups hope for an early buyout, often in their first five to ten years of operation. Are you also going toward an exit?
AR: Personally I’m a firm believer of the “old-economy”. My first company was acquired after 5 years of operation by one of the Israeli largest high-tech companies and such acquisition usually brings the end of the company’s creation. From the CEO stand of point I believe the real challenge is building a company that is both profitable and competitive for the long run. The people that manage to do this are those that have real success while the look for an early exit seems to be the simpler choice.
Among all Israeli start-up companies we also have a few companies that enjoy great success, those include Teva, Iscar (although sold – this wasn’t in an exit deal), Checkpoint and a few others.
With the above said, with the right price an acquisition can always be the right choice. Our goal was never an early exit and instead we try to become a major player in the mobile content emerging market.
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