SOURCE: IDdriven

IDdriven

March 28, 2016 08:30 ET

IDdriven Issues Special Letter to Shareholders

SACRAMENTO, CA--(Marketwired - Mar 28, 2016) - IDdriven, Inc. (OTCQB: IDDR), developer of the new breed of Identity and Access Management solutions, today issued the following Special Letter to Shareholders from its Chairman and Chief Executive Officer, Arend Verweij.

Dear Shareholder:

IDdriven's recent transition to a publicly traded company was a major milestone for our company. I would like to thank our many long-term shareholders for their support, welcome our new shareholders and discuss our market position, strategy and goals for the next year.

Following over two years of development valued at $3.8 million including sweat equity, cash and cost saving methods, we have developed a next-generation Identity and Access Management Software ("IAM") solution by the same name, IDdriven. We launched last month, and the initial response is exceeding our expectations including numerous positive write-ups and feature articles by the cyber security and software trade media. We will be announcing new customer wins in the weeks and months ahead.

IDdriven is cloud-based, and delivered as Software as a Service (SaaS"). It addresses a huge $12 billion demand-driven marketplace experiencing out-sized 15 percent annual growth. IAM is a solution that helps enterprises to ensure that access across multiple technological environments is granted only to the right individuals. IDdriven is dynamic, seamless, scalable, and flexible with the widest array of features. Its plug-and-play functionality enables a new, untapped SME marketplace. It is designed to manage large volumes of users and access rights over various applications in hybrid environments (cloud and on-premise). In short, IDdriven is a superior, next-gen hybrid cloud-based solution and the new state of the art. Visit our new website at www.IDdriven.com.

Our COO, CTO and I co-founded IDdriven. As this is the first time I am writing to our shareholders, I will briefly introduce myself and cover the highlights of our management team's experience before discussing the current state of the Company, the industry, and our goals for 2016.

IDdriven Management Knows IAM
I, along with our COO, Geurt van Wijk and our CTO, Remy de Vries, have extensive experience in the Access Governance and Identity Management market. Our successful track record includes having worked together in similar roles at our prior company, BHOLD, to turn that company around. In 2011, we engineered the sale of it and its flagship IAM software program to Microsoft for a substantial, all-cash sum. MS supports BHOLD still today but has been unable to port it to the cloud. After selling BHOLD, we envisioned the industry would migrate to a cloud-based model and began developing IDdriven. Microsoft is a key -- and enthusiastic -- IDdriven channel partner.

Previous to BHOLD, I served as CEO of Barcelona-based Cluster Competitiveness Group, one of the world's leading economic development consultancies. Prior, I served for five years as EVP in charge of vFinance Consulting, a prominent boutique investment bank serving emerging growth companies with M&A and financing primarily in high tech. Earlier, I was recruited as CEO to turnaround Diablo Research, a venture-backed Silicon Valley-based tech company and within 24 months engineered its profitable sale to Cadence Design Systems.

My career began with Philips Electronics at its European headquarters, and this 15-year tour was completed as General Manager with P&L responsibility, for Philip Components North America, a Division with more than $1 billion in revenue. Earlier, I earned a Master's Degree in Mechanical Engineering/Metallurgy and an MBA.

IDdriven Competitive Advantages and the Fast-Growing IAM Marketplace
Industry analysts project the highly fragmented, demand-driven IAM market will double from $9.16 billion in 2014 to $18.30 billion in 2019, a 14.85% CAGR1. IAM solutions provide secure, identity-based access to various systems, applications, and information from any device or location. IAM solutions are being widely adopted by large and medium-scale enterprises as well as government departments. IDdriven is a "software as a service" ("SaaS") solution within the prominent yet highly fragmented sub-category of Identity Management as a Service (IDaaS).

As the newest offering in the marketplace, IDdriven's next-generation solution holds a commanding lead in functionality as it was created and developed to be a hybrid, 100% cloud-based solution with on-premise features -- unlike most others that were written for enterprise desktops and servers.

Competition in this market is mainly from companies that have an established legacy footprint in the "on-premises" IAM market and are only now attempting to port those programs to the cloud. They lack the ability to offer a 5-minute plug & play implementation and lack the robust, cloud-based capabilities such as zone-base access control that IDdriven provides. A number of start-up companies offer programs that are light, far less sophisticated, and not nearly as user friendly. Both categories of competitors are either under-powered (quickly, inexpensively written programs) or obsolete relative to the marketplace demands for a full suite of in-depth cloud-based features and functionality.

Additionally, the competition's use of private datacenters substantially increases their cost, and price, compared with IDdriven's use of Microsoft's Azure Cloud, which enables IDdriven to offer a state-of-the-art product more competitively priced. To erect higher barriers to entry, we are implementing an intellectual property strategy that includes patent filings.

IDdriven 2016 Goals
Having just launched our first product, our goals for 2016 include:

  • Reach Profitability. Our business model scales well. Gross margins average 90%+, while operating expenses are streamlined to remain stable relative to increasing sales.

  • Expand Global Footprint. Our Marketing Plan focuses on North American and Europe initially. We will sign numerous new Channel Partners to ensure broad market penetration.

  • Reinforce Management Team. Our senior management team is composed of seasoned industry executives. We will look to add key positions, selectively, to management and our Board of Directors as the Company grows.

  • Strengthen our IDdriven Solution. We are working to add new features and functionality to increase our competitive advantage and value proposition.

  • Raise Growth Capital. When market conditions are favorable, we will look to bolster our balance sheet with a cash infusion to expand our opportunities.

  • Communicate Proactively. We are implementing programs to keep our shareholders informed, and to proactively communicate our progress to Wall Street and the media.

  • IP Strategy. We plan to build an intellectual property portfolio to increase shareholder value and erect barriers to entry.

IDdriven: Poised for Success
With over 30 years' experience commercializing new and disruptive technologies globally, I can confidently state that IDdriven today has all the ingredients required for long term success, including:

  • Proven industry management team & board of directors
  • The IAM industry's next-gen product, built by IAM industry experts, to quickly capture and hold the leadership position
  • Huge, fragmented, demand-driven IAM market that analysts project doubling from $9.16 billion in 2014 to $18.3 billion in 2019
  • Strong competitive position with a sophisticated solution originally "born in the cloud" for robust yet simple cloud-based and hybrid application

As a newly public company, we have raised our visibility and lowered our cost of capital while increasing our opportunities for growth. It is a privilege to lead your company into what I strongly believe to be an exciting and rewarding future.

Sincerely yours,

Arend Verweij
Chairman and Chief Executive Officer

Forward-Looking Statement Disclosure
This document contains "forward-looking statements." Such statements may be preceded by the words "intends," "may," "will," "plans," "expects," "anticipates," "projects," "predicts," "estimates," "aims," "believes," "hopes," "potential" or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond IDdriven's control, and cannot be predicted or quantified and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) commercialization of our software programs, (ii) development and protection of our intellectual property, (iii) industry competition, (iv) we may need to raise capital to meet business requirements. More detailed information about IDdriven and the risk factors that may affect the realization of forward looking statements is contained in our private placement memorandum which is available to qualified investors. IDdriven assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.

1 MarketsandMarkets Business Research: http://www.marketwatch.com/story/global-identity-and-access-management-market-iam-demand-to-2019-driven-by-bfsi-sector-2015-02-25-11203117  

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