Media Valet (MVP.V : VRXWF) Current Price: $.10 Shares

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Media Valet (MVP.V : VRXWF) Current Price: $.10 Shares
Media Valet (MVP.V : VRXWF)
Current Price: $.10
Shares Outstanding: 57.9 Million
Fully Diluted: 61.9 Million
Daily Chart & Weekly Charts :
“If someone asks me what cloud computing is, I try not to get bogged down with definitions. I tell
them that, simply put, cloud computing is a better way to run your business.”
—Marc Benioff, CEO of Salesforce
Company Description
MediaValet stands at the forefront of the emerging cloud-based digital asset management (DAM)
industry. Dedicated to delivering enterprise cloud software, with an in-depth understanding of
Azure, and a strong relationship with Microsoft, MediaValet is uniquely equipped to meet the
digital asset management needs of any organization, no matter its size, its industry or its location.
Cutting edge technology, exceptional product design, and unlimited friendly customer service
are at the core of MediaValet’s DNA — ensuring exceptional customer and user experiences are
delivered at all times. The company was formerly known as VRX Worldwide Inc. and changed
its name to MediaValet Inc. in October 2014 to reflect its focus on enterprise cloud software.
MediaValet Inc. was founded in 1993 and is based in Vancouver, Canada.
Macro Space
The DAM Market is expected to grow from $1.16 billion in 2014 to $4.12 billion by 2019, at a
Compound Annual Growth Rate (CAGR) of 28.7% during the forecast period 2014 – 2019.
The Digital Asset Management (DAM) market is in its evolutionary stage and exhibits expansive
growth in the years to come. This market is expected to grow substantially with fast-paced
adoption among enterprises.
Presently, with the emergence of Digital Asset Management software, organizations are
empowered to access and store all their digital content and assets within the centralized
management. The usage of DAM software enables organizations to proficiently manage and
access digital assets as they are allocated metadata for tracking thereby allowing more defined
usage of assets along with their linkage with other assets in the repository.
Companies continue to create more digital assets and Cisco estimates that by 2018, nearly 80%
of internet traffic will be video. In just 2015 nearly 105 billion pictures will be taken by only
Americans. Marketers continue to follow the trend and spend 20-50% of their total budgets on
content creation and 25% plan to spend even more in 2015.
Share Structure Is good (requirements less than 100mln o/s) –>
61.9 Million fully diluted with 57.9 Million shares outstanding. David McLaren the CEO has a
core position representing 26% ownership, which validates the interest and commitment from
management. Additionally there are two funds Pathfinder Asset Management and Silver Heights
Capital Management with 14% and 10% respectively. Therefore 50% of the stock is tightly held.
When you innovate, you’ve got to be prepared for everyone telling you you’re nuts.
– Larry Ellison, CEO of Oracle
Product
Companies today, much like individuals, are producing so much content (photos, videos,
graphics, etc.) that they can’t manage them effectively –let alone leverage and repurpose them.
Moreover, enterprises need software where they can aggregate, organize, archive, secure, metatag, render and share all their digital assets. Media Valet has built an application accessible from
any browser and computer. With this digital asset management software you can upload or drag
and drop videos, photos, logos, brochures, catalogues, annual reports and all other marketing and
sales related materials. After, they are uploaded you can easily search, share, change, store and
secure these assets so they will never get lost or stolen. Across numerous DAMS ratings websites
Media Valet continues to rank very high and has been labeled by TopTenReviews.com an
8.98/10 for overall performance. Inside the platform customers have a growing checklist of tools
ranging from, cataloging features, asset sharing, keyword and filter searching, metadata
management, to enhanced security and user level functionality. They have divested $3.2 million
into the development of this platform since 2010. The upfront capital expenditure may seem high
however, over the long-term there are many added benefits and advantages.
Media Valet is built on Microsoft’s Platform as a service (PaaS) called Azure. This is a cloud
computing platform and infrastructure for building, deploying and managing applications and
services through a global network of Microsoft-managed datacenters. They were the first
company to build a DAMS on Azure are still the only company that is 100% on the cloud and
built on Azure. MSFT’s Azure platform provides scalability features that enable Media Valet to
grow unlike any other platform. The reason is because the back-end coding and architecture
supports multi-tenant as opposed to single-tenant. What this means is instead of creating a
separate instance (or source code) of software application and supporting infrastructure for each
customer (or tenant) they host data from multiple companies and store it on the same server. In
basic terms single-tenant is customized for each customer whereas multi-tenancy provides a
standardized platform and ease of use which is a benefit to most companies who use software out
of the box.
Although, the upfront expenses and extra time to develop and code the infrastructure, the added
benefits outweigh the expenses over the longevity of business. It creates higher operational
efficiency, lower maintenance efforts, increased scalability, while still offering the customer
added value. Essentially, the company will be able to eliminate long-term costs by building its
business on the Azure infrastructure. It creates ease of use for the company, where instead of
creating a separate instance (or source code) of software application and supporting
infrastructure for each customer (or tenant) they host data from multiple companies and store it
on the same server. In basic terms single-tenant is customized for each customer whereas multitenancy provides a standardized platform and ease of use which is a benefit to most companies
who use software out of the box.
Over 94% percent of companies globally rely on Microsoft software to run their business. To
manage privacy and security related concerns, Microsoft has created a Microsoft Azure Trust
Center, and Microsoft Azure has several of its services compliant with several compliance
programs including ISO 27001:2005 and HIPAA. Windows Azure platform encrypts the data
before synching it the Cloud. The user will be able to backup files, data, instances and all the
data could be recovered in case of any failure. In case of poor or no data connection, the backups
are deferred and local images of private Cloud is made before synching.
Media Valet Product Video:
Click here to watch a video of Media Valet
Proof of concept
In 2010 MediaValet released its 1.0 beta platform with continued upgrades leading into 2015.
Amongst the digital asset community it continued to rank highly and has been validated near the
top of its class for overall performance. As of January 29th 2015 Media Valet released its first
official enterprise 3.0 platform with an improved user interface (UI) and user experience (UX).
Names like Teck, Georgia Pacific, Sun Edison, Hawaiian Airlines, California Almond Boards,
LA tourism and recently Brand USA all use the browser application. The takeaway is that this
product is not industry, or sector specific. It clearly demonstrates that there is a pain point for
companies of all sizes and industries worldwide that Media Valet can help solve. As companies
continue to purchase storage contracts from Media Valet having large customers like Sun Edison
(2bln in revenues) or Brand USA the private/public entity that promotes tourism for the entire
United States clearly identifies Media Valet has the platform, infrastructure and scalability
companies need.
“The common question that gets asked in business is, ‘why?’ That’s a good question, but an
equally valid question is, ‘why not?’”
– Jeff Bezos, CEO of Amazon
Competition
The Digital Asset Managemet (DAMs) space is a multibillion dollar industry. It is dominated by
Northplains, Open Text, Oracle, etc. However, these companies are not in Media Valet’s market.
They are primarily server based (vs Media Valet being 100% on the cloud) and are $1,000,000
installs. They run on a legacy on-premise system, where the disadvantage is companies can only
access these files from a single on premise server. To the point, if the server was here in
Vancouver and their other office was in Texas they would not have access to these files
These companies service the multibillion dollar companies and marketplace. Media Valet’s
pricing starts out at much cheaper rates. Their target market is not the same people looking for a
solution in the million dollar range for managing digital assets.
A closer peer evaluation is with companies like Widen, WebDAM and Thirdlight. These
companies have shifted some of their on-premise system to a cloud based system built on
Amazon’s cloud platform.
Again, the pitfall to this system (Amazon) ultimately derives around scalability issues because
they cannot compete with Media Valet since the back end coding is not as cost effective.
Simply, the Microsoft platform has developed it’s code to support scalability features that
amazon cannot do.
We are already seeing the upside of developing on MSFT platform when comparing to Widen
since they have recently increased their prices. Whereas, Media Valet can continue to under price
them due to the infrastructure and cost-effectiveness of MSFT’s platform.
WebDAM is an interesting competitor considering the fact, they are 8 years old offer less
features then Media Valet but at a similar price.
Both Widen and WebDAM are not fully built on a cloud platform. They are hosted from 3rd
party facility. The downfall is if they choose to switch to MSFT’s platform although
exponentially more cost-effective and scalable, would require an complete rewrite of their code.
They’d have to start from scratch and this would take at least 2 years of hard core development
and testing. WebDAM was bought last year by Shutterstock in March 2014 for an unknown
price.

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