• Resale and channel partnership: In the United States, we have entered into strategic resale arrangements with major partners, including EHR vendors (including Allscripts), in-hospital medical devices manufacturers and health plans who resell our solutions to their customer base. Internationally, we have entered into resale arrangements with other strategic distributors to accelerate our market adoption. Reseller revenue in 2021 and 2020 was $1.0 million and $2.9 million, respectively. OpenNMS’ partnerships extend globally. These are a mixture of Value-added resellers (VARs) and original equipment manufacturers (OEMs). These strategic relationships allow OpenNMS capabilities to be integrated with other propositions as we look to grow market share. We also maintain business relationships with individuals and organizations that promote or support our sales or services. We refer to these individuals and organizations as our channel partners. These channel partners generally do not make sales directly like our resale partners, but instead provide us with leads that we use to develop new business through our direct sales force. These relationships enable access to broader hospital and physician customers, leading software solutions and multiple cross-selling opportunities. We complement our sales efforts with a marketing organization that plans and execute marketing and communication strategies that are centered on initiatives that drive awareness of our company and solutions. These initiatives include educating the market about our company broadly, as well as solutions-specific campaigns for lead generation. Marketing efforts also include participation in speaking engagements and strategic interfacing with key business and trade media personnel. We employ a broad array of specific events to facilitate these initiatives, including, but not limited to, sponsorship and partnership of key industry conferences such as the Healthcare Information and Management Systems Society ("HIMSS") and/or America's Health Insurance Plan ("AHIP") events and customer-focused programs such as key partner user groups. Our sales cycle can vary significantly and typically ranges from 6 months to 18 months from initial contact to contract execution. The sales cycle significantly differs based on the domain, type of solution and size of the customer. Implementation, training and professional services are normally rendered based on a mutually agreed upon timetable. Competition The competitive landscape is highly fragmented, and to our knowledge, no single competitor currently offers similarly diverse capabilities and solution offerings. As a result, our primary competitors are characterized relative to each of our platforms or solutions: • Payer-provider collaboration vendors, such as Availity, LLC, Change Healthcare, Inc., Experian Information Solutions, Inc. (including its Experian Health/Passport division), Zipari (formerly Healthx, Inc.), Cohere Health, and Health Trio, LLC; • Payer-Provider Disease Treatment Decision Support vendors, including The Advisory Board Company, Evolent Health, eviCore Healthcare, HealthCatalyst, Inc., International Business Machines Corporation, or IBM, Inovalon Holdings, Inc., NCH Management Systems, Inc. (dba New Century Health), OncoHealth Oncology Analytics, Inc., and Truven Health Analytics (acquired by IBM). • Network monitoring vendors, including Zabbix, LLC, LogicMonitor, Inc., SolarWinds Worldwide, LLC, SevOne, Splunk and Datadog, Inc. The principal competitive factors in our industry include: • Breadth and depth of application functionality; • Ease of use and performance; • Network strength and level of user adoption; • Customer testimonials and recommendations; • Breadth of customer base; • Cloud-based delivery model; • Competitive and understandable pricing; • Ability to deliver actionable information in a relevant time period; • Ability to demonstrate customer’s ROI and improvements to clinical outcomes; • Size and scope of payer clinical policy knowledge; • Sales and marketing capabilities of vendor; • Financial stability of vendor; • Ability to integrate with legacy enterprise infrastructures and third-party applications; and • Ability to innovate and respond rapidly to customer needs and regulatory changes. - 16 -
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