Company:            MrTed, Ltd

Started:               1999
Located:              Across the globe with 10 offices – Headquarters in London, UK
Geography:         Global presence, with strong experience in Europe
Market:                Human Capital Management – Talent Acquisition / Recruiting Technology
Products:             MrTedTalentLink™ - Enterprise Applicant Tracking System (ATS)
                            SmartRecruiters™ - Small and Medium Businesses (SMB) ATS
Key Customers:   Siemens, Heineken, Levi Strauss & Co, TomTom, Tommy Hilfiger 
Website:               MrTed Website
                             SmartRecruiters Website
Blog:                    SmartRecruiters Blog

Recent News:

Leading European RPO Ochre House selects MrTed to support its European delivery model

MrTed releases latest version of flagship Talent Acquisition Solution

MrTed Taps eQuest to Provide Job Postings on SmartRecruiters 

Ready, Set, Recruit! Talent Acquisition Leader MrTed Launches Free Applicant Tracking System

Free Applicant Tracking System Shakes Up Recruiting Software Market

I asked Jerome Ternynck, MrTed’s Chief Executive Officer a few questions about his business and his view of the SaaS market in 2009.

 

Did you start out as a Software-as-a-Service company?

Yes, we did. The company was started in 1999 to provide an ASP solution, yet our Applicant Tracking Software (ATS) has always been sold on a subscription-based model for our customers.  After the launch of MrTed, we faced some interesting market developments and survived. We learned a lot from the dot-com crash in 2001 and we realized that that being a pure subscription business, or what is now being called Software-as-a-Service, is important for our company’s long term stability and growth. 

 

Being a pure SaaS company during a recession provides more visibility into our future revenue streams and eliminates the up’s and downs we see traditional ATS competitors experiencing. We are now more than 20 quarters profitable and have strong recurring revenue; we are able to maintain our investments in our product roadmap.

 

Why do your customers buy from MrTed?

 

For the last ten years MrTed has been servicing the talent acquisition needs of large, complex, global organizations.  Our customers are one of the largest companies in the world and we also provide the technology infrastructure for some of the largest Recruitment Process Outsourcers (RPO’s), who also service these types of complex, multi-national companies. 

 

At MrTed, we understand global recruiting. With over 9 years experience we are able to capitalize our knowledge into our products and service delivery. Our enterprise product, MrTedTalentLink™, is a proven solution that is functionally rich but can be set up very quickly, which is attractive for our customers.  We support the local regulations and languages of all countries in Europe and most of Asia and North America.  Because of this, our clients don’t need to work with local software providers in country where they have a presence. All they have to do is work with us and we have them covered, one single solution for one global workforce. As recruiting in Germany is still not the same as recruiting in China, an enterprise needs to be flexible in its requirements. MrTedTalentLink™ is able to fulfill all the local requirements, but meanwhile maintaining the consistency on the highest level of the company. Because of our user-friendly configuration capabilities of MrTedTalentLink™ a company is able to set its own requirements and configure MrTedTalentLink™ on its own.

 

Our latest offering, SmartRecruiters – which is still in beta – is designed specifically for small business recruiters and hiring managers who, until now, have been forced to use expensive enterprise systems that are complicated and difficult to implement.  By contrast, SmartRecruiters is easy to use, deploys in just a few minutes, and is 100% free. Integrated with the SmartRecruiters ATS is a set of pay-per-use services and vibrant and supported by a growing user community. After only 90 days, we have over 350 SMB clients who have signed up for SmartRecruiters! This Open SaaS product was designed to be free and easy to use, which is what SMB’s are looking for. We started our mission with the believe that SmartRecruiters can change the Recruiting Software industry and that SmartRecruiters has become the fastest-growing ATS in only three months is testament to the great need in the market for something new.  We will continue to improve the application through input from the community and the addition of new services, and we are optimistic that SmartRecruiters will be the number one ATS in the industry by the end of the year.”

What do you see as the key trends emerging in the SaaS industry?

The urgency for enterprises to have one global platform and be able to adopt the local requirements, while maintaining the global consistency. If you don’t provide a single hosted and one code base solution to your customers, this will be difficult times for you.

 

With the launch of our SmartRecruiters Open SaaS offering for SMB’s we believe that free software is the wave of the future, especially when it comes to the SMB market.  For many mature software categories, sales penetration into smaller organizations is costly and difficult. By adopting some of the business approaches of firms like Google, Yahoo!, Linkedin and Skype, if you can aggregate a large user community, there are many ways of monetizing the customer base without having to sell software.  

 

Our approach to the ATS market is to use an Open SaaS approach, which is a mash-up of both Open Source and SaaS principals.  Offer the software for free, its hosted and maintained but provide pay-per-use services and wrap it with a strong user community. We think that this trend has the potential to change the SaaS industry.

What is your outlook for 2009?

 

We continue to grow and see opportunities in the market on both enterprises as well for the SMB businesses.

 

In the enterprise market, it’s time to take control and grow from one global platform and get rid of the numerous local solutions. Customers want to consolidate on numerous local solutions into a single global solution, covering and managing their global workforce. We are ideally positioned for this 2^nd buyers market. A couple of years ago this buyers group were the early adaptors of the first ATS wave, but now they understand the urgency of the current market to improve their processes, create a global workforce and be ready for the new phase of growth after the recession.

 

Introducing ATS technology for free to the SMB market turns the SmartRecruiters proposition into a gateway to the estimated $40 Billion staffing services spend by SMB’s in the US alone. Free ATS technology levels the playing field in the War for Talent and ensures that corporate recruiters and hiring managers in smaller businesses can be more competitive.

 

Although we will need to manage our business very carefully during this recessionary period, we also have new products and markets that we are now attacking, so we see continued growth potential. Unfortunately, we don’t control the current state of market or economy, but for our SmartRecruiters Open SaaS offering – which is Free & Easy –  our timing couldn’t be better to launch a free recruiting tool and turn an industry upside down.

 

 Thank you to Jerome Ternynck, Matthijs van Etten and Ralph Brasker for contributing to this profile.

Crazy like a fox.

With the economy in such tough shape, with customers on the sidelines with no budget to buy software, maybe now is the perfect time to embrace a Freemium software strategy.  This concept was originally proposed by a venture captialist named Fred Wilson, the founder of Union Square Ventures.

This became really clear to me over the past 6 months that this trend towards free software might be the future.   Initially I read a great article entitled Free! is the Future in Wired magazine (make sure you watch the Chris Anderson video), which I thought presented a very clear argument for free.

Think of all of the free software and services business models that went bust during the Internet Boom.  But then again there have been many businesses that were built using a free business model including Google, Yahoo!, Skype, eBay, and Craigslist just to name a few.  Some of the new kids on the freemium block include Facebook, LinkedIn, SimplyHired, Kijiji, 37signals and many of the open source software players.

My second realization of the power of free was using 37signals BaseCamp project management product.  It was a great example of providing a free product that you liked so much that you had to buy into their paid  version.  If you need a project management tool, this one is worth a subscription and you may end up pulling out your credit card like me.

Then my third reason why I thought freemium could really be the future of software is based on working with a great company, MrTed, who makes Applicant Tracking or ATS software for large companies.  MrTed just recently launched their new Small and Medium business freemium offering, SmartRecruiters, which is an Open SaaS product, which is a mashup of Open Source and SaaS business concepts.  This Open SaaS model was developed by Jerome Ternynck MrTed’s CEO and founder. SmartRecruiters like many other freemium offerings is based on the development of a strong and passionate user community, who ultimately become the revenue engine for these companies. SmartRecruiters will monetize their business model by offering a collection of value-added services that are bundled with their free software.

As companies look at their 2009 business strategies, they need to balance gaining marketshare while keeping customer acquisition costs (CAC) as low as possible.  By deploying a freemium software strategy now you might be considered crazy in 2009 but be laughing all the way in the not too distant future.