BMJ Score: 3.5
Quick Summary10 Investors read this
CommentaryReliability and speed are fundamental features of any online service, and to keep users satisfied, platforms must be consistently bug-free and reliable. Today, it is hard for service providers to know how to scale their platforms, and Stacktical uses data analytics and AI to help predict performance management focused on whether or not projects can scale effectively. In addition to helping online services predict scalability, Stacktical wants to help ensure that users are compensated when platforms fail; this is where the blockchain comes into play. Stacktical wants to connect performance management via data analytics to a decentralized SLA platform. The blockchain will provide smart contracts to ensure users get compensated when a service doesn’t perform. The smart contracts can facilitate, verify, and execute the terms of the SLAs and enable stakeholders to automate and externalize the efforts involved in establishing and enforcing SLAs, all while automating the settlement of any violations for users. This is a great use case for blockchain because today this is hard to enforce and monitor SLAs. In fact, in the event that AWS is down, AWS asks users to bring their own data to prove that the platform was not reliable. How can users do this transparently? We like that Stacktical is an infrastructure solution to an infrastructure problem and they seem to be first movers in this space. The team, while small, does have a focus on building out advisors and partnerships. They have experience in the scalability infrastructure space, and have a working MVP for their predictive scalability auditing platform. However, while the decentralized SLA platform is set to be built on the ETH blockchain, it is not yet functioning. The token itself is a utility model, and it will allow users to get compensation for failed platforms as well as incentivize service providers through tokens when they maintain their SLAs. We look forward to seeing the final MVP as well as more information on which companies the project can bring on board to leverage the platform. We would also advise the team to continue enhancing its marketing and buzz levels to spread the word and help it capture value in the market.
- How to invest: It appears that information on how to participate in the Stacktical ICO is found in the Telegram account. Clicking the “Purchase DSLA” button simply leads to the Telegram account.
- Discount: 25% discount throughout presale
- Eligibility: Restricted countries include U.S. and China.
- Token Price: 1 DSLA = 0.0000030 ETH (discount included in price)
- Jurisdiction: France
- Accepted currencies: ETH, BTC, and Fiat
- Minimum Contribution: 12 ETH
- Problem addressed/solved: SLAs (service level agreements) are contracts that set quality of service standards between a customer and a cloud service provider. Since offering service level agreements is expensive for providers, SLAs are often reserved to the biggest customers at a premium, leaving no room for the little guy to benefit from that set contract.
- Target customers/customer/ segments/verticals: The end users for Stacktical will be cloud service providers and companies (mostly tech or fintech) who want to utilize cloud services with the added benefits of a service level agreement.
- Value creation: By turning service level agreements into crowdfunded smart contracts, Stacktical enables cloud service providers to reward operational excellence and automatically compensate customers for slowdowns, downtimes, and unresponsive customer support. Stacktical gives those customers huge incentives to continue using the providers’ cloud services, and the providers increase customer retention as their consumer bases’ satisfaction levels increase.
- Competition: The obvious competition for Stacktical comes from giants Google and AWS (Amazon Web Services). These two behemoths are the most recognized brands in the cloud services space and undoubtedly have better resources and, at the moment, higher quality tools than a small startup like Stacktical. Having said that, Stacktical is clearly targeting a niche market of cloud service users who aren’t “premium customers” but still want the added benefits that service level agreements provide.
- Market size/potential: Stacktical is targeting a niche market of forgotten consumers in the cloud service sector. Stacktical will have to connect with these smaller consumers and entice them to spread the project’s name amongst peers to gain traction. As cloud service tools continue to gain popularity, Stacktical could very well pick up steam and easily grow as a business since the platform is easily scalable.
- Regulatory risks: Stacktical, like all other ICOs, faces regulatory risks in the crypto space should the token sale be prevented. In addition, the platform will hold a substantial amount of both customer and vendor information. Stacktical will have to ensure this data is appropriately secured and abides by data protection regulatory mandates like GDPR.
- Investor value: The future value of DSLA tokens will be determined by the demand for access to the platform and its own utility functions. The bad news is that the token is simply a utility token, thereby offering no dividends or equity to holders. The good news is that the token is required to access the platform, inherently driving the demand since no other token will function within the platform.
- Disclosures: The depth provided on Stacktical reports might actually confuse investors. The whitepaper is a bit overloaded with legal terminology and risk factors versus information that would explain the project and motivate investors to participate in the token sale. However, their one-pager effectively communicates the project and the MVP is live and ready for use by anyone who creates an account.
- Token distribution: 50% token sale, 25% reserve, 15% team, 5% advisors, and 5% community.
- Use of proceeds: 57.5% research and development, 25% exchange listing, 7.5% compliance and legal, 4% outbound marketing, 3% event management, 2% inbound marketing, and 1% other operations.
- Caps: Soft cap: 1 million EUR; Hard cap: 8 million EUR
- Track record: Stacktical fails to provide real information on its core team and group of advisors, providing only short descriptions with LinkedIn profiles attached to each name. The CEO, Wilhem Pujar, has extensive startup experience and primarily works with software and blockchain infrastructure. His LinkedIn presence is also something worth noting as he’s clearly active and has a decent amount of followers. Pujar’s fellow co-founder and CTO, Jean Daniel Bussy, has a similar resume in that his background is in engineering and includes over eight years working with cloud computing. The Stacktical team has done well recruiting blockchain talent from the executives to the bottom analysts, but the team is relatively small and lacks a sense of well-roundedness.
- Integrity: Each Stacktical core team member has solid experience in his or her respective fields, and the co-founders clearly know their way around blockchain and software development. The team doesn’t give off any red flags regarding their integrity but rather speak to it by giving great detail regarding regulatory issues in the whitepaper. They might even have an excess of disclaimers and notices as those items take up a near majority of the document.
- Wilhem Pujar, Co-founder & CEO (LinkedIn)
- Jean-Daniel Bussy, Co-founder & CTO (LinkedIn)
- Yosra Helal, Blockchain Engineer (LinkedIn)
- MVP: The Stacktical MVP is functional and runs on the Ethereum blockchain. Interested investors can try out the working product at the following link.
- Token use case: The Decentralized Service Level Agreement token or DSLA is a ERC- 20 cryptocurrency token on the Ethereum blockchain and the fuel of the Stacktical platform. It is automatically distributed to policyholders according to the compensation and reward policies in decentralized service level agreements. Users will need to hold a certain amount of DSLA tokens to access the Stacktical platform and unlock its features.
- Value-added: DSLA will primarily serve as a reward token and an access/utility token. Users must hold a certain number of DSLA in the compatible wallet to gain access to the platform.
- Decentralization: Stacktical seeks to have completed a fully-fledged Decentralized Service Level Management platform by Q2 of 2019.
- Token Supply: Max supply of 10 billion DSLA
- Technical difficulty/investment expertise needed: Stacktical’s project involves cloud servicing and computing. They want to give all customers the opportunity to create a service level agreement that sets the quality of service a customer can expect from a cloud provider. The technicalities of this project will be out of reach for many investors, so be sure to check out the one-pager for a broad overview of Stacktical and its relationship to cloud services.
- Halo effect: Stacktical has taken a strategic approach regarding its partners. A few of its partners include Bold (law firm), BPI France (IB), Eralabs (cloud computing), and Onfido (KYC). It’s clear that each partner has a strategic purpose in the future success of Stacktical.
- Buzz: Stacktical has a few reviews on ICO websites but lacks real coverage from legitimate news sources. Again, we find a pre-ICO with over 2,600 followers on Twitter but little to no engagement per post. The Facebook account only has 200 followers as well. The team should push a significant marketing effort in order to gain more traction.