the market for sdp overview v2

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International Technology

Corporate Finance

The Market for ServiceDeliver P latforms (SDP) -Status Quo

August 2006



DefinitionThe SDP Market can be defined from different angles

¡ SDP = eco-system for cost-effective and speedy creation, deployment,provisioning, execution, management and billing of a set of “enhanced” services

¡ SDP = infrastructure that delivers packet-based voice and data centricadvanced services in a device agnostic and network agnostic manner

¡ SDP = set of platforms that aggregate different network capabilities & services, and content sources, and thus allow application developers asimplified, uniform / standard way to access to such capabilities, services andcontent

¡ SDP = infrastructure that interworks well with:

§ IT infrastructure (BSS) such as billing system, CRM, AAA etc.

§ OSS infrastructure such as provisioning

§ Network elements such as switches, SMSC, MMSC, WAP Gateways

§ Portals



Complex SDP UniverseSome SDP players…



Trends in the SDP Market The fragmentation of the providers is starting to disappear

¡ Consolidation in the SDP industry has started and isexpected to accelerate over the next 12-18 months

§ Lack of standard architecture

§

Too many (far over 100) point solutions§ Few middle sized / larger players

§ Many VC funds invested in SDP come to an end

¡ Many M&A initiatives ongoing in the moment

¡ Category leaders can raise significant capital

§ Empower Interactive ($18m)

§ mFormation ($35m)



Trends in the SDP Market Technology trends impacting SDP

¡ Significant Broadband growth

¡ Wireless is being added for Quad Play

¡ Global IP TV deployments

¡ Fixed and Mobile operators, MSOs and SatelliteOperators, all involved

¡ New technologies will be rolled out, e.g. Wi-Max,DVB-H, etc.



Market Development Fast growing market for SDP technology predicted

Source: Yankee Group, 2006



Sector Activity Recent M&A transactions in the SDP space

¡ 5.8x¡ Announced 6/6/04

¡ Cash

¡ OpSource's formal entry into the rapidly growingenterprise application hosting market

¡ To provide affordable and reliable global ITinfrastructure services

OpSourcePeopleSoftdivision of FortrustSolutions

¡ Announced 4/18/06

¡ Cash

¡ $275 million

¡ Announced 2/8/06

¡ Cash and Stock


¡ Shares and Cash

¡ $120 million

¡ Announced 2/15/06¡ Cash


¡ Cash

¡ $57 million

¡ Announced 5/9/05

¡ $48 million

Details

¡ 8.3x

¡ n.a.

¡ 4.0x

¡ 3.7x

¡ 11.4x

¡ 8.4x

Sales

Multiples

¡ Combine Qpass’ business expertise and leadingtechnology platform, and Amdocs’ unmatched industryknowledge, strong services, and global reach

AmdocsQpass

¡ To expand into China, Hong Kong and Taiwan

¡ To create a global footprint for Adamind as well asshareholder value in the long term

AdamindSensestream

¡ To enable operators to deliver a broad range of highvalue music services and associated content, quickly andsafely to their customers

OpenwaveMusiwave

¡ To build its position in middleware and carrier-gradecommunications infrastructureOracleHotSip

¡ Lead the expansion of deliveryOne and marketOneofferings. Enable customers to consolidate all of theircontent services with open and agnostic support for alldevice platforms

QualcommElata

¡ To enhance product offeringAmazingTechnologies

VersifyTechnologies’ softwareapplication

IntentionBuyerSeller



Sector Activity Recent fundraising rounds in the SDP space

Dutchess Capital Management,Dutchess Private Equity Fund

$10 millionDevelopment, manufacture and marketing of interactive messaging platforms for mobilecommercial applications, transactions andinformation services

2/10/06M-Wise Inc.

Argo Global Capital, Cazenove PrivateEquity, DN Capital Limited, IDGVentures Europe, Scottish PrivateEquity Partners

$18 millionDesign, installation and service of data,messaging and multimedia systems for mobileoperators

3/28/06EmpowerInteractive Group

Generation Partners, Spark Capital$8 millionProvide digital audio and video publishingsolutions

1/12/06The Platform

Charles River Ventures, JumpStartUp,Motorola Ventures, NeoCarta Ventures,Silicon Valley Bancshares, WestBridgeCapital Partners

$10+10million

Provide mobile market solutions to mobileoperators and content retailers

11/2/05and9/28/05

July Systems

Friedli Corporate Finance$4 millionEnable the discovery, delivery and managementof mobile content and applications

9/26/05mPortal

Advanced Equities, Intel Capital, NewEnterprise Associates, TechnologyCrossover Ventures

$30 millionProvide mobile content and solutions7/12/05Motricity

4/20/06

4/25/06

Date

Alex Brown Ventures Partners, BatteryVentures, Carmel Ventures, Intel

Capital, North Bridge Venture Partners

Advanced Equities, New EnterpriseAssociates, Technology CrossoverVentures

Investors

$15.3million

Provider of mobile device managementsoftware, offering a complete solution that

enables mobile operators to rapidly acceleratetheir data revenues and reduce support costs

mFormationTechnologies, Inc.

$40 millionProvide mobile content and solutionsMotricity

AmountField of ActivityCompany



SDP Eco-System Another View

SMS-GW

MMS-GW

WAP-GW

Access

Control

Device

Mgmt

Personalization

Subscriber

Mgmt

Service

Management

Content

ManagementContent

AdaptationContent

Servers

PushProxy

GW

HTTP

Proxies

OSA/Parlay

GW

Streaming

Proxy

DRM

Mobile

Marketing

Content

Filtering

Virus

Protection

ContentTranscoding

Service

Creation

Service

Discovery

Rating

Billing

Mediation

3rd Part

Settlement

Content

Acquisition

Content

Delivery



Winners

¡ Companies creating a larger product

portfolio organically

(e.g. Telenity, Redknee)

¡ Companies who are acknowledged categoryleaders

(e.g. Volantis, Kabira, Drutt)

¡ Companies who are able to get their M&A

timing right

(e.g. Qpass, Elata)

Losers

¡ Companies who miss the M&A wave

¡ Companies who fail to be of critical size

(> €10m)

¡ Companies who do not have a clear unique

selling proposition

Competition in the SDP SpaceWinners and losers



Application

Domain

Portals

ExposureDomain

Service

Execution

Environment

AAA

BSS

OSS

Service

Creation

Environment

ServiceManagement

Environment

Content

Network Adaptation LayerCoreNetworkServices

Device

Management

Charging

Presence

Location

Messaging

QoS

Call Management

Enterprise Apps Consumer Apps

Content Delivery Platform

ContentAcquisition

ContentTranscoding

ContentDelivery

ContentServers

ContentManagement

ContentAdaptation

Service Exposure Layer

Web Services Parlay OMA .NET

AppendixSDP companies

Disclaimer:This mapping of

companies represents

only a partial view



International TechnologyCorporate Finance

Contact:

Falk Müller-Veerse

Managing Partner

Cartagena Capital GmbHMaximilianstrasse 18

80539 Munich, Germany

Phone: +49 - 89 - 242 111 33Fax: +49 - 89 - 242 111 55Mobile: +49 163 5506 234

Web: www.cartagena-capital.com

E-Mail: [email protected]

http://www.cartagena-capital.com/

mailto:[email protected]

mailto:[email protected]

http://www.cartagena-capital.com/

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