univation conf - keynote slides

CONFIDENTIAL Copyright 2009 Charles River Ventures, LLC

Venture Capital Investing Themes

Univation Conference, Perth

November, 2010

Bill Tai

CONFIDENTIAL Copyright 2009 Charles River Ventures, LLC 2

Trends that are changing the landscape

• Cloud is the new infrastructure

• Smart phone is the new platform

• Always connected is a new baseline

• Real time is a new requirement


Cloud Is the New Infrastructure

2007: AWS bandwidth usage surpassed Amazon.com global websites

Today: AWS bandwidth usage 30% greater than Amazon.com global websites

Bandwidth Usage:

AMAZON S3 MOMENTUM

200 Million5 Billion

18 Billion

52 Billion

64 Billion

Peak Requests:100,000+

per second

Total Number of Objects Stored in Amazon S3


Smart phone IS the new platform

"In 2008, there were almost 162 million smart phones sold, surpassing notebook sales for the first time…during 2009, sales of new smart phones will grow over 30% to 211.2 million units”

Informa - http://www.fiercewireless.com/press-releases/informa-uk-ltd-android-os-smartphone-sales-surpass-os-x-iphone-2012#ixzz0V6fH68OY

Handset sales: 1B+ units 2009; 200M+ smart phones


New Platform, New Societal Behavior

Smart Phone & Cloud

as“Platform”

Always Connected,to Real Time Info

as“New Paradigm”

A leading example – birth of a new ecosystem


Opportunities?

• New business models emerging? More than 300,000

applications 1B downloads in 320 days 2B downloads in 500 days 3B in 580 days; 4B in 670 5B in 740 days…

• Driving opportunities in infrastructure: ATT – 50X growth in mobile

data usage 2Q06 – 2Q09 (Morgan Stanley)

“The rate of App Store downloads continues to accelerate with users downloading a staggering 2 billion apps in just over a year, including more than half a billion apps this quarter alone.” -- Steve Jobs (9/29/09)


Paradigm shift – a prelude of more to come

• Disruptive services and usage modelBreakdown of the walled garden stranglehold

Mega social interaction driving huge increases in data usage

New network infrastructure needs

• Other major smart phone and technology platforms are following this exampleNokia OVI, RIM AppWorld

LG, Mitsubishi, Samsung, SONY, Vizio - connected TV’s


The next wave – speculative guess – 10B!

• A 10 Billion “internet of things” - 2010

• Implies: New products

New use cases

New service models

Cloud infrastructure

• Exciting investment opportunities…


Where we’re headed..

virtualization of CPU, storage, SW applications

virtualization of identity, name space, human presence

virtualization of data and content, its location, access and control

networks of people network of assets an Internet of things


Everyone is web addressable; real time, all the time

• A billion+ connected people:Social networks driving new real time information flow:

status, presence, geo-location

Communication platforms will change:

URL displaced numerical IP addresses;

name space will displace phone numbers

Twitter and Twitter clients are replacing RSS readers

• What new business models may emerge?


Everything is web addressable; real time, all the time

• A 10 billion+ unit “Internet of things”:Smart grid: real time flow of power usage information

extending into the home – power strips, thermostats, refrigerators and appliances

Automobiles: location services, remote control access, engine monitoring

Home entertainment devices: web addressable torrent clients and media players; web connected physical toys

• What new business models may emerge?


What are we looking for?

• Markets: BIG

• Management: Appropriate to the task

• Capital Requirements: Realistic to Fund

• Timing: “Being early is a lot like being Wrong”

• Sustainability: Barriers through technology or network effects


The Journey

• Startup to “Force of nature”

• Long road, many lives along the wayFlexibility

Passion

Strategic thinking combined with tactical smarts

Management that can put themselves in the path of luck

• EXACTLY NONE of the great companies in technology do exactly what they set out to do…

univation conf - keynote slides

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