1 / 28

TeleSoft Partners EcoSystem Meeting

TeleSoft Partners EcoSystem Meeting. Paul Chamberlain Managing Director, Head of West Coast Technology Banking October 28, 2005. Google and Beyond:. Consumer Internet Trends. The New Group Therapy. “Hi. My name is Barry, and I Google two to three hundred times a day.”.

jamal-taylor
Download Presentation

TeleSoft Partners EcoSystem Meeting

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. TeleSoft Partners EcoSystem Meeting Paul Chamberlain Managing Director, Head of West Coast Technology Banking October 28, 2005

  2. Google and Beyond: Consumer Internet Trends

  3. The New Group Therapy “Hi. My name is Barry, and I Google two to three hundred times a day.”

  4. Jail Cell Confessions “I should have used Skype instead of email.”

  5. Agenda • Tech Market Snapshot • Morphing of the Internet • What’s Behind the Internet Scramble • What’s Ahead

  6. Tech Market Snapshot • Virtually all public tech companies (ex-Internet) are “growth-challenged”— not capital-constrained • Overall tech growth rates are expected to improve but still trail Internet considerably • Internet valuations are consistent with high growth leaders in other tech sectors • Financial sponsor activity at an all-time high but only limited investment to date in Internet

  7. Technology Sector Year-over-Year Revenue Growth % Internet Growth is Pulling-Up the Averages

  8. P/E to Growth Internet and Consumer Software Internet Valuations Are Not Out of Line

  9. A New Force To Be Reckoned With? Financial Buyer Activity in Technology Bn # of Deals: 12 11 16 17 23

  10. Internet 1.0 Internet 2.0 Catalyst Information access Information relevancy Service Differentiation Online vs. offline Speed, relevancy, cost IT Objective Put big iron on Net Low cost scale out Disruption Any-to-any Speed, intelligence Winners Morphing of the Internet

  11. $Bn $3,000 eCommerce Wireline Voice $300 Size of Market Video Enterprise Data Center Speed / Relevancy / Cost $100 Low Cost / VoIP Wireless Data Personalized /On-Demand Consumer Broadband Scalability / Reliability Data / Entertain Speed / Cost Big Changes Keep Coming

  12. My, How Communications Have Changed! Up to 1995 2005 Mobile VoIP IM Email Blogs Web

  13. Search Broadband Music • 8Bn global searches per month at Google • 180MM global subs • 60MM in Asia • 50MM in U.S. • 700MM iTunes downloads • 7MM iPods sold in Q3 Personalization Video Mobile • 40MM+ MyYahoo! users • 1Bn streaming video sessions at Yahoo! • Ringtones now a $3Bn revenue business Consumer Internet Data Points

  14. Internet Deal Mania?

  15. And It Doesn’t Stop There craigslist

  16. What’s Behind the Internet Scramble • Internet (Narrowband) Internet (Broadband) • Search 1.0 Search 2.0 • PC-centric Mobile-centric • International North America • Free email Free calling • Browsing Communications Massive shifts in spending in existing markets and new market growth

  17. Commerce Commun-ication “Holy Trinity” Content Self-Reinforcing Internet Momentum Search Broadband

  18. Mobile Broadband in Early Stages Global 2.5G/3G Penetration Subscribers (MM) % of Total Wireless Subscribers

  19. International Markets Are Leading the Way Internet Users – 1 Billion Mobile Users – 2 Billion

  20. Skype – Fastest Growing App Ever? Registered Users Revenue Split MM 54MM as of Sept. 2005 Months Since Inception

  21. Internet As a Communications Hub % of Time Spent on Internet Communications 44%

  22. What’s Ahead • Search keeps getting better for users and advertisers

  23. The Power of Internet Ecosystems • “Incontrovertible leadership” • “Defied convention” • “Widening the gap competitively” • “Powerful momentum” • “Strong trajectory” • “Hitting on all cylinders” In Q3 Yahoo! generated $1.3Bn in gross ad revenue and PAID OUT $400 MM to partners like MSN, ESPN, WSJ, etc. In Q3 Google generated $1.6Bn in gross ad revenue and PAID OUT $530 MM to partners like AOL, AskJeeves, etc.

  24. What’s Ahead • Search keeps getting better for users and advertisers • Ad-supported desktops? • Any content, anywhere • Moore’s law coming to networking?

  25. A Gift to the Server and Networking Industries? CapEx Spending by Major Internet Players $MM + 30% + 87% + 34%

  26. What Does It Mean for You? “Can you hang on a sec? I think I just took another picture of my ear.”

  27. If It Can Work for Arjun…

  28. QUESTIONS?Paul ChamberlainManaging DirectorTechnology Investment Banking650-234-5603paul.chamberlain@morganstanley.com

More Related