Agora

1. 2/8/2011 Agora

2. Agora – V1 · Technology partners – companies that provide cloud infrastructure interoperability and portability products/services· Payment processor· Law Firm· PR / Marketing Firm· VC/Investor · Develop a functional platform / marketplace · Sign-up sell-side and buy-side customers· Process payments Sell-side:· Service providers: Additional marginal revenue at negligible cost (mostly additional customer service cost)· Enterprises: Lower IT cost – spot market revenue mitigates portion of infrastructure costBuy-side· Reduced cloud compute infrastructure cost· Increased procurement flexibility Sell-side: · Cloud infrastructure service providers· Enterprises with spare capacities in their private clouds; privacy concern will not prevent enterprises from selling their resources· Consumers or small businesses who want to sell off their resources during sleep cycles (screen saver style)Buy-side:· Startups (most are using AWS today)· Companies engaged in image and video processing, conversion and rendering (e.g. digital media companies)· Scientific data processing (e.g. biotech research companies)· Financial modeling and analysis (e.g. hedge funds)· Enterprises migrating from own data center to cloud infrastructure· Oversold infrastructure providers· Arbitrageurs · Automated sign-up and transaction process· API support for buyers’ developers / IT admin staff· Live customer support to handle sign-up and transaction issues / glitches· Developer support for API· Online support forum · Direct sales force on both sell and buy sides to seed the market.· Application vendors that are interested in reducing the infrastructure cost of their customers· Integrators (e.g. Accenture)· Automated sign-up process· Key influencers within the startup movement, such as Quora, Foursquare· IT thought leaders or technology evangelist to foster market adoption · Physical – servers vs cloud?· Brand – “largest market for cloud compute resources”· Intellectual property – efficient buy-sell matching and transaction execution · Development resources – UX and scalable distributed backend· Enterprise sales force (small and tight, focused on key accounts)· Biz dev (channel partners and technology partners)· Support (initially handled by dev)· Financial – angels and VCs. Amount TBD. · Transaction fees / commissions charged to sellers· Derivative products · Customer acquisition costs – need to determine how heavily will we need to rely on our direct sales force (vs using online marketing to drive buyers to market)· Development Costs· Infrastructure costs – will scale with # transactions (a function of # customers and frequency of transactions per customer per day)· Support costs – will scale with # transactions· Legal costs – filing patents, incorporations, etc

3. Agora – V4 · Technology partners – cloud vendors, management tools· Payment processor· Law Firm· PR / Marketing Firm· VC/Investor • Develop a working prediction algorithm & build product • Develop matching algorithm for compute & build portal • Sign up keystone customers to test product • Develop relationships with cloud compute vendors • Buy-side· Reduced cloud compute infrastructure cost through capacity planning· Better, easier way of finding the right compute to match their needs • Sell-side: • Channel with low acquisition cost • Better planning for demand variability · · For enterprise segment, higher touch model with direct sales force · API support for buyers’ developers / IT admin staff· Live 24/7 customer support · Online support forum • Buy-side (most important):·High compute needs with high variability in usage • Primarily large enterprise· Companies engaged in image and video processing, conversion and rendering (e.g. digital media companies)· Scientific data processing (e.g. biotech research companies)· Financial modeling and analysis (e.g. hedge funds)· • Sell-side (secondary- will follow if we are able to attract buyers): · Cloud infrastructure service providers · Direct field sales force to enterprise customers · Integrators / consultants (e.g. Accenture) · Physical – servers vs cloud?· Brand – “efficiency in the cloud”· Intellectual property – prediction algorithm· Development resources – UX and scalable distributed backend· Enterprise sales force · Biz dev (channel partners and technology partners)· Support · Financial – angels and VCs. Amount TBD. • Subscription charge to buyers • % fee to sellers from channel activities • Derivative products · Customer acquisition costs – Demand creation + Field sales· Development Costs· Infrastructure costs – will scale with # transactions (a function of # customers and frequency of transactions per customer per day)· Support costs – will scale with # transactions· Legal costs – filing patents, incorporations, etc

4. Capacity Planning Analogies • Call Centers • Retail Sales • Manufacturing

5. AWS User Group meeting in SF 2/8/2011 Agora

6. Channel: Lessons Learned • Direct inside sales reps • Cloud consultants • Web

7. Entry Level Customer • Estimated LTV • $1,000 / mo • 5% attrition rate month-to-month • 20 month average lifetime • $20,000 LTV

8. Inside Sales Model • Annual Sales Cost: $840K • Lead gen: $40K • 3 Inside sales reps: $600K • 2 Tradeshows: $200K • Annual Bookings: $4.8M • Annual New Revenues: $2.9M

9. Enterprise Level Customer • Estimated LTV • $20,000 / mo • 2% attrition rate month-to-month • 50 month average lifetime • $1M LTV

10. Field Sales Model • 3 Field Sales Reps: $1.5M • Annual Bookings: $12M • Annual New Revenues: $3M