1. 2/8/2011

2. 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 · 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 · 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 · Transaction fees / commissions charged to sellers · Derivative products · 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 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 cost Buy-side · Reduced cloud compute infrastructure cost · Increased procurement flexibility · Develop a functional platform / marketplace · Sign-up sell-side and buy-side customers · Process payments · Technology partners – companies that provide cloud infrastructure interoperability and portability products/services · Payment processor · Law Firm · PR / Marketing Firm · VC/Investor · 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. Agora – V1

3. 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) · 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 Subscription charge to buyers % fee to sellers from channel activities Derivative products · 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 · 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 · 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 · Technology partners – cloud vendors, management tools · Payment processor · Law Firm · PR / Marketing Firm · VC/Investor · 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. Agora – V4

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

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

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