2 Introduction to DataWind Part 1:Introduction to DataWind
3 Will enable internet access for the masses of the world DataWind:Manufactures, Markets, and Sells UbiSlate (Aakash) tablets, PocketSurfer handhelds & UbiSurfer netbooks on a powerful Web Delivery Platform18 Patents issued covering 240 claimsUnique patents enable FREE wireless internet accessWorld’s lowest cost computing devicesWill enable internet access for the masses of the world
4 Team DataWind – 150 Strong: CategoryAddressLocationTeamUK:8 Chase Rd., Unit 1, London NW10 QDLondon, UK18Canada:555 Rene Levesque West,Montreal, QC H2Z 1B1Montreal, CA62India:195 Ajit Nagar Sultanwind RdAmritsar, PunjabAmritsar, IN23Other:26 York St., London87895 Tranmere Drive, Mississauga, ONToronto, CA13Hechtseestr. 1683022 RosenheimMunich, DE3252 Lakshydeep Plaza, 303 2nd Floor, Sant NagarEast of Kailash, New DelhiNew Delhi, IN716/F,CITIC City Plaza,Shennan Road Central,ShenzhenShenzhen, China5Staff: Mumbai, Bangalore, Kolkata, ChennaiMisc/IN11
5 Leadership Team: Board: President & CEO: Suneet Singh Tuli Management: Andrew Beeson (Co-Chairman)Lord BearstedL.S. TuliManagement:Chairman & CTO: Raja TuliCEO: Suneet S. TuliCFO: Stephen ClarkeCOO India Ops: Kuljeet SinghCOO Americas: Timmy MonicoVP UK Operations: Alia KhanVP Int’l Sales: Derek KopkeChief Engineer: Marian IordanPresident & CEO: Suneet Singh TuliOur CEO & co-founder is Suneet S. Tuli who oversees business strategy with emphasis on distribution for various international markets. Prior to this Suneet set-up international distribution for Docuport. Before that, Suneet served as the COO for WideCom which markets wide-format office equipment employing over 200 people, with full responsibility for sales, marketing and operations.Chairman, CTO & Visionary: Raja Singh TuliOur Chief Technology Officer and co-founder is Raja S. Tuli. Raja has conceptualized our products and developed the core technologies. Raja is considered an expert in the imaging industries, with 48 patents approved to date, and an additional 73 pending.
7 DataWind’s core technology: Faster User ExperienceINTERNET ORCORPORATE INTRANETPatented Technology Parallel Processing EnvironmentLower Cost DeviceDesktop-Like Web Experience10x to 30x Reduction In Mobile-Network Data ConsumptionLower Data Costs6x to 10x Lower Processing Power & Memory In Client DeviceDataWind’s Breakthrough Internet-Delivery Platform(18 patents issued & approved) reduces network load, and speeds delivery of content by factors of 10X to 30X.
8 Mobile Network Congestion & Costs Business Week article highlighted the crippling effect of higher data- consuming devices on AT&T’s network in the US:40 MB/hrx hrs/mo= MB/moAt Rs.0.30/MB = Rs. 180/mo.
9 DataWind’s Breakthrough Web Delivery Platform Datawind’s technology provides a richer, faster user experience while consuming much less data: 1.5MB/hr (vs. 40MB/hr)Data cost of 1,000 web-pages:Advertising revenue = Rs.24 CPM (cost per thousand impressions)Result: FREE MOBILE INTERNETRouter:LoadBalancingAuthentication Server:Firewall Internal/ExternalSecurityDatabase Server:Back office: Client accountinformation, billing,bookmarks & cookiescache.Modem Pool(ForCircuit Switched)orInternet(For PacketBased)Existing & FutureCellular/PCS NetworksINTERNET ORCORPORATE INTRANETApplicationServers:Multiplesimultaneousclient sessionsScalable Carrier-Class Architecture20MB =x Rs. 0.30= Rs. 6600MB
10 Revenue Model Ecosystem: Sustainable ecosystem of Device, Access & Content;Acquisition Tool:Free/low-cost InternetOpportunity:UpsellHardware: Customer Acquisition ToolRecurring Revenue Streams:Internet Access Fees‘Free Access’ creates opportunity for upsellAdvertising RevenuesToolbar contextual, search & sponsored linksContent RevenuesApp store, Ebook store & Music downloads
12 The Story’s About: Fighting poverty with passion Empowering through education:The pre-requisite to drive development, reduce poverty, improve health, gender equality, peace, and stability.Breaking the barriers of affordability and accessibility forDevicesNetworksContentBuilding sustainable ecosystemsThriving businesses vs. Charity
13 Sustainable Ecosystems Sustainability requires Demand DriversAnd, economically viable solutions to fulfill that demandViable solutions need to meet the “triple bottom line” of sustainability – economic, environmental and social
14 Demand Drivers: Motivated Parents Youtube search: Indian Teacher Funny
15 Barriers: Affordability & Accessibility Is affordability a barrier?United States:A computer costs less than 1 week of salaryMonthly internet access costs less than 1 day salaryIndia:A computer costs more than 6 months of salaryMonthly internet access costs 2 week salaryInternet UsersIndia100 million internet users (Once per month)48 million real internet users (Every other day)4% of the population uses internet – 96% doesnt900 million mobile phone connectionsMobile Phone Users
16 Affordability Gap:4 BillionPersonGapWhat if a computing/internet-access device could be delivered ‘profitably’ for the cost of a mobile phone?
17 DataWind’s Device Affordability Solution: Patented technology shifts burden of processing power & memory to backend servers, allowing richer experience despite lower-cost processors & memoryVertical integration of manufacturing processes squeezes margins from modular componentsBusiness model ecosystem shifts margin burden from hardware to recurring residualsAAKASH TABLET: Designed, Developed & Manufactured by DataWind
19 Device Sustainability Margins & market size motivate DataWindManufacturer & channel maintain margins:- better than mobile phonesExisting mobile phone channels provide broad distributionValue motivates ConsumerInternet: Content, Communication & Commerce: The world’s fastest mobile internet device on the developing world’s congested 2G networks – and it’s a phone!Ebook Reader: Offset device cost against cost of printing paper and distribution – and save trees!Video Player: Compelling teaching tool – requires no learning curve!Domestic production motivates GovernmentsCreates local employmentGenerates tax revenueCreates opportunities for local innovation
20 Is $35/$50/$60 affordable? Priced in the range of a mobile phone 6 billion have been able to afford themFurther justified against cost of book printing & distributionIn the US:Average cost of books in grade school = $10,800 over a period of 12 yrsIn India:Average no of books per child per grade = 14.3Average customer price per book = INRAverage customer price of books per child per grade = INRPrinting/Distribution cost = 35.3% = 556 INRLife of tablet in hands of child = 3 yearsTotal savings on printing & dist over life of tablet= 1668 INR = $33
21 Network Affordability & Accessibility Solution The network already exists6 billion mobile phone connections on 2G networksDataWind’s breakthrough web delivery platform delivers a rich, desktop-like experience on existing networksLower data costsLaunch at Rs.98 / $2/mo.The vision is to deliver basic mobile internet access for FREE
22 Network Access Sustainability Zero capital investment motivates operators2G Networks already existMinimal bandwidth consumptionStepping stone for 3G and higher-value servicesIncreased revenues motivates operatorsPotential for generating revenue without charging for accessAdvertising based revenue models eliminate customer acquisition costs
23 Content affordability & accessibility Open source platforms make content development easierApp-store concept allows accessibilityAdvertising based business models drive content/application costs lowerDataWind’s efforts:Student application contest:Source of innovative ideasEncourage entrepreneurial journeyNGO ‘idea’ contest with NASSCOMMarry NGO ideas with app developersDonate devices for field trials
24 Content Sustainability Mass reach motivates developers & publishersThe next billion internet users are coming!Revenue opportunities motivates developers & publishersProven advertising based monetization models allow broad deployment and significant revenue potential
25 What’s different this time “Some critics have noted that this is not the first time such a device has been promised for India, recalling the hoopla that greeted earlier devices like the Simputer and the $100 laptop (OLPC) project. What is different this time around?”AffordabilityConnectivityProfitable business model and ecosystem (not a charity)Its inspired the consumer’s imaginationFlood gates have opened:
26 Analysts Disagree November 17, 2011: Industry Analyst: “….tablets to be sold in a year would be in the range of 250,000 to 500,000 units. The low price is attractive only for students and the youth, who are aspiring to buy new products”
27 20x Analyst Estimates of Indian Tablet market The Flood Gates Have Opened:November 17, 2011: DataWind Demand:322,000 Individual Enduser Pre-bookings3,000,000 Corporate/Institutional/Bulk - EOI__________________________________5,000,000 Units – 2012 DataWind Forecast for India20x Analyst Estimates of Indian Tablet market50% of Indian PC Market
28 Government’s Role: Make it part of the educational curriculum Open-fair tendering processPromote:Domestic productionContent & connectivityE-governance; mobile-health; financial-inclusion;Promote citizen participatory platforms
29 World Bank’s Support:For DataWind (& others): Provide guidance & supportWe need your domain expertise in the international development space to achieve the deepest impactFor Governments:Educate & inform governments around the worldHelp reduce hurdles to sustainable ecosystem – allow openness & competitionPromote open, fair & transparent tendering processes – eliminate favoritism