2. Purpose of Today’s Presentation
Over the next half hour you will….
➜ Learn more about why VCs continue to like the cloud
➜ Get a sense for the models VCs like
➜ Gain some practical experience on how to approach VCs
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3. Agenda
Cloud Computing: Why VCs Still Love the Cloud
What’s Disrupting The Cloud
➜Mobile’s Effect on the Cloud
➜Very Big Data
➜SMB: The Final Frontier
Getting Funded: Dos and Don’ts
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8. Still Lots To Do
Priorities for Improving Cloud Apps
% of Respondents
Unimportant Of Little Importance Somewhat Important Important Very Important
Ensuring security & compliance 11% 35% 48%
Improving manageability 16% 45% 36%
Deeper integration with on-premise apps 18% 48% 29%
Deeper integration with other cloud apps 19% 50% 26%
Providing mobile access 19% 42% 33%
Performance monitoring/management 19% 43% 32%
Improving data quality 23% 34% 39%
Reducing SaaS siloes 19% 42% 31%
Improving application governance 20% 39% 34%
Reporting & analytics 19% 39% 33%
Driving user adoption/productivity 25% 35% 31%
*Appirio
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9. Agenda
Cloud Computing: Why VCs Still Love the Cloud
What’s Disrupting The Cloud
➜ Mobile’s Effect on the Cloud
➜ Very Big Data
➜SMB: The Final Frontier
Getting Funded: Dos and Don’ts
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10. A Mobile-First, PC-Second World
Q1 2011 Q1 2011
Q1 2011 Q1 2012
17% 39% 46%
29%
+12% +7%
Almost a third of American adults own Nearly half of all American adults
tablets own smartphones
*Morgan Stanley, Pell
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11. Mobile’s Weakness: Storage
Mobile users rely on the cloud to access and store data
Mobile Data per Year
15.6 GB
*T-Mobile Internal Storage
Facebook Photos per Year
761 MB
*Facebook, Pixable
Average iTunes Music Library 16 GB
9 GB
*TuneUp
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13. Opportunities in Mobile and the Cloud
Mobile Security
Sharing Data Across
Mobile Platforms
Crossing the Content
Creation Gap
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14. Agenda
Cloud Computing: Why VCs Still Love the Cloud
What’s Disrupting The Cloud
➜ Mobile’s Effect on the Cloud
➜ Very Big Data
➜SMB: The Final Frontier
Getting Funded: Dos and Don’ts
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15. Facebook: A Lesson in Big Data
Every day Facebook processes…
• 300M new photos
• 2.5B new items shared
+ • 2.7B “Likes”
• 70,000 queries (Friend Suggestions)
More than 500TB of data
*Facebook
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16. Big Data Needs for the Cloud
Storage
• Need inexpensive, dense storage
• High performance
Computation
• Efficient analysis over large data sets (Friend Suggestions)
• Big Data Databases (NoSQL / NewSQL)
Infrastructure
• Performance at Scale
• Security
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17. Exciting Disruptors in Cloud / Big Data Infrastructure
Storage Computation Infrastructure
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18. Opportunities in Big Data and the Cloud
Easy, Real-Time
Analytics
High Performance
Multitenancy
Cloud Security and
Compliance
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19. Agenda
Cloud Computing: Why VCs Still Love the Cloud
What’s Disrupting The Cloud
➜ Mobile’s Effect on the Cloud
➜ Very Big Data
➜ SMB: The Final Frontier
Getting Funded: Dos and Don’ts
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20. SMBs Flocking to the Cloud
• SMBs adding services. 39% of SMBs projected to pay for 1+
cloud services in three years; current 29%. SMBs with cloud
services will be using 3.3 services in three years; current 2 services.
• Hybrid model. Within three years, 43% of workload will be on paid
cloud services, 28% on-premise, 29% free / bundled.
• SaaS and IaaS adoption. SMBs adopting SaaS and IaaS services
are larger, more growth-oriented companies
*Microsoft SMB Cloud Adoption Study 2011 / William Blair
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24. Succeeding in SMB Cloud
Leverage Social
Media
Disrupt Traditional
Markets
Create Scalable
Processes
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25. Agenda
Cloud Computing: Why VCs Still Love the Cloud
What’s Disrupting The Cloud
➜ Mobile’s Effect on the Cloud
➜ Very Big Data
➜ SMB: The Final Frontier
Getting Funded: Dos and Don’ts
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26. Approaching a VC with your Cloud Company
Study the landscape and differentiate
Focus on big market with relevant team
What is your flywheel? Scalability?
Know your financial model
VC partner – chemistry over terms
DO
Use buzzwords
Try to do everything – focus is key
DON’T Maximize valuation over chemistry
Hide your vulnerabilities
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Rate at which we create data is faster than the rate at which phone memory sizes are increasing (we’re making more than we can store locally)The cloud is necessary to overcome computing and storage limitations of smartphones due to form factor and size.
All of these startups use public cloud resources (namely AWS) to operate
Mobile Security: Assmartphones become the primary computing platform in use by consumers, attacks targeting them will increase.Sharing Data Across Mobile Platforms: As the world drifts towards a more diverse set of mobile platforms (iOS, Android, Win Phone) the need to share data and content across them becomes more important.Crossing the Content Creation Gap: If we’re to use smartphones as our primary computing device, we need to be able to deal with the gap between phones/tablets and PC’s in creating content like spreadsheets and word processing.
Queries refer to search operations like searching for frends, events, and friend suggestions. Many of these queries are optimized by memoization – reducing the number of uniquesearches by returning content searched previously (think Dedupe for compute). If they didn’t optimize their queries, Facebook would break.
Efficient analysis over large data sets: Find out a way to get information from data without breaking the computer Big Data Databases: Databases that can store and index large data sets in an efficient manner, interacts well with modern programming languages and APIs Performance at Scale: Ability to host a multitenant infrastructure that supports big data analysis
Easy, Real Time Analytics: Need to be able to get information from large data sources in real time (versus batch/Hadoop) and in a way that doesn’t require a PhD in CS.High PerformanceMultitenancy: Need to have a scalable infrastructure that can host multiple “mini-Facebooks” (startups with big data-level concerns) safely with high performance.Cloud Security and Compliance: Major inhibitor to movement to the cloud.
Leverage Social Media: Essential to use the social graph to approach customers without the need of a sales teamDisrupting Traditional Markets: Continue to disrupt traditional markets (past e.g.: payments, billing, etc.)Scalable Customer Service:Issue of capacity. You will scale to 1,000’s of customers without 1,000’s of employees
