SAAS Themes in Mobile SAAS Themes in Mobile IndustryIndustry

Alok MittalAlok MittalAugust 2009August 2009

© Copyright 2009 Canaan Partners 2

Agenda

»Overview

»Telco Procurement – Shift to Managed Services

»Application Development – The PAAS of Mobile

© Copyright 2009 Canaan Partners 3

Background

» 21-year-old firm with offices in Silicon Valley | New York Corridor | India | Israel

» $3.0 Billion assets under management across 8 funds

» Technology & Healthcare focused

» Early-stage investments (Series A/B)

» 129 liquidity events 52 IPOs | 77 M&As

» 201 years investing experience

» 171 years operating experience

OVERVIEW

© Copyright 2009 Canaan Partners 4

» Utilities, including telecom, inherently adopt “pay as you go” business model to customers› Minutes, Watts, Gallons

» Mobile companies have been migrating to a sourcing model on SAAS lines for 5 years now

» The open application environments of the computing world are being adopted in the mobile world, and will offer developers similar services as online PAAS platforms

Mobile Industry – Key SAAS ThemesOVERVIEW

© Copyright 2009 Canaan Partners 5

Agenda

»Overview

»Telco Procurement – Shift to Managed Services

»Application Development – The PAAS of Mobile

© Copyright 2009 Canaan Partners 6

Telco Procurement – 10 years agoTELCO PROCUREMENT – SHIFT TO MANAGED SERVICES

Marketing

Network O&M

Billing/ Customer Care

Network Equipment

NM, OSS

Active Infra

Passive Infra

IT

Capital

Billing/ Customer Care

Marketing

© Copyright 2009 Canaan Partners 7

Telco Procurement – now and futureTELCO PROCUREMENT – SHIFT TO MANAGED SERVICES

Network

VAS

IT

O&M

Project Executio

nEquipme

ntCapital

© Copyright 2009 Canaan Partners 8

Agenda

»Overview

»Telco Procurement – Shift to Managed Services

»Application Development – The PAAS of Mobile

1980s1980s

Evolving Developer ContextAPPLICATION DEVELOPMENT – THE PAAS OF MOBILE

© Copyright 2009 Canaan Partners 9

Proprietary to Device or Network

Proprietary to Device or Network

Cross – Device Cross – Network

Cross – Device Cross – Network

Embedded

Embedded

OSOS

Middleware

Middleware

MMIMMI

Monetization

Monetization

Docomo 1990s

Docomo 1990s

S40 1990sS40 1990s

Java, FlashLite

2000s

Java, FlashLite

2000s

iPhoneiPhone

S60, WinMo 2000s

S60, WinMo 2000s

AndroidAndroid

© Copyright 2009 Canaan Partners 10

» Easier application development due to increasing standardization of development platform› Might still not get to 1 platform

» Tighter integration of application environment with device and network capabilities› Richer, network oriented applications (presence, location, etc)

» Value shifting to customer experience (MMI) and business model (Distribution, payment)

Key Takeaways for Application Developers

APPLICATION DEVELOPMENT – THE PAAS OF MOBILE

Thank you!Thank you!