VirtualDesign.Net IncVirtualDesign.Net Inc..VirtualDesign.Net IncVirtualDesign.Net Inc..

Virtual WorkSpacesVirtual WorkSpaces20032003

Virtual WorkSpacesVirtual WorkSpaces20032003

Market NeedMarket NeedMarket NeedMarket Need

Today’s problemToday’s problem

• Today’s design teams are dispersedToday’s design teams are dispersed• Face-to-face meetings are costly and time Face-to-face meetings are costly and time

consumingconsuming• Time-to-market is decreasingTime-to-market is decreasing• Approval times are increasingApproval times are increasing• Product life is decreasingProduct life is decreasing• Businesses are cost cuttingBusinesses are cost cutting• Pace of business is fasterPace of business is faster

Market NeedMarket Need

SolutionSolution

• A Collaboration Service Provider (CSP) with A Collaboration Service Provider (CSP) with an integrated, easy and affordable an integrated, easy and affordable collaboration toolsetcollaboration toolset

• On demand, real-time, multipoint, browser-On demand, real-time, multipoint, browser-based video-conferencing with full audio and based video-conferencing with full audio and complex file sharingcomplex file sharing

You are in New YorkYou are in New York

The client is in San Francisco

The client is in San Francisco

The manufacturingplant is in GermanyThe manufacturingplant is in Germany

The engineer is in Miami

The engineer is in Miami

And … The deadline is today!

Changes must be made …Changes must be made …

Client approvals …Client approvals …

And … The deadline is today!

Changes must be made …Changes must be made …

Client approvals …Client approvals …

But … no worries!But … no worries!But … no worries!But … no worries!

Market DriversMarket Drivers Market DriversMarket Drivers

Business focuses on savings…Business focuses on savings…Business focuses on savings…Business focuses on savings…

Businesses always concerned about costBusinesses always concerned about cost Travel for face-to-face meetings is the largest & most Travel for face-to-face meetings is the largest & most

variable costvariable cost Travel means lost productivityTravel means lost productivity Customers and vendors demand high-intensity, high-Customers and vendors demand high-intensity, high-

quality interaction -- a compelling need for improved cost quality interaction -- a compelling need for improved cost management and enhanced communicationsmanagement and enhanced communications

Rapid deployment teams becoming the ruleRapid deployment teams becoming the rule

Market OpportunityMarket OpportunityMarket OpportunityMarket Opportunity

Forrester claims 72% of firms call supplier collaboration critical Forrester claims 72% of firms call supplier collaboration critical

By 2005-06, according to Meta Group, firms will collaborate with By 2005-06, according to Meta Group, firms will collaborate with trading partners by opening & sharing their customer buying trading partners by opening & sharing their customer buying behavior patternsbehavior patterns

Frost & Sullivan expects U.S. Web-based teleconferencing Frost & Sullivan expects U.S. Web-based teleconferencing services to skyrocket ($62 million in 2000 to $238.6 million in services to skyrocket ($62 million in 2000 to $238.6 million in 2003)2003)

>70% of Fortune 1,000 company execs see the Internet as >70% of Fortune 1,000 company execs see the Internet as fostering collaboration with business partnersfostering collaboration with business partners

Over next 5 years, Giga expects Web conferencing with Over next 5 years, Giga expects Web conferencing with enhanced real-time file sharing to maintain double-digit growth enhanced real-time file sharing to maintain double-digit growth

In 3 years, Meta Group sees Web conferencing as a standard In 3 years, Meta Group sees Web conferencing as a standard desktop tooldesktop tool

ExperiencedExperienced Management Team Management Team

ExperiencedExperienced Management Team Management Team

Robert Ebert, CEO and FounderRobert Ebert, CEO and Founder Ken Majors, Executive VPKen Majors, Executive VP Laura Songer, Director of OperationsLaura Songer, Director of Operations Troy Schulz, VP of EngineeringTroy Schulz, VP of Engineering John Ebert, VP of Network SystemsJohn Ebert, VP of Network Systems Bryce Brisban, Director of Sales and Bryce Brisban, Director of Sales and

MarketingMarketing

What VDN OffersWhat VDN OffersWhat VDN OffersWhat VDN Offers

A subscription-based, full-spectrum collaboration A subscription-based, full-spectrum collaboration tool settool set

High-end, highly interactive solution for intense High-end, highly interactive solution for intense communication using real-time video conferencingcommunication using real-time video conferencing Workspace runs entirely in a browserWorkspace runs entirely in a browser Integrated toolset Integrated toolset Can view 260 2D and 3D file formatsCan view 260 2D and 3D file formats 168-bit security encryption168-bit security encryption

Any place, any time Any place, any time No hardware or dedicated-line purchasesNo hardware or dedicated-line purchases Global accessibility Global accessibility Easily crosses LAN and NAT boundariesEasily crosses LAN and NAT boundaries

Virtual-WorkSpacesVirtual-WorkSpaces

System RequirementsSystem Requirements

UserUser Windows XPWindows XP Intel Pentium III Intel Pentium III

(800MHz+)(800MHz+) 256MB RAM256MB RAM USB-based cameraUSB-based camera Internet connection Internet connection

of 512Kbps or higherof 512Kbps or higher

Internet Explorer 6Internet Explorer 6

NetworkNetwork Symmetrical Symmetrical

Broadband Broadband accessaccess

Port in firewall for Port in firewall for VPNVPN

The Cost BenefitThe Cost BenefitThe Cost BenefitThe Cost Benefit

Traditional

Transportation $ 700Accommodations $ 600Expenses $ 300Lost Productivity $ 5003-day total $2100

Cost/day $700

Virtual-Workspaces

Transportation $ 0Accommodations $ 0Expenses $ 0Lost Productivity $ 0Virtual-WorkSpace $243-day total $24

Cost/day $ 8

3-day business trip versus Virtual-WorkSpaces subscription (one seat) for 3 days

The CompetitionThe CompetitionThe CompetitionThe Competition

User Interface User Interface VirtualDesign.NetVirtualDesign.Net WebExWebEx PolyComPolyComFirst Virtual First Virtual

Comm.Comm.

WEB Browser BasedWEB Browser Based

Calendar Calendar

ContactsContacts

Files SharingFiles Sharing

Multi Point Video ConferencingMulti Point Video Conferencing

Document ConferencingDocument Conferencing

DiscussionsDiscussions

BookmarksBookmarks

Multi Format Document ViewerMulti Format Document Viewer

NotesNotes

CommunityCommunity

Project MembersProject Members

Personal TaskPersonal Task

Work TaskWork Task

Dedicated ClientDedicated Client

View any file typeView any file type

Annotate the fileAnnotate the file

WEB based file storageWEB based file storage

Hardware RequirementsHardware Requirements VirtualDesign.NetVirtualDesign.Net WebExWebExPolyCPolyC

omomFirst Virtual First Virtual

Comm.Comm.

PC Speakers/HeadphonesPC Speakers/Headphones

Noise Canceling MicrophonesNoise Canceling Microphones

DSL 512Kbps or BetterDSL 512Kbps or Better

128mb Ram or Higher128mb Ram or Higher

PII - 600 MHz or BetterPII - 600 MHz or Better

USB Camera USB Camera

Dedicated ServerDedicated Server

Hardware MCUHardware MCU

Proprietary HardwareProprietary Hardware

Software RequirementsSoftware Requirements VirtualDesign.NetVirtualDesign.Net WebExWebExPolyCoPolyCo

mmFirst Virtual First Virtual

Comm.Comm.

Adobe Reader 4Adobe Reader 4

Microsoft Data. Supp. (ODBC)Microsoft Data. Supp. (ODBC)

NetMeeting® 3.01NetMeeting® 3.01

Windows 2000 or Windows XP Windows 2000 or Windows XP (professional)(professional)

The Competition The Competition (cont.)(cont.)

How VDN PlansHow VDN Plans to Succeed to Succeed

How VDN PlansHow VDN Plans to Succeed to Succeed

A managed, focused growth plan targeting designers who A managed, focused growth plan targeting designers who build thingsbuild things

View collaboration as “full-service” and not as an “add-on”View collaboration as “full-service” and not as an “add-on” Service is easy, fast and reliableService is easy, fast and reliable Service automates the relationships between an Service automates the relationships between an

enterprise, its employees and its partnersenterprise, its employees and its partners As a CSP, services and technology are secure and non-As a CSP, services and technology are secure and non-

invasiveinvasive Upgrades are automatically and immediately availableUpgrades are automatically and immediately available Pent up demand for this type of service causes a “ripple Pent up demand for this type of service causes a “ripple

effect” from company to company to companyeffect” from company to company to company

Business & Pricing ModelsBusiness & Pricing ModelsBusiness & Pricing ModelsBusiness & Pricing Models

Business modelBusiness model• New workflow service called a CSPNew workflow service called a CSP• Scalable service not linear with employee growthScalable service not linear with employee growth• Focus on customer ROIFocus on customer ROI• Service integrates easily with an organization’s Service integrates easily with an organization’s

existing workflowexisting workflow• Know that the process is constant but the tools Know that the process is constant but the tools

changechange• Depends upon customer feedbackDepends upon customer feedback

Pricing modelPricing model• $250 setup fee/user$250 setup fee/user• $250 monthly subscription fee/user$250 monthly subscription fee/user• Sold by the seat (seats can be shared)Sold by the seat (seats can be shared)

The FutureThe FutureThe FutureThe Future

What’s next?What’s next?• Product will constantly evolveProduct will constantly evolve• Video-only solutionVideo-only solution• Integrated, compatible, highly secure instant messagingIntegrated, compatible, highly secure instant messaging• Support for MAC OSX, Unix and Linux clientsSupport for MAC OSX, Unix and Linux clients

Changing the way people workChanging the way people work• Virtual Communities and Associations emergeVirtual Communities and Associations emerge• Virtual work centers on a global net connectVirtual work centers on a global net connect• A more balanced life results because there’s more A more balanced life results because there’s more

control of tasks and commitmentscontrol of tasks and commitments