Transcript the Hybrid Logic presentation

HybridLogic
Self-healing cloud hosting
platforms
www.hybrid-logic.com
£100k invested to date
Product ready and selling
First customers secured
Seeking £400k investment
Projected Y5 revenue £60m
HybridLogic: Investment criteria
• HybridLogic = computer science + real
world web hosting pain
Three huge problems:
• Hardware and software fails
• Size of problem: £17bn in 2011 [CA technologies]
• Need self-healing
• Websites get spikes in traffic
• Need auto-scaling
• Users make mistakes
• Need a cloud time machine
HybridLogic: The pain that we’re solving
• Self-healing cloud
hosting platform
– For web applications
and email
– Failover across
machines and data
centers
– Continuous live backup
and 1-minute autorecovery
– No expensive storage
hardware (SAN) needed,
average saving of 70%
HybridLogic: What we’ve done
• On-demand
scalability
– Seamlessly & instantly
live-migrate sites,
databases, applications
and email accounts. No
downtime.
– Automatically reacts to
spikes in traffic
– Automatically scales up
to dedicated hardware
for busy sites
• Cloud time machine
– Let customers revert
to any point in time
– Instant recovery to
snapshots of
websites, databases
or email
– Keep a record of all
changes – like a time
machine
HybridLogic: What we’ve done
• High density hosting
– HybridLogic provides
4x better utilization
than fully virtualized
solution
– Burst customers to
dedicated machines
automatically –
licensees bill them
based on quantified
usage
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There are 30,000 web
hosts globally
Average number of
servers per host is 20
Licensing model yields
recurring revenue
List price is £165 per
server per month
Total addressable
market is £1.2bn
•
•
•
Target market for year
5 is 1,500 web hosts
(5%)
Target market is worth
£60m
… and that’s just the
web hosts
–
–
HybridLogic: Scale of opportunity and pricing
Enterprise software
market £150bn
Enterprise storage
market £100bn
• Prospecting
• Hosting service
providers
– Classic high-tech market
• Key prospecting tools
– HostingCon: largest
trade show for this
market
– Target key bloggers and
industry analysts
– Website and organic
SEO traffic
HybridLogic: Customer acquisition
• Converting
• Proven customer
acquisition model
– Qualification process
– 30 day trial
– 1:1 webinar demo
• Self-service is crucial
– Deploy software
through “Launchpad”
• Web hosting industry
commoditising
– Amazon turning
hosting into a price
war
• Compete more
effectively
– No SAN costs & better
hardware utilisation =
better margins
• Price squeeze
inevitable
• Weapons to resist price
pressure:
– Mass market
– Self-service
– Value added services
e.g. cloud time
machine
HybridLogic: Web hosting – a commoditising market
Factor
CPanel
HybridLogic
OnApp
VMware
$
$$
$$$
$$$$
Tolerate failure of
servers
Tolerate failure of
data centre
Automatic
scale-up
User-accessible
restore points
Supports Java,
Python, Ruby
Shared nothing
replicated storage
High density of
cust. per server
Total cost (TCO)
HybridLogic: Competitive matrix
• Barriers to
competition
• Complicated
technology
– Four years of R&D
resulted in new
approach
– R&D difficult and
deep
HybridLogic: Barriers to competition
• Get ahead and stay
ahead
– Continue to innovate
• Intellectual property
– Legal
• Constructing a thicket
of 5 patents
internationally
• We own all IP to the
system
Миллионы
£70
£60
£50
£40
£30
£20
£10
£0
Total revenue
Pretax profit
Profit after tax
1
£168 009
-£306 712
-£306 712
2
£1 031 111
£154 788
£154 788
HybridLogic: Financials – PNL Y1-5
3
£5 678 389
£2 737 194
£2 013 318
4
5
£20 639 494 £57 261 769
£12 595 334 £42 738 522
£9 068 640 £30 771 736
Тысячи
£500,00
£400,00
£300,00
£200,00
£100,00
£0,00
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
-£100,00
-£200,00
-£300,00
-£400,00
Months after investment
HybridLogic: Financials – Peak cash requirement
£20 500,00
£18 500,00
£17 000,00
£85 678,67
£51 000,00
£80 945,83
£56 000,00
£127 590,67
Directors salaries
Engineers salaries
Sales salaries
Marketing budget (HC)
Marketing budget (HS)
T&E including HostingCon
Legal & pro fees
Office
HybridLogic: Financials – Breakdown of £400k spend
Technical team
Rob
Haswell
CTO & Founder
11 years web
development and
systems
programmer
Jean-Paul
Calderone
Developer
Python and network
developer; worked
for Apple, cofounder of Twisted
project
Luke Marsden
CEO & Founder
1st from Oxford in
Computer
Science;
11 years running
hosting company
Mike Smithson
VP Sales & Founder
20 years experience
selling technology,
and running web
agency
Product team
HybridLogic: Committed Team
Jason Seats
Lead Investor
& Advisor
Founder of
Slicehost, sold
to Rackspace
in 2008
Eric Barton
Investor &
Advisor
CTO and
founder
Whamcloud
Anil Hansjee
Advisor
Ex-Google
M&A, strategy,
biz dev,
funding,
business
models
HybridLogic: Investors & Advisors
David May
NED
CTO of
XMOS, IP
expert, 50+
patents
Anne
Johnson
Advisor
Silicon Valley
advisor
£400,000
• Invested £100k own money
• Just raised further £100k angel
money
• Looking for £400k seed funding
• EIS eligible
Yr 5 exit
• Trade sale in Year 5
• Current Sector Valuation is
5-10x EBITDA
Year 4 EBITDA
projection is $18m
• Potential exit value minimum
£60m @ 5x EBITDA
• Anticipated ROI at least 15x
HybridLogic: Investment required
Early to market
Committed founders
Technology works – proven
Customers love it
There’s a big return
Call Luke on 07791750420
Thank you - questions?
HybridLogic: Conclusion & contact
Appendix
Hosting
Services
Unisys
SoftLayer
PEER1
Google
Amazon
EIG
Parallels
CPanel
OnApp
Logica
DD
HP
Rackspace
IBM
NetApp
EMC
HDS
VMware
Cisco
3Tera
Oracle
Hardware
HybridLogic: Exit strategy – 20 candidates
Software
Milestones:
1. Launch Point-in-Time
Restore interface –
June
2. Launch self-service
“Launchpad” – June
3. Launch new Hybrid
Logic website – June
4. Add EC2 support –
July
5. Attend HostingCon –
July
HybridLogic: Product roadmap
6. WHMCS plugin –
September
7. Work on scaling to
100+ servers –
October
8. Target: 10th licensee
into live
environment –
September
• Achievements to date:
– 2008
• HybridLogic founded as
R&D organisation
– 2009
• First proof-of-concept
(working MySQL
support)
– 2010
• Initial funding
• Email system completed
• Beta programme
HybridLogic: Progress
– 2011
• Accepted into
SETsquared business
incubation centre
• Attended HostingCon
on ‘reconnaissance
mission’
• First licensee goes live
– 2012
• Second, third, fourth
and fifth licensees go
live
• Business plan & strategy
review completed