Transcript Business Internet Strategy

Intel Confidential – For Internal Use Only
Connecting the World
Lisa Lambert
Managing Director, Intel Capital
Software Solutions Group
November 14, 2007
www.intelcapital.com
Web Evolution
Web 1.0: Building the web foundation
(from static to dynamic)
XML, RSS, Java, Web Services,
AJAX, Flash, Web APIs
2004: “Web 2.0” coined from
conference. Headline companies
mostly small and known to few
2005-2006: Entry of large
corporations fuel growth (via
acquisition, investment or
engagement)
2006-2007: Major startups emerge
as household names for consumer
and enterprise (similar to first wave
of the internet)
The near future: Full force adoption
and engagement from the enterprise;
next generation of consumer soln’s
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Environmental Trends
Status
•
Web 2.0 for the consumer remains very active and web 2.0 for the enterprise is experiencing strong
growth. Majority of Web 2.0 technologies have enterprise penetration
85% for fortune 500 are users of multiple vendors for blogs, wikis, rss, and podcasting
•
M&A Market still VERY active.
•
Google & Yahoo remain very active. Cisco & Saleforce beginning to address the enterprise market.
& Oracle actively evaluating acquisition candidates
SAP
Reason for Consolidation:
Acquired by Cisco:
•
User acquisitions (monitizable via
advertising)
Acquired by Salesforce:
•
Talent acquisitions (primarily
engineering – #1 reason for Google)
Acquired by eBay:
•
•
Gap fillers for full internet “platform”
•
•
Competitive differentiation
•
New technologies solving old
problems (i.e., wikis for
collaboration)
Acquired by Google:
Acquired by Yahoo:
Del.icio.us
High demand for Web 2.0 features
by customers
Low entry barriers into new markets
(Cisco, Amazon)
Acquired by Microsoft:
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Web 2.0 Evolution
Internet evolving into the next application platform
•
•
•
•
– Application platform
– Open Social
– Open Platform
– Widget platform
Major movements to applications in the “cloud”
•
•
•
•
•
Microsoft’s “Live” platform
storage
Cisco’s “virtual networked applications”
Application Exchange
moving components to SaaS model
Unleashing from Windows: Very rich applications & media
being developed – Focus back on computing power
•
Online Video (Joost), Virtual Worlds (Second Life), Gaming
(WorldsOfWarcraft), Online Office (MSFT, Google)
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How does this impact the user?
Internet
All applications from any device,
anywhere
New Class of Collaborative Online
Applications and Usage Models
Business
Consumer
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Dev Tools
Internet Ecosystem
Content
Consumer
Internet
Business
Internet
Audio/Video/Gaming/Photo/Wikis
Community
Social, Blogging, Tagging
Commerce
Next Gen B2C
– Often via Mashups
Virtual
Desktop &
Office
Online MS Office, Desktop
Services &
Solutions
Internet based applications for
business, move from client/server
Search
Enabled
Business
monitor110
Tools &
Middleware
Information gathered via
crawling then monetized
Tools quick dev for web 2.0
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Consumer Internet:
Investment Focus
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Consumer Internet Penetration
Very high Year over
Year growth numbers in
Internet Usage
Highest growth outside
the US
Majority of new users going to websites created as
“web 2.0” companies.
First evidence of sites with majority of users outside
the US making top ten list.
This list in 5 yrs will have much more global influence
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Source: Morgan Stanley, Alexa Global Tracking Rankings, 2007
Consumer Investment Opportunity
Consumer
Microsoft
Yahoo Google
AOL NewsCorp
Key Startup(s)
Photo
B
A
A
B
B
PhotoBucket
Video
B
B
A
B
B
YouTube
VoIP
A
A
Social Networking
B
A
A
B
Mapping
B
B
A
B
IM / Chat
B
B
A
B
Tagging
B
A
A
Music
B
A
B
Games
B
A, B
News
B
B
Skype (Yahoo)
B
A
MySpace (NC)
B
Meebo
Del.icio.us (Yahoo)
B
B
A
Crowded
A
Crowded
A
Commodity
A = Acquired
• Heavy activity and competition for content & community
B = Built
• Space dominated by large corporations
• Likely Exit M&A
• Most white space completed by large players
• Intel should continue active engagement with large corps, with
selective engagement with startups
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Consumer Internet Maturation
Consumer
Maturation
Cycle of Web
2.0
Technologies
Early M&A
Popularity of
Consumer Internet
Continued
M&A frenzy
sparked by
Media
Companies
Some IPOs for
Mature
companies,
slowing of M&A
due to feature
completion by
large acquirers
Mostly via
Google &
Yahoo
(Blogging
penetration)
2005
2006
2007
2008
2007: “Web 2.0” mature and at its peak for M&A
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2009
Business Internet:
Investment Focus
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Enterprise Penetration Growth
From 2006 to 2007, 50%
increase in deployment (from
~20% to ~30%)
Consumer web 2.0 technologies
are now being consumed by the
enterprise
Consumers bringing their tools
to work
Estimated $4.4B market by
2010
2006–2007: the period of
transformation
2008–2009: integration of the
enterprise collaboration
platform
2010 and beyond: “joined up”
collaboration (.e.g.,
LinkedIn/Jive/Meebo for the
enterprise)
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Enterprise Investment Opportunity
Enterprise
Microsoft
Yahoo
Google
Blogging
B
A
Wiki
B
A
RSS
B
AOL NewsCorp
Key Startup(s)
A
SixApart
SocialText
NewsGator
Podcasting
PodShow
Virtual Office
B
A
Virtual Desktop
B
B
Online Data Store
B
2.0 Dev Tools
B
A = Acquired
B = Built
A, B
Zimbra
B
B
B
A
B
NetVibes
Box.net
Laszlo
• Activity still light but heating up in enterprise (including
SAP & Oracle). Cisco is acquiring to fill gaps
• Space dominated by start ups, expected consolidation in
2007/2008 – likely via M&A by large companies
• Exception is MSFT who is building own capabilities
• Above list are most likely exit given their attention to web
2.0 and their recent interest in broadening into the
enterprise (blogging first, wikis expected to be second)
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Enterprise Software Maturation
Enterprise
Maturation
Cycle of Web
2.0
Technologies
Popularity of
Business Internet
30%+
Enterprise
Penetration of
Blogging,
Wikis,
Podcasting and
RSS
(Blogging enterprise
penetration)
2005
2006
Expected
Enterprise
Penetration of
Virtual Office,
Social
Networking
(SuiteTwo)
2007
Expected
Enterprise
Penetration of
Virtual Desktop,
Online Storage
2008
2007: Still early but real penetration and revenues
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2009
Exits: Web 1.0 vs. Web 2.0
•
Less expensive internet bubble
•
Recent average exits at > 10x revenues
•
Although higher barriers for IPO today, advertising revenue
is large enough for large potential IPOs today
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Source: Morgan Stanley, 2007
www.intelcapital.com
Intel Capital Web 2.0 Portfolio
Enterprise Collaboration
Social Networks
Voice and Online Revenue
Security and Tools
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Integrated User Interface and User Management
Blogs
Six
Apart
Wikis
Social
Text
RSS
Read
News
Gator
RSS
Pub
Social
Networks
Visible
Path
Simple
Feed
Search
Lucene
Reporting Engine
Document Repository & Workflow
System
Admin
Console,
Single
Sign-On,
and
Authentication
Software Infrastructure
(Database, Web Server, etc.)
Intel WebOperating
2.0 Appliance
System
Xeon 2.66 GHz
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SpikeNet
Update
Manager
Intel Confidential – For Internal Use Only
Intel Capital
Investing for Global Impact
www.intelcapital.com
About Intel Capital
Intel Capital, Intel's venture capital organization,
makes equity investments in innovative technology start-ups
and companies worldwide. Intel Capital invests in a broad
range of companies offering hardware, software, and services
targeting enterprise, home, mobility, health, consumer
Internet and semiconductor manufacturing. Since 1991, Intel
Capital has invested more than US$6 billion in nearly 1,000
companies in more than 40 countries. In that time, about 180
portfolio companies have been acquired by other companies
and another 155 have gone public on various exchanges
around the world. In 2006, Intel Capital invested about
US$1.07 billion in 163 deals with approximately 60 percent of
funds (excluding Clearwire) invested outside the United
States. For more information on Intel Capital and its
differentiated advantages, visit www.intelcapital.com.
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