Lin prim investment en 5


Published on

LinPrim is a startup company in Moscow, Russia. Key business - to produce a user friendly Linux server operating system

Published in: Technology
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Lin prim investment en 5

  1. 1. user friendly Linux server OSINVESTMENT INFORMATIONVersion 25.05.2012-2IntroductionLinPrim is a project intended to create a user friendly Linux server operating system for small and medium LANs(local area networks). Basing on existing Open-source programs LinPrim team will produce innovative software, thatallows any non-professional user to install and use Linux server operating system.The Project is aimed at the international market of server operating systems.LinPrim LLC is resident of SKOLKOVO investment fond and has secured a $133 seed investment from SKOLKOVO.MarketWorldwide Linux server operating systems sales is estimated by IDC at $1,5-2 billion. Normal sales model in thisindustry is selling support services subscriptions. Usually such a subscription consists of software updates, access todocumentation and restricted interaction with the software vendor.Key products for major data centers are:- Red Hat Linux- Suse Linux (from Attachmate Group)Niche products for smaller networks:- Ubuntu Linux- Debian LinuxLinux server operating systems have weak position in smaller companies. There are serious reasons behind this fact:- Weak documenting: available documentation is not full and can suite only highly qualified Linux specialists. Documentation usually only answers to ‘How’ question and not answers ‘Why’ and ‘What for’;- Very high dependency from human factor: usually installation, configuration and maintenance are performed by one and the same person. As soon as this person becomes unavailable the server operating system becomes unable to change configuration and loses its scalability;- Others.The following table provides key market numbers. Description Value Comments LinPrim price acceptable for the market 300 USD. Basic support services (revenue from one client) on the start 1
  2. 2. user friendly Linux server OS Description Value Comments Projected Average LinPrim revenue from one customer 550 Supposing 30% of subscribers will use full version Total Computer Clouds users, worldwide, 2013 9 450 000 Equals Operating system instances Growth rate, as of 2012 90% Number of paid OS installations in public clouds, 2013. 1 368 000 Buying for the first time plus 5% changing existing vendor.Rational TechnologyAll Linux server operating systems available on the market need highly qualified system administrator and henceare used mostly in large companies and data centers. LinPrim is a user friendly Linux server operating system, thatcontains all the strong technological features of Linux. RLP (Rational Linux Programming) is a new approach toimplement OpenSource software development projects. This methodology (introduced by LinPrim team) containsproject management ideas and technical requirements.Key RLP project management idea is to restrict project scope to available resources and time. In LinPrim case werestrict:- number of Linux scenarios (administrative tasks) which will have user friendly LinPrim interface;- number of virtualization platforms on which LinPrim Linux OS will be deployed (we plan to start with Xen, Virtuozzo).RLP technical requirements are:- Supported List of tested/recommended hardware (which is not a common practice in Linux world);- One-click Install or using extended installation master;- Roll-back function for accepted software settings (similar to «Undo» function in text editors);- Applications have ‘switch off’/’full delete’ function;- Software updates to be installed as one package (This requirement increases system stability and is a rare feature for Linux);- Documentation to be released simultaneously with software updates;- others.In order to satisfy the market needs LinPrim Project team will produce:- LinPrim Linux OS (Operating System)- LinPrim AM (Application Management System)- LinPrim ASL (Associative Semantic Library) 2
  3. 3. user friendly Linux server OSProject TeamCEO. Oleg Andreev, Russia has graduated from Moscow State University named by Lomonosov, has Ph.D. inComputer Sciences. Oleg has eleven years experience in leading IT companies: Lucent Technologies and Oracle. Hiscommercial experience includes several years successful sales of software, international sales experience. Beingnative Russian masters also English and German.CTO. Igor Lezhnev, Ukraine - сertified AIX (Unix operating system from IBM) specialist, experienced Linuxadministrator in Small and Medium enterprises. Author of key technical ideas of LinPrim project.Key Project Methodologist. Albert Loroch, USA. His current activities are mostly connected with executiveeducation in bio-technologies. Being an author and co-developer of several educational programs Albert Loroch haselaborated a methodology to train busy non-professionals in complicated disciplines. This methodology is a now acornerstone in «User friendly Linux server operating system» documenting.Currently there are six persons working on the Project, there is an office of 31 sq. meters in Skolkovo.First Financing RoundBasing on the available resources LinPrim will complete first ‘seed’ project stage in July 2012. By the end of JulyLinPrim will have:- agreement to protect the trade mark;- general technical requirements;- project plan for the product development;- detailed market analysis;- business-plan.From September 2012 till August 2013 LinPrim will be developing the product. LinPrim plans to achieve thefollowing results by September 2013:- LinPrim trade mark is registered in Russia, USA, UK;- IP protection plan in place;- Detailed technical requirements in place;- A proved and predictable software development team in place;- A plan to develop a full scope product version in place;- Sales & Marketing plan in place;- Sales start.For this stage LinPrim needs financing in value of $300 000.LinPrim plans to attract co-financing from Skolkovo fund in value of $700 000. 3
  4. 4. user friendly Linux server OSFinancing Stages Stage Timing Financing needs Planned results Approximate company evaluation First «seed» Till July 2012 $134K secured Ready to accept $ 1,5 Million first investor Second «early» September 2012 - $300K from the Restricted working $ 3 Million August 2013 first investor; product; $700K from Sales start Skolkovo Third September 2013 - $700K from the Sales achieve $8 $ 16 Million «development» August 2014 second investor; Million/ year. $700K from Break point Skolkovo passed. Fourth «exit September 2014 - not clear Sales achieve $26 $ 50 Million ready» August 2016 Million/ year. Ready for IPO. 4
  5. 5. user friendly Linux server OSSalesTechnologically Linux operating systems could be installed in two environments: on hardwares servers and as aninstance in an Internet loud thus forming a virtual server.Sales in Public Internet Clouds are the target market of LinPrim Project.We can place LinPrim distributives on AWS (Amazon Web Services) - a major worldwide public Internet Cloudhaving 50-65% of market share - basing on ISV (Independent Software Vendor) agreement. Several other publicInternet clouds have similar policies with regards to independent software vendors.Now, in year 2012, we can state that LinPrim distributives could be placed as ISV on the ‘Community AMIs’ webpage in AWS and similarly on GoGrid cloud. This is a technical action, not requiring any sales effort. This placementwill allow any AWS customer who is choosing an operating system to choose LinPrim. We estimate the number ofAWS users choosing a commercial OS as approximately 760 000 in year 2013 when LinPrim goes to market. Thecalculations below are based on LinPrim production plans and LinPrim preliminary Sales & Marketing Plan. (USD) Sep-2012 - Sep-2013 - Sep-2014 - Sep-2015 - Aug-2013 Aug-2014 Aug-2015 Aug-2016LinPrim OPEX & CAPEX 672 635 926 261 1 193 142 2 000 000Customer number 0 3 200 15 000 40 000Average rev from one 0 300 550 650customerRevenue 0 960 000 8 250 000 26 000 000Marketing Expenses 0 50 000 400 000 500 000Profit 0 -16 261 6 656 858 23 500 000 5