2. MS Neuroscience Yale Univ
MBA, San Francisco State Univ
Limited Partner, Focus Ventures
Java Evangelist, Sun Microsystems
VP Chief Strategist Software AG
VP Platform, Kii Corporation
4. Unstoppable Market Growth
Worldwide in-application events measured by Flurry (billions)!
!1,200
1,100
1,000
900
800
700
600
500
400
300
200
100
-
May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov
08 08 08 08 09 09 09 09 09 09 10 10 10 10 10 10 11 11 11 11 11 11 12 12 12 12 12 12
Source: Flurry Analytics, May 2008 – November 2012, Billions!
5. Competition for Consumers Continues to Increase
Over 1.4 million available apps on iOS and Android
GOOGLE PLAY iTUNES APP STORE 700
675
650
600 600
500
460
425
400
350
250 250
200
160
80
28 20
2
March 2009 December 2009 August 2010 May 2011 July 2011 October 2011 April 2012 June 2012 September 2012
Sources:
Google,
Apple;
number
in
thousands
6. Addressable Market to Surpass 1 Billion Next Year
Active smartphone & tablet devices!
Total Addressable Market!
Aggressive: 5B WW Mobile Device Owners!
Conservative: 2B WW Adults, Middle Class or higher!
1.1 B
Upside: !
Smartphones – dropping prices, especially Android!
Tablets – little replacement, mainly new; sub for PCs!
Connected TVs – to be shipped!
Reference:!
800 M
2.3 Billion Internet Subscribers today!
331 M
76 M
23 M
Aug 2009 Aug 2010 Aug 2011 Aug 2012 Aug 2013E
Source: Flurry Analytics!
7. A Global Phenomenon
Top Countries by Active iOS & Android Devices (millions)
181
167
35
28 27 22 19 19 14 14
US China UK Japan S. Korea Germany France Canada Brazil Spain
Source: Flurry Analytics active devices Oct 2012!
8. 30+ Countries Doubled in Last 12 Months
Fastest Growing iOS & Android Markets by Active Devices
293%
269% 260%
235%
209% 202% 197%
181% 180% 180%
China Vietnam Colombia Chile Ukraine Venezuela Turkey Philippines Egypt Russia
Source: Flurry Analytics, Oct 2011 – Oct 2012, countries with at least 500k active devices as of Oct 2011!
9. App Economy Expanding Internationally
Distribution of iOS and Android App Sessions
100%
25%
90%
80% 32%
70%
60% 27%
50% 39%
40%
30%
48%
29%
20%
10%
0%
Oct 2011 Oct 2012
UNITED STATES (TOP RANK) REST OF TOP 10 (RANKS 2 – 9) REST OF WORLD
Source: Flurry Analytics!
10. How Mobile Stacks Up Against TV and The Web
Web vs. Mobile App vs. TV Consumption, Minutes per Day
!
180
160
162 168 168
140
120
100
127
80
94
60
70 66 72 70
40
20
-
Dec 2010 Dec 2011 Dec 2012
Web Browsing Mobile Applications Television
Sources: comScore, Alexa, U.S. Bureau of Labor Statistics, Flurry Analytics!
11.
12. Tablet Usage More Games & Entertainment Oriented
Time Spent per Category, Smartphones versus Tablets
! Productivity
Entertainment News 1%
3% 2%
Other Other
Lifestyle Utilities
11% 7%
3% 4%
Health &
Fitness
Games Entertainment
3%
39% 9%
Social
Utilities Networking
17% 10%
Games
Social 67%
Networking
24%
Smartphones Tablets
18. SILICON VALLEY, USA
THE NUMBER ONE TECH MARKET
LARGEST SIZE OF
SMARTPHONE MARKET
WITH 101 MILLION SMARTPHONE
SUBSCRIBERS
40% OF ALL SMARTPHONES
ARE SOLD IN US
(THEREFORE MOST ATTRACTIVE
MARKET FOR OEMS)
VERIZON #1 MOBILE DATA
ANNUAL REVENUES
AT $23.7 BILLION
330 MILLION US MOBILE SUBSCRIBERS
19. JAPAN HAS THE WORLD‘S
HIGHEST DATA REVENUE PER USER
99% PENETRATION
OF 3G HANDSETS
47% MOBILE WEB USERS
OF WORLD MOBILE SUBSCRIBERS
(US IS 22%)
47M “TAP-AND-GO” PHONES
MOBILE PAYMENT MARKET
#1 AND #2 LOWEST CHURN SCRIBERS
SUB
WORLDWIDE N MOBILE
MILLIO
12 2
NTT DOCOMO AND KDDI
122 MILLION MOBILE SUBSCRIBERS
20. WITH ONE BILLION MOBILE SUBSCRIBERS,
CHINA IS THE BIGGEST MARKET
HIGHEST NUMBER DAILY SMARTPHONE ACTIVATIONS
#1 AND #2 BIGGEST TELCOS
IN THE WORLD
277 MILLION MOBILE WEB USERS 你好 ^_^
UP 43 MILLION IN SIX MONTHS
118 MILLION 3G USERS
HOME TO MOST
HANDSET MAKERS/
HARDWARE OEMs
1 BILLION MOBILE SUBSCRIBERS !!!
23. Kii: Profitable Global Platform for App Developers
BEIJING CHINA
BARCELONA SEOUL
SILICON VALLEY USA
TAIWAN TOKYO JAPAN
SINGAPORE
24. How Kii Helps App Developers
APP MAKERS KII PROVIDES:
INVESTMENT MONETIZATION TECHNOLOGY
• Great Idea
• Passionate users Venture Capital Distribution & Cloud technology
• App “Genius” Monetization
25. USERS LOVED ASTRO
NOW ASTRO IS A PROFITABLE BUSINESS
BEFORE Kii NOW WITH Kii
US$550k
$
• 5 star ratings • $550k Series A • Distribution deals in • Cloud technology
funding Japan and China for ASTRO Backup
• 9M downloads product
• Six figure multi-year
• User community advertising deal • Subscription
Revenue
opportunity
27. Developer Platform Value Propositions
Idea Examples Save
Cost Revenue
Avoid
Hard
or
Get
to
Access
New
Acquire/ Increase
Tedious
Work Market
Markets Retain
Users revenue
per
Faster user
Compute
Cloud
P P
Mobile
App
Cloud
Svcs
P P
Mobile
Cross
PlaIorm
P P
Personal
Cloud
and
Sharing
P P
App
Networks
P P P
Mobile
&
PC
Sync
P P P
Mobile
AnalyLcs
+
App
network
P P P P
Ad
Network
P
Online
Payments
P P
Mobile
and
Web
Game
SNS
P P P P P
28. Market Summary: we are in the MBaaS market
• Past, Present, Future: Kii Cloud is late to the game
Smaller MBaaS Pure Play MBaaS Enterprise MEAP
YorAPI Parse
Antenna
Cloudmine Appcelerator
CloudyRec Stackmob
Verivo
FeedHenry Kony
iKnode Kinvey
ScottyApp Build your own
Applicasa Kii
Cloud
Heroku
Full Stack
Amazon
Sencha
Others
Urban
Airship
Analytics+
Appcelerator
APIGee
Trestle
Flurry
Twilio
29. INSTANT BACKEND
WITHOUT WRITING A LINE OF SERVER CODE
Mobile backend in minutes,
USER MANAGEMENT
not months!
We‘ll take care of
DATA MANAGEMENT
• Writing server code
!
• Server configuration
ANALYTICS
• Database management
• Data schema lock-in
MONETIZATION • Mobile customizations
SO YOU CAN FOCUS ON
USER HAPPINESS J NOT SERVERS
30. The Kii Cloud is so reliable that the world’s
toughest quality-conscious carrier uses it
• RELIABLE Met NTT DoCoMo’s tough Quality Standards
• PRACTICAL Backup and Content Deliver services
• SCALABLE 12M paid subscribers of sync service
• DURABLE Nonstop for years even through earthquakes
• PROFITABLE Drives over $150M USD in revenue
17:50PM
Info about specials
at a nearby store
11:30AM
Lunch coupon for
favorite restaurant 22:45PM
Tomorrow‘s
schedule
12:45PM
Concert information
on favorite artist
7:00AM
Traffic updates for
commute route
31. Multimillion-user app makers use Kii Cloud
SUCCESS 35 million 5 million Launching 14 million
downloads downloads soon downloads
DESCRIPTION Leading Leading media Couples app Leading
Android file privacy vault photo app
manager
Kii CLOUD
COMPONENTS
32. SAVE THOUSANDS OF HOURS AND DOLLARS
KEEP YOUR FOCUS ON KEEPING USERS HAPPY
LARY
ON AVG. SA
,000
USER HAPPINESS J IRES US$ 91
N EW H ,000
ngineer US$ 77
S erver E ,000
dmins US$ 83
COMPETING IN S ystem A s ,000
Admini US$ 41
THE APP STORE Da tabase
fickers 2,000
Ad Traf US$ 29
PUMPING OUT total:
Grand verage
s 6/12/20
12
NEW APP VERSIONS : U SA N
Source .com
a tional A
Indeed
STOP HIRING SERVER ENGINEERS
WE HAVE DOZENS!
34. USER MANAGEMENT
LOGIN & PROFILES & GROUPS &
REGISTRATION MANAGEMENT PERMISSIONS
• Basic registration/login • Store JSON key/ • Create groups
• Social registration/ values • Manage members
login • Query attributes • Customizable access
• Anonymous login • Session management control for all objects
• Account verification • Password reset/
change
API ACCESS IS AVAILABLE FOR REST
FULL SDKs FOR ANDROID, iOS AND JAVASCRIPT
Android iOS
35. DATA MANAGEMENT
OBJECT STORAGE FILE STORAGE DATA HANDLING
• Store/retrieve JSON • Store/retrieve files • Utilize buckets
objects • Query attributes optimized for access
• Flexible datatypes • Sync/backup across • Customizable ACL +
• No fixed schema devices scope
• Share files via URL • Query objects & files
API ACCESS IS AVAILABLE FOR REST
FULL SDKs FOR ANDROID, iOS AND JAVASCRIPT
Android iOS
36. ANALYTICS
OBJECT STORAGE MANAGE
Intrinsic Number of users, clicks, • Data aggregation across metrics
etc. are backed-in • Data visualization
Cloud data Defined based on • Manipulate and view both intrinsic and
application data custom metrics
Custom Send any raw data for
aggregation
API ACCESS IS AVAILABLE FOR REST
FULL SDKs FOR ANDROID, iOS AND JAVASCRIPT
Android iOS
37. MONETIZATION
INVENTORY TYPES FILE STORAGE
• Direct Ads (sell your • Dynamic configuration
own) via web portal
• Regional Ads (high • Get analytics for clicks
performance in Asia) and impressions
• Mediated Ads (Fill
unsold inventory using
networks)
API ACCESS IS AVAILABLE FOR REST
FULL SDKs FOR ANDROID, iOS AND JAVASCRIPT
Android iOS
41. Global Trends
• Growth of Global Languages (see MyGengo.com)
– 1B+ speakers: Mandarin, English
– 500M+ spkrs: Spanish, Hindi, Arabic
• Smart Device Proliferation
– mobile, tablet, TV, console, etc
• More Young, More Old ($$$) Users Online
• More Bandwidth, More Video, More Social, More Mobile
• Wealthy Chinese + Indian, Web + IRL Globetrotters ($$$B)
• Acceleration of Global Payment, E-Commerce
• Dramatically Reduced Cost: Product Dev, Customer Acqstn
• Global Distribution Platforms
– US/EU: Apple, Facebook, AMZN, GOOG (Search, YouTube, Gmail, Android), Twitter
– Asia: Tencent/QQ, Taobao/Alibaba/AliPay, Youku, MediaTek, Rakuten, DeNA, Gree
42. Defining platform business: repeatable contracts
Ramen
3rd OEM US JP CN
Kii Cap
Party Apps Apps Apps Apps
Repeatable Contracts
Biz Dev Invest
API EULA Licenses
Unagi
X
=
43. Platform Product = Sticky & Recurring $
Increase Decrease
Lack of Lack of
pApps Dev
Appeal
Open-
ness
Reus-
ability
Technical
Stickiness
Contract
Stickiness
Platform
Good
pUsers User
Acquisition
Ramen
Contracts
Network
Effects
Platform Competition
Features
pARPU Platform Monetization
Features
Network
Effects
Platform Commoditization
=
pRevenue Platform
Design
Deal
Quality
Market
Condition
44. What makes a good platform?
Developer Appeal
Openness
Reusability Strong Value Prop
Competitively Differentiated
Solid,
Reusable
Contracts
Data Network Effect Business Intelligence
App Network Effect
Social Network Effect User Acquisition Features
Stickiness Network Effect Monetization
45. Miko Matsumura !
SVP Developer Relations!
TURN YOUR APP !
INTO A GLOBAL Web: http://developer.kii.com!
Twitter: @mikojava!
BUSINESS Email: miko@kii.com!
CAPITAL DISTRIBUTION TECHNOLOGY
