Mesh Wireless Router Business Plan

For Intelligent Networks Neokite Networks

Neokite Networks, Inc.
Experienced professionals in RF, IP networking, and security.
Develop, build and market wireless mesh network hardware and software .
Improve scalability, and reduce deployment time and cost

Problem
Coverage requires large hardware investment
Volume of devices is an operations nightmare
Installation costs matches hardware costs
Requires RF and IT savvy personnel

Neokite Solution
Requires little setup to form network
Converts PC into “soft mesh node” with software
Provides secure wireless communications
Allows centralized management of all nodes

“Secret Sauce”
Ability to turn a PC into a soft mesh node
Central Manager
Modified wireless protocol to minimize interference
Clientless solution for end user security

Key Benefits
Coverage increases as users join network
Network traffic flow is optimized in real-time by central management
Hard mesh Backbone Network Users/Soft mesh Access Network Users

Business Model
Initially, direct model for better feedback
Later, channel model to leverage relationships
Smaller resellers with product focus but not wireless savvy
Large integrators with service focus but not “product pushers”

Competition
Cisco, BelAir, Tropos, Nortel…many more
Standard in 2009 Solution today 802.11s Brand, large installs Soft Mesh Node, Indoor Mesh, Portable Mesh, Multi radio Tropos Networks Advanced antenna design, triple radio, T1 modules Soft Mesh Node, Portable Mesh, Indoor Mesh BelAir Networks Strong Channel, Strong Brand, $$$$ Soft Mesh Node, Portable Mesh, Indoor Mesh Cisco We Haven’t, They Can We Can, They Haven’t Company

Management Team
Operations/Engineering
Did something similar before
Worked on billion dollar problem here
Company name drop
Degrees from fancy schools here
Engineering
Created embedded systems
Techie companies here
Sales/Biz Dev
Very large deals closed by Sales folks here
Company names here
(Accounting…)
Bigger the title the better
Better
Better

Company Advisors
Someone with experience here
What they have done before
How they can help you
Experience here
Another Advisor
Another Advisor
BOD
Some key people
Some key people

Sales and Marketing
Target hospitality vertical as well as Federal Government and Virginia, MD, DC
Target “smaller guys” to partner on smaller projects
Satellite dish service installers
Fire prevention & security equipment installers
Lend our expertise to design, install, and manage
Provide managed service of hard and soft nodes to ensure quality service

The Market (1)
October 3, 2005 - Instat
Wireless Mesh Network (WMN) infrastructure equipment market to grow from $33.5 (2004) million to $974.3 million (2009)
WMN is a powerful and potentially disruptive technology
Most WMN equipment sales are being completed in North America
November 16, 2005 - ABI Research
Global market for 802.11 mesh products will soar to $1.3 billion in five years
Much of that will be spent by municipalities or service providers to offer low-cost wireless Internet access
2005 - Muniwireless
Local governments will spend nearly $700 million to build wireless broadband networks by 2008.
Annual growth rate of 134 percent between 2004 and 2007 and will exceed $400 million by 2007

The Market (2)
Leaders in market have less than 500 customers combined.
No standards/technology gap
High Margin Potential

The Market (3)
July 6, 2005 – JupiterResearch
Average cost of building and maintaining a network is about $150,000 per square mile for five years.
Half of current initiatives won't break even, even if customers are charged $25 per month.
Room for solution with simpler management and lower operating costs

Financial Projections
Funding sought - $ X million
X full-time salary equivalents
X for year 1 operations
X for year 2 operations
Breakeven/profit prediction
Revenue
large deployment = 1 sq mile = 20 units = $60k = $30k profit
2 large deployments per quarter for first year = $360k = $180k profit
2 large deployments per month for second year = $1.4 million = $700k profit
Service revenue from managing/monitoring 20 square miles of deployments = $100k/year = $5k /year/sq mile

Financial Metrics
Customers
8 large customers in first year
24 additional large customers in second year
All within 4 hour driving radius of HQ location
Resellers/Integrators
4 Commercial (2 small, 2 large)
3 Federal (1 small business, 2 large integrators)
All within 4 hour driving radius of HQ location

Current Status
Current Status
Hard Mesh Nodes
Architecture completed
Hardware selected
Beta version completed
Soft Mesh Nodes
Architecture completed
Alpha version completed
Central Manager
Design phase

Product Preview
Indoor Mesh
Aluminum Enclosure
POE
Portable Mesh
ABS Plastic
NEMA/IP67 Rated
POE
Outdoor Mesh
Aluminum Enclosure
NEMA/IP67 Rated
POE

Disruptive Technology
Cheaper to purchase and install
Via website, self install kit
Simpler to install, configure, and manage
Ladder, truck, and zero-config
Smaller and lighter
Install on wall, on light pole, place on desk
More convenient to use
Central management

Leverage Industry Trends
Moore’s Law
Our hardware has improved performance and reliability compared to older solutions at lower price
Metcalfe's Law
We leverage end user devices to enhance network coverage
McGuire’s Law/Law of Mobility
Our solution feeds public’s demand for anywhere, anytime access to information. We offer portable mesh nodes in addition to indoor and outdoor mesh nodes

Closing Slide
Value Proposition

Backup

Wireless Investments to Hit All-Time High This Year
San Francisco -- Bucking a general trend of venture-capital decline over the past five years, investments in wireless technologies are on the rise and expected to hit an all-time high in 2006, according to a new report by telecommunications research firm Visiongain. Last year, 152 wireless-related companies received about $1.3 billion in funding, a 24% increase over the prior year. "Wireless is where the action is, and this is a great time to be a wireless start-up in search of venture funding," said Visiongain analyst Lynne Gregg. "As the U.S. public markets remain weak and private equity investing grows outside the U.S., we will see many more IPOs of wireless companies taking place in the public markets outside the U.S."
http://www.visiongainintelligence.com/pressReleaseDetail.aspx?pressReleaseId=1047

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Mesh Wireless Router Business Plan

by securewireless on Mar 07, 2007

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Mesh Wireless Router Business Plan — Presentation Transcript

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