Cloud
Open Source Business Model 3.0
My Background
Long Time
Open Source User
 Not An Expert
twilio        is a   Cloud Service
  for Web Developers to build and scale
      Voice Communication Apps
   that Make or ...
Pay Per Call Tracking
                   Private Calling
 Outbound Alerts
           Improve Customer Service
Coordinate E...
uLaw Transcoding
           Carriers Integration
PSTN
               Channel Capacity
 DID Acquisition
                   ...
Costly to Build
              Telecom
              Engineers           Tiny Workforce

                          Niche En...
Commoditize the Skills
                   Telecom
                   Engineers




    Voice
Communications Web Developers...
Telecom Goo              HTTP

                           XML
    PSTN                MP3, wav, etc.
    CLECs

          ...
Customers & Brands
Simple, Powerful API
              Only Five Building Blocks.


 Scales Automatically
           10 or 10,000 Simultaneous...
Powerful
                        ^
                  Simple API
       yP BX
    pan
Com


      m ail
Vo ice



         ...
s-You-Go
    Pay-A ^
   Simple Pricing

Calls            Phone Numbers

3¢   / min           $5   / mo


         No Contr...
Telephony in the Cloud
      Cloud Provider & Consumer

                Carr
               Tele ier
              Hard co...
Platform
 Launched Late 2008
 Thousands of Devs
Hundreds of Live Apps
Cloud
Open Source Business Model 3.0
1.0
Late 90’s
Business Models:


  Support
      Training
Professional Services
    Conferences
    Certification
       Books
         e...
Business Models:



Freemium
Premium Features
    Accelerators
    Connectors
   High Availability
         etc.
1.5
Early 2000’s
Business Models:



  Suing
  Linux
  Users
Business Models:




      1.5
  Suing
  Linux
  Users
(Never made it out of Beta)
2.0
Early 2000’s
Business Models:



 Hosted
 Multi-Tenancy
Web Configuration
   Reliability
   Scalability
Business Models:



 Hosted
 Multi-Tenancy
Web Configuration
   Reliability
   Scalability


    Same Product
Minimize
Complexity
sendmail.cf
Web Config Can
  Save Us!
     Right?
Better?
Not Just Hosting, but...

New Cloud Products
 Based on OSS Foundations
Shakespear
Shakespear
Symphony
Symphony
New Cloud Products
        a

“Performance”
        of
 OSS Foundations
What You Talking
 About, Willis?
EC2
What Is EC2 Selling?
    MANAGEMENT API

         XEN

    HARDWARE & OS
What Is EC2 Selling?

    Reliability
    MANAGEMENT API

    Scalability
        XEN

    Good API
    HARDWARE & OS
What Is EC2 Selling?

             I ON
   Reliability
          T
     C U
   Scalability
   E API
  XGood
 E
S3
What Is S3 Selling?
       SIMPLE API

     LINUX + DISKS

 NETWORK & HARDWARE
What Is S3 Selling?

    Reliability
      SIMPLE API

    Scalability
     LINUX + DISKS
    GoodHARDWARE
 NETWORK &   API
What Is S3 Selling?

  ReliabilityO
            I N
         T
  Scalability
      U
   E C API
  Good
EX
Promise of

  Reliability
    Redundancy
Transparent Failover
     Expertise
able Promise of
     rd
A
   ^Scalability
  ffo


     Multi-Tenancy
   Economies of Scale
       Fairness
Promise of

    Good API

Needed for Multi-Tenancy
   Great Selling Point
One Without the Others?
One Without the Others?

     !API
   " Scalable
   " Reliable
HINT:
You’re Paying for This
Reliability
    Scalability
    Good API
OPEN SOURCE FOUNDATION
$$$
Value > !Parts
OPEN SOURCE FOUNDATION
Thoughts
Is this So Horrible?
     !API
   " Scalable
   " Reliable
Is this So Horrible?

Example: Behind the Firewall
     “Clones” of Some Value
Industry Needs to Figure this Out
Opportunity Here:
Attack of the
Cloud Clones
Cloud # OSS
 Growing + Shrinking Demand


  No License Issues
Purely Technological Problems to Solve
twilio’s
Performance of Open
  Source Software
What Is twilio Selling?

SIMPLE API, ORCHESTRATION, CARRIERS

               OSS

               EC2
What Is twilio Selling?
       Linux (CentOS)
      Apache HTTPD
SIMPLE API, ORCHESTRATION, CARRIERS
       Apache Tomcat
...
What Is twilio Selling?


       Reliability
SIMPLE API, ORCHESTRATION, CARRIERS

       Scalability
           OSS
      ...
Simple, Powerful API
              Only Five Building Blocks.


 Scales Automatically
           10 or 10,000 Simultaneous...
Simple, Powerful API
              Only Five Building Blocks.


 Scales Automatically
           10 or 10,000 Simultaneous...
Simplifying Telecom
Simple • Powerful • Pay-As-You-Go

    Jeff Lawson
 Co-Founder & CEO

     twitter: @twilio
     jeff@...
Oscon - Open Source Software Business Model 3.0
Oscon - Open Source Software Business Model 3.0
Oscon - Open Source Software Business Model 3.0
Oscon - Open Source Software Business Model 3.0
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Oscon - Open Source Software Business Model 3.0

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Oscon - Open Source Software Business Model 3.0

  1. 1. Cloud Open Source Business Model 3.0
  2. 2. My Background
  3. 3. Long Time Open Source User Not An Expert
  4. 4. twilio is a Cloud Service for Web Developers to build and scale Voice Communication Apps that Make or Receive Phone Calls, using only Basic Web Development skills
  5. 5. Pay Per Call Tracking Private Calling Outbound Alerts Improve Customer Service Coordinate Employees Voicemail Boxes So What Are Voice Applications? Reverse 911 Alerts Intelligent Call Routing Voice User Generated Content Company PBX Information Hot Line
  6. 6. uLaw Transcoding Carriers Integration PSTN Channel Capacity DID Acquisition SIP Compatibility Building Voice Applications Used to be Codecs HARD QOS Realtime CPU Capacity Planning DTMF Realtime Networking Multiyear Carrier Contracts
  7. 7. Costly to Build Telecom Engineers Tiny Workforce Niche Engineering Skillset Voice Steep Learning Curve Communications $20B Market
  8. 8. Commoditize the Skills Telecom Engineers Voice Communications Web Developers $20B Market Millions of Skilled Workers Twilio
  9. 9. Telecom Goo HTTP XML PSTN MP3, wav, etc. CLECs Twilio SIP uLaw GSM G.711 HARD EASY!
  10. 10. Customers & Brands
  11. 11. Simple, Powerful API Only Five Building Blocks. Scales Automatically 10 or 10,000 Simultaneous Calls. Pay-As-You-Go Pricing No upfront, no commitment. Pay only for what you use.
  12. 12. Powerful ^ Simple API yP BX pan Com m ail Vo ice ut ing all Ro C
  13. 13. s-You-Go Pay-A ^ Simple Pricing Calls Phone Numbers 3¢ / min $5 / mo No Contract No Shenanigans
  14. 14. Telephony in the Cloud Cloud Provider & Consumer Carr Tele ier Hard com ware Reliable Telecom without Fixed Costs Pass Flexibility on to Customers Powered By
  15. 15. Platform Launched Late 2008 Thousands of Devs Hundreds of Live Apps
  16. 16. Cloud Open Source Business Model 3.0
  17. 17. 1.0 Late 90’s
  18. 18. Business Models: Support Training Professional Services Conferences Certification Books etc.
  19. 19. Business Models: Freemium Premium Features Accelerators Connectors High Availability etc.
  20. 20. 1.5 Early 2000’s
  21. 21. Business Models: Suing Linux Users
  22. 22. Business Models: 1.5 Suing Linux Users (Never made it out of Beta)
  23. 23. 2.0 Early 2000’s
  24. 24. Business Models: Hosted Multi-Tenancy Web Configuration Reliability Scalability
  25. 25. Business Models: Hosted Multi-Tenancy Web Configuration Reliability Scalability Same Product
  26. 26. Minimize Complexity
  27. 27. sendmail.cf
  28. 28. Web Config Can Save Us! Right?
  29. 29. Better?
  30. 30. Not Just Hosting, but... New Cloud Products Based on OSS Foundations
  31. 31. Shakespear
  32. 32. Shakespear
  33. 33. Symphony
  34. 34. Symphony
  35. 35. New Cloud Products a “Performance” of OSS Foundations
  36. 36. What You Talking About, Willis?
  37. 37. EC2
  38. 38. What Is EC2 Selling? MANAGEMENT API XEN HARDWARE & OS
  39. 39. What Is EC2 Selling? Reliability MANAGEMENT API Scalability XEN Good API HARDWARE & OS
  40. 40. What Is EC2 Selling? I ON Reliability T C U Scalability E API XGood E
  41. 41. S3
  42. 42. What Is S3 Selling? SIMPLE API LINUX + DISKS NETWORK & HARDWARE
  43. 43. What Is S3 Selling? Reliability SIMPLE API Scalability LINUX + DISKS GoodHARDWARE NETWORK & API
  44. 44. What Is S3 Selling? ReliabilityO I N T Scalability U E C API Good EX
  45. 45. Promise of Reliability Redundancy Transparent Failover Expertise
  46. 46. able Promise of rd A ^Scalability ffo Multi-Tenancy Economies of Scale Fairness
  47. 47. Promise of Good API Needed for Multi-Tenancy Great Selling Point
  48. 48. One Without the Others?
  49. 49. One Without the Others? !API " Scalable " Reliable
  50. 50. HINT: You’re Paying for This
  51. 51. Reliability Scalability Good API OPEN SOURCE FOUNDATION
  52. 52. $$$ Value > !Parts OPEN SOURCE FOUNDATION
  53. 53. Thoughts
  54. 54. Is this So Horrible? !API " Scalable " Reliable
  55. 55. Is this So Horrible? Example: Behind the Firewall “Clones” of Some Value Industry Needs to Figure this Out
  56. 56. Opportunity Here: Attack of the Cloud Clones
  57. 57. Cloud # OSS Growing + Shrinking Demand No License Issues Purely Technological Problems to Solve
  58. 58. twilio’s Performance of Open Source Software
  59. 59. What Is twilio Selling? SIMPLE API, ORCHESTRATION, CARRIERS OSS EC2
  60. 60. What Is twilio Selling? Linux (CentOS) Apache HTTPD SIMPLE API, ORCHESTRATION, CARRIERS Apache Tomcat Asterisk OSS MySQL EC2 PHP, Java, Python ...
  61. 61. What Is twilio Selling? Reliability SIMPLE API, ORCHESTRATION, CARRIERS Scalability OSS API EC2
  62. 62. Simple, Powerful API Only Five Building Blocks. Scales Automatically 10 or 10,000 Simultaneous Calls. Pay-As-You-Go Pricing No upfront, no commitment. Pay only for what you use.
  63. 63. Simple, Powerful API Only Five Building Blocks. Scales Automatically 10 or 10,000 Simultaneous Calls. Pay-As-You-Go Pricing No upfront, no commitment. Pay only for what you use.
  64. 64. Simplifying Telecom Simple • Powerful • Pay-As-You-Go Jeff Lawson Co-Founder & CEO twitter: @twilio jeff@twilio.com http://www.twilio.com
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