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  • 1. Cloud Open Source Business Model 3.0
  • 2. My Background
  • 3. Long Time Open Source User Not An Expert
  • 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. 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. 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. Costly to Build Telecom Engineers Tiny Workforce Niche Engineering Skillset Voice Steep Learning Curve Communications $20B Market
  • 8. Commoditize the Skills Telecom Engineers Voice Communications Web Developers $20B Market Millions of Skilled Workers Twilio
  • 9. Telecom Goo HTTP XML PSTN MP3, wav, etc. CLECs Twilio SIP uLaw GSM G.711 HARD EASY!
  • 10. Customers & Brands
  • 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. Powerful ^ Simple API yP BX pan Com m ail Vo ice ut ing all Ro C
  • 13. s-You-Go Pay-A ^ Simple Pricing Calls Phone Numbers 3¢ / min $5 / mo No Contract No Shenanigans
  • 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. Platform Launched Late 2008 Thousands of Devs Hundreds of Live Apps
  • 16. Cloud Open Source Business Model 3.0
  • 17. 1.0 Late 90’s
  • 18. Business Models: Support Training Professional Services Conferences Certification Books etc.
  • 19. Business Models: Freemium Premium Features Accelerators Connectors High Availability etc.
  • 20. 1.5 Early 2000’s
  • 21. Business Models: Suing Linux Users
  • 22. Business Models: 1.5 Suing Linux Users (Never made it out of Beta)
  • 23. 2.0 Early 2000’s
  • 24. Business Models: Hosted Multi-Tenancy Web Configuration Reliability Scalability
  • 25. Business Models: Hosted Multi-Tenancy Web Configuration Reliability Scalability Same Product
  • 26. Minimize Complexity
  • 27. sendmail.cf
  • 28. Web Config Can Save Us! Right?
  • 29. Better?
  • 30. Not Just Hosting, but... New Cloud Products Based on OSS Foundations
  • 31. Shakespear
  • 32. Shakespear
  • 33. Symphony
  • 34. Symphony
  • 35. New Cloud Products a “Performance” of OSS Foundations
  • 36. What You Talking About, Willis?
  • 37. EC2
  • 38. What Is EC2 Selling? MANAGEMENT API XEN HARDWARE & OS
  • 39. What Is EC2 Selling? Reliability MANAGEMENT API Scalability XEN Good API HARDWARE & OS
  • 40. What Is EC2 Selling? I ON Reliability T C U Scalability E API XGood E
  • 41. S3
  • 42. What Is S3 Selling? SIMPLE API LINUX + DISKS NETWORK & HARDWARE
  • 43. What Is S3 Selling? Reliability SIMPLE API Scalability LINUX + DISKS GoodHARDWARE NETWORK & API
  • 44. What Is S3 Selling? ReliabilityO I N T Scalability U E C API Good EX
  • 45. Promise of Reliability Redundancy Transparent Failover Expertise
  • 46. able Promise of rd A ^Scalability ffo Multi-Tenancy Economies of Scale Fairness
  • 47. Promise of Good API Needed for Multi-Tenancy Great Selling Point
  • 48. One Without the Others?
  • 49. One Without the Others? !API " Scalable " Reliable
  • 50. HINT: You’re Paying for This
  • 51. Reliability Scalability Good API OPEN SOURCE FOUNDATION
  • 52. $$$ Value > !Parts OPEN SOURCE FOUNDATION
  • 53. Thoughts
  • 54. Is this So Horrible? !API " Scalable " Reliable
  • 55. Is this So Horrible? Example: Behind the Firewall “Clones” of Some Value Industry Needs to Figure this Out
  • 56. Opportunity Here: Attack of the Cloud Clones
  • 57. Cloud # OSS Growing + Shrinking Demand No License Issues Purely Technological Problems to Solve
  • 58. twilio’s Performance of Open Source Software
  • 59. What Is twilio Selling? SIMPLE API, ORCHESTRATION, CARRIERS OSS EC2
  • 60. What Is twilio Selling? Linux (CentOS) Apache HTTPD SIMPLE API, ORCHESTRATION, CARRIERS Apache Tomcat Asterisk OSS MySQL EC2 PHP, Java, Python ...
  • 61. What Is twilio Selling? Reliability SIMPLE API, ORCHESTRATION, CARRIERS Scalability OSS API EC2
  • 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. 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. Simplifying Telecom Simple • Powerful • Pay-As-You-Go Jeff Lawson Co-Founder & CEO twitter: @twilio jeff@twilio.com http://www.twilio.com