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 Receive Phone Calls,
using only Basic Web Development skills

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

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

Costly to Build
Telecom
Engineers Tiny Workforce
Niche Engineering Skillset
Voice Steep Learning Curve
Communications
$20B Market

Commoditize the Skills
Telecom
Engineers
Voice
Communications Web Developers
$20B Market Millions of Skilled Workers
Twilio

Telecom Goo HTTP
XML
PSTN MP3, wav, etc.
CLECs
Twilio
SIP
uLaw
GSM
G.711
HARD EASY!

Customers & Brands

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.

Powerful
^
Simple API
yP BX
pan
Com
m ail
Vo ice
ut ing
all Ro
C

s-You-Go
Pay-A ^
Simple Pricing
Calls Phone Numbers
3¢ / min $5 / mo
No Contract
No Shenanigans

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

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
etc.

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
Asterisk
OSS
MySQL
EC2
PHP, Java, Python
...

What Is twilio Selling?
Reliability
SIMPLE API, ORCHESTRATION, CARRIERS
Scalability
OSS
API
EC2

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.

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.

Simplifying Telecom
Simple • Powerful • Pay-As-You-Go
Jeff Lawson
Co-Founder & CEO
twitter: @twilio
jeff@twilio.com
http://www.twilio.com