Oscon - Open Source Software Business Model 3.0

1. Cloud
Open Source Business Model 3.0

2. My Background

4. Long Time
Open Source User
Not An Expert

5. 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

6. 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

7. 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

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

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

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

11. Customers & Brands

12. 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.

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

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

15. 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

16. Platform
Launched Late 2008
Thousands of Devs
Hundreds of Live Apps

17. Cloud
Open Source Business Model 3.0

18. 1.0
Late 90’s

19. Business Models:
Support
Training
Professional Services
Conferences
Certification
Books
etc.

20. Business Models:
Freemium
Premium Features
Accelerators
Connectors
High Availability
etc.

21. 1.5
Early 2000’s

22. Business Models:
Suing
Linux
Users

23. Business Models:
1.5
Suing
Linux
Users
(Never made it out of Beta)

24. 2.0
Early 2000’s

25. Business Models:
Hosted
Multi-Tenancy
Web Configuration
Reliability
Scalability

26. Business Models:
Hosted
Multi-Tenancy
Web Configuration
Reliability
Scalability
Same Product

27. Minimize
Complexity

28. sendmail.cf

29. Web Config Can
Save Us!
Right?

31. Better?

33. Not Just Hosting, but...
New Cloud Products
Based on OSS Foundations

34. Shakespear

35. Shakespear

36. Symphony

37. Symphony

38. New Cloud Products
a
“Performance”
of
OSS Foundations

39. What You Talking
About, Willis?

40. EC2

41. What Is EC2 Selling?
MANAGEMENT API
XEN
HARDWARE & OS

42. What Is EC2 Selling?
Reliability
MANAGEMENT API
Scalability
XEN
Good API
HARDWARE & OS

43. What Is EC2 Selling?
I ON
Reliability
T
C U
Scalability
E API
XGood
E

44. S3

45. What Is S3 Selling?
SIMPLE API
LINUX + DISKS
NETWORK & HARDWARE

46. What Is S3 Selling?
Reliability
SIMPLE API
Scalability
LINUX + DISKS
GoodHARDWARE
NETWORK & API

47. What Is S3 Selling?
ReliabilityO
I N
T
Scalability
U
E C API
Good
EX

48. Promise of
Reliability
Redundancy
Transparent Failover
Expertise

49. able Promise of
rd
A
^Scalability
ffo
Multi-Tenancy
Economies of Scale
Fairness

50. Promise of
Good API
Needed for Multi-Tenancy
Great Selling Point

51. One Without the Others?

52. One Without the Others?
!API
" Scalable
" Reliable

54. HINT:
You’re Paying for This

55. Reliability
Scalability
Good API
OPEN SOURCE FOUNDATION

56. $$$
Value > !Parts
OPEN SOURCE FOUNDATION

57. Thoughts

58. Is this So Horrible?
!API
" Scalable
" Reliable

59. Is this So Horrible?
Example: Behind the Firewall
“Clones” of Some Value
Industry Needs to Figure this Out

60. Opportunity Here:
Attack of the
Cloud Clones

61. Cloud # OSS
Growing + Shrinking Demand
No License Issues
Purely Technological Problems to Solve

62. twilio’s
Performance of Open
Source Software

63. What Is twilio Selling?
SIMPLE API, ORCHESTRATION, CARRIERS
OSS
EC2

64. What Is twilio Selling?
Linux (CentOS)
Apache HTTPD
SIMPLE API, ORCHESTRATION, CARRIERS
Apache Tomcat
Asterisk
OSS
MySQL
EC2
PHP, Java, Python
...

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

66. 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.

67. 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.

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