Growth Opportunities Drive
Product Strategy

Junien Labrousse
EVP Products

Logitech Analyst & Investor Day
New York – Nov...
Forward-Looking Statements

    This presentation contains forward-looking statements, including the statements regarding...
Focusing on the Four Screens

    Capture market transitions in 4 connected device screens


 PC Screen                   ...
PC Screen Strategy




               4
PC Screen Strategy

                      Expand Unifying technology across
                       computer peripherals c...
Opportunities in Installed Base
and in Growing Platforms




    Replace and Upgrade
        Opportunities
               ...
Netbooks Supplement Desktops
and Notebooks Usage

   Usage of
   Computers by
   Form Factor


                           ...
Notebook Attach Rates Remain Strong



                                        71%


                                     ...
Netbook Form Factors Create
Opportunity for Accessories

 New form factor, but pain   Ultra-compact shape
   points stay t...
We Continue to Innovate…

 Portability
  Nano receivers
   for mobile
   notebook users




    Anywhere
     Darkfield ...
Huge Upgrade Market for Webcams
Logitech is the Preferred Path

  Share of high-end is growing               High-end Logi...
Leader in Webcam Image Quality

 High quality, VGA30 already the standard    And high-end Logitech
                       ...
Tap into The Fashion Wave

Personalization and customization provide incremental revenue opportunity




                 ...
Designing for China

   Long-lasting battery life
   Sturdy design
   Compact and space-saving models
   Spill-resista...
TV Screen Strategy




               15
TV Screen Strategy

                      Establish Harmony as the standard
                       for device control and...
Significant Opportunity for Remotes
at Lower Price Points
                                             Current solutions
 ...
Harmony Everywhere:
Potential Long-term Growth Driver for Remotes




            Discover                     Access     ...
Video-Calling in the Living Room:
The Not-So-Distant Future


    Internet TV




                                    Inst...
Smartphone Screen
Strategy




              20
Smartphone Screen Strategy:
Next Generation Computing Platform

                                Leverage smartphone
     ...
Smartphone Market Growth:
Expect Continued Acceleration
        Technological advances and the convenience of the
        ...
Open Ecosystems Provide More
Growth Opportunities




   Source: Forrester Research, The "Smartphone" Is Dead: Long Live S...
Enterprise Video-
Calling Strategy




                24
Enterprise Video-Calling Strategy

                       Accelerate adoption of video
                        communicat...
SightSpeed Enables High-Quality Video-
Calling for Consumers and Business

        Logitech Vid             SightSpeed Bus...
Frontiers Between B2C and
B2B Blurring
 Skype is a great example                                                   iPhone ...
LifeSize:
The Natural Evolution of our
Video-Calling Strategy




                      28
LifeSize Overview


Craig Malloy
Co-founder and CEO, LifeSize

Logitech Analyst & Investor Day
New York – November 11, 200...
Company Overview


  Pioneered HD Video Communications
       Co-founded in March 2003
           Craig Malloy, CEO (an...
Large, Growing Market
Videoconferencing Rapidly Emerging in Enterprise Market



   Videoconferencing Endpoints and Infras...
Macro Drivers Point to
Significant Growth
                  Business Video Communications
      Economic                Bu...
Multiple Companies Servicing
Business Video-Calling Market
Business video-calling market (incl. end points, infrastructure...
LifeSize Share and Revenue Growth Driven
by Strong Price/Performance Solutions

Revenue                                   ...
SMB Market Remains Virtually
Untapped

          Enterprise market today
  $2.5B
                                         ...
LifeSize Value Proposition


                                    Superior Quality of
                                     ...
LifeSize Product & Service Offerings

       Passport     Express series         Team series     Room series      Conferen...
Customers Across Multiple Sectors
     Technology      Manufacturing/Industrial          Finance




   Health Care    Ret...
Strengthened R&D Capabilities

           Innovator in consumer                      Innovator in HD
           video-call...
The Value of Partnerships

     UC/Videoconferencing providers        Video-calling platforms




     OEMs               ...
Logitech and LifeSize Combination Enabling
Video-Calling Across Platforms


            Integrating PC                    ...
42
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Growth Opportunities Drive Product Strategy

  1. 1. Growth Opportunities Drive Product Strategy Junien Labrousse EVP Products Logitech Analyst & Investor Day New York – November 11, 2009 1
  2. 2. Forward-Looking Statements  This presentation contains forward-looking statements, including the statements regarding strategies for the PC, TV and Smartphone platforms and for Enterprise Video-Calling, associated product plans and growth opportunities, and expected revenue performance of LifeSize for CY 2009 and CY 2010  These forward-looking statements involve risks and uncertainties that could cause Logitech’s actual performance to differ materially from that anticipated in these forward-looking statements.  Factors that could cause actual results to differ materially include:  our failure to execute upon our strategic plans and opportunities  competition from established or new competitors, particularly in devices for the TV and Smartphone platforms and in the Enterprise Video-Calling industry, many of which have greater financial, technical, sales, marketing and other resources than we have  the ability of LifeSize to achieve revenue expectations, which depends on factors such as the integration with Logitech, competition in the video conferencing and communications industry, including from companies with greater resources, installed base and name recognition, and the rate of adoption of video communications in enterprises  the rate of consumer adoption of devices for the TV and Smartphone platforms  our product introductions and marketing activities not resulting in the platform or product category growth we expect, or when we expect it  More information about these and other factors impacting Logitech’s business and prospects is contained in Logitech’s periodic filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ending March 31, 2009 and subsequent Quarterly Reports on Form 10-Q available at www.sec.gov. Logitech does not undertake to update any forward-looking statements, which speak as of their respective dates. 2
  3. 3. Focusing on the Four Screens Capture market transitions in 4 connected device screens PC Screen Smartphone Screen Interfaces (input, navigation, audio, video) – all customized to screen usage models Enterprise Video- TV Screen calling Screen 3
  4. 4. PC Screen Strategy 4
  5. 5. PC Screen Strategy  Expand Unifying technology across computer peripherals consistent with our brand promise  Innovate, solving for more portable “on the go” technology, i.e. laptops and netbooks  Simplify the product portfolio in core categories  Embrace unstructured environments and cloud-based applications as new usage context 5
  6. 6. Opportunities in Installed Base and in Growing Platforms Replace and Upgrade Opportunities Incremental Opportunities 6
  7. 7. Netbooks Supplement Desktops and Notebooks Usage Usage of Computers by Form Factor Notebook & Desktop 39% Notebook Only Desktop Only 15% 39% 4% <1% 2% 1% Source: Socratic Web Survey, 2009 7
  8. 8. Notebook Attach Rates Remain Strong 71% 41% 40% Source: Logitech survey results, 2009 8
  9. 9. Netbook Form Factors Create Opportunity for Accessories New form factor, but pain Ultra-compact shape points stay the same  Reduced width makes lap use difficult  Packed components tend to overheat Compact touchpad & keyboard  Hard to control mouse cursor  Challenging text input experience Continue to improve user experience for this new growing platform, including innovative mice and headsets 9
  10. 10. We Continue to Innovate… Portability  Nano receivers for mobile notebook users Anywhere  Darkfield Laser Technology to perform on any surface Convenience  Unifying technology frees up valuable USB ports with freedom to move from place to place without having to plug, unplug and keep track 10 of the receivers
  11. 11. Huge Upgrade Market for Webcams Logitech is the Preferred Path Share of high-end is growing High-end Logitech webcams receive top Logitech share for $50+ consumer ratings webcam market in U.S. 100% Other 80 60 Logitech 40 20 0 Aug-07 Apr-08 Dec-08 Aug-09 Source: NPD 11
  12. 12. Leader in Webcam Image Quality High quality, VGA30 already the standard And high-end Logitech webcams are HD & 720p  Skype in Spring 2008 capable  Windows Live Messenger in Fall 2008 $99  Google in Spring 2009  Logitech Vid in Summer $99 2009 $79  Yahoo in Fall 2009 12
  13. 13. Tap into The Fashion Wave Personalization and customization provide incremental revenue opportunity 13
  14. 14. Designing for China  Long-lasting battery life  Sturdy design  Compact and space-saving models  Spill-resistant designs  Extended range 2.4Ghz for PC control on TVs  Value price points 14
  15. 15. TV Screen Strategy 15
  16. 16. TV Screen Strategy  Establish Harmony as the standard for device control and content navigation  Accelerate solutions to scale the connected TV market  Develop and proliferate unique interface experiences for the connected TV  Explore 3D gesture-based navigation 16
  17. 17. Significant Opportunity for Remotes at Lower Price Points Current solutions have poor setup and unsatisfactory FY09 Unit Volume (Millions) performance 5.0 4.0 3.0 2.0 1.0 0.0 AMR (NPD) EMEA (Gfk EU3) Basic (<$50/30€) Advanced (>$50/30€) Sources: NPD POS report for AMR May 2009; Gfk EU3 POS report Feb 2009 17
  18. 18. Harmony Everywhere: Potential Long-term Growth Driver for Remotes Discover Access Share  One source for content  One touch control from any  Receive feeds about what  Simplified navigation interface your friends are watching  Recommendations  Content selection drives  IM or Tweet with friends  Search HES control  Find others with similar HE  Lists  Synchronized smart state interests  Reviews, meta-data &  Discover or share from any  Share your reviews, rankings rankings interface and comments Harmony Everywhere will enable content engagement 18
  19. 19. Video-Calling in the Living Room: The Not-So-Distant Future Internet TV Installed base of VoIP users on PCs 19
  20. 20. Smartphone Screen Strategy 20
  21. 21. Smartphone Screen Strategy: Next Generation Computing Platform  Leverage smartphone as the next generation computing platform  Drive play in mobile peripherals  Leverage Logitech expertise for mobile applications 21
  22. 22. Smartphone Market Growth: Expect Continued Acceleration Technological advances and the convenience of the platform make it attractive to consumers Smartphone unit share expected to be greater than notebook & netbook market by 2010! Source: Gartner March 2009 22
  23. 23. Open Ecosystems Provide More Growth Opportunities Source: Forrester Research, The "Smartphone" Is Dead: Long Live Smart Phones And Smart Gadgets, May 2009 23
  24. 24. Enterprise Video- Calling Strategy 24
  25. 25. Enterprise Video-Calling Strategy  Accelerate adoption of video communication  AcquiredSightSpeed in 2008, technology foundation for Vid  Create seamless video communication solutions in the living room, at the office, on the go and in the meeting room  Develop partnerships to build an open video communication eco- system 25
  26. 26. SightSpeed Enables High-Quality Video- Calling for Consumers and Business Logitech Vid SightSpeed Business Dell Video Chat  Designed for non-tech  9-way multi-party calling  Custom-designed UI for savvy consumers  Call recording Dell  Uses premium codecs for  Secure, centralized  Several premium features best performance administrative console available to Dell customers  Bundled with all Logitech  Shipping on Dell consumer webcams laptops and netbooks world-wide 4.1 million users 26
  27. 27. Frontiers Between B2C and B2B Blurring Skype is a great example iPhone Popular for Business Use  35% of users say they use Skype for business  20% of Skype users make Skype video-calls for business purposes †  95% say they are saving money *  70% say they are using it while traveling on business *  80% say they are seeing increased productivity * * Source: Skype user study of 4,000 users in the US, UK and China conducted in March 2008 † Source: Results from a December 2008 online survey of 2452 active Skype users in the US and UK 27
  28. 28. LifeSize: The Natural Evolution of our Video-Calling Strategy 28
  29. 29. LifeSize Overview Craig Malloy Co-founder and CEO, LifeSize Logitech Analyst & Investor Day New York – November 11, 2009 29
  30. 30. Company Overview  Pioneered HD Video Communications  Co-founded in March 2003  Craig Malloy, CEO (and co-inventor of Polycom ViewStation)  76 patents and pending patent applications  Fastest growing company in video communications industry  ~$90M revenue in 2009 and expected CY10 revenue +40-60%  Over 26k units shipped to over 9,000 customers in 80 countries  Technology leadership  Price/performance leadership from inception  Architectural advantage over competition  Broad and deep intellectual property base 30
  31. 31. Large, Growing Market Videoconferencing Rapidly Emerging in Enterprise Market Videoconferencing Endpoints and Infrastructure $4B 20% CAGR $3.6B $3.0B 3 $2.4B $2.0B $2.1B 2 1 0 2008 2009E 2010P 2011P 2012P Source: Wainhouse (2009) 31
  32. 32. Macro Drivers Point to Significant Growth Business Video Communications Economic Business Compelling Climate Drivers User Experience  Travel has become  Globalization  High definition brings difficult, realism of experience inconvenient, and  Competitive time consuming environment requires  Network capacity to faster time-to-market handle 1Mbps+ HD  Heightened focus on video calls ROI and hard cost  Increased demand for savings richer collaboration  Dramatically improved  Growing awareness price/performance of climate change and carbon footprint (HD <$2,500/site) 32
  33. 33. Multiple Companies Servicing Business Video-Calling Market Business video-calling market (incl. end points, infrastructure, and services) Solutions Price/unit Key players ~$2.5B  High-end  $100K+ telepresence enterprise solutions  Room-based video-  $10K+ conferencing systems  Enterprise desktop  $200+ video solutions  Video-calling,  Varies collaboration significantly solutions for SMB SOURCE: AMI, Wainhouse, IDC, Polycom and Tandberg financials 33
  34. 34. LifeSize Share and Revenue Growth Driven by Strong Price/Performance Solutions Revenue Market Share  LifeSize is now #3 provider of room- based video conferencing systems $100M 8%  Serves over 9,000 customers in large enterprises, small-to-medium 80 Room endpoints businesses and public healthcare, share 6 education and government organizations in more than 80 60 countries Total market share 4  Over the last three years, LifeSize revenue more than tripled 40  Share of total video conferencing market more than doubled since 2007 2 20 Revenue  Share of room-based systems, LifeSize’s core market, more than tripled in the last 3 years 0 0 2007 2008 2009E  Room to expand share beyond today’s relatively modest levels Source: LifeSize estimates, Wainhouse (2009) 34
  35. 35. SMB Market Remains Virtually Untapped Enterprise market today $2.5B  Accessible price points for SMB  Ease of use  HD quality systems SMB market  Low cost of install is primed  Outside the firewall for adoption operability  Broadband penetration  Encoding technologies  Consumer adoption of video-calling 0.0 SMB Market Industry Drivers LifeSize Drivers 35
  36. 36. LifeSize Value Proposition Superior Quality of Experience Life-size, immersive HD experience in ALL solutions  1080p30, 720p60 and dual 720p30 Unique Flexibility Unmatched Price Enable the HD experience Performance ANYWHERE Enable the HD experience  Minimize bandwidth quality EVERYWHERE trade-offs  HD solutions <$2.5K  New infrastructure (LifeSize Passport)  Interoperability with Skype 36
  37. 37. LifeSize Product & Service Offerings Passport Express series Team series Room series Conference series Passport™ Express™ Team MP™ Room™ Conference™ from $2.5K from $6K from $10K from $16K from $50K+ 1 1. Highest price-performance Video Endpoints 2. Management & 4. Security, NAT/FW 3. Video Infrastructure Control Traversal 5. Assurance Services 37
  38. 38. Customers Across Multiple Sectors Technology Manufacturing/Industrial Finance Health Care Retail/ Consumer Gov’t/Defense Education 38
  39. 39. Strengthened R&D Capabilities Innovator in consumer Innovator in HD video-calling business video communications  In 1998, entered the webcam  76 patents accumulated over the business - became a mainstay last 6 years of computer users  Deep R&D expertise  Leader in high-end, high- performance webcams  First to introduce HD video- conferencing almost 4 years ago  Worked with partners such as Yahoo!®, MSN®, AOL® and  Provides leading performance Skype™ to integrate video videoconferencing systems at any with popular Internet price, any bit rate communications applications  Features smallest architectural  Scalable SIP capabilities footprint design in industry through SightSpeed network  3rd generation design extends lead 39
  40. 40. The Value of Partnerships UC/Videoconferencing providers Video-calling platforms OEMs Technology 40
  41. 41. Logitech and LifeSize Combination Enabling Video-Calling Across Platforms Integrating PC Bringing video- video-calling with calling into the living the meeting room room Large and growing video-calling user base - in the office, at home and on the go Disruptive offering Connected TV  HD product offering opportunity  Performance pricing  SightSpeed hosted service 41
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