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Igal Rotem Building A Business Through Partnership


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Improving Your Negotiation Position: Rules for Negotiating with Giants
Tuesday, September 16, 2008

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Igal Rotem Building A Business Through Partnership

  1. 1. Building a Business through Partnerships - The PowerDsine Version Igal Rotem – CEO and Co-Founder : [email_address] As presented to the MIT Forum – Sep 16 th 2008 Copyright © 2008 by PowerDsine Ltd. All rights reserved. No part of this presentation may be reproduced or distributed in any form by any means, or stored in a data base or retrieval system, without the prior written permission of PowerDsine.
  2. 2. PowerDsine Snapshot <ul><li>Established in 1995 </li></ul><ul><li>New product line every 2-3 years </li></ul><ul><li>1999 - Creating “Power over Ethernet” </li></ul><ul><li>2003 – Power over Ethernet IEEE 802.3af </li></ul><ul><li>standard ratified </li></ul><ul><li>5 private financing rounds raising about $60M </li></ul><ul><li>2004 –IPO in NASDAQ raising $80M </li></ul><ul><li>2006 revenues = $40M; GMs over 54%; </li></ul><ul><li>2006 - 155 employees </li></ul><ul><li>Global presence; R&D in Israel Sales in the U.S. Taiwan, Korea </li></ul><ul><li>January 2007 Acquisition by </li></ul><ul><li> (MSCC) for $250M </li></ul>Most Innovative Product Outstanding Emerging Company Key Contributor to 802.3 af PowerDsine Headquarters
  3. 3. What Is Power-over-Ethernet ? VoIP Phone WLAN Access Point Network Security Device <ul><li>Data and Power over a single Ethernet cable </li></ul><ul><li>Transmitting safe and uninterrupted power (15W, 48V) over existing LAN infrastructure </li></ul><ul><li>IEEE 802.3af standards based </li></ul>Cost Savings Improved Network Reliability PoE Enabled LAN Switch 1011011 1011011 1011011 Ethernet Cable Ease End Device Deployment Power Power Power
  4. 4. Leading, Global Customer Base
  5. 5. 1995 – First Cooperation <ul><li>First product – Ring Signal Generator </li></ul><ul><li>First Customer - </li></ul><ul><li>1 half time employee… </li></ul><ul><li>1 office space.. </li></ul>
  6. 6. 1999 – PairGain Systems… <ul><li>New Product Line xDSL Modules. </li></ul><ul><li>Can you sell to a Giant ???!!! </li></ul><ul><li>Make sure your products works !!!… </li></ul><ul><li>You have to have enough money.. </li></ul>
  7. 7. 2001 – Freescale Semi… <ul><li>Freescale (Motorola Semi) the world leader in high voltage mixed signal IC process </li></ul><ul><li>Great technology fit </li></ul><ul><li>Great teams from both companies </li></ul><ul><li>Major cultural gaps </li></ul><ul><li>Different agendas… </li></ul><ul><li>Great Success !!! </li></ul>
  8. 8. Do’s and Don’ts when you create a partnership -1 <ul><li>Define why you want to create this partnership </li></ul><ul><li>Is this the right partner for you? Or did you just pick the one who said YES…. </li></ul><ul><li>Define the objectives of the partnership, make sure the BOD and the management team are all aligned </li></ul><ul><li>Allocate a small execution team, they should be the ones who have a personal responsibility to make it happen </li></ul><ul><li>Set up ongoing meetings and calls with your partner, to ensure that there is no gap between your beliefs and the reality…..... </li></ul><ul><li>Make sure you have enough money to support the investment </li></ul><ul><li>Communicate bad things FIRST </li></ul><ul><li>Don’t surprise your partner </li></ul>
  9. 9. Do’s and Don’ts when you create a partnership -2 <ul><li>Cultural gaps exist ! Don’t ignore them </li></ul><ul><li>Make sure that top management within your partner’s organization is behind this cooperation </li></ul><ul><li>Invest in protecting your IP </li></ul><ul><li>Sign a good contract, do not leave too many things open </li></ul><ul><li>Work hard to make it happen </li></ul><ul><li>It is important to start these cooperations, it is also important to know when to end them.. </li></ul><ul><li>Please remember: “Business gets done between people not between companies !!” </li></ul>
  10. 10. Discussion…. 