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1MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
This is a redacted version of a final
draft of the 2003 MySQL investor deck. In
this B round the company raised $16m from
Benchmark Capital and Index Ventures.
Hope this is useful to startup
entrepreneurs all over the world.
2MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
MySQL Business
The Opportunity To Disrupt the
Database Market
Mårten Mickos, CEO
3MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
How To Read This Plan
• We assume the reader has a basic familiarity with
MySQL and its present business
• Feel free to pick sections of this presentation in any
order you feel comfortable with (see TOC on next
page)
4MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
Table of Contents
• Section pages
– The Case 4-9
– Market and Opportunity 10-19
– Open Source Info 20-31
– MySQL Info 32-48
– Figures 2002 49-63
– Entering the Enterprise Market 64-98
– Management Presentation 99-108
– Product and Service Information 109-165
– Competition 166-172
– Risks and Uncertainties 173-175
– Investment Proposal and Exit 176-182
– Additional Reading 183-185
– Acceleration
currently not
updated
Go
Go
Go
Go
Go
Go
Go
Go
Go
Go
Go
Go
5MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
The Business Case
Table of Contents
6MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
The Business Case
• Intro
– Yahoo, Google, Cisco, Nokia, Lucent, Census Bureau, Rhode
Island and 4 million trust MySQL with their database needs
• Market
– Organisations urgently need to cut IT costs, or expand without
adding costs
– ISVs need to reduce dependency on ORCL-MSFT-IBM
– Linux is validating open source in the enterprise
• Now
– Open source databases are maturing for enterprise use
– Open source is a method for
• producing high-quality software at a low cost
• selling and distributing software at a low cost
– MySQL is the world’s most popular OS DBMS
– MySQL owns its software and has a revenue model: dual licensing
7MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
The Business Case (2)
• For the customer
– Amazing cost savings (TCO and capital investment)
– Better reliability and uptime
– Faster application deployment
– Abundance of skilled personnel
– MySQL supported 24/7 worldwide by a viable commercial
vendor - MySQL AB
8MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
The Business Case (3)
• Therefore
– We are the only ones who can meet the economic desires of the
market while being profitable.
• So let us
– Sell to ISVs and the enterprise market
– Forge alliances needed for enterprise business
– Perfect the offering
– Build the sales channel
and cause a permanent change to the way software is produced and
procured.
9MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
The Business Case (4)
• Why us?
– Proven product leadership
– Proven user base success
– Proven open source business model
– Vast and active community
– Viable vision by owners and management
– Proven management
– Fully functional and clean company
– New visible output every month
• web market business is growing rapidly
• embedded business is growing very rapidly
• enterprise market is enticed
10MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
The Business Case (5)
time
futurepresentpast
Web
data
-
base
Web
data-
base
Embed-
ded
data-
base
Web database
Embedded
database
Enterprise database
current
trajectory
with new
funds for
growth
11MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
Market and Opportunity
Table of Contents
12MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
Bloomberg.com 17 Aug 02
”Oracle, IBM, Microsoft May Lose Business
to Free Database Software MySQL”
ComputerWorld 11 Feb 03
McNealy: ...if you want to save more money, make the default database MySQL.
It's free, it's bundled, you've got the whole open-source community working on
making it better. If Yahoo and Google can run their entire operations on MySQL,
then certainly there's a huge chunk of your operations you could run on it as well.
San Francisco Chronicle 14 Aug 02
Some major corporations, including 7-Eleven, Deutsche Telekom and Amazon.com,
are migrating to Linux servers to take advantage of low- cost, open-source
versions of data management software such as MySQL.
13MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
eWeek’s DBMS Benchmark
14MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
Disruptive Business Model
• “Open Source/Linux software is a ‘disruptive innovation’ that
has the potential to seriously erode the traditional software
business model by attacking the heart of its model – high margin
software licensing fees.”
Merrill Lynch 24 Oct 2001
• “… the popularization of the Open Source movement continues
to pose a significant challenge to the Company's business
model …”
Microsoft 10-Q, February 2003
15MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
The Database Market
• is dominated by the Big Three
– Oracle, IBM and Microsoft command 83% of the market
• MySQL owns 0.02% of the market by revenue
– so the Big Three say ”MySQL is not a threat”
– and that is fine with us, because
• MySQL commands an estimated 20% by installed
base
– and makes money
• What’s wrong? - Nothing!
16MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
Database Market
Embedded Database
Web Database
Enterprise Database
$1B
$2B
$6B
Embedded in Software
Embedded in Hardware
Dynamic Content
E-Commerce
Utility Database
Data Warehousing Database
Business Transaction Database
N.B. Revenue split above is MySQL estimate.
17MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
Database Market
Embedded Database
Web Database
Enterprise Database
MySQL Installed Base
18MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
Database Market
Embedded Database
Web Database
Enterprise Database
MySQL Installed Base
Acquire
Leadership
Maintain
Leadership
Enter Select
Segments
19MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
Database Market
Embedded Database
Web Database
Enterprise Database
MySQL Installed Base
Acquire
Leadership
Legacy, Closed Source RDBMSsEnter Select
Segments
Maintain
Leadership
20MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
Database Market Evolution
Embedded Database
Web Database
Enterprise Database
$1B
$2B
$6B
Business Model
(batteries included)
Architecture
(web, rather than
client/server)
Linux a dominant
platform
Mid-market
showing life signs
Overall cost
pressure
21MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
Estimated MySQL Potential
• In the embedded market
– €100m
• In the web market
– €300m
• In the enterprise market
– €600m - €1bn
The above figures represent current best estimates by the management.
22MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
Open Source Info
Table of Contents
23MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
MySQL - The Cathedral in the Bazaar
24MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
Three Modes of Production
• Individuals order their productive activities
1. as employees in firms, following the directions of managers
2. as individuals in markets, following price signals
• and now, also
3. as groups of individuals in the world, following diverse
motivational drives and social signals (rather than either
market prices or managerial commands), successfully
collaborating on largescale projects
• This third form of production has been dubbed
“commons-based peer production”
See research papers by Ronald Coase, Oliver Williamson (for items 1 and 2), and
Yochai Benkler (for item 3).
25MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
MySQL Has 2 Modes of Production
• Two production modes
1. The Cathedral: employees of MySQL AB, following the
directions of managers.
2. The Bazaar: individuals all over the world, following diverse
motivational drives and social signals.
• Both modes are Quid pro Quo
– Employees receive salary and other benefits
– Individuals receive GPL’d software, rapid bug fixing, rapid
evolution, i.e. solutions to every-day problems, and,
additionally, peer recognition
• Ideally for MySQL, it does not matter to an individual
whether he is in the cathedral or in the bazaar, or
both.
26MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
MySQL Community Goals
1. Grow installed base from present 4m to 40m
2. Continually activate and engage community
3. Outsmart, outposition and outpromote Postgres
27MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
1. Grow Installed Base
from Present 4m to 40m
A. Make sure product is suitable for vast deployment
and usage
B. Encourage the world’s most powerful distributors to
distribute MySQL
C. Integrate with the world’s most popular software
tools, platforms and servers
D. Ensure MySQL is used in as many FOSS projects
as possible (FOSS = Free / Open Source Software)
28MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
2. Keep Community Active
• Actively engage in rich, honest, relevant and frank
communication
• Encourage intelligent contributions to advance our
source code
• Promote and augment our open source strategy
• Encourage and enable peer recognition
29MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
3. Outsmart Postgres
• Have financially viable business and go for goals 1.
and 2. with perfection – and that’s it
30MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
Dual Licensing
• MySQL AB employs dual licensing for its product, the
MySQL server.
• This means that MySQL is available under a regular
commercial licence for commercial customers, and
under the GPL licence for those who live by the Free
Software principles.
• The product is technically the same under both
licences, but the financials and the legal ramifications
are different.
• It is up to the customer to decide what path he wants
to follow and what licence to use.
31MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
Common Open Source Objections
”Lack of proper support”
– MySQL operates worldwide 24/7 support since 1999
”Lack of vendor accountability”
– MySQL owns its product and takes full responsibility
”Lack of vendor viability”
– MySQL has made money since 1995
”Lack of third-party software integration”
– MySQL is working with Sun, Novell, Veritas and others to ensure
interoperability
”Lack of skilled staff”
– There are more than 4 million installations worldwide and hundreds of
thousands of skilled developers and administrators. Use the community.
32MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
MySQL Info
Table of Contents
33MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
MySQL Mission
Make superior
database software
available and affordable to all
34MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
Do Differently
35MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
The World’s Most Popular
Open Source Database
• Numbers
– An estimated 4 million installations
– More than 1.8 million web visits per month
– Average of 29,000 downloads PER DAY
– Google finds some 8 million pages with “mysql” (on par with
“oracle”)
• Distribution
– Every major Linux distribution includes MySQL
– LAMP = Linux + Apache + MySQL + PHP/Perl/Python
– Mac OS X servers,Sun LX50 servers, Sun Cobalt Qube 3
appliances, Solaris 9 Companion CD, DELL PowerEdge
Web Servers, Packet Design Route Explorer, etc. equipped
with MySQL
36MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
The Entire World
37MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
Analogy
MySQL is doing to databases
what DELL did to PCs:
In a maturing market, turning the key
product into a cost-efficiently produced
high-quality high-performance
mainstream product with excellent
customer service, giving new masses
of customers access to the value of the
offering at an affordable price.
38MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
Sustainable Business Model
What we have
• We own and develop our
software
• We own and protect our
trademark
• We apply dual licensing to
our product
– GNU General Public
Licence (GPL) - free
– Commercial Licence - for a
fee
What we do
• We let the free version of our
software find its way into
every organisation
• We sell support and
services to the users of the
free software
• We sell commercial licences
and support to commercial
customers
39MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
Second Wave of Open Source
• Preserve the benefits of
open source
– battle-tested by millions
every day
– contributions from the
community
– an ecosystem far wider than
yourself
• Without compromising
business viability
– ownership of source code
means responsibility can be
taken
– ownership of trademark
means that customers can
trust you
40MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
Virtuous Development Cycle
MySQL staff develop
new release every 4-6
weeks
New release
immediatley
downloaded by vast
numbers of users
Massively parallel
testing and
debugging begins
Rapid stabilisation
Sold under
commercial
licence
Proceeds from
licence sales fed
back into
development
Commercial
benefits:
- battle tested
product
- rapid
development
Community
benefits:
- commercial-
grade framework
free of charge
41MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
The MySQL Product Formula
1. Speed
2. Reliability & Stability
3. Ease of everything: installation, integration,
development, deployment, management
4. Economy
42MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
MySQL AB Overview
• MySQL founded in 1995 by open source gurus Michael ”Monty”
Widenius and David Axmark
• Head office in Uppsala, Sweden
• Some 65 staff in 14 countries
• Privately owned
• Profitable 1996-2000
• MySQL AB owns the intellectual property rights of the MySQL
server, the mysql.com domain name and the MySQL trademark
• A total of EUR 4m in external investments so far by:
– ABN AMRO Alfred Berg Industrifinans, NO
– Scope Capital, SE
– Servisen Management, SE
– Respect Ventures (Holtron), FI
43MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
Historic Timeline
1980 1985 1990 1995 2000 2005
Monty, David, Allan
working on dataware-
housing projects in
Sweden
First data
management
softare is created
Reporting tool
created
MySQL inception
MySQL AB created
Management, BoD
1st VC funding
3.22
3.23
4.0
4.1
5.0
44MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
Corporate Structure
Open Ocean S.à.r.l
(founders)
MySQL AB
Uppsala, Sweden
MySQL Finland Ab MySQL Inc. MySQL GmbH
Venture
Capitalists
Individuals
100%
As of 1 Jun 2002
45MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
Balance Sheet Etc.
• No debt, no lines of credit
• No equipment leases
• No R&D costs deferred
• Property & Equipment €364k
• US GAAP compliant revenue recognition
• Outstanding shares and options as of 1 Jan 2003:
[REDACTED]
46MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
More Information
• Website http://www.mysql.com
• Management team http://www.mysql.com/company/management.html
• Company fact sheet http://www.mysql.com/company/factsheet.html
• Recent press releases and coverage http://www.mysql.com/press
• Product information: http://www.mysql.com/products
• Reference manual that includes company information, benchmark
information, product roadmap, and more http://www.mysql.com/doc/en
• Product roadmap: http://www.mysql.com/doc/en/TODO.html
• Recent press mentionings according to Google:
http://news.google.com/news?q=mysql&hl=en&lr=&ie=UTF-
8&sa=G&scoring=d
47MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
Figures 2002
Table of Contents
48MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
Year 2002 in Figures (Prel.)
• Revenues €4,701k
– Cost of revenues €1,325k (28%)
– OPEX €5.037k
• DEV €1,288k (27%)
• S&M €2,123k
• G&A €1,626k
• Net income (€1,486k)
• Avg. no. of employees 49 (55 with subcontractors)
• Product line split
– Licences 52% - starting $200, $395 per copy
– Support 23% - $1,500 - $48,000 p.a.
– Training 12%
– Other services 6%
– Partner and other fees 7%
49MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
Sales, 6 Month Trailing Average
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
2001-062001-072001-082001-092001-102001-112001-122002-012002-022002-032002-042002-052002-062002-072002-082002-092002-102002-112002-122003-012003-02
Our present
cost level
50MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
P&L: Actual vs. Budget
-2500,0
-2000,0
-1500,0
-1000,0
-500,0
0,0
500,0
1000,0
January February March April May June July August September October November December
Month
EUR'000
Budget Actual
Cum. Budget Cum. Actual
51MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
Monthly Operating Cash Flow 2002
-2 500
-2 000
-1 500
-1 000
-500
0
500
1 000
January February March April May June July August September October November December
Month
EUR'000
Cash Flow Cum Cash Flow
52MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
Sales by Territory 2002
ROW
25%
Germany, A, CH
8%
North America
67%
53MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
Deal Size Study
Deal size: < €250 < €1k < €10k < €50k < €250k < €1m < €4m
No. of
customers
366 236 530 72 13 1 0
% of no. 30.0% 19.4% 43.5% 5.9% 1.1% 0.1% 0.0%
Sales
volume
69,235 128,025 1,703,326 1,526,098 1,102,187 326,858 0
% of sales 1% 3% 35% 31% 23% 7% 0%
Avg. deal
size
189 542 3,214 21,196 84,784 326,858 -
7% of the deals make 61% of the business
54MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
1
10
100
1,000
10,000
100,000
1,000,000
10,000,000
100,000,000
0 190 600 3,200 20,000 100,000 350,000 2,000,000
w hen 300m
w hen 100m
2003
2002
2001
Four Long-Term Initiatives
1 2
3
4
55MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
Largest Customers 2002
Over €100k
• Novell, Inc.
• Cisco Systems
• Veritas Software Inc.
• France Telecom
• Svenska Kulturfonden
€50-100k
• Hyperion Solutions Corp.
• Sabre, Inc.
• Sterling Commerce
• BMC Software, Inc.
• SoftAgency Co., Ltd.
• Amphus
• AutoSkill International Inc.
• Hummingbird Ltd
• Earthlink, Inc.
€30-50k
• Graco, Inc.
• Volvo
• EMC
• Avocent International Ltd.
• Tekelec
• Precise Software Solutions
• Funworld ag
• Pathfire Inc.
• Kasenna, Inc.
• De La Rue Cash Systems
• Alcatel
• Gamma Technologies Inc.
• Iteration, Inc.
• Rackspace
• DeepMetrix Corporation
• Blueworld
• Hewlett Packard
A total of 1,177 customers à €4,126
[REDACTED]
[REDACTED]
[REDACTED]
56MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
Entering the Enterprise Market
Changing the Business Faster than the
Competition Can React
Table of Contents
57MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
Sales Team
• Typical setting for field sales
– $80k fixed annual base salary
– 4.7-5% commission on sales
– quota of $1.6m p.a.
– sales volume per sales mgr used for budgeting: $1m p.a.
• $1m – 2x ($80k + $50k) = $740k contribution per sales mgr
(assuming that fully loaded cost is 2x salary)
– some sales mgr have higher packages and quotas, some
lower
– this works well with our present size – for the future, a more
elaborate model is planned
– to get $9m in direct sales we need 9 sales mgrs; today we
have 10
58MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
Earnings Logic - Alternatives
• Commercial licences
•
•
•
• Services
• Subscriptions
• Hosted services
• Add-on tools
• Services
• Add-on tools
• Enterprise extensions
• Commercial licences
Embedded Database
Web Database
Enterprise Database
59MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
Earnings Logic - Subscriptions
• A concept dubbed ”Automated Notification Service”
(ANS) is in early development
• Under ANS, customers are to receive automated, customised,
relevant notifications of product and service changes directly to
their email, with clickable links for activating the suggested
operations (such as product updates, database health checks,
etc.)
• Pricing to be determined, current assumption is $80-200 per
person p.a.
• Value proposition based on convenience; the same information
to be freely but not as conveniently available to the open source
community
• Market potential estimated to be in the hundreds of thousands of
subscribers; subscriptions to be sold one by one or as
enterprise subscriptions
60MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
Offerings
• Software
– MySQL under GPL - $0
– MySQL Light - $0
• (to seed market and
provide alternative to
JetEngine and MSDE)
– MySQL Classic - $200
– MySQL Pro - $495
– MySQL Enterprise - $2,000
to $30,000
– MySQL utilities
• pricing 0 or TBD
– MySQL tools
• TBD
• Services
– Automated Notification
Service - $40-$190 p.a.
– Support - $500-$48,000 p.a.
– Certification $150-$500
– Training
– Consulting
– Migration services
• Tangible products
– Reference Manual
– Product Box
N.B. Prices are tentative.
61MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
Innovative Sales Model
• MySQL’s sales model is based
on the fact that GPL’d MySQL
installations are in use in most
organisations today, which
– reduces marketing costs
– shortens sales cycles
• Our order of priority for sales
cases
1. Enterprise buys off-the-shelf
app (and MySQL is the
batteries included database)
2. Enterprise builds new app (in-
house or outsourced) where
database choice is open
3. Enterprise rewrites old app
4. Enterprise migrates old app to
new database
62MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
Sales Model
Embedded Database
Web Database
Enterprise Database
Deal size
$0 $1,000 $10,000 $100,000 $1,000,000
Online Sales
Telesales
Field Sales
GPL
See-
ding
Yellow arrows denote self-propagating product promotion. N.B. Box width means deal size span, but box size (area) has no specific meaning
Global
Accounts
63MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
4 Sells To Do (In this Order)
• Sell to the business application ISV
– Sell MySQL as the ”batteries included” database for their
application
• Sell to the enterprise system software ISV
– Create integration with their software and MySQL
• Sell to the SI
– Sell the idea of the SI doing LAMP and other MySQL
projects for enterprises
• Sell to the enterprise
– Sell MySQL as the DBMS platform for the next in-house
project
64MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
CIO Magazine Survey Nov 2002
• 29% are using open source databases today, and for 33% it will
be the predominant type of software for databases in five years
• The majority (64%) of companies surveyed are using open source
• CIOs say the greatest benefits from using open source are
– lower total cost of ownership,
– lower capital investment and
– greater reliability and uptime compared to their existing systems.
• IT executives report that open source provides
– greater flexibility, control and
– faster, cheaper application development.
• All things equal, the majority of IT executives surveyed said they would choose open source
for a new implementation over a proprietary vendor solution.
• More info:
– http://www2.cio.com/research/surveyreport.cfm?id=51
– http://www2.cio.com/research/surveyreport.cfm?id=48
65MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
Our Enterprise Experience So Far
• Enterprises appear to be open to multi-vendor DBMS
strategy (which wasn’t the case earlier)
• Enterprises appear to be open to open source
software
• Enterprises typically see DBMSs in three categories:
– High-end: Oracle, DB2
– Middle: Microsoft SQL Server, MySQL
– Desktop: Microsoft Access
• Many enterprises signed 3-5 year DBMS deals in
1999-2000 (and many overpurchased); those deals
now are coming to expiration
66MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
The Market Needs an Alternative
ORACLE
IBM
MICROSOFT
vacant
PRESENT-DAY SITUATION:
- onerous prices and licensing
terms
- vendor lock-in
- products have too many features
- products continue to have bugs
- mandatory DBAs
- performance requires tuning
- little bang for the buck
+ ISV aspect: Big Three DBMS vendors
compete with many of their own ISVs in
the application space
DESIRABLE SITUATION:
- compelling prices, low up-front
investment
- open standards, open software
stacks, open source
- products with just the right
amount of features
- battle-tested products
- minimal admin overhead
- superior performance
- great bang for the buck
67MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
Recipe for Market Entry
• Pick entry segments
• Position MySQL as the 4th
player, the alternative
solution
• Compelling reason to buy:
– economy
– speed, reliability, ease,
ubiquity
• Whole product
– MySQL Enterprise
– Support and Services
– Third-party integration and
endorsement
• Partners & Allies
– enemies of the enemies
• Distribution
– directly to ISVs for batteries
included
– via platform vendors
– via SI’s
– directly to end customers
• Pricing
– Choose earnings logic
– 10x present MySQL, 0.3x
competitors
• Competition
– MSFT, ORCL, IBM
68MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
How to Sell to the Enterprise
• CIO thinking
– a DBMS is just one piece in the puzzle
– how easy is it to retrain existing staff?
– here I will use Open Source, here not
– I don’t want another vendor
• xxx
• xxx
• xxx
69MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
Cost-Effectiveness is a Must
• To keep prices low and our profitability high, we must
– Keep the customer acquisition (and retention) cost low
• see next slide
– Keep the product development cost low
• through open source
– Keep COGS low
• by focusing on selling high-margin offerings (licences and
automatic subscription services)
• by automating the labour involved in providing services
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Keep the Customer Acquisition Cost Low
• Seed the market with GPL’d software
– and reduce need for advertising and promotion
– and shorten sales cycles
• Build a strong brand
– and shorten sales cycles
– and reduce price sensitivity among customers
– and sell more online
• Sell ”batteries included MySQL” to ISVs and platform vendors
– and get straight into the enterprise in one low-cost blow
• Sell online
– and reduce the need for an expensive sales force
• Sell direct
– and avoid spending money on a multi-tiered sales channel
• Make buying easy
– (by simple pricing, simple configuration, web-enabled processes)
– and close more deals per account manager
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Communicate the Positioning
• Analysts, analysts, analysts
• Landmark partnerships
• PR & speaking engagements
• Benchmarks and certifications
• Build a ”community” of enterprise CIOs and CTOs
• Have regional sales offices
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Ways of Achieving Recognition
Top Corporate
Management
CIO / CTO
Divisional /
Departmental Mgmt
Operational Level
Present
MySQL
Recognition
GPL seeding
Analyst commentary
Blue chip affiliations
Active community, web site
and documentation
Press & testimonials
Special events
Trade shows
Influenced by:
Seeding through ”batteries included”
Open Source as an economic phenomenon
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The CIO Making Decisions
CIO
making
decisions
MIS staff selling
ideas to their
boss
Superiors
setting
expectations
Vendors
selling
Peers,
analysts,
press
providing
insights
MySQL:
GPL seeding
MySQL:
Open source as an
economic phenomenon
MySQL: ”Batteries
included” database
in other products
MySQL:
PR work, brand
building
MySQL takes the back-door
into the forces that
influence the CIO in his/her
decision-making.
This is done in good time
before the MySQL sales
team is deployed into the
organisation to close
commercial deals.
MySQL sales
team ready to
be deployed
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Proposition to CIO
• MySQL offers
– all essential functionality
– at a compelling upfront cost
– and a compelling on-going maintenance cost
• thus enabling organisations to continue to roll out new
applications while meeting the cost-cutting targets set
• And, by the way,
– you already run MySQL in these products: ...
– this is open source, like Linux
– there are millions of people with MySQL skills
– and these are some of our top customers, partners and investors:
....
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Potential Entry Segments
• TMT
– as they already use MySQL
• Financial Services
– as they are data-intensive and progressive
• Pharmaceuticals
– as they already use MySQL
– as they are data-intensive and research-intensive
• Government
– as they already use MySQL
• Research and Academia
– as they already use MySQL
• Via ISVs
– who look to reduce cost and reduce dependency on the Big Three
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Sample TMT References
Technology
Veritas Software
Peregrine Systems
Compaq
Sun Microsystems
Apple Computer
DELL Computer
Media
Vivendi Universal
Yahoo!
Google
Spiderman (Sony
Pictures)
FIFA Soccer World
Cup website
Virage
Telecom
Cisco
Lucent
Nokia
Ericsson
Telia
Tahoe Networks
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MySQL Enterprise (The Software)
Existing MySQL plus improvements in:
• Syntax (triggers, views, SQL-92 ,etc.)
• Load balancing, clustering
• Fault tolerance, high availability, clustering
• Huge datasets
• Distributed use
• Management of the database
• OLAP, data warehousing, data mining
• Security
• Third-party integration
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Software Stack & ISV’s
Operating System
DBMS
App Server / Web Server
IDE etc.
Clustering, Storage etc.
Utilities&Security
Management&Integration
Tools
Business Applications
Hardware / Processor
ERP/CRM: SAP, Peoplesoft,
Siebel, Intuit, Sage
BI: Hyperion, Business Objects,
SAS Institute, Brio, Cognos
SCA: i2, Manugistics, JDA
Software
eCommerce: Sterling, Tibco,
OpenWave
Other: Mercury Interactive,
Peregrine
CMS: <numerous>, Vignette,
Hummingbird
.NET
XML
Java / J2EE
Borland
Rational
Adobe
Macromedia
Compuware
Quest
IBI
Veritas
Checkpoint
Symantec
Network
Associates
BEA
IBM
Sun
BMC
HP
Apache
Sun
HP
SteelEye, Emic
etc.
Unisys
EMC
Linux: RedHat, SuSE, Mandrake
Unix: Sun, HP
Windows
Novell
CA
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Potential Partners & Allies
• Platform Vendors
– Apple
– Dell
– HP
– Sun
• ISV’s
– BEA
– BMC
– Veritas
– CA
– SAP, Peoplesoft, Siebel
– etc.
• SI’s
– Accenture
– EDS
– IBM Global Services
– CSC
– Cap Gemini Ernst & Young
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Potential Counter-Actions by Big Three
• Microsoft
– may give away SQL Server free of charge with Windows (but anti-trust
considerations may prevent that)
– may bundle SQL Server with technology stack
– may port SQL Server to Linux
– may attack with patents
• Oracle
– may give away some version free of charge?
– may block sales channels (ISVs, SIs)
– may attack with patents
– may attack in MySQL’s home markets (embedded, web)
• IBM
– may acquire Red Hat and/or SuSE to attempt to block access to Linux
– may give away DB2 free of charge?
– may bundle DB2 inside technology stack
– may attack in MySQL’s home markets (embedded, web)
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How to Deal with Competition
• Microsoft
– Let Linux do the fighting
– Be easily available on Windows
• Oracle
– Cost savings!
• IBM
– Cost savings!
– Customer’s desire not to buy all from one vendor
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Acceleration
Table of Contents
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Use of Proceeds
• Status quo sufficient for:
– stepwise expansion into
France, UK, Far East
– MySQL 5, MySQL 6, ...
– 50-80% annual growth in
the next few years
– profitability
– €100m in revenues in 6-7
years
• Use of new round
– Enterprise marketing
– Faster sales ramp-up
– Services ramp-up
– Strategic alliances
– MySQL Enterprise
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Recruitment
• Management positions
– VP Marketing
– VP Professional Services
– VP Software Engineering
• Skills and teams to ramp up
– Technical
• enterprise computing
• benchmarks
• migration & other professional services
– Sales & Marketing
• direct sales force
• alliance management
• product marketing
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Stepwise Approach
Step 0
Demonstrate MySQL viability
in web and OEM markets
– Done, and ramp up continues
Step 1
Demonstrate MySQL viability
in enterprise market
– Work closely with select Fortune500
companies and existing enterprise
customers
– Forge key partnerships with ISVs
and platform vendors
– Acquire and develop skill sets
needed
– Build MySQL Enterprise
(evolutionarily from MySQL Pro)
– Position MySQL in the market
– Enter select market segments
– Test our assumptions
– Test our ambitions
Step 2
Ramp-up
– Perfect the offering
– Expand into other segments
– Expand geographically
– Penetrate
Steps 1 and 2 overlap, and
business build-up will be continuous.
We estimate that Step 1 will be concluded within
2-3 years and require funds of up to €10m.
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Assumptions & Ambitions of Step 1
Assumptions
• Open source is enterprise-ready and
enterprises are open source-ready
• Most platform vendors are open to a
fourth db player
• Key ISVs are open to a fourth db player
• Key SIs are open to a fourth db player
• ”Batteries included” gains ground in the
enterprise and single db strategy loses
ground in the enterprise
• Enterprise db’s increasingly need to be
web-enabled
• Mid-market is active (as opposed to top-
tier enterprise market)
• The Big Three are unable to successfully
defend their perimeters
Ambitions
• Have enterprise db ready in 3-4 years
• Have revenue model that works in
enterprise arena
• Build strong brand recognition and
credibility among enterprise decision
makers
• Keep customer acquisition cost down
• Price at roughly 1/3 of legacy players
without compromising own profitability
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Timeline
Continue to build web and OEM business
In the radar
Under the radar
Forge ISV partnerships
Build MySQL Enterprise (step by step)
Forge platform vendor partnerships
Continue to collaborate with and expand worldwide MySQL community
Launch and build enterprise business
Work closely with select Fortune500 enterprises
Step 1: Demonstrate
Step 2: Ramp up
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Milestones (*DRAFT*)
Milestone Ideally NLT
• Recruit
– additional VPs Q4/03 Q2/04
• Landmark ISVs signed up
– first ISV Q2/03 Q1/04
– 2 more Q4/03 Q3/04
• Sales in a quarter
– €3m (run-rate €12m) Q1/04
– €4m (run-rate €16m) Q3/04
– €5m (run-rate €20m) Q1/05
• Number of Fortune500 companies directly or indirectly
generating revenues as customers in excess of €50k p.a.
– 50 (totalling €2.5m) Q2/05
– 100 (totalling €5m) Q4/06
– 200 (totalling €10m) Q4/07
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Product Release Timetable (*DRAFT*)
Product version alpha production
• MySQL 4 Q4/01 Q1/03
– MySQL 4.1 Q1/03 Q3/03
• MySQL 5 Q4/03
• MySQL 6 Q2/04
– MySQL 6.x = MySQL Enterprise Q1/06
• MySQL Control Center tbd
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Projections: Revenue
0
10
20
30
40
50
60
70
80
90
100
2001 2002 2003 2004 2005 2006
Plus scenario
Scenario w. inv.
Base Scenario
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Projected P&L 2003 – 2007
-20000
-10000
0
10000
20000
30000
40000
50000
2002 2003 2004 2005 2006 2007
Month
EUR'000
Net Profit Cum. Net Profit
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Projections: EBIT, CapEx, FCF
-10000
0
10000
20000
30000
40000
50000
2002 2003 2004 2005 2006 2007
EBIT
Capex
FreeCashFlow
CumulativeFCF
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Projections: Funding Requirement
-10 000 000
-5 000 000
0
5 000 000
10 000 000
15 000 000
20 000 000
25 000 000
30 000 000
35 000 000
40 000 000
2003 2004 2005 2006 2007
Month
EUR
Cas h Flow Capital Requirement
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Projections: Without Investment
-4000
-2000
0
2000
4000
6000
8000
10000
2002 2003 2004 2005 2006 2007
EBIT
Capex
FreeCashFlow
CumulativeFCF
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Pressentation of Management
Table of Contents
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John Wattin, Chairman
• Professional board member, serial
entrepreneur
• Colleagues say: ”Business man!”
• Lives in Sweden, age 55
• Track record
– Founded/Reconstructed: Enator AB, Sigma
AB, Mandator AB, Astral AB,
Scandiaconsult AB, Indevo AB
– Chairman/Board Member: Akademikliniken
AB, Berit AB, Cherry AB, Establish AB,
Lemon Planet AB, Netentertainment AB,
Qbranch AB, MySQL AB
– Senior Advisor, Prosper Capital Fund
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Mårten Mickos, CEO
• Skilled CEO and entrepreneur
• Colleagues say: ”Motivator!”
• Lives in Finland, age 40
• Track record
– MatchON Sports Ltd, CEO 1999-2000
– Intellitel Communications, CEO 1997-1999
– Solid Information Technology, Channels
Marketing Director 1995-1997
• Life outside MySQL
– wife and 3 children
– water and snow
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Hans von Bell, CFO
• Experienced builder-up of financial administration
• Colleagues say: ”Pragmatist!”
• Lives in Sweden, age 42
• Track record
– Incirco AB, CFO 2000-2001
– MSI AB, CFO 1996-2000,
Regional Controller EMEA 1998-2000
– Unisource Mobile, Inv. Fin. Dir. 1994-1996
• Life outside MySQL
– family with two sons
– scuba diving, skiing, guitars
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Michael Widenius, CTO
• a.k.a. Monty
• Fanatic programmer who hates bugs
and loves speed
• Colleagues say: ”Guru!”
• Lives in Finland, age 41
• Track record: MySQL
• Life outside MySQL
– family with children My and Max
– visiting exotic places
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David Axmark, Co-founder
• Free / Open Source evangelist
• Colleagues say: ”Monty’s second brainhalf!”
• Lives in Sweden, age 40
• Track record: MySQL
• Life outside MySQL
– ultimate (the frisbee sport), disc golf
– hiking
– traveling
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Larry Stefonic, VP Sales
• Knows the database market inside out
• Colleagues say: ”Dealmakerl!”
• Lives in Seattle, USA, age 35
• Track record
– Birdstep
– Centura / Gupta
– Raima
• Life outside MySQL
– wife and son
– boxing, skiing
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Kaj Arnö, VP Training
• Analytical thinker and extensive communicator
• Colleagues say: ”Productive!”
• Lives in Germany, age 39
• Track record: Polycon Ab
• Life outside MySQL
– wife and 2 children
– marathon
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Management
• Firmly in place
– CEO
– CFO
– CTO
– VP Sales
– Co-Founder
• Advancing, filling
– VP Prof. Serv.
– Director Alliances
– Director Online Sales
– Director Support
– Director Development
• VPs to be hired
– VP Marketing
– VP Software Engineering
– VP Professional Services
– VP Alliances (?)
– Legal Counsel (?)
– VP Biz Dev. (?)
• Directors to be hired /
promoted
– Internal IT
– HR
– Sales Directors
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Advisors and Investors
• Board
– John Wattin, Sweden, Chairman
– Terje Laugerud, Norway
– Morten Austestad, ABN Amro, Norway
– Fredrik Oweson, Scope, Sweden
– Michael Widenius, MySQL AB
• Non-board investors and advisors
– Ralf Wahlsten, Finland, Investor
– Mina Gouran, UK, Investor
– Natasha Bhatia, UK, Investor
– Peter Harris, UK, Investor
– Florian Müller, Germany, Advisor
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Competition
Table of Contents
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Competition by Size
• Tier 1 - the billion dollar league
• Oracle (sales $10.5B, database licences $823m)
• IBM DB2 (sales $85.9B)
• Microsoft, SQL Server and Access
• Sybase (sales $950.3M)
• Tier 2 - the 100 million dollar league
• Sybase SQL Anywhere, Progress
• Tier 3 - the 5-50 million dollar league
• Berkeley DB, Birdstep/Raima, Ardent, Interbase, Intersystems,
Pervasive, Centura/Gupta, TimesTen, Solid, Pointbase,
Polyhedra, Empress, Versant
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Comparison Chart
MSFT ORCL IBM MySQL
SQL-compliant RDBMS    
Low TCO - - - 
Low capital expense - - - 
Multi-platform -   
Easy to deploy  - - 
High reliability and uptime    
Top performance -  - 
Fast application development ? ? ? 
Abundance of skilled staff    
Supported by commercial vendor    
Easy to administer  - - 
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Microsoft vs. MySQL
Microsoft has (and relevance to MySQL is)
• Enterprise Database
– SQL Server (competitor)
• Web Database
– SQL Server (competitor)
• Embedded Database
– SQL Server (competitor)
– MS Access (too weak to be competitor, but GUI is useful as
front-end to MySQL)
• Operating System
– Windows (important platform for MySQL)
– Windows CE (potential future platform for MySQL)
Microsoft is against open
source and GPL.
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Oracle vs. MySQL
Oracle has (and relevance to MySQL is)
• Enterprise Database
– Oracle (competitor)
• Web Database
– Oracle (competitor)
• Embedded Database
– Oracle Lite, Personal Oracle (weak competitor)
• Operating System
– none
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IBM vs. MySQL
IBM has (and relevance to MySQL is)
• Enterprise Database
– DB2 (competitor)
• Web Database
– DB2 (competitor)
• Embedded Database
– DB2 Everywhere (competitor)
• Operating System
– AIX (good platform for MySQL)
IBM invests heavily in Linux.
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Sybase SQL Anywhere vs. MySQL
• SQL Anywhere has
– Customers
– Features
– Speed
• SQL Anywhere lacks
– Speed to match MySQL
– Robustness through superior design
– Platform availability
– Massive user base support
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Can the Competition Produce
Something Better?
• By starting from scratch?
• Hardly. It takes 10 years for any mission-critical software product to
mature.
• By opensourcing a closed-source product?
• Hardly. It takes years (or an eternity) for closed-source software to
become clean enough go gain open source acceptance.
• By improving an existing open source product?
• Perhaps. But note that MySQL is today several times more popular
than the next runner-up.
• By forking a new version based on MySQL?
• Anybody is free to modify and distribute MySQL under GPL, but
maintaining the code is extremely difficult for anyone but the core
development team of MySQL AB. Also, only MySQL AB can sell
commercial licences and use the MySQL name.
• By giving away an existing product free of charge?
• May happen, but that does not make the product open source or
superior.
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Risks and Uncertainties
Table of Contents
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Risks and Uncertainties
• External
– Open source business models partly unproven or immature
– Dependance on success of Linux
– Dependance on worldwide Internet infrastructure
– Potential counter-actions by competitors (most notably
MSFT-ORCL-IBM)
– Potential competition from other open source databases
such as Postgres, Firebird and SAP DB
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Risks and Uncertainties (2)
• Internal
– Limited operating history
– Limited financial strength in the immediate future due to
expansion
– Dependence on the success of OEM customers in their
markets
– Dependence on key personnel and recruitment of additional
management
– Dependence on successful and timely delivery of new
product versions
– Intellectual property right risks in relation to our software
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Investment Proposal and Exit Potential
<NOTE: This info will be removed from this
file and put in a separate one, in order to
avoid it spreading to too many people in the
VC community.>
Table of Contents
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Background Info
• Cap table – see appendix (xls)
• External funding raised so far: EUR 4m
• Use of proceeds – see elsewhere in this document
• Peer analysis – see elsewhere in this document
• Please send or cc all your email communication to Mr
Peter Liss, peter.liss@attglobal.net, who coordinates
all communication from now on
[REDACTED]
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This Round
• MySQL AB believes that a fair pre-money value of the company
presently is €28m (but please note that this is not a formal offer, and
that the valuation may change due to significant events in the
company)
• The company now wishes to raise €10m
• In conjunction with the round a new share option pool will be launched,
to grow its percentage from existing 6.92% up to 9% of outstanding
shares
• The company is looking for one new active investor (or syndicate of 2)
from the UK or USA or continental Europe
• The company may in parallel receive investment from strategic
partner(s)
• The company presumes that the existing shareholders agreement be
extended to cover new investors as well
• ABN Amro and Scope are likely to join pro rata, other present investors
not
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Capitalisation Table
Open Ocean S.à.r.l 1,000,000
Industrifinans SMB III ASA 292,132
Holtron Capital Fund I Ky 122,492
Scope Venture Capital 96,910
split on Scope Venture I KB, Erneholm & Haskel AB, and Ichor Holding SA
Texcel International AB 25,560
Sirius Consulting Ab 16,390
Terje Laugerud 16,390
Kaj S Arnö 15,000
John Wattin 8,870
TMD Holding Ltd (N Bhatia) 8,190
Caversham Trustees Ltd (M Gouran) 8,190
Peter Harris 4,920
Employee share option pool 120,000
TOTAL outstanding shares & options 1,735,044
[REDACTED]
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The MySQL Investment Team
• Chief negotiators
– Mårten Mickos, CEO, assisted by Hans von Bell, CFO
• All owners & present investors represented by
– John Wattin, Chairman
• Coordinator of timetables, documents, meetings, Q&A
– Peter Liss
• Additional core management
– Larry Stefonic, VP Sales
– Michael ”Monty” Widenius, CTO
– David Axmark, Co-Founder
• Key investor representatives
– Morten Austestad, ABN Amro Industrifinans
– Fredrik Oweson, Scope Venture Capital
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Timetable
• 4 Mar – ready to send out investment memo
• 6-7 Mar – MGM in New York
• 10-12 – MGM may be unavailable
• 13-14 Mar – MGM at CeBIT
• Week of 17 Mar – open for MGM, but HvB on holiday
• 18 Mar – DEADLINE FOR OFFER LETTERS FROM VC:S
• 22-25 Mar – MGM at PC Forum, Phoenix
• 26-28 Mar – MGM in the SF Bay Area
• Week of 31 Mar – open
• 7-9 Apr– MGM in the SF Bay Area
• 10-12 Apr – MGM in the SF Bay Area for MySQL Users Conference
• 14-15 Apr – open
• 16-21 Apr – MGM unavailable
• 22-25 Apr – open
• Week of 28 Apr – open
• 5-7 May – open
• 8-11 May – staff meeting in Budapest
• Week of 12 May – open
[REDACTED]
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Selection Criteria
• MySQL AB reserves the right to accept or decline
offer letters at its discretion after the offer letter
deadline
• MySQL AB will pay great attention to the following
selection criteria:
– relevant market experience and value-add of the investor
– personal chemistry between partner(s) in charge and MySQL
management and directors
– valuation
– adherence to the existing shareholders agreement
– how well the VC matches ”The Ideal Investor” list which was
authored by the MySQL management (see next page)
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The Ideal Investor
• The ideal investor in MySQL, in addition to bringing great tangible and
intangible value to the company:
– takes a long-term view on his investment
– understands and respects the open source philosophy of MySQL AB (as
demonstrated by MySQL AB and other open source companies such as
Trolltech and Sleepycat)
– understands and respects the Nordic management culture (as
demonstrated by Nokia, VOLVO, MySQL AB and others)
– understands and respects the MySQL core values as described at:
www.mysql.com/company/index.html
– has ample industry experience and a vast network of relevant contacts
– is at all times actively engaged in building a long-term viable business for
MySQL AB through active participation in board work and otherwise
– lives up to and demands from others a business conduct of the highest
ethical standards
– in summary, is a value-adding contributor rather than a zero-sum game
player.
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Offer Letter
• The signed letter from an interested investor shall be presented to the
company no later than 18 March 2003, covering the following topics at
a minimum:
– Proposed investment size (and distribution between syndicated partners, if
applicable)
– Proposed pre-money valuation
– Proposed partners of the VC firm who would be board members and in
charge of the investment for the VC, and list of references for such partners
– Detailed comments on any proposed deviations from the existing
shareholders’ agreement to be disclosed to parties interested in submitting
an offer letter
– Proposed timetable and execution plan for completing the transaction
– The investor’s comments on the business plan and projections, in order to
highlight:
• where there is agreement
• where there is disagreement or just doubt
• where there is an alternative proposal from the investor
• what may be missing in the investor’s view
– Any other information deemed valuable
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Exit Potential
• Without the investment, the company estimates it can reach up to €100m in annual revenues. With the
investment now at hand, the management estimates the potential to rise to some €200m and beyond.
• If the company is successful in its undertakings in the next few years and if the market develops as
anticipated, the management believes that the company can grow to a size 2-5 times bigger than above
depicted, given that appropriate additional growth funding is available.
• The management and owners are committed to building a company with a sustainable business for the long
term. It is anticipated that the company will be able to float on an internationally acknowledged stock
exchange in the next 3-4 years and continue as an independent entity for the foreseeable future.
• As a result of successful execution of the business plan, it is also likely that opportunities will emerge for a
trade sale to a major platform, software, or database player in the market. Such companies presently
include but are not limited to: Sun, HP, IBM, CA, Dell, SAP, Intuit, Microsoft, Oracle. No such discussions
have been conducted or initialised.
• The founders of MySQL AB have stated their intention to build a great business and their interest to find the
best possible future for the company – a future where the MySQL product can fulfill its mission of being
available and affordable to all.
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Additional Reading
Table of Contents
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Additional Reading
• The following documents or compilations will be provided as part of the investment memo
package:
– Financial Figures 2002
– Financial Projections 2003-2007
– Financial Potential – Long term
– Sales statistics 2002 (xls)
– Sales statistics Jan-Feb 2003 (xls)
– Sales pipeline as of March 2003 (xls)
– Compilation of internal business intelligence emails (doc)
– Compilation of analyst reports, etc. (doc, pdf)
– Staff list (xls)
– Recruitment plan 2003 (xls)
– References – Mårten (text)
– References – Hans (text)
– References – Larry (text)
– Investment timetable and contacts (doc)
– Reference customers including contact info (doc)
– Existing shareholders agreement (doc)
– Cap table (xls)
– Table of contents of due diligence material (doc)
– User survey 2001
– Investment Q&A (living document, updated as we go).
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Projections and Statements
i.e. XLS files that will be provided to select potential investors
Year 2002 Years 2003-2005 Ultimate Ambition
P/L
BS
CF
Sales
Stats
Revenue projections
by 3 scenarios including P/L,
BS and CF
Revenue Analysis and P/L
Projection for Maximum
Market Potential in 3 Markets:
- Embedded database
- Web and personal database
- Enterprise database
Hans: please scrutinise and make changes!
Current Sales Pipeline
Current Sales Stats
Staff Table with FTE
deployment by Cost Centre
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Product & Service Information
Table of Contents
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MySQL™ in a nutshell
• MySQL is an RDBMS, such as Oracle, Microsoft SQL
Server, IBM DB2 and others
• MySQL is designed for mission critical applications,
where performance and reliability are key
• MySQL runs on most operating systems
• MySQL interfaces with most programming languages
• MySQL aims to have everything necessary, and
nothing more: ACID transactions, replication,
interfaces
• MySQL is available both under GPL and a
commercial licence – dual licensing
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MySQL Customer Value:
Saving time, in many ways
• Performance / speed
• Reliability
• Ease of use
– easy installation
– limited complexity
– many interfaces
• Low total cost of ownership
– low licence fees (at times free of charge)
– low support costs
– lower hardware costs, longer economic lifetime
– low training and administration costs (low complexity)
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How MySQL Software Develops
• Core development
– done by salaried employees of MySQL AB worldwide
• Assimilation
– licensing (InnoDB, Berkeley DB) or acquisiton (JDBC driver)
of technology developed in the open source community
• Contributions
– case-by-case contributions by individuals and companies
(where ownership is transferred to MySQL AB)
• Community
– some add-ons and APIs that remain in community ownership
(such as Perl-DBI and PHP-MySQL connection)
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Principles of Software Development
• Bugs are bad
• Modular design
• Compact code
• Release early, release often
• Never let new features compromise speed
• Make the product easy to install - easy and practical
to use
• Document while coding
• Do it right the first time, every time
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Ultra-Conservative Versioning
• Not one single release leaves the company until all known
repeatable fatal bugs have been fixed or properly documented
– Alpha
• first public release of a new version
– Beta
• feature freeze
• many old customers put betas in production use
– Gamma
• beta turns to gamma when one month has passed without fatal bugs
– Production
• gamma turns to production when one month has passed without fatal
bugs
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Four Concurrent Source Trees
• Presently (Feb 03)
– 3.23 - production version
– 4.0 - in gamma
– 4.1 - in alpha
– 5.0 - being worked on
• All versions available for public scrutiny at
bitkeeper.com
• Bug and other fixes are merged into all active source
trees
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Product Architecture
Programs that Interface with a Database
MySQL APIs
Windows exclusive Generic Linux/MacOS X/Unix/Windows
MySQL Client- Server Protocol
MySQL Server
The DBMS
SQL Layer
Storage Engines
Parser Optimizer Executor
MyISAM InnoDB HEAP
MySQL Client- Server Protocol
Character- based UI Web- based UI Graphical Client
Standard Administrative Clients
PHP, Perl , Python, C/C++, Ruby, Java…MyODBC
mysql phpmyadmin mycc
Programs that Interface with a Database
MySQL APIs
Windows exclusive Generic Linux/MacOS X/Unix/Windows
MySQL Client- Server Protocol
MySQL Server
The DBMS
SQL Layer
Storage Engines
Parser Optimizer Executor
MyISAM InnoDB InMemory
MySQL Client- Server Protocol
Character- based UI Web- based UI Graphical Client
Standard Administrative Clients
PHP, Perl , Python, C/C++, Ruby, Java…MyODBC
mysql phpmyadmin MySQL Control Centre
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The LAMP model
Linux-Apache-MySQL-PHP/Perl/Python
LAMP is
• a complete and integrated
technology stack
• for rapid development and
deployment
• of heavy-duty web
applications.
Many degrees of freedom
• WAMP, NAMP, LAMJ, …
• Move, duplicate, replicate
the MySQL Server process
Linux Server Computer
MySQL Server process
mysqld
Web Application
PHP / Perl
Web Server process
Apache
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The Client / Server Model
Server Computer / Host
MySQL
Server
process
mysqld
DB
PHP Client process
PHP Client process
Java Client process
Perl Client process
PHP Client process
localhost
Client Computers
PHP
Client
process
PHP
Client
process
PHP
Client
process
ODBC
Client
process
PHP
Client
process
PHP
Client
process
PHP
Client
process
PHP
Client
process
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Supported operating systems
www.mysql.com/doc/W/h/Which_OS.html
• AIX 4.x+
• Amiga
• BSDI 2.x (mit-pthreads)
• BSDI 3.0, 3.1, 4.x (native)
• DEC Unix 4.x
• FreeBSD 2.x / 3.x, 4.x
• HP-UX 10.20 / 11.x
• Linux 2.0+
• Mac OS X Server
• NetBSD 1.3/1.4
• Novell Netware 6
• QNX
• OpenBSD <2.5 / >2.5
• OS/2 Warp 3, FixPack 29,
Warp 4, FixPack 4
• SGI Irix 6.x
• Solaris 2.5+
• SunOS 4.x
• SCO OpenServer
• SCO UnixWare 7.0.1
• Tru64 Unix
• Win95, Win98, NT, Win2000,
XP.
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Supported APIs
C API based
• PHP
• Perl
• ODBC
• C
• C++
• Python
• Tcl
• Eiffel
• Ruby
• Delphi
Others
• Java (Connector/J JDBC)
Over ODBC / .NET
• VBA
• VB
• Word
• Excel
• Access
• Delphi
• ASP
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Where are the limits of MySQL?
• Database size: Hundreds of gigabytes in practice
• Scalability: >90 replication slaves at mobile.de,
>2,500 queries per second in a single server at
mainchat.de
• Features: Subselects in 4.1, Stored Procedures, Triggers,
referential integrity of foreign keys in 5.0, then Views
– Limitation unimportant in new applications
– Porting of existing applications easier to 4.1 and 5.0
• The most important limits of MySQL lie in user perceptions
– Decision makers may know little about MySQL and Open Source
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MySQL 1984-95: The Roots
• 1984-94: Michael ”Monty” Widenius develops
database routines for his own purposes
– 10 % further development of ISAM database routines
– 90 % solution of customer problems in Data Warehousing
• 1986: David Axmark meets Richard Stallman
• 1994: Customer requires SQL interface to web
database
– Monty needs 9 months to build a MySQL parser and
optimiser
• 1995- Perl API identical to API of mSQL
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MySQL 1995-2000: Growth
• More: Users, development tools (such as PHP),
operating systems (such as Windows)
• Commercial support available from the outset
• Profitable from inception
• Open Source all the time
• Licences under GPL since June 2000
• Technology is key; marketing limited to
www.mysql.com; hardly any administration
• More and more employees through mailing lists
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MySQL 2001-2003: Presence
• New management: CEO, VP Training, CFO, VP
Sales
• Monty CTO, David VP Community Relations
• Scandinavian Venture Capitalists invest money
• Focus: USA (largest growth), German second place
• More employees worldwide (14 countries, 65 people)
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MySQL Proliferation
• MySQL is part of all Linux distributions
• MySQL is downloaded 29 000+ times a day
– >800.000 times a month or 10M times a year
• We estimate some 4 million installations
• Installed base on par with Oracle
– more users according to iX Magazine in Germany 2002: MySQL
46%, Oracle 44%
– more web pages with “MySQL” than with “Oracle” according to
Google
– 20% of worldwide relational database use, 0.02% of licence
revenues
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MySQL has grown from the roots
• A significant portion of all large companies use
MySQL somewhere
• Only in some of them, the management knows it
• Some of them become customers of MySQL AB
• Companies that publicly acknowledge using
MySQL:
– Ericsson, NASA, Yahoo! Finance, Silicon Graphics, Slashdot.org, Texas
Instruments, US Census Bureau, Virage, Silicon Storage Technology,
Lucent, Motorola, HP, Xerox, mobile.de, handy.de
– Search for "Supplied argument is not a valid MySQL“ in Google – among
the 90,000+ results you will find a few others who use MySQL
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MySQL Inc: Services
www.mysql.com/services
Support
www.mysql.com/support
• Support Wizard
• Email responses
• Login Support
• Phone Support
• Fast
• 24/7 availability
• “Insurance”
• From the
developers
themselves
Training
www.mysql.com/training
• Open courses
• In-house courses
• eTraining
• Certification
• Worldwide
• by MySQL
Trainers
Consulting
www.mysql.com/consulting
• Deployment
• Migration
• Specification
• Solutions
• Tuning
• On site / online
• Embedding
• Enhancements
• Porting
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Support Pricing
Standard Advanced
EUR EUR
Monthly agreements:
Installation
support : N/A 250,-
Login installation: N/A 1.000,-
Yearly agreements:
Entry Level 1.500,- 2.500,-
Primary 4.000,- 6.000,-
Enhanced 9.000,- 12.000,-
Premium N/A 48.000,-
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Training
• Five days of ”MySQL Training Week”
• Day 1: Overview, structure, basic SELECT
• Day 2: SELECT, UPDATE, INSERT, DELETE,
CREATE
• Day 3: Security, User Management, Server Setup
• Day 4: Administration, installation, Storage Engine
• Day 5: Tuning, EXPLAIN, database structures
• Blocks of 2, 3 or 5 days
• MySQL/PHP training from 2002
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Certification
• Purpose
– Enables market to assess quality of MySQL developer pool
– Enhances MySQL brand recognition outside core Open Source developers
– Adds to momentum among developers, focuses their attention as directed
by MySQL AB
– Building block for MySQL in creating partnerships
– Drives training income for MySQL AB
• Delivered by 3,000 Pearson/VUE testing centres worldwide
• Present levels
– MySQL Core Certification (beta Dec 2002, GA Mar 2003)
– MySQL Professional Certification (beta Apr 2003, GA Jul 2003)
• Planned future levels
– MySQL PHP Certification
– MySQL DBA Certification
• Cost $195 and up
• Supported by MySQL Certification Study Guides under writing
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Consulting
• Dimensions: on-site/online
• Grows out of support and training cases
• Grows out of application growth pains
• Prices from 160 to 250 euro/h
• Lower pricing implies at least three weeks of
scheduling time and long duration
• Minimum duration of task 2-3 days
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MySQL Press
• Purpose
– To build and widely distribute the most helpful, accurate, and
timely documentation for MySQL
– To draw the potential out of the joint branding of MySQL AB,
a leading publisher, and the best MySQL authors
– To attain the predominant position in retail channels for the
target market
– To build the premiere canon of published works related to
MySQL Goals
– Publish at least four new titles a year by the best available
MySQL authors
– Support MySQL AB goals of product positioning and
installed base growth
– Provide an offering of MySQL AB at a low price point
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MySQL Tomorrow
1. MySQL Release Logic
• source – alpha – beta – gamma – production
• 4.0 ”gamma” Nov/Dec 2002
• 4.1 Dec 2002
2. MySQL 4.0
3. MySQL 4.1
4. MySQL 5.0
5. MySQL 5.1
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Active Versions
• We are now working on 4 different MySQL major
versions at the same time
• 3.23 Stable Production Release
• 4.0 Feature Freeze Release (Gamma)
• 4.1 Out in Source code for some months
• 5.0 We will soon open the source code
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MySQL 4.0
http://www.mysql.com/mysql40
• Features
– ACID transactions with versioning and high transaction
isolation (RepeatableRead) using InnoDB
• DB2, MSSQL and PostgreSQL use only ReadCommited
– embedded server library (libmysqld)
– query cache: prestored answer sets
– dynamic server variables
– boolean FULLTEXT
– UNION
– multi-table deletes, updates
– improved replication
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4.0: Handler (Navigation) Interface
• Used when porting old database application with a
navigational (direct ISAM) interface
• Also useful when you are doing a userinterface that
navigates a lot of data
• This interface gives "Dirty" reads (but no other
MySQL commands are affected!)
• HANDLER table_name OPEN;
• HANDLER table_name READ index_name >
("Banana") LIMIT 10;
• HANDLER table_name READ index_name
PREVIOUS;
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4.0: Multiple table DELETE
• Allows you to delete rows in multiple tables bases of
conditions from multiple tables
• Like saying that you want to delete all rows found by
a SELECT
• Syntax inspired by MS Access
• DELETE t1,t2 FROM t1,t2,t3 WHERE t1.id=t2.id and
t2.id=t3.id
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4.0: Dynamic Setting of Variables
• Change options on the fly (per thread and globally)
– No need to restart server to change cache sizes
– Possible to set larger buffers for specific commands
• SET GLOBAL SORT_BUFFER=1*1024*1024
– This will set the sort buffer (used by ORDER BY queries) for
all new connections
• SET SESSION SORT_BUFFER=32*1024*1024
– Will set the same buffer but only for the current connection
• SELECT @@GLOBAL.SORT_BUFFER
– Returns the default size of the variable
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4.0: Query Cache
• Improves the speed of queries on read mostly tables.
Most (all?) websites has some query that will run
many times a second
• 3x speed improvement for web sites not uncommon
• Does not change semantics at all!
• To enable add a line to my.cnf
– query_cache_size = 128MB
– Or set it on a running server
• SET
@@GLOBAL.QUERY_CACHE_SIZE=128*1024*102
4
– Turns the Query Cache on with 128 MB memory
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4.0: Replication
• Replication uses two threads
– One to read the all queries and store them on disk in case
– One to do the updates
– This makes sure that the slave always catches up to the
latest changes even if it was executing a slow update when
the server went down
• LOAD DATA INFILE commands are now replicated
properly
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4.0: Other Features
• SELECT * FROM articles WHERE MATCH (title,body) AGAINST
('+apples -bananas' IN BOOLEAN MODE);
– Find all records with the word "apples" but not the word "bananas"
using a full textindex
• SELECT SQL_CALC_FOUND_ROWS ... LIMIT 10
• SELECT FOUND_ROWS();
– Make it possible to display the total number of rows even with a
limit. For "10 out of 124 items shown" things
• Hash functions: SELECT SHA1("foo")
• GRANT .. MAX_QUERIES_PER_HOUR=#
MAX_UPDATES_PER_HOUR=#
MAX_CONNECTIONS_PER_HOUR=#
– Limit a user (Very useful for ISP use)
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4.0: Faster ...
• SELECT COUNT(DISTINCT ...) ...
• Bulk loading of data
• Bulk updates of full text indexes
• Removing all the rows in a table
– TRUNCATE TABLE table_name;
• SELECT * FROM table WHERE blob_col like "%keyword%"
– Uses a fast turbo BoyerMore stringsearch
• CREATE TABLE foo DATA DIRECTORY="/path/to/dir" INDEX
DIRECTORY="/path/to/dir"
– Support for spreading MyISAM files over many disks
• Multithreaded index rebuilding in myisamchk
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MySQL 4.1
• Features
– Subqueries / nested SELECTs
• SELECT row1 FROM table1 WHERE a=(SELECT b FROM
table2)
– GIS / Geometric Data
– Warnings when data is lost
– Unicode support
– Memory tables
• SELECT * FROM table1, (SELECT b from table2) WHERE ...
– Multiple table update
• UPDATE t1,t2,t3 SET t1.c1=Val,t2.c2=val2 WHERE t1.id=t2.id
and t2.id=t3.id
– Others: SSL
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4.1: Prepared Statement
• Instead of sending a query direct you do
– Prepare SELECT foo from bar where a=?
– Do ("1")
– Do ("2")
• Also works with binary data without quoting
• The client server protocol has been extended for this
• The whole protocol is now fully binary so it runs even
faster
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4.1: Subqueries
• Scalar Subqueries
– SELECT Country, Inhabitants, Area
FROM World.Country WHERE Area >
(SELECT Area FROM World.Country
WHERE Country=’Finland’);
• Correlated Subqueries
– SELECT * FROM World.City WHERE City.Country = ANY
(SELECT Country FROM World.Country
WHERE City.Inhabitants > Country.Inhabitants/4);
• WHERE field IN (SELECT ...
– SELECT * FROM World.Country WHERE Country IN
(SELECT Country FROM World.City WHERE
City.Inhabitants > 5000000);
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4.1: GIS / Geometric Data
• OpenGIS: New data type ”Geometry”
• CREATE TABLE geom (g Geometry, SPATIAL
INDEX(g));
• INSERT INTO geom VALUES
(GeomFromText( ’POINT(1 1)’)),
(GeomFromText( ’POLYGON(0 0,10 0,10 10, 0 10, 0
0)’));
• New functions, e.g. AsText, IsClosed, Length, Area,
Intersection, Intersects, Within
• Red-black index trees: Indexes for Within
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4.1: UNICODE Support
• CREATE TABLE t (field_list) [CHARSET=latin1];
• SELECT Last_name FROM Customer
ORDER BY Last_name COLLATE latin1_de;
• SELECT MAX(Last_name COLLATE latin1_de);
• SELECT * FROM Customer WHERE
(Last_name COLLATE latin1_de)=”Müller”;
• CONVERT(Last_name USING utf8);
• UCS2 support (two byte Unicode)
• UTF8 support RFC2279, 1..3 bytes
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4.1: Other New Features
• SSL connection from client to master
• libmysqld smaller, faster
• Online Help for server functions
• Foreign Keys with CASCADING DELETE
• Improved MEMORY tables (earlier name HEAP)
(faster, B-tree indexes)
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MySQL 5.0
• Features
– Stored Procedures as in ANSI SQL
– Triggers
– Referential integrity (foreign keys)
– Online backup of MyISAM tables
– New column types:
• BIT
• True VARCHAR (no space trimming)
• ARRAY
– Warning/Info system
• Notify sysadmin when something may go or goes wrong
• Give feedback while a slow command is running
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5.0: Stored Procedures
• ANSI SQL99, can be extended to e.g. PHP or
PL/SQL
• CREATE PROCEDURE MyProc (IN InputField
SMALLINT, OUT OutputField SMALLINT ...
• CALL MyProc(5,@MyVariable);
• Grammar with BEGIN, END, SET, RETURN, CASE,
IF, LOOP, WHILE, REPEAT, FOR
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MySQL 5.1
• Views
• More ANSI SQL99 compatibility
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MySQL Command Center (mysqlcc)
• Graphical MySQL client
• Written in C++ using the
QT toolkit for UNIX &
Windows
• Features:
– Create/drop databases
– Create/edit/drop tables
– Write and execute SQL-
queries
– SyntaxHighlighting editor
– List of servervariables
and status
– View and kill other user-
processes
– And many more...
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MySQL Command Center
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High Availability by Replication
• MySQL supports many sites that need high reliability
– This is done by "mirroring" the data to many machines
• The single Master logs all SQL commands that
update data
• Slaves connect to the master or another slave to
read, and rerun the updates
• Examples of users are
– Yahoo
– Slashdot.org
– Mobile.de (used car broker, over 300M page views/month)
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Storage Engines
• A storage engine is a low level data storage / retrieval
module (disk or memory)
• This allows you to choose locking and speed trade
offs per table (instead of when choosing db!)
• MySQL supported multiple storage engines from the
very beginning
• CREATE TABLE (key int, value char(10), PRIMARY
INDEX key) TYPE=HEAP;
• ALTER TABLE table_name TYPE=InnoDB;
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The Storage Engine Concept
Parse Optimize
Retrieve
Store
MySQL
MyISAM
InnoDB
InMemory
MySQL Database
Management Level
Table Handler /
Storage Engine
Level
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Storage Engine: MyISAM
• Developed by MySQL AB (replaced original ISAM)
• Static, dynamic and compressed (read-only) row
formats but no transactions
• Text and compressed indexes
• Data and indexes in separate files
• Fast read/write performance but low r/w concurrency
• Extremely good concurrency in the select and insert
at end case (logs)
• External check and repair program (myisamchk)
• Especially useful for websites & logging
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Storage Engine: Hash/InMemory
• Developed by MySQL AB
• Completely in Memory with very fast hash based
indexing
• Useful for
– Temporary tables
– Lookup tables
• Bad for range queries (Already fixed in MySQL 4.1)
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Storage Engine: InnoDB
• Actively developed code from InnoBase Oy & MySQL
AB
• Full transactions (ACID) with versioning row level
locking with automatic cleanup (no vacuum!)
– Consistent reads (Oracle style MVCC)
• Better concurrency than MyISAM for read/write on
the same table
• Uses table spaces instead of individual files
• MySQL AB provides full support for InnoDB
• Is included in MySQL 4 & the MySQL Max binarys
• Has now been in active use under heavy load. Was
for example used for the FIFA world cup site
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RedoLog
The InnoDB Storage Engine
IN memory On disk (workspace)
Log
filesTablespace
Log File 1
Log File 2
Log File 3
Buffer pool
(buffered
data pages)
Add’t’l Mem Pool
Log Buffer
(buffered
log records)
ibdata2
data file
ibdata1
data file
Undo Log
COMMIT
(+ checkpoint)
checkpoint
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ibdata Data File Structure
1M extent
Segment (“file”)
1M extent
1M extent 1M extent
64 pages 16 kB each
Extent
Transaction id 6 B
Row
Field 1
Roll pointer 7 B
Field pointers n x 1-2 B
Field 2 Field n
Leaf node segment
Leaf node segment
Non-leaf node
segment
Tablespace
Rollback segment
N-l ns
Row
Page
Row
Row
Row Row
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Standard Segment TypesRow
Row
Row
Row
Row
PKV
PKV
PKV
PKV
PKV
Primary Key Values
Non-leaf
indexpages
Leaf
indexpages
Clustered index
Primary Key Index Secondary index
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InnoDB Row Structure
• Records with variable (dynamic) size
• Record header (6 B, ptr to next record, no of fields)
• Transaction ID (6 B, timestamp)
• Roll pointer (7 B, points to previous version of record)
• Field pointers (1-2 B / field)
– Start position of field within record
– 2 bytes if more than 255 fields
• Out-of-page pointers if record size > page size/2 (8
kB)
Record hdr Trx ID Roll ptr Fld ptrs Field values ... Field values
184MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
InnoDB Redo Log Structure
• A collection of log records
• Page Number (4 bytes, page within Tablespace)
• Offset of the change within the page (2 bytes)
• Log Record Type (1 byte)
– Insert, Update, Delete
– Other types (like ”fill space with blanks”)
• Changes (only redo values, no old values) except for
DELETEs, which need no change notes at all
PageNo Offset Record Type Changes on that page
185MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
The InnoDB Rollback Segment
Undo Log Undo Log Undo Log
The History List: Committed Undo Logs
Undo Log: Updates, Deletes
Undo Log: Inserts
A transaction
Two undo logs per trx
Undo Log
Discarded
1000slotsperpage
Theheaderofthetransactionsystem
Rollback segment
used for:
Crash recovery
Read isolation
PURGE
Free unnecessary
log entries
186MySQL™: The World’s Most Popular Open Source Database
Copyright 2003 MySQL AB
Thank you!
www.mysql.com
Table of Contents

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  • 1. 1MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB This is a redacted version of a final draft of the 2003 MySQL investor deck. In this B round the company raised $16m from Benchmark Capital and Index Ventures. Hope this is useful to startup entrepreneurs all over the world.
  • 2. 2MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB MySQL Business The Opportunity To Disrupt the Database Market Mårten Mickos, CEO
  • 3. 3MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB How To Read This Plan • We assume the reader has a basic familiarity with MySQL and its present business • Feel free to pick sections of this presentation in any order you feel comfortable with (see TOC on next page)
  • 4. 4MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Table of Contents • Section pages – The Case 4-9 – Market and Opportunity 10-19 – Open Source Info 20-31 – MySQL Info 32-48 – Figures 2002 49-63 – Entering the Enterprise Market 64-98 – Management Presentation 99-108 – Product and Service Information 109-165 – Competition 166-172 – Risks and Uncertainties 173-175 – Investment Proposal and Exit 176-182 – Additional Reading 183-185 – Acceleration currently not updated Go Go Go Go Go Go Go Go Go Go Go Go
  • 5. 5MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB The Business Case Table of Contents
  • 6. 6MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB The Business Case • Intro – Yahoo, Google, Cisco, Nokia, Lucent, Census Bureau, Rhode Island and 4 million trust MySQL with their database needs • Market – Organisations urgently need to cut IT costs, or expand without adding costs – ISVs need to reduce dependency on ORCL-MSFT-IBM – Linux is validating open source in the enterprise • Now – Open source databases are maturing for enterprise use – Open source is a method for • producing high-quality software at a low cost • selling and distributing software at a low cost – MySQL is the world’s most popular OS DBMS – MySQL owns its software and has a revenue model: dual licensing
  • 7. 7MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB The Business Case (2) • For the customer – Amazing cost savings (TCO and capital investment) – Better reliability and uptime – Faster application deployment – Abundance of skilled personnel – MySQL supported 24/7 worldwide by a viable commercial vendor - MySQL AB
  • 8. 8MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB The Business Case (3) • Therefore – We are the only ones who can meet the economic desires of the market while being profitable. • So let us – Sell to ISVs and the enterprise market – Forge alliances needed for enterprise business – Perfect the offering – Build the sales channel and cause a permanent change to the way software is produced and procured.
  • 9. 9MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB The Business Case (4) • Why us? – Proven product leadership – Proven user base success – Proven open source business model – Vast and active community – Viable vision by owners and management – Proven management – Fully functional and clean company – New visible output every month • web market business is growing rapidly • embedded business is growing very rapidly • enterprise market is enticed
  • 10. 10MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB The Business Case (5) time futurepresentpast Web data - base Web data- base Embed- ded data- base Web database Embedded database Enterprise database current trajectory with new funds for growth
  • 11. 11MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Market and Opportunity Table of Contents
  • 12. 12MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Bloomberg.com 17 Aug 02 ”Oracle, IBM, Microsoft May Lose Business to Free Database Software MySQL” ComputerWorld 11 Feb 03 McNealy: ...if you want to save more money, make the default database MySQL. It's free, it's bundled, you've got the whole open-source community working on making it better. If Yahoo and Google can run their entire operations on MySQL, then certainly there's a huge chunk of your operations you could run on it as well. San Francisco Chronicle 14 Aug 02 Some major corporations, including 7-Eleven, Deutsche Telekom and Amazon.com, are migrating to Linux servers to take advantage of low- cost, open-source versions of data management software such as MySQL.
  • 13. 13MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB eWeek’s DBMS Benchmark
  • 14. 14MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Disruptive Business Model • “Open Source/Linux software is a ‘disruptive innovation’ that has the potential to seriously erode the traditional software business model by attacking the heart of its model – high margin software licensing fees.” Merrill Lynch 24 Oct 2001 • “… the popularization of the Open Source movement continues to pose a significant challenge to the Company's business model …” Microsoft 10-Q, February 2003
  • 15. 15MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB The Database Market • is dominated by the Big Three – Oracle, IBM and Microsoft command 83% of the market • MySQL owns 0.02% of the market by revenue – so the Big Three say ”MySQL is not a threat” – and that is fine with us, because • MySQL commands an estimated 20% by installed base – and makes money • What’s wrong? - Nothing!
  • 16. 16MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Database Market Embedded Database Web Database Enterprise Database $1B $2B $6B Embedded in Software Embedded in Hardware Dynamic Content E-Commerce Utility Database Data Warehousing Database Business Transaction Database N.B. Revenue split above is MySQL estimate.
  • 17. 17MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Database Market Embedded Database Web Database Enterprise Database MySQL Installed Base
  • 18. 18MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Database Market Embedded Database Web Database Enterprise Database MySQL Installed Base Acquire Leadership Maintain Leadership Enter Select Segments
  • 19. 19MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Database Market Embedded Database Web Database Enterprise Database MySQL Installed Base Acquire Leadership Legacy, Closed Source RDBMSsEnter Select Segments Maintain Leadership
  • 20. 20MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Database Market Evolution Embedded Database Web Database Enterprise Database $1B $2B $6B Business Model (batteries included) Architecture (web, rather than client/server) Linux a dominant platform Mid-market showing life signs Overall cost pressure
  • 21. 21MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Estimated MySQL Potential • In the embedded market – €100m • In the web market – €300m • In the enterprise market – €600m - €1bn The above figures represent current best estimates by the management.
  • 22. 22MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Open Source Info Table of Contents
  • 23. 23MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB MySQL - The Cathedral in the Bazaar
  • 24. 24MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Three Modes of Production • Individuals order their productive activities 1. as employees in firms, following the directions of managers 2. as individuals in markets, following price signals • and now, also 3. as groups of individuals in the world, following diverse motivational drives and social signals (rather than either market prices or managerial commands), successfully collaborating on largescale projects • This third form of production has been dubbed “commons-based peer production” See research papers by Ronald Coase, Oliver Williamson (for items 1 and 2), and Yochai Benkler (for item 3).
  • 25. 25MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB MySQL Has 2 Modes of Production • Two production modes 1. The Cathedral: employees of MySQL AB, following the directions of managers. 2. The Bazaar: individuals all over the world, following diverse motivational drives and social signals. • Both modes are Quid pro Quo – Employees receive salary and other benefits – Individuals receive GPL’d software, rapid bug fixing, rapid evolution, i.e. solutions to every-day problems, and, additionally, peer recognition • Ideally for MySQL, it does not matter to an individual whether he is in the cathedral or in the bazaar, or both.
  • 26. 26MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB MySQL Community Goals 1. Grow installed base from present 4m to 40m 2. Continually activate and engage community 3. Outsmart, outposition and outpromote Postgres
  • 27. 27MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB 1. Grow Installed Base from Present 4m to 40m A. Make sure product is suitable for vast deployment and usage B. Encourage the world’s most powerful distributors to distribute MySQL C. Integrate with the world’s most popular software tools, platforms and servers D. Ensure MySQL is used in as many FOSS projects as possible (FOSS = Free / Open Source Software)
  • 28. 28MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB 2. Keep Community Active • Actively engage in rich, honest, relevant and frank communication • Encourage intelligent contributions to advance our source code • Promote and augment our open source strategy • Encourage and enable peer recognition
  • 29. 29MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB 3. Outsmart Postgres • Have financially viable business and go for goals 1. and 2. with perfection – and that’s it
  • 30. 30MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Dual Licensing • MySQL AB employs dual licensing for its product, the MySQL server. • This means that MySQL is available under a regular commercial licence for commercial customers, and under the GPL licence for those who live by the Free Software principles. • The product is technically the same under both licences, but the financials and the legal ramifications are different. • It is up to the customer to decide what path he wants to follow and what licence to use.
  • 31. 31MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Common Open Source Objections ”Lack of proper support” – MySQL operates worldwide 24/7 support since 1999 ”Lack of vendor accountability” – MySQL owns its product and takes full responsibility ”Lack of vendor viability” – MySQL has made money since 1995 ”Lack of third-party software integration” – MySQL is working with Sun, Novell, Veritas and others to ensure interoperability ”Lack of skilled staff” – There are more than 4 million installations worldwide and hundreds of thousands of skilled developers and administrators. Use the community.
  • 32. 32MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB MySQL Info Table of Contents
  • 33. 33MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB MySQL Mission Make superior database software available and affordable to all
  • 34. 34MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Do Differently
  • 35. 35MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB The World’s Most Popular Open Source Database • Numbers – An estimated 4 million installations – More than 1.8 million web visits per month – Average of 29,000 downloads PER DAY – Google finds some 8 million pages with “mysql” (on par with “oracle”) • Distribution – Every major Linux distribution includes MySQL – LAMP = Linux + Apache + MySQL + PHP/Perl/Python – Mac OS X servers,Sun LX50 servers, Sun Cobalt Qube 3 appliances, Solaris 9 Companion CD, DELL PowerEdge Web Servers, Packet Design Route Explorer, etc. equipped with MySQL
  • 36. 36MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB The Entire World
  • 37. 37MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Analogy MySQL is doing to databases what DELL did to PCs: In a maturing market, turning the key product into a cost-efficiently produced high-quality high-performance mainstream product with excellent customer service, giving new masses of customers access to the value of the offering at an affordable price.
  • 38. 38MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Sustainable Business Model What we have • We own and develop our software • We own and protect our trademark • We apply dual licensing to our product – GNU General Public Licence (GPL) - free – Commercial Licence - for a fee What we do • We let the free version of our software find its way into every organisation • We sell support and services to the users of the free software • We sell commercial licences and support to commercial customers
  • 39. 39MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Second Wave of Open Source • Preserve the benefits of open source – battle-tested by millions every day – contributions from the community – an ecosystem far wider than yourself • Without compromising business viability – ownership of source code means responsibility can be taken – ownership of trademark means that customers can trust you
  • 40. 40MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Virtuous Development Cycle MySQL staff develop new release every 4-6 weeks New release immediatley downloaded by vast numbers of users Massively parallel testing and debugging begins Rapid stabilisation Sold under commercial licence Proceeds from licence sales fed back into development Commercial benefits: - battle tested product - rapid development Community benefits: - commercial- grade framework free of charge
  • 41. 41MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB The MySQL Product Formula 1. Speed 2. Reliability & Stability 3. Ease of everything: installation, integration, development, deployment, management 4. Economy
  • 42. 42MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB MySQL AB Overview • MySQL founded in 1995 by open source gurus Michael ”Monty” Widenius and David Axmark • Head office in Uppsala, Sweden • Some 65 staff in 14 countries • Privately owned • Profitable 1996-2000 • MySQL AB owns the intellectual property rights of the MySQL server, the mysql.com domain name and the MySQL trademark • A total of EUR 4m in external investments so far by: – ABN AMRO Alfred Berg Industrifinans, NO – Scope Capital, SE – Servisen Management, SE – Respect Ventures (Holtron), FI
  • 43. 43MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Historic Timeline 1980 1985 1990 1995 2000 2005 Monty, David, Allan working on dataware- housing projects in Sweden First data management softare is created Reporting tool created MySQL inception MySQL AB created Management, BoD 1st VC funding 3.22 3.23 4.0 4.1 5.0
  • 44. 44MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Corporate Structure Open Ocean S.à.r.l (founders) MySQL AB Uppsala, Sweden MySQL Finland Ab MySQL Inc. MySQL GmbH Venture Capitalists Individuals 100% As of 1 Jun 2002
  • 45. 45MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Balance Sheet Etc. • No debt, no lines of credit • No equipment leases • No R&D costs deferred • Property & Equipment €364k • US GAAP compliant revenue recognition • Outstanding shares and options as of 1 Jan 2003: [REDACTED]
  • 46. 46MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB More Information • Website http://www.mysql.com • Management team http://www.mysql.com/company/management.html • Company fact sheet http://www.mysql.com/company/factsheet.html • Recent press releases and coverage http://www.mysql.com/press • Product information: http://www.mysql.com/products • Reference manual that includes company information, benchmark information, product roadmap, and more http://www.mysql.com/doc/en • Product roadmap: http://www.mysql.com/doc/en/TODO.html • Recent press mentionings according to Google: http://news.google.com/news?q=mysql&hl=en&lr=&ie=UTF- 8&sa=G&scoring=d
  • 47. 47MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Figures 2002 Table of Contents
  • 48. 48MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Year 2002 in Figures (Prel.) • Revenues €4,701k – Cost of revenues €1,325k (28%) – OPEX €5.037k • DEV €1,288k (27%) • S&M €2,123k • G&A €1,626k • Net income (€1,486k) • Avg. no. of employees 49 (55 with subcontractors) • Product line split – Licences 52% - starting $200, $395 per copy – Support 23% - $1,500 - $48,000 p.a. – Training 12% – Other services 6% – Partner and other fees 7%
  • 49. 49MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Sales, 6 Month Trailing Average 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 2001-062001-072001-082001-092001-102001-112001-122002-012002-022002-032002-042002-052002-062002-072002-082002-092002-102002-112002-122003-012003-02 Our present cost level
  • 50. 50MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB P&L: Actual vs. Budget -2500,0 -2000,0 -1500,0 -1000,0 -500,0 0,0 500,0 1000,0 January February March April May June July August September October November December Month EUR'000 Budget Actual Cum. Budget Cum. Actual
  • 51. 51MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Monthly Operating Cash Flow 2002 -2 500 -2 000 -1 500 -1 000 -500 0 500 1 000 January February March April May June July August September October November December Month EUR'000 Cash Flow Cum Cash Flow
  • 52. 52MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Sales by Territory 2002 ROW 25% Germany, A, CH 8% North America 67%
  • 53. 53MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Deal Size Study Deal size: < €250 < €1k < €10k < €50k < €250k < €1m < €4m No. of customers 366 236 530 72 13 1 0 % of no. 30.0% 19.4% 43.5% 5.9% 1.1% 0.1% 0.0% Sales volume 69,235 128,025 1,703,326 1,526,098 1,102,187 326,858 0 % of sales 1% 3% 35% 31% 23% 7% 0% Avg. deal size 189 542 3,214 21,196 84,784 326,858 - 7% of the deals make 61% of the business
  • 54. 54MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB 1 10 100 1,000 10,000 100,000 1,000,000 10,000,000 100,000,000 0 190 600 3,200 20,000 100,000 350,000 2,000,000 w hen 300m w hen 100m 2003 2002 2001 Four Long-Term Initiatives 1 2 3 4
  • 55. 55MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Largest Customers 2002 Over €100k • Novell, Inc. • Cisco Systems • Veritas Software Inc. • France Telecom • Svenska Kulturfonden €50-100k • Hyperion Solutions Corp. • Sabre, Inc. • Sterling Commerce • BMC Software, Inc. • SoftAgency Co., Ltd. • Amphus • AutoSkill International Inc. • Hummingbird Ltd • Earthlink, Inc. €30-50k • Graco, Inc. • Volvo • EMC • Avocent International Ltd. • Tekelec • Precise Software Solutions • Funworld ag • Pathfire Inc. • Kasenna, Inc. • De La Rue Cash Systems • Alcatel • Gamma Technologies Inc. • Iteration, Inc. • Rackspace • DeepMetrix Corporation • Blueworld • Hewlett Packard A total of 1,177 customers à €4,126 [REDACTED] [REDACTED] [REDACTED]
  • 56. 56MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Entering the Enterprise Market Changing the Business Faster than the Competition Can React Table of Contents
  • 57. 57MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Sales Team • Typical setting for field sales – $80k fixed annual base salary – 4.7-5% commission on sales – quota of $1.6m p.a. – sales volume per sales mgr used for budgeting: $1m p.a. • $1m – 2x ($80k + $50k) = $740k contribution per sales mgr (assuming that fully loaded cost is 2x salary) – some sales mgr have higher packages and quotas, some lower – this works well with our present size – for the future, a more elaborate model is planned – to get $9m in direct sales we need 9 sales mgrs; today we have 10
  • 58. 58MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Earnings Logic - Alternatives • Commercial licences • • • • Services • Subscriptions • Hosted services • Add-on tools • Services • Add-on tools • Enterprise extensions • Commercial licences Embedded Database Web Database Enterprise Database
  • 59. 59MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Earnings Logic - Subscriptions • A concept dubbed ”Automated Notification Service” (ANS) is in early development • Under ANS, customers are to receive automated, customised, relevant notifications of product and service changes directly to their email, with clickable links for activating the suggested operations (such as product updates, database health checks, etc.) • Pricing to be determined, current assumption is $80-200 per person p.a. • Value proposition based on convenience; the same information to be freely but not as conveniently available to the open source community • Market potential estimated to be in the hundreds of thousands of subscribers; subscriptions to be sold one by one or as enterprise subscriptions
  • 60. 60MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Offerings • Software – MySQL under GPL - $0 – MySQL Light - $0 • (to seed market and provide alternative to JetEngine and MSDE) – MySQL Classic - $200 – MySQL Pro - $495 – MySQL Enterprise - $2,000 to $30,000 – MySQL utilities • pricing 0 or TBD – MySQL tools • TBD • Services – Automated Notification Service - $40-$190 p.a. – Support - $500-$48,000 p.a. – Certification $150-$500 – Training – Consulting – Migration services • Tangible products – Reference Manual – Product Box N.B. Prices are tentative.
  • 61. 61MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Innovative Sales Model • MySQL’s sales model is based on the fact that GPL’d MySQL installations are in use in most organisations today, which – reduces marketing costs – shortens sales cycles • Our order of priority for sales cases 1. Enterprise buys off-the-shelf app (and MySQL is the batteries included database) 2. Enterprise builds new app (in- house or outsourced) where database choice is open 3. Enterprise rewrites old app 4. Enterprise migrates old app to new database
  • 62. 62MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Sales Model Embedded Database Web Database Enterprise Database Deal size $0 $1,000 $10,000 $100,000 $1,000,000 Online Sales Telesales Field Sales GPL See- ding Yellow arrows denote self-propagating product promotion. N.B. Box width means deal size span, but box size (area) has no specific meaning Global Accounts
  • 63. 63MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB 4 Sells To Do (In this Order) • Sell to the business application ISV – Sell MySQL as the ”batteries included” database for their application • Sell to the enterprise system software ISV – Create integration with their software and MySQL • Sell to the SI – Sell the idea of the SI doing LAMP and other MySQL projects for enterprises • Sell to the enterprise – Sell MySQL as the DBMS platform for the next in-house project
  • 64. 64MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB CIO Magazine Survey Nov 2002 • 29% are using open source databases today, and for 33% it will be the predominant type of software for databases in five years • The majority (64%) of companies surveyed are using open source • CIOs say the greatest benefits from using open source are – lower total cost of ownership, – lower capital investment and – greater reliability and uptime compared to their existing systems. • IT executives report that open source provides – greater flexibility, control and – faster, cheaper application development. • All things equal, the majority of IT executives surveyed said they would choose open source for a new implementation over a proprietary vendor solution. • More info: – http://www2.cio.com/research/surveyreport.cfm?id=51 – http://www2.cio.com/research/surveyreport.cfm?id=48
  • 65. 65MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Our Enterprise Experience So Far • Enterprises appear to be open to multi-vendor DBMS strategy (which wasn’t the case earlier) • Enterprises appear to be open to open source software • Enterprises typically see DBMSs in three categories: – High-end: Oracle, DB2 – Middle: Microsoft SQL Server, MySQL – Desktop: Microsoft Access • Many enterprises signed 3-5 year DBMS deals in 1999-2000 (and many overpurchased); those deals now are coming to expiration
  • 66. 66MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB The Market Needs an Alternative ORACLE IBM MICROSOFT vacant PRESENT-DAY SITUATION: - onerous prices and licensing terms - vendor lock-in - products have too many features - products continue to have bugs - mandatory DBAs - performance requires tuning - little bang for the buck + ISV aspect: Big Three DBMS vendors compete with many of their own ISVs in the application space DESIRABLE SITUATION: - compelling prices, low up-front investment - open standards, open software stacks, open source - products with just the right amount of features - battle-tested products - minimal admin overhead - superior performance - great bang for the buck
  • 67. 67MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Recipe for Market Entry • Pick entry segments • Position MySQL as the 4th player, the alternative solution • Compelling reason to buy: – economy – speed, reliability, ease, ubiquity • Whole product – MySQL Enterprise – Support and Services – Third-party integration and endorsement • Partners & Allies – enemies of the enemies • Distribution – directly to ISVs for batteries included – via platform vendors – via SI’s – directly to end customers • Pricing – Choose earnings logic – 10x present MySQL, 0.3x competitors • Competition – MSFT, ORCL, IBM
  • 68. 68MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB How to Sell to the Enterprise • CIO thinking – a DBMS is just one piece in the puzzle – how easy is it to retrain existing staff? – here I will use Open Source, here not – I don’t want another vendor • xxx • xxx • xxx
  • 69. 69MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Cost-Effectiveness is a Must • To keep prices low and our profitability high, we must – Keep the customer acquisition (and retention) cost low • see next slide – Keep the product development cost low • through open source – Keep COGS low • by focusing on selling high-margin offerings (licences and automatic subscription services) • by automating the labour involved in providing services
  • 70. 70MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Keep the Customer Acquisition Cost Low • Seed the market with GPL’d software – and reduce need for advertising and promotion – and shorten sales cycles • Build a strong brand – and shorten sales cycles – and reduce price sensitivity among customers – and sell more online • Sell ”batteries included MySQL” to ISVs and platform vendors – and get straight into the enterprise in one low-cost blow • Sell online – and reduce the need for an expensive sales force • Sell direct – and avoid spending money on a multi-tiered sales channel • Make buying easy – (by simple pricing, simple configuration, web-enabled processes) – and close more deals per account manager
  • 71. 71MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Communicate the Positioning • Analysts, analysts, analysts • Landmark partnerships • PR & speaking engagements • Benchmarks and certifications • Build a ”community” of enterprise CIOs and CTOs • Have regional sales offices
  • 72. 72MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Ways of Achieving Recognition Top Corporate Management CIO / CTO Divisional / Departmental Mgmt Operational Level Present MySQL Recognition GPL seeding Analyst commentary Blue chip affiliations Active community, web site and documentation Press & testimonials Special events Trade shows Influenced by: Seeding through ”batteries included” Open Source as an economic phenomenon
  • 73. 73MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB The CIO Making Decisions CIO making decisions MIS staff selling ideas to their boss Superiors setting expectations Vendors selling Peers, analysts, press providing insights MySQL: GPL seeding MySQL: Open source as an economic phenomenon MySQL: ”Batteries included” database in other products MySQL: PR work, brand building MySQL takes the back-door into the forces that influence the CIO in his/her decision-making. This is done in good time before the MySQL sales team is deployed into the organisation to close commercial deals. MySQL sales team ready to be deployed
  • 74. 74MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Proposition to CIO • MySQL offers – all essential functionality – at a compelling upfront cost – and a compelling on-going maintenance cost • thus enabling organisations to continue to roll out new applications while meeting the cost-cutting targets set • And, by the way, – you already run MySQL in these products: ... – this is open source, like Linux – there are millions of people with MySQL skills – and these are some of our top customers, partners and investors: ....
  • 75. 75MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Potential Entry Segments • TMT – as they already use MySQL • Financial Services – as they are data-intensive and progressive • Pharmaceuticals – as they already use MySQL – as they are data-intensive and research-intensive • Government – as they already use MySQL • Research and Academia – as they already use MySQL • Via ISVs – who look to reduce cost and reduce dependency on the Big Three
  • 76. 76MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Sample TMT References Technology Veritas Software Peregrine Systems Compaq Sun Microsystems Apple Computer DELL Computer Media Vivendi Universal Yahoo! Google Spiderman (Sony Pictures) FIFA Soccer World Cup website Virage Telecom Cisco Lucent Nokia Ericsson Telia Tahoe Networks
  • 77. 77MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB MySQL Enterprise (The Software) Existing MySQL plus improvements in: • Syntax (triggers, views, SQL-92 ,etc.) • Load balancing, clustering • Fault tolerance, high availability, clustering • Huge datasets • Distributed use • Management of the database • OLAP, data warehousing, data mining • Security • Third-party integration
  • 78. 78MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Software Stack & ISV’s Operating System DBMS App Server / Web Server IDE etc. Clustering, Storage etc. Utilities&Security Management&Integration Tools Business Applications Hardware / Processor ERP/CRM: SAP, Peoplesoft, Siebel, Intuit, Sage BI: Hyperion, Business Objects, SAS Institute, Brio, Cognos SCA: i2, Manugistics, JDA Software eCommerce: Sterling, Tibco, OpenWave Other: Mercury Interactive, Peregrine CMS: <numerous>, Vignette, Hummingbird .NET XML Java / J2EE Borland Rational Adobe Macromedia Compuware Quest IBI Veritas Checkpoint Symantec Network Associates BEA IBM Sun BMC HP Apache Sun HP SteelEye, Emic etc. Unisys EMC Linux: RedHat, SuSE, Mandrake Unix: Sun, HP Windows Novell CA
  • 79. 79MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Potential Partners & Allies • Platform Vendors – Apple – Dell – HP – Sun • ISV’s – BEA – BMC – Veritas – CA – SAP, Peoplesoft, Siebel – etc. • SI’s – Accenture – EDS – IBM Global Services – CSC – Cap Gemini Ernst & Young
  • 80. 80MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Potential Counter-Actions by Big Three • Microsoft – may give away SQL Server free of charge with Windows (but anti-trust considerations may prevent that) – may bundle SQL Server with technology stack – may port SQL Server to Linux – may attack with patents • Oracle – may give away some version free of charge? – may block sales channels (ISVs, SIs) – may attack with patents – may attack in MySQL’s home markets (embedded, web) • IBM – may acquire Red Hat and/or SuSE to attempt to block access to Linux – may give away DB2 free of charge? – may bundle DB2 inside technology stack – may attack in MySQL’s home markets (embedded, web)
  • 81. 81MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB How to Deal with Competition • Microsoft – Let Linux do the fighting – Be easily available on Windows • Oracle – Cost savings! • IBM – Cost savings! – Customer’s desire not to buy all from one vendor
  • 82. 82MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Acceleration Table of Contents
  • 83. 83MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Use of Proceeds • Status quo sufficient for: – stepwise expansion into France, UK, Far East – MySQL 5, MySQL 6, ... – 50-80% annual growth in the next few years – profitability – €100m in revenues in 6-7 years • Use of new round – Enterprise marketing – Faster sales ramp-up – Services ramp-up – Strategic alliances – MySQL Enterprise
  • 84. 84MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Recruitment • Management positions – VP Marketing – VP Professional Services – VP Software Engineering • Skills and teams to ramp up – Technical • enterprise computing • benchmarks • migration & other professional services – Sales & Marketing • direct sales force • alliance management • product marketing
  • 85. 85MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Stepwise Approach Step 0 Demonstrate MySQL viability in web and OEM markets – Done, and ramp up continues Step 1 Demonstrate MySQL viability in enterprise market – Work closely with select Fortune500 companies and existing enterprise customers – Forge key partnerships with ISVs and platform vendors – Acquire and develop skill sets needed – Build MySQL Enterprise (evolutionarily from MySQL Pro) – Position MySQL in the market – Enter select market segments – Test our assumptions – Test our ambitions Step 2 Ramp-up – Perfect the offering – Expand into other segments – Expand geographically – Penetrate Steps 1 and 2 overlap, and business build-up will be continuous. We estimate that Step 1 will be concluded within 2-3 years and require funds of up to €10m.
  • 86. 86MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Assumptions & Ambitions of Step 1 Assumptions • Open source is enterprise-ready and enterprises are open source-ready • Most platform vendors are open to a fourth db player • Key ISVs are open to a fourth db player • Key SIs are open to a fourth db player • ”Batteries included” gains ground in the enterprise and single db strategy loses ground in the enterprise • Enterprise db’s increasingly need to be web-enabled • Mid-market is active (as opposed to top- tier enterprise market) • The Big Three are unable to successfully defend their perimeters Ambitions • Have enterprise db ready in 3-4 years • Have revenue model that works in enterprise arena • Build strong brand recognition and credibility among enterprise decision makers • Keep customer acquisition cost down • Price at roughly 1/3 of legacy players without compromising own profitability
  • 87. 87MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Timeline Continue to build web and OEM business In the radar Under the radar Forge ISV partnerships Build MySQL Enterprise (step by step) Forge platform vendor partnerships Continue to collaborate with and expand worldwide MySQL community Launch and build enterprise business Work closely with select Fortune500 enterprises Step 1: Demonstrate Step 2: Ramp up
  • 88. 88MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Milestones (*DRAFT*) Milestone Ideally NLT • Recruit – additional VPs Q4/03 Q2/04 • Landmark ISVs signed up – first ISV Q2/03 Q1/04 – 2 more Q4/03 Q3/04 • Sales in a quarter – €3m (run-rate €12m) Q1/04 – €4m (run-rate €16m) Q3/04 – €5m (run-rate €20m) Q1/05 • Number of Fortune500 companies directly or indirectly generating revenues as customers in excess of €50k p.a. – 50 (totalling €2.5m) Q2/05 – 100 (totalling €5m) Q4/06 – 200 (totalling €10m) Q4/07
  • 89. 89MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Product Release Timetable (*DRAFT*) Product version alpha production • MySQL 4 Q4/01 Q1/03 – MySQL 4.1 Q1/03 Q3/03 • MySQL 5 Q4/03 • MySQL 6 Q2/04 – MySQL 6.x = MySQL Enterprise Q1/06 • MySQL Control Center tbd
  • 90. 90MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Projections: Revenue 0 10 20 30 40 50 60 70 80 90 100 2001 2002 2003 2004 2005 2006 Plus scenario Scenario w. inv. Base Scenario
  • 91. 91MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Projected P&L 2003 – 2007 -20000 -10000 0 10000 20000 30000 40000 50000 2002 2003 2004 2005 2006 2007 Month EUR'000 Net Profit Cum. Net Profit
  • 92. 92MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Projections: EBIT, CapEx, FCF -10000 0 10000 20000 30000 40000 50000 2002 2003 2004 2005 2006 2007 EBIT Capex FreeCashFlow CumulativeFCF
  • 93. 93MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Projections: Funding Requirement -10 000 000 -5 000 000 0 5 000 000 10 000 000 15 000 000 20 000 000 25 000 000 30 000 000 35 000 000 40 000 000 2003 2004 2005 2006 2007 Month EUR Cas h Flow Capital Requirement
  • 94. 94MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Projections: Without Investment -4000 -2000 0 2000 4000 6000 8000 10000 2002 2003 2004 2005 2006 2007 EBIT Capex FreeCashFlow CumulativeFCF
  • 95. 95MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Pressentation of Management Table of Contents
  • 96. 96MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB John Wattin, Chairman • Professional board member, serial entrepreneur • Colleagues say: ”Business man!” • Lives in Sweden, age 55 • Track record – Founded/Reconstructed: Enator AB, Sigma AB, Mandator AB, Astral AB, Scandiaconsult AB, Indevo AB – Chairman/Board Member: Akademikliniken AB, Berit AB, Cherry AB, Establish AB, Lemon Planet AB, Netentertainment AB, Qbranch AB, MySQL AB – Senior Advisor, Prosper Capital Fund
  • 97. 97MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Mårten Mickos, CEO • Skilled CEO and entrepreneur • Colleagues say: ”Motivator!” • Lives in Finland, age 40 • Track record – MatchON Sports Ltd, CEO 1999-2000 – Intellitel Communications, CEO 1997-1999 – Solid Information Technology, Channels Marketing Director 1995-1997 • Life outside MySQL – wife and 3 children – water and snow
  • 98. 98MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Hans von Bell, CFO • Experienced builder-up of financial administration • Colleagues say: ”Pragmatist!” • Lives in Sweden, age 42 • Track record – Incirco AB, CFO 2000-2001 – MSI AB, CFO 1996-2000, Regional Controller EMEA 1998-2000 – Unisource Mobile, Inv. Fin. Dir. 1994-1996 • Life outside MySQL – family with two sons – scuba diving, skiing, guitars
  • 99. 99MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Michael Widenius, CTO • a.k.a. Monty • Fanatic programmer who hates bugs and loves speed • Colleagues say: ”Guru!” • Lives in Finland, age 41 • Track record: MySQL • Life outside MySQL – family with children My and Max – visiting exotic places
  • 100. 100MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB David Axmark, Co-founder • Free / Open Source evangelist • Colleagues say: ”Monty’s second brainhalf!” • Lives in Sweden, age 40 • Track record: MySQL • Life outside MySQL – ultimate (the frisbee sport), disc golf – hiking – traveling
  • 101. 101MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Larry Stefonic, VP Sales • Knows the database market inside out • Colleagues say: ”Dealmakerl!” • Lives in Seattle, USA, age 35 • Track record – Birdstep – Centura / Gupta – Raima • Life outside MySQL – wife and son – boxing, skiing
  • 102. 102MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Kaj Arnö, VP Training • Analytical thinker and extensive communicator • Colleagues say: ”Productive!” • Lives in Germany, age 39 • Track record: Polycon Ab • Life outside MySQL – wife and 2 children – marathon
  • 103. 103MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Management • Firmly in place – CEO – CFO – CTO – VP Sales – Co-Founder • Advancing, filling – VP Prof. Serv. – Director Alliances – Director Online Sales – Director Support – Director Development • VPs to be hired – VP Marketing – VP Software Engineering – VP Professional Services – VP Alliances (?) – Legal Counsel (?) – VP Biz Dev. (?) • Directors to be hired / promoted – Internal IT – HR – Sales Directors
  • 104. 104MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Advisors and Investors • Board – John Wattin, Sweden, Chairman – Terje Laugerud, Norway – Morten Austestad, ABN Amro, Norway – Fredrik Oweson, Scope, Sweden – Michael Widenius, MySQL AB • Non-board investors and advisors – Ralf Wahlsten, Finland, Investor – Mina Gouran, UK, Investor – Natasha Bhatia, UK, Investor – Peter Harris, UK, Investor – Florian Müller, Germany, Advisor
  • 105. 105MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Competition Table of Contents
  • 106. 106MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Competition by Size • Tier 1 - the billion dollar league • Oracle (sales $10.5B, database licences $823m) • IBM DB2 (sales $85.9B) • Microsoft, SQL Server and Access • Sybase (sales $950.3M) • Tier 2 - the 100 million dollar league • Sybase SQL Anywhere, Progress • Tier 3 - the 5-50 million dollar league • Berkeley DB, Birdstep/Raima, Ardent, Interbase, Intersystems, Pervasive, Centura/Gupta, TimesTen, Solid, Pointbase, Polyhedra, Empress, Versant
  • 107. 107MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Comparison Chart MSFT ORCL IBM MySQL SQL-compliant RDBMS     Low TCO - - -  Low capital expense - - -  Multi-platform -    Easy to deploy  - -  High reliability and uptime     Top performance -  -  Fast application development ? ? ?  Abundance of skilled staff     Supported by commercial vendor     Easy to administer  - - 
  • 108. 108MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Microsoft vs. MySQL Microsoft has (and relevance to MySQL is) • Enterprise Database – SQL Server (competitor) • Web Database – SQL Server (competitor) • Embedded Database – SQL Server (competitor) – MS Access (too weak to be competitor, but GUI is useful as front-end to MySQL) • Operating System – Windows (important platform for MySQL) – Windows CE (potential future platform for MySQL) Microsoft is against open source and GPL.
  • 109. 109MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Oracle vs. MySQL Oracle has (and relevance to MySQL is) • Enterprise Database – Oracle (competitor) • Web Database – Oracle (competitor) • Embedded Database – Oracle Lite, Personal Oracle (weak competitor) • Operating System – none
  • 110. 110MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB IBM vs. MySQL IBM has (and relevance to MySQL is) • Enterprise Database – DB2 (competitor) • Web Database – DB2 (competitor) • Embedded Database – DB2 Everywhere (competitor) • Operating System – AIX (good platform for MySQL) IBM invests heavily in Linux.
  • 111. 111MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Sybase SQL Anywhere vs. MySQL • SQL Anywhere has – Customers – Features – Speed • SQL Anywhere lacks – Speed to match MySQL – Robustness through superior design – Platform availability – Massive user base support
  • 112. 112MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Can the Competition Produce Something Better? • By starting from scratch? • Hardly. It takes 10 years for any mission-critical software product to mature. • By opensourcing a closed-source product? • Hardly. It takes years (or an eternity) for closed-source software to become clean enough go gain open source acceptance. • By improving an existing open source product? • Perhaps. But note that MySQL is today several times more popular than the next runner-up. • By forking a new version based on MySQL? • Anybody is free to modify and distribute MySQL under GPL, but maintaining the code is extremely difficult for anyone but the core development team of MySQL AB. Also, only MySQL AB can sell commercial licences and use the MySQL name. • By giving away an existing product free of charge? • May happen, but that does not make the product open source or superior.
  • 113. 113MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Risks and Uncertainties Table of Contents
  • 114. 114MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Risks and Uncertainties • External – Open source business models partly unproven or immature – Dependance on success of Linux – Dependance on worldwide Internet infrastructure – Potential counter-actions by competitors (most notably MSFT-ORCL-IBM) – Potential competition from other open source databases such as Postgres, Firebird and SAP DB
  • 115. 115MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Risks and Uncertainties (2) • Internal – Limited operating history – Limited financial strength in the immediate future due to expansion – Dependence on the success of OEM customers in their markets – Dependence on key personnel and recruitment of additional management – Dependence on successful and timely delivery of new product versions – Intellectual property right risks in relation to our software
  • 116. 116MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Investment Proposal and Exit Potential <NOTE: This info will be removed from this file and put in a separate one, in order to avoid it spreading to too many people in the VC community.> Table of Contents
  • 117. 117MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Background Info • Cap table – see appendix (xls) • External funding raised so far: EUR 4m • Use of proceeds – see elsewhere in this document • Peer analysis – see elsewhere in this document • Please send or cc all your email communication to Mr Peter Liss, peter.liss@attglobal.net, who coordinates all communication from now on [REDACTED]
  • 118. 118MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB This Round • MySQL AB believes that a fair pre-money value of the company presently is €28m (but please note that this is not a formal offer, and that the valuation may change due to significant events in the company) • The company now wishes to raise €10m • In conjunction with the round a new share option pool will be launched, to grow its percentage from existing 6.92% up to 9% of outstanding shares • The company is looking for one new active investor (or syndicate of 2) from the UK or USA or continental Europe • The company may in parallel receive investment from strategic partner(s) • The company presumes that the existing shareholders agreement be extended to cover new investors as well • ABN Amro and Scope are likely to join pro rata, other present investors not
  • 119. 119MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Capitalisation Table Open Ocean S.à.r.l 1,000,000 Industrifinans SMB III ASA 292,132 Holtron Capital Fund I Ky 122,492 Scope Venture Capital 96,910 split on Scope Venture I KB, Erneholm & Haskel AB, and Ichor Holding SA Texcel International AB 25,560 Sirius Consulting Ab 16,390 Terje Laugerud 16,390 Kaj S Arnö 15,000 John Wattin 8,870 TMD Holding Ltd (N Bhatia) 8,190 Caversham Trustees Ltd (M Gouran) 8,190 Peter Harris 4,920 Employee share option pool 120,000 TOTAL outstanding shares & options 1,735,044 [REDACTED]
  • 120. 120MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB The MySQL Investment Team • Chief negotiators – Mårten Mickos, CEO, assisted by Hans von Bell, CFO • All owners & present investors represented by – John Wattin, Chairman • Coordinator of timetables, documents, meetings, Q&A – Peter Liss • Additional core management – Larry Stefonic, VP Sales – Michael ”Monty” Widenius, CTO – David Axmark, Co-Founder • Key investor representatives – Morten Austestad, ABN Amro Industrifinans – Fredrik Oweson, Scope Venture Capital
  • 121. 121MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Timetable • 4 Mar – ready to send out investment memo • 6-7 Mar – MGM in New York • 10-12 – MGM may be unavailable • 13-14 Mar – MGM at CeBIT • Week of 17 Mar – open for MGM, but HvB on holiday • 18 Mar – DEADLINE FOR OFFER LETTERS FROM VC:S • 22-25 Mar – MGM at PC Forum, Phoenix • 26-28 Mar – MGM in the SF Bay Area • Week of 31 Mar – open • 7-9 Apr– MGM in the SF Bay Area • 10-12 Apr – MGM in the SF Bay Area for MySQL Users Conference • 14-15 Apr – open • 16-21 Apr – MGM unavailable • 22-25 Apr – open • Week of 28 Apr – open • 5-7 May – open • 8-11 May – staff meeting in Budapest • Week of 12 May – open [REDACTED]
  • 122. 122MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Selection Criteria • MySQL AB reserves the right to accept or decline offer letters at its discretion after the offer letter deadline • MySQL AB will pay great attention to the following selection criteria: – relevant market experience and value-add of the investor – personal chemistry between partner(s) in charge and MySQL management and directors – valuation – adherence to the existing shareholders agreement – how well the VC matches ”The Ideal Investor” list which was authored by the MySQL management (see next page)
  • 123. 123MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB The Ideal Investor • The ideal investor in MySQL, in addition to bringing great tangible and intangible value to the company: – takes a long-term view on his investment – understands and respects the open source philosophy of MySQL AB (as demonstrated by MySQL AB and other open source companies such as Trolltech and Sleepycat) – understands and respects the Nordic management culture (as demonstrated by Nokia, VOLVO, MySQL AB and others) – understands and respects the MySQL core values as described at: www.mysql.com/company/index.html – has ample industry experience and a vast network of relevant contacts – is at all times actively engaged in building a long-term viable business for MySQL AB through active participation in board work and otherwise – lives up to and demands from others a business conduct of the highest ethical standards – in summary, is a value-adding contributor rather than a zero-sum game player.
  • 124. 124MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Offer Letter • The signed letter from an interested investor shall be presented to the company no later than 18 March 2003, covering the following topics at a minimum: – Proposed investment size (and distribution between syndicated partners, if applicable) – Proposed pre-money valuation – Proposed partners of the VC firm who would be board members and in charge of the investment for the VC, and list of references for such partners – Detailed comments on any proposed deviations from the existing shareholders’ agreement to be disclosed to parties interested in submitting an offer letter – Proposed timetable and execution plan for completing the transaction – The investor’s comments on the business plan and projections, in order to highlight: • where there is agreement • where there is disagreement or just doubt • where there is an alternative proposal from the investor • what may be missing in the investor’s view – Any other information deemed valuable
  • 125. 125MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Exit Potential • Without the investment, the company estimates it can reach up to €100m in annual revenues. With the investment now at hand, the management estimates the potential to rise to some €200m and beyond. • If the company is successful in its undertakings in the next few years and if the market develops as anticipated, the management believes that the company can grow to a size 2-5 times bigger than above depicted, given that appropriate additional growth funding is available. • The management and owners are committed to building a company with a sustainable business for the long term. It is anticipated that the company will be able to float on an internationally acknowledged stock exchange in the next 3-4 years and continue as an independent entity for the foreseeable future. • As a result of successful execution of the business plan, it is also likely that opportunities will emerge for a trade sale to a major platform, software, or database player in the market. Such companies presently include but are not limited to: Sun, HP, IBM, CA, Dell, SAP, Intuit, Microsoft, Oracle. No such discussions have been conducted or initialised. • The founders of MySQL AB have stated their intention to build a great business and their interest to find the best possible future for the company – a future where the MySQL product can fulfill its mission of being available and affordable to all.
  • 126. 126MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Additional Reading Table of Contents
  • 127. 127MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Additional Reading • The following documents or compilations will be provided as part of the investment memo package: – Financial Figures 2002 – Financial Projections 2003-2007 – Financial Potential – Long term – Sales statistics 2002 (xls) – Sales statistics Jan-Feb 2003 (xls) – Sales pipeline as of March 2003 (xls) – Compilation of internal business intelligence emails (doc) – Compilation of analyst reports, etc. (doc, pdf) – Staff list (xls) – Recruitment plan 2003 (xls) – References – Mårten (text) – References – Hans (text) – References – Larry (text) – Investment timetable and contacts (doc) – Reference customers including contact info (doc) – Existing shareholders agreement (doc) – Cap table (xls) – Table of contents of due diligence material (doc) – User survey 2001 – Investment Q&A (living document, updated as we go).
  • 128. 128MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Projections and Statements i.e. XLS files that will be provided to select potential investors Year 2002 Years 2003-2005 Ultimate Ambition P/L BS CF Sales Stats Revenue projections by 3 scenarios including P/L, BS and CF Revenue Analysis and P/L Projection for Maximum Market Potential in 3 Markets: - Embedded database - Web and personal database - Enterprise database Hans: please scrutinise and make changes! Current Sales Pipeline Current Sales Stats Staff Table with FTE deployment by Cost Centre
  • 129. 129MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Product & Service Information Table of Contents
  • 130. 130MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB MySQL™ in a nutshell • MySQL is an RDBMS, such as Oracle, Microsoft SQL Server, IBM DB2 and others • MySQL is designed for mission critical applications, where performance and reliability are key • MySQL runs on most operating systems • MySQL interfaces with most programming languages • MySQL aims to have everything necessary, and nothing more: ACID transactions, replication, interfaces • MySQL is available both under GPL and a commercial licence – dual licensing
  • 131. 131MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB MySQL Customer Value: Saving time, in many ways • Performance / speed • Reliability • Ease of use – easy installation – limited complexity – many interfaces • Low total cost of ownership – low licence fees (at times free of charge) – low support costs – lower hardware costs, longer economic lifetime – low training and administration costs (low complexity)
  • 132. 132MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB How MySQL Software Develops • Core development – done by salaried employees of MySQL AB worldwide • Assimilation – licensing (InnoDB, Berkeley DB) or acquisiton (JDBC driver) of technology developed in the open source community • Contributions – case-by-case contributions by individuals and companies (where ownership is transferred to MySQL AB) • Community – some add-ons and APIs that remain in community ownership (such as Perl-DBI and PHP-MySQL connection)
  • 133. 133MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Principles of Software Development • Bugs are bad • Modular design • Compact code • Release early, release often • Never let new features compromise speed • Make the product easy to install - easy and practical to use • Document while coding • Do it right the first time, every time
  • 134. 134MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Ultra-Conservative Versioning • Not one single release leaves the company until all known repeatable fatal bugs have been fixed or properly documented – Alpha • first public release of a new version – Beta • feature freeze • many old customers put betas in production use – Gamma • beta turns to gamma when one month has passed without fatal bugs – Production • gamma turns to production when one month has passed without fatal bugs
  • 135. 135MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Four Concurrent Source Trees • Presently (Feb 03) – 3.23 - production version – 4.0 - in gamma – 4.1 - in alpha – 5.0 - being worked on • All versions available for public scrutiny at bitkeeper.com • Bug and other fixes are merged into all active source trees
  • 136. 136MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Product Architecture Programs that Interface with a Database MySQL APIs Windows exclusive Generic Linux/MacOS X/Unix/Windows MySQL Client- Server Protocol MySQL Server The DBMS SQL Layer Storage Engines Parser Optimizer Executor MyISAM InnoDB HEAP MySQL Client- Server Protocol Character- based UI Web- based UI Graphical Client Standard Administrative Clients PHP, Perl , Python, C/C++, Ruby, Java…MyODBC mysql phpmyadmin mycc Programs that Interface with a Database MySQL APIs Windows exclusive Generic Linux/MacOS X/Unix/Windows MySQL Client- Server Protocol MySQL Server The DBMS SQL Layer Storage Engines Parser Optimizer Executor MyISAM InnoDB InMemory MySQL Client- Server Protocol Character- based UI Web- based UI Graphical Client Standard Administrative Clients PHP, Perl , Python, C/C++, Ruby, Java…MyODBC mysql phpmyadmin MySQL Control Centre
  • 137. 137MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB The LAMP model Linux-Apache-MySQL-PHP/Perl/Python LAMP is • a complete and integrated technology stack • for rapid development and deployment • of heavy-duty web applications. Many degrees of freedom • WAMP, NAMP, LAMJ, … • Move, duplicate, replicate the MySQL Server process Linux Server Computer MySQL Server process mysqld Web Application PHP / Perl Web Server process Apache
  • 138. 138MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB The Client / Server Model Server Computer / Host MySQL Server process mysqld DB PHP Client process PHP Client process Java Client process Perl Client process PHP Client process localhost Client Computers PHP Client process PHP Client process PHP Client process ODBC Client process PHP Client process PHP Client process PHP Client process PHP Client process
  • 139. 139MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Supported operating systems www.mysql.com/doc/W/h/Which_OS.html • AIX 4.x+ • Amiga • BSDI 2.x (mit-pthreads) • BSDI 3.0, 3.1, 4.x (native) • DEC Unix 4.x • FreeBSD 2.x / 3.x, 4.x • HP-UX 10.20 / 11.x • Linux 2.0+ • Mac OS X Server • NetBSD 1.3/1.4 • Novell Netware 6 • QNX • OpenBSD <2.5 / >2.5 • OS/2 Warp 3, FixPack 29, Warp 4, FixPack 4 • SGI Irix 6.x • Solaris 2.5+ • SunOS 4.x • SCO OpenServer • SCO UnixWare 7.0.1 • Tru64 Unix • Win95, Win98, NT, Win2000, XP.
  • 140. 140MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Supported APIs C API based • PHP • Perl • ODBC • C • C++ • Python • Tcl • Eiffel • Ruby • Delphi Others • Java (Connector/J JDBC) Over ODBC / .NET • VBA • VB • Word • Excel • Access • Delphi • ASP
  • 141. 141MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Where are the limits of MySQL? • Database size: Hundreds of gigabytes in practice • Scalability: >90 replication slaves at mobile.de, >2,500 queries per second in a single server at mainchat.de • Features: Subselects in 4.1, Stored Procedures, Triggers, referential integrity of foreign keys in 5.0, then Views – Limitation unimportant in new applications – Porting of existing applications easier to 4.1 and 5.0 • The most important limits of MySQL lie in user perceptions – Decision makers may know little about MySQL and Open Source
  • 142. 142MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB MySQL 1984-95: The Roots • 1984-94: Michael ”Monty” Widenius develops database routines for his own purposes – 10 % further development of ISAM database routines – 90 % solution of customer problems in Data Warehousing • 1986: David Axmark meets Richard Stallman • 1994: Customer requires SQL interface to web database – Monty needs 9 months to build a MySQL parser and optimiser • 1995- Perl API identical to API of mSQL
  • 143. 143MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB MySQL 1995-2000: Growth • More: Users, development tools (such as PHP), operating systems (such as Windows) • Commercial support available from the outset • Profitable from inception • Open Source all the time • Licences under GPL since June 2000 • Technology is key; marketing limited to www.mysql.com; hardly any administration • More and more employees through mailing lists
  • 144. 144MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB MySQL 2001-2003: Presence • New management: CEO, VP Training, CFO, VP Sales • Monty CTO, David VP Community Relations • Scandinavian Venture Capitalists invest money • Focus: USA (largest growth), German second place • More employees worldwide (14 countries, 65 people)
  • 145. 145MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB MySQL Proliferation • MySQL is part of all Linux distributions • MySQL is downloaded 29 000+ times a day – >800.000 times a month or 10M times a year • We estimate some 4 million installations • Installed base on par with Oracle – more users according to iX Magazine in Germany 2002: MySQL 46%, Oracle 44% – more web pages with “MySQL” than with “Oracle” according to Google – 20% of worldwide relational database use, 0.02% of licence revenues
  • 146. 146MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB MySQL has grown from the roots • A significant portion of all large companies use MySQL somewhere • Only in some of them, the management knows it • Some of them become customers of MySQL AB • Companies that publicly acknowledge using MySQL: – Ericsson, NASA, Yahoo! Finance, Silicon Graphics, Slashdot.org, Texas Instruments, US Census Bureau, Virage, Silicon Storage Technology, Lucent, Motorola, HP, Xerox, mobile.de, handy.de – Search for "Supplied argument is not a valid MySQL“ in Google – among the 90,000+ results you will find a few others who use MySQL
  • 147. 147MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB MySQL Inc: Services www.mysql.com/services Support www.mysql.com/support • Support Wizard • Email responses • Login Support • Phone Support • Fast • 24/7 availability • “Insurance” • From the developers themselves Training www.mysql.com/training • Open courses • In-house courses • eTraining • Certification • Worldwide • by MySQL Trainers Consulting www.mysql.com/consulting • Deployment • Migration • Specification • Solutions • Tuning • On site / online • Embedding • Enhancements • Porting
  • 148. 148MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Support Pricing Standard Advanced EUR EUR Monthly agreements: Installation support : N/A 250,- Login installation: N/A 1.000,- Yearly agreements: Entry Level 1.500,- 2.500,- Primary 4.000,- 6.000,- Enhanced 9.000,- 12.000,- Premium N/A 48.000,-
  • 149. 149MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Training • Five days of ”MySQL Training Week” • Day 1: Overview, structure, basic SELECT • Day 2: SELECT, UPDATE, INSERT, DELETE, CREATE • Day 3: Security, User Management, Server Setup • Day 4: Administration, installation, Storage Engine • Day 5: Tuning, EXPLAIN, database structures • Blocks of 2, 3 or 5 days • MySQL/PHP training from 2002
  • 150. 150MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Certification • Purpose – Enables market to assess quality of MySQL developer pool – Enhances MySQL brand recognition outside core Open Source developers – Adds to momentum among developers, focuses their attention as directed by MySQL AB – Building block for MySQL in creating partnerships – Drives training income for MySQL AB • Delivered by 3,000 Pearson/VUE testing centres worldwide • Present levels – MySQL Core Certification (beta Dec 2002, GA Mar 2003) – MySQL Professional Certification (beta Apr 2003, GA Jul 2003) • Planned future levels – MySQL PHP Certification – MySQL DBA Certification • Cost $195 and up • Supported by MySQL Certification Study Guides under writing
  • 151. 151MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Consulting • Dimensions: on-site/online • Grows out of support and training cases • Grows out of application growth pains • Prices from 160 to 250 euro/h • Lower pricing implies at least three weeks of scheduling time and long duration • Minimum duration of task 2-3 days
  • 152. 152MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB MySQL Press • Purpose – To build and widely distribute the most helpful, accurate, and timely documentation for MySQL – To draw the potential out of the joint branding of MySQL AB, a leading publisher, and the best MySQL authors – To attain the predominant position in retail channels for the target market – To build the premiere canon of published works related to MySQL Goals – Publish at least four new titles a year by the best available MySQL authors – Support MySQL AB goals of product positioning and installed base growth – Provide an offering of MySQL AB at a low price point
  • 153. 153MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB MySQL Tomorrow 1. MySQL Release Logic • source – alpha – beta – gamma – production • 4.0 ”gamma” Nov/Dec 2002 • 4.1 Dec 2002 2. MySQL 4.0 3. MySQL 4.1 4. MySQL 5.0 5. MySQL 5.1
  • 154. 154MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Active Versions • We are now working on 4 different MySQL major versions at the same time • 3.23 Stable Production Release • 4.0 Feature Freeze Release (Gamma) • 4.1 Out in Source code for some months • 5.0 We will soon open the source code
  • 155. 155MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB MySQL 4.0 http://www.mysql.com/mysql40 • Features – ACID transactions with versioning and high transaction isolation (RepeatableRead) using InnoDB • DB2, MSSQL and PostgreSQL use only ReadCommited – embedded server library (libmysqld) – query cache: prestored answer sets – dynamic server variables – boolean FULLTEXT – UNION – multi-table deletes, updates – improved replication
  • 156. 156MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB 4.0: Handler (Navigation) Interface • Used when porting old database application with a navigational (direct ISAM) interface • Also useful when you are doing a userinterface that navigates a lot of data • This interface gives "Dirty" reads (but no other MySQL commands are affected!) • HANDLER table_name OPEN; • HANDLER table_name READ index_name > ("Banana") LIMIT 10; • HANDLER table_name READ index_name PREVIOUS;
  • 157. 157MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB 4.0: Multiple table DELETE • Allows you to delete rows in multiple tables bases of conditions from multiple tables • Like saying that you want to delete all rows found by a SELECT • Syntax inspired by MS Access • DELETE t1,t2 FROM t1,t2,t3 WHERE t1.id=t2.id and t2.id=t3.id
  • 158. 158MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB 4.0: Dynamic Setting of Variables • Change options on the fly (per thread and globally) – No need to restart server to change cache sizes – Possible to set larger buffers for specific commands • SET GLOBAL SORT_BUFFER=1*1024*1024 – This will set the sort buffer (used by ORDER BY queries) for all new connections • SET SESSION SORT_BUFFER=32*1024*1024 – Will set the same buffer but only for the current connection • SELECT @@GLOBAL.SORT_BUFFER – Returns the default size of the variable
  • 159. 159MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB 4.0: Query Cache • Improves the speed of queries on read mostly tables. Most (all?) websites has some query that will run many times a second • 3x speed improvement for web sites not uncommon • Does not change semantics at all! • To enable add a line to my.cnf – query_cache_size = 128MB – Or set it on a running server • SET @@GLOBAL.QUERY_CACHE_SIZE=128*1024*102 4 – Turns the Query Cache on with 128 MB memory
  • 160. 160MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB 4.0: Replication • Replication uses two threads – One to read the all queries and store them on disk in case – One to do the updates – This makes sure that the slave always catches up to the latest changes even if it was executing a slow update when the server went down • LOAD DATA INFILE commands are now replicated properly
  • 161. 161MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB 4.0: Other Features • SELECT * FROM articles WHERE MATCH (title,body) AGAINST ('+apples -bananas' IN BOOLEAN MODE); – Find all records with the word "apples" but not the word "bananas" using a full textindex • SELECT SQL_CALC_FOUND_ROWS ... LIMIT 10 • SELECT FOUND_ROWS(); – Make it possible to display the total number of rows even with a limit. For "10 out of 124 items shown" things • Hash functions: SELECT SHA1("foo") • GRANT .. MAX_QUERIES_PER_HOUR=# MAX_UPDATES_PER_HOUR=# MAX_CONNECTIONS_PER_HOUR=# – Limit a user (Very useful for ISP use)
  • 162. 162MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB 4.0: Faster ... • SELECT COUNT(DISTINCT ...) ... • Bulk loading of data • Bulk updates of full text indexes • Removing all the rows in a table – TRUNCATE TABLE table_name; • SELECT * FROM table WHERE blob_col like "%keyword%" – Uses a fast turbo BoyerMore stringsearch • CREATE TABLE foo DATA DIRECTORY="/path/to/dir" INDEX DIRECTORY="/path/to/dir" – Support for spreading MyISAM files over many disks • Multithreaded index rebuilding in myisamchk
  • 163. 163MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB MySQL 4.1 • Features – Subqueries / nested SELECTs • SELECT row1 FROM table1 WHERE a=(SELECT b FROM table2) – GIS / Geometric Data – Warnings when data is lost – Unicode support – Memory tables • SELECT * FROM table1, (SELECT b from table2) WHERE ... – Multiple table update • UPDATE t1,t2,t3 SET t1.c1=Val,t2.c2=val2 WHERE t1.id=t2.id and t2.id=t3.id – Others: SSL
  • 164. 164MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB 4.1: Prepared Statement • Instead of sending a query direct you do – Prepare SELECT foo from bar where a=? – Do ("1") – Do ("2") • Also works with binary data without quoting • The client server protocol has been extended for this • The whole protocol is now fully binary so it runs even faster
  • 165. 165MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB 4.1: Subqueries • Scalar Subqueries – SELECT Country, Inhabitants, Area FROM World.Country WHERE Area > (SELECT Area FROM World.Country WHERE Country=’Finland’); • Correlated Subqueries – SELECT * FROM World.City WHERE City.Country = ANY (SELECT Country FROM World.Country WHERE City.Inhabitants > Country.Inhabitants/4); • WHERE field IN (SELECT ... – SELECT * FROM World.Country WHERE Country IN (SELECT Country FROM World.City WHERE City.Inhabitants > 5000000);
  • 166. 166MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB 4.1: GIS / Geometric Data • OpenGIS: New data type ”Geometry” • CREATE TABLE geom (g Geometry, SPATIAL INDEX(g)); • INSERT INTO geom VALUES (GeomFromText( ’POINT(1 1)’)), (GeomFromText( ’POLYGON(0 0,10 0,10 10, 0 10, 0 0)’)); • New functions, e.g. AsText, IsClosed, Length, Area, Intersection, Intersects, Within • Red-black index trees: Indexes for Within
  • 167. 167MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB 4.1: UNICODE Support • CREATE TABLE t (field_list) [CHARSET=latin1]; • SELECT Last_name FROM Customer ORDER BY Last_name COLLATE latin1_de; • SELECT MAX(Last_name COLLATE latin1_de); • SELECT * FROM Customer WHERE (Last_name COLLATE latin1_de)=”Müller”; • CONVERT(Last_name USING utf8); • UCS2 support (two byte Unicode) • UTF8 support RFC2279, 1..3 bytes
  • 168. 168MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB 4.1: Other New Features • SSL connection from client to master • libmysqld smaller, faster • Online Help for server functions • Foreign Keys with CASCADING DELETE • Improved MEMORY tables (earlier name HEAP) (faster, B-tree indexes)
  • 169. 169MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB MySQL 5.0 • Features – Stored Procedures as in ANSI SQL – Triggers – Referential integrity (foreign keys) – Online backup of MyISAM tables – New column types: • BIT • True VARCHAR (no space trimming) • ARRAY – Warning/Info system • Notify sysadmin when something may go or goes wrong • Give feedback while a slow command is running
  • 170. 170MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB 5.0: Stored Procedures • ANSI SQL99, can be extended to e.g. PHP or PL/SQL • CREATE PROCEDURE MyProc (IN InputField SMALLINT, OUT OutputField SMALLINT ... • CALL MyProc(5,@MyVariable); • Grammar with BEGIN, END, SET, RETURN, CASE, IF, LOOP, WHILE, REPEAT, FOR
  • 171. 171MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB MySQL 5.1 • Views • More ANSI SQL99 compatibility
  • 172. 172MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB MySQL Command Center (mysqlcc) • Graphical MySQL client • Written in C++ using the QT toolkit for UNIX & Windows • Features: – Create/drop databases – Create/edit/drop tables – Write and execute SQL- queries – SyntaxHighlighting editor – List of servervariables and status – View and kill other user- processes – And many more...
  • 173. 173MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB MySQL Command Center
  • 174. 174MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB High Availability by Replication • MySQL supports many sites that need high reliability – This is done by "mirroring" the data to many machines • The single Master logs all SQL commands that update data • Slaves connect to the master or another slave to read, and rerun the updates • Examples of users are – Yahoo – Slashdot.org – Mobile.de (used car broker, over 300M page views/month)
  • 175. 175MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Storage Engines • A storage engine is a low level data storage / retrieval module (disk or memory) • This allows you to choose locking and speed trade offs per table (instead of when choosing db!) • MySQL supported multiple storage engines from the very beginning • CREATE TABLE (key int, value char(10), PRIMARY INDEX key) TYPE=HEAP; • ALTER TABLE table_name TYPE=InnoDB;
  • 176. 176MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB The Storage Engine Concept Parse Optimize Retrieve Store MySQL MyISAM InnoDB InMemory MySQL Database Management Level Table Handler / Storage Engine Level
  • 177. 177MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Storage Engine: MyISAM • Developed by MySQL AB (replaced original ISAM) • Static, dynamic and compressed (read-only) row formats but no transactions • Text and compressed indexes • Data and indexes in separate files • Fast read/write performance but low r/w concurrency • Extremely good concurrency in the select and insert at end case (logs) • External check and repair program (myisamchk) • Especially useful for websites & logging
  • 178. 178MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Storage Engine: Hash/InMemory • Developed by MySQL AB • Completely in Memory with very fast hash based indexing • Useful for – Temporary tables – Lookup tables • Bad for range queries (Already fixed in MySQL 4.1)
  • 179. 179MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Storage Engine: InnoDB • Actively developed code from InnoBase Oy & MySQL AB • Full transactions (ACID) with versioning row level locking with automatic cleanup (no vacuum!) – Consistent reads (Oracle style MVCC) • Better concurrency than MyISAM for read/write on the same table • Uses table spaces instead of individual files • MySQL AB provides full support for InnoDB • Is included in MySQL 4 & the MySQL Max binarys • Has now been in active use under heavy load. Was for example used for the FIFA world cup site
  • 180. 180MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB RedoLog The InnoDB Storage Engine IN memory On disk (workspace) Log filesTablespace Log File 1 Log File 2 Log File 3 Buffer pool (buffered data pages) Add’t’l Mem Pool Log Buffer (buffered log records) ibdata2 data file ibdata1 data file Undo Log COMMIT (+ checkpoint) checkpoint
  • 181. 181MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB ibdata Data File Structure 1M extent Segment (“file”) 1M extent 1M extent 1M extent 64 pages 16 kB each Extent Transaction id 6 B Row Field 1 Roll pointer 7 B Field pointers n x 1-2 B Field 2 Field n Leaf node segment Leaf node segment Non-leaf node segment Tablespace Rollback segment N-l ns Row Page Row Row Row Row
  • 182. 182MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Standard Segment TypesRow Row Row Row Row PKV PKV PKV PKV PKV Primary Key Values Non-leaf indexpages Leaf indexpages Clustered index Primary Key Index Secondary index
  • 183. 183MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB InnoDB Row Structure • Records with variable (dynamic) size • Record header (6 B, ptr to next record, no of fields) • Transaction ID (6 B, timestamp) • Roll pointer (7 B, points to previous version of record) • Field pointers (1-2 B / field) – Start position of field within record – 2 bytes if more than 255 fields • Out-of-page pointers if record size > page size/2 (8 kB) Record hdr Trx ID Roll ptr Fld ptrs Field values ... Field values
  • 184. 184MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB InnoDB Redo Log Structure • A collection of log records • Page Number (4 bytes, page within Tablespace) • Offset of the change within the page (2 bytes) • Log Record Type (1 byte) – Insert, Update, Delete – Other types (like ”fill space with blanks”) • Changes (only redo values, no old values) except for DELETEs, which need no change notes at all PageNo Offset Record Type Changes on that page
  • 185. 185MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB The InnoDB Rollback Segment Undo Log Undo Log Undo Log The History List: Committed Undo Logs Undo Log: Updates, Deletes Undo Log: Inserts A transaction Two undo logs per trx Undo Log Discarded 1000slotsperpage Theheaderofthetransactionsystem Rollback segment used for: Crash recovery Read isolation PURGE Free unnecessary log entries
  • 186. 186MySQL™: The World’s Most Popular Open Source Database Copyright 2003 MySQL AB Thank you! www.mysql.com Table of Contents