CloudOpen Source Business Model 3.0

My Background

Long TimeOpen Source User

Not An Expert

for Web Developers to build and scale

Voice Communication Apps

that Make or Receive Phone Calls,

using only Basic Web Development skills

twilio is a Cloud Service

Voice Applications?

Pay Per Call TrackingPrivate Calling

Voicemail Boxes

Voice User Generated ContentCompany PBX

Information Hot Line

Outbound Alerts

Reverse 911 Alerts

Coordinate EmployeesImprove Customer Service

Intelligent Call Routing

So What Are

Building Voice Applications Used to be

HARDSIP Compatibility

Carriers IntegrationuLaw Transcoding

Channel CapacityPSTN

DTMF

Codecs

DID Acquisition

Realtime CPU Capacity Planning

Realtime Networking

QOS

Multiyear Carrier Contracts

Telecom Engineers

Voice Communications

$20B Market

Costly to BuildTiny Workforce

Niche Engineering Skillset

Steep Learning Curve

Commoditize the Skills

Voice Communications

$20B Market

Telecom Engineers

Web DevelopersMillions of Skilled Workers

Twilio

Twilio

HTTP

HARD EASY!

XMLMP3, wav, etc.

Telecom Goo

PSTNCLECs

SIPuLawGSM G.711

Customers & Brands

Simple, Powerful API Only Five Building Blocks.

Scales Automatically10 or 10,000 Simultaneous Calls.

Pay-As-You-Go Pricing No upfront, no commitment. Pay only for what you use.

Simple APIPowerful

^

Company PBX

Voicemail

Call Routing

Simple Pricing

No ContractNo Shenanigans

Pay-As-You-Go^

Calls

3¢ / min

Phone Numbers

$5 / mo

Telephony in the Cloud

Reliable Telecom without Fixed Costs

Pass Flexibility on to Customers

Cloud Provider & Consumer

Powered By

CarrierTelecomHardware

PlatformLaunched Late 2008Thousands of Devs

Hundreds of Live Apps

CloudOpen Source Business Model 3.0

1.0Late 90’s

TrainingProfessional Services

ConferencesCertification

Booksetc.

Support

Business Models:

FreemiumPremium Features

AcceleratorsConnectors

High Availabilityetc.

Business Models:

1.5Early 2000’s

Suing Linux Users

Business Models:

Suing Linux Users

Business Models:

1.5(Never made it out of Beta)

2.0Early 2000’s

HostedMulti-Tenancy

Web ConfigurationReliabilityScalability

Business Models:

HostedMulti-Tenancy

Web ConfigurationReliabilityScalability

Business Models:

Same Product

Minimize Complexity

sendmail.cf

Web Config Can Save Us!

Right?

Better?

New Cloud ProductsBased on OSS Foundations

Not Just Hosting, but...

Shakespear

Shakespear

Symphony

Symphony

New Cloud Productsa

“Performance”of

OSS Foundations

What You Talking About, Willis?

EC2

HARDWARE & OS

XEN

MANAGEMENT API

What Is EC2 Selling?

HARDWARE & OS

XEN

MANAGEMENT API

What Is EC2 Selling?

ReliabilityScalabilityGood API

What Is EC2 Selling?

ReliabilityScalabilityGood APIEXECUTION

S3

NETWORK & HARDWARE

LINUX + DISKS

SIMPLE API

What Is S3 Selling?

NETWORK & HARDWARE

LINUX + DISKS

SIMPLE API

What Is S3 Selling?

ReliabilityScalabilityGood API

What Is S3 Selling?

ReliabilityScalabilityGood API

EXECUTION

ReliabilityPromise of

RedundancyTransparent Failover

Expertise

ScalabilityPromise of

Multi-TenancyEconomies of Scale

Fairness

Affordable

^

Good APIPromise of

Needed for Multi-TenancyGreat Selling Point

One Without the Others?

One Without the Others?

!API" Scalable" Reliable

HINT: You’re Paying for This

ReliabilityScalabilityGood API

OPEN SOURCE FOUNDATION

OPEN SOURCE FOUNDATION $$$

Value > !Parts

Thoughts

!API" Scalable" Reliable

Is this So Horrible?

Example: Behind the Firewall“Clones” of Some Value

Industry Needs to Figure this Out

Is this So Horrible?

Opportunity Here:

Attack of the Cloud Clones

Cloud # OSSGrowing + Shrinking Demand

No License IssuesPurely Technological Problems to Solve

twilio’sPerformance of Open

Source Software

EC2

OSS

SIMPLE API, ORCHESTRATION, CARRIERS

What Is twilio Selling?

EC2

OSS

SIMPLE API, ORCHESTRATION, CARRIERS

What Is twilio Selling?Linux (CentOS)Apache HTTPDApache Tomcat

AsteriskMySQL

PHP, Java, Python...

EC2

OSS

SIMPLE API, ORCHESTRATION, CARRIERS

What Is twilio Selling?

ReliabilityScalability

API

Simple, Powerful API Only Five Building Blocks.

Scales Automatically10 or 10,000 Simultaneous Calls.

Pay-As-You-Go Pricing No upfront, no commitment. Pay only for what you use.

Simple, Powerful API Only Five Building Blocks.

Scales Automatically10 or 10,000 Simultaneous Calls.

Pay-As-You-Go Pricing No upfront, no commitment. Pay only for what you use.

Simplifying TelecomSimple • Powerful • Pay-As-You-Go

Jeff LawsonCo-Founder & CEO

twitter: @twiliojeff@twilio.com

http://www.twilio.com