Weaving

the so-ware cloudpaging fabric for Instant 3D HD Cloud Gaming

Website deck March, 2012

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Dr Yavuz Ahiska, CEO Approxy Osman Kent, CEO Numecent

Serial entrepreneurs in paradigm-shifted graphics technologies" " Co-founders of 3Dlabs The rst 3D graphics chip company ($1bn, NASDAQ:TDDDF)" " Osman Joined Numecent as Chairman in June 2010, and became the CEO in Jan 2011" " "

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The games industry is moving away from downloads to Instant Gaming

AdverJsing

Pixel streaming

VirtualizaJon Download Progressive download

Cloudpaging
The universal successor technology to streaming

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Downloading leads to a poor user experience and aborts

Game provider
High cost of failed/aborted downloads
As high as 40% failure for F2P games >5Gb Service providers pay >2/Gb

Downloadable content portal

Limited income models

Dicult to take advantage rental/subscrip;on

End-user
Poor user experience
> 4 hours to download 10GB game then wait for the installa;on then have to wait for updates and many chances for steps to go wrong

No instant demos PC decay No agility when moving computer

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and cloud rendered pixel streaming has bandwidth and scalability issues
on the server-side

Expensive Cloud Edge Servers

Requires running network of expensive Edge Server data centres; 1 GPU/user (GPU virtualiza;on not an op;on for demanding games) No way to provide GPUs for newest genera;on of MMO games with >1.5m concurrent users especially if it is FREE! Not economically feasible to upgrade server infrastructure every 2 years to keep up with Moore's Law HUGELY `CAPEX intensive to scale geographically as servers need to be co-located very near to users

to most end-users

Debilita;ng latency Resolu;on compromised by bandwidth

Demands 5Mbps for 720p, 10Mbps for 1080p, and 3D HD is not possible Mul;ple users in the same home cannot play Badly aected by network jilers

No oine gameplay Play on any device Exceeds ISP download caps - can consume >3Gb/hr Cannot support mo;on controllers or instruments such as Kinect

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We believe it is all about creaJng a careful balance between the cloud and client
A hybrid and hierarchical solu;on is needed for a great user experience

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Introducing Cloudpaging

Non-linear paging of sopware instruc;ons from the cloud with local pixel streaming

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Game engine

Textures

Sounds

Videos

Our soluJon is based on 3rd generaJon enterprise technology

Leaders in enterprise market We have the most mature product in the market Numecent invented applica;on virtualiza;on & cloudpaging Field-tested with enterprise for over a decade, e.g.
- Parsons has served >3 million AutoCADs (40Gb!) - 11 UK universi;es deliver sopware with Numecent technology

formerly Endeavors Technologies

Spin-out

Over 12 years and $50m of R&D Transforming Cloud Gaming

Stems from a US DARPA project Approxy has exclusive licenses in gaming and consumer appliances including set-top boxes, consoles, virtual consoles in anything from PCs to Smart TVs, and all local streaming (18 concurrent users)
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Approxy spun out to focus on the fastest growing digital delivery ver;cal

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Non-linear content needs Cloudpaging

Progressive download works for linear music and video
Poor performance for interac;ve games - Delay/jilers Inecient use of network Less op;ons to op;mize delivery Doesnt open use virtualiza;on

Cloudpaging is required for interacJve games

Approxy's cloudpaging is based on non-linear condi;onal delivery of virtualized content Best performance for interac;ve games Sophis;cated server controls to op;mise delivery Ecient use of network as it fetches minimum code necessary

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Approxys Instant-Play cloudpaging soluJon

1.

We cloudify any PC game into a virtualised package (No need for source code)

2. 3. 4.

Games so-ware instrucJon seamlessly cloudpaged on-demand Games run instantly WITHOUT any installaJon when only 5-10% is buered Licenses are tracked with sophisJcated Live DRM and protected with military grade 256- bit AES encrypJon at all Jmes Games are conJnuously updates as developers can push patches using their exisJng patchers

6.

Users can play games oine! Licensing policy or rental period dictates oine grace period

5. 7.
Games can be played with full peripheral support, including Kinect

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ParJals provide instant graJcaJon

User sees complete available porzolio of games as if in local library Cloud Portal pushes par;al copies of intelligently selected new games to en;ce users into truly instant demos
(5-10% of a game required for instant-play)

100+ games instantly playable

Cloud Service

Rest of selected par;al game cloudpaged on- demand 1 2 3 4

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Your Approxy service is immediately global as it uses exible low-cost Cloud services

Lowest-cost Cloud delivery solu;on

Our soluJon

Other soluJon

1 o-the-shelf low-cost server can serve 10,000 users

1 GPU per user, $$$ Servers need upgrading with Moores Law

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PredicJve cloudpaging gives performance and analyJcs

We sta;s;cally inferring the rela;onship between page-requests, and create a highly informa;ve predic;ve engine By predic;vely pushing pages, we increase network performance by dras;cally cut page faults The graph of inferred page rela;onships gives extremely detailed data on how users are progressing through games - e.g. where they are switching o, and where a game may s;ll have bugs

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 Legacy purchases can be re-delivered

Benets of virtualized form

Game barcode and license

Exis;ng game

Users can benet from your Cloud Gaming service on games they have purchased previously Approxys Cloud management determines which games in a users collec;on are available through your eCommerce store and re-delivers them just like iTunes Match applied to apps Portable user can play the game on any device No need to store fragile physical media Game is con;nuously updated

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Intellectual property
Approxys patents applica;ons
Adap;ve applica;on streaming in Cloud Gaming Applica;on Distribu;on Network (ADN)

Approxy has the right to use Numecents 18 founda;onal US patents

Cannot be in the business without infringing these Covers: - Applica;on virtualisa;on and packaging - Applica;on streaming/cloudpaging
Patent No.

6,453,334 7,451,196 7,062,567 6,918,113 6,959,320 7,043,524 7,096,253

7,577,751

Title Method And Apparatus To Allow Remotely Located Computer Programs And/Or Data To Be Accessed On A Local Computer In A Secure, Time-Limited Manner, With Persistent Caching Method And System For Execu;ng A Sopware Applica;on In A Virtual Environment Intelligent Network Streaming And Execu;on System For Conven;onally Coded Applica;ons Client Installa;on And Execu;on System For Streamed Applica;ons Client-Side Performance Op;miza;on System For Streamed Applica;ons Network Caching System For Streamed Applica;ons Method And Apparatus For Streaming Sopware Sopware Streaming System And Method

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Video links
Fixing cloud gaming
January 17, 2012 Approxy keynote talk at Cloud Gaming Europe 2012 Dura?on: 30min www.approxy.com/CGE

Virtual console

September 20, 2011 Cloud Gaming with Approxy Dura?on: 6min www.approxy.com/VCONSOLE

Phone server

Smart phones, tablets and TVs are becoming thicker every year (quad cores, GPUs etc); an iPad 2 has more horsepower than a netbook. A key strength of Approxy is that our sopware layer is thin. Just have a look at this demo where we stream FROM a phone www.approxy.com/PHONE

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Approxy will impact every connected games device on earth

Dr. Yavuz Ahiska, CEO

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