The document discusses Agora, a company that provides tools to help customers optimize their cloud computing usage on platforms like AWS to reduce costs. It identifies the buy-side customer segments as enterprises with large and variable computing needs. The revenue model involves charging customers subscription fees based on usage tiers. It estimates the lifetime value and acquisition costs for entry-level and enterprise customers, and provides an initial income statement projection. Key risks include proving the value proposition and technology viability to customers.
The document discusses Agora, a company that provides tools to help customers optimize their cloud computing usage on platforms like AWS to reduce costs. It identifies the buy-side customer segments as enterprises with large and variable computing needs. The revenue model involves charging customers subscription fees based on usage tiers. It estimates the lifetime value and acquisition costs for entry-level and enterprise customers, and provides an initial income statement projection. Key risks include proving the value proposition and technology viability to customers.
The document discusses Agora, a company that provides tools to help customers optimize their cloud computing usage on platforms like AWS to reduce costs. It identifies the buy-side customer segments as enterprises with large and variable computing needs. The revenue model involves charging customers subscription fees based on usage tiers. It estimates the lifetime value and acquisition costs for entry-level and enterprise customers, and provides an initial income statement projection. Key risks include proving the value proposition and technology viability to customers.
High compute needs with high variability in usage Primarily large enterprise Companies engaged in image and video processing, conversion and rendering (e.g. digital media companies) Scientific data processing (e.g. biotech research companies) Financial modeling and analysis (e.g. hedge funds)
Sell-side (secondary- will follow if we are able to attract buyers): Cloud infrastructure service providers
Direct field sales force to enterprise customers Inside sales for entry level Integrators / consultants (e.g. Accenture)
Customer acquisition costs Demand creation + Field sales for enterprise, demand creation + inside sales for entry-level Revenue share with channel Development Costs Infrastructure costs will scale with # transactions (a function of # customers and frequency of transactions per customer per day), and staff level Support costs will scale with # transactions Legal costs filing patents, incorporations, etc Subscription charge to buyers Pricing table scales based on # of servers and # of seats, with tiers % fee to sellers from channel activities Derivative products
For enterprise segment, higher touch model with direct sales force API support for buyers developers / IT admin staff Live 24/7 customer support Online support forum Buy-side Reduced cloud compute infrastructure cost through capacity planning Better, easier way of finding the right compute to match their needs
Sell-side: Channel with low acquisition cost Better planning for demand variability
Develop a working prediction algorithm & build product Develop matching algorithm for compute & build portal Sign up keystone customers to test product Develop relationships with cloud compute vendors
Technology partners cloud vendors, management tools Payment processor Law Firm PR / Marketing Firm VC/Investor Physical AWS Brand efficiency in the cloud Intellectual property prediction algorithm Development resources UX and scalable distributed backend Inside & field sales force Biz dev (channel partners and technology partners) Support Financial angels and VCs. Amount TBD. Agora V5 Who we are today Tool set for managing cloud compute usage Service matching Capacity planning Usage monitoring & control Targeting ~30% savings for customer I believe that with the right optimization tool, you could save us $100k/ month on our AWS usage. Oren Teich, Heroku Key Risks Ability to prove value proposition Priority of problem for customer & ongoing need Test cases to show value creation Metrics for tracking success ROI calculation will be critical to sales process Highly dependant on hosting cost trends
Perceived alignment with customer objectives Driven largely by pricing structure
Competitive defensibility vs. AWS, RightScale, new entrants
Technology viability How much improvement are we able to make? Risks associated with taking control of planning Competitors Revenue Model Looked at: Traditional IT capacity planning (e.g. up.time, TeamQuest) Cloud monitoring tools (e.g. RightScale, CloudKick) Pricing Models varied: Some priced on server type, # of servers, device counts, sockets, chips, cores etc. Some licensed on meter usage and users count Most have bulk/volume discount (up to 40%) One charges additional 20% support fees on top of base price Pricing Matrix Enterprise Gold Silver Bronze Free Servers 1000+ 500 100 50 1 Users 10+ 5 2 1 1 Data Retention Unlimited 5 years 1 year 6 months 1 month Support 24/7/365, 15 minute response time Internal support contact 2 hour response time Phone Email, standard business hours Price/mo Upon Inquiry $2995 $995 $595 FREE Entry Level Customer $1,000 / mo 5% attrition rate month- to-month 20 month average lifetime $20,000 LTV