Kachingle Overview August 2013

9/18/2013 | copyright 2013 | all rights reserved | Cynthia Typaldos – CEO | [email protected] 1

Bundling & Billing

Platform for Applications

August 17, 2013

Updated September 18, 2013

mailto:[email protected]

http://www.kachingle.com/


Macro Trends in Software Solutions

• Producers: monolithic single-vendor heterogeneous multi-vendor

• # of apps: a few many, even thousands of apps

• Development cycle: slow, synchronous agile development of new

capabilities, asynchronous replacement of functionality from a huge variety

of producers

• Payment: one time license fee + annual support cloud subscription |

one vendor thousands of vendors

• Purchaser: IT end user/department

• Management: IT end user/department

• Control: Vendor IT end user/department

• Enhancements: monolithic vendor multi-vendors, even users!

Solutions must comprise of the best apps from anywhere…

flexibly available in real-time, configured by end-users.

But the current business models do not support this.




Current App Business Model Problems

• No easy licensing for creating solutions of many apps from

multiple sources (current system requires lawyers!)

• No logical payment system for fairly allocating subscription

revenue to the apps the comprise a complete solution, and

no efficient financial distribution mechanism

• No easy way for users to experiment with apps, and even

configure-their-own solutions

• Apps now fighting each other for users’ mindshare –

causing desperation moves into unprofitable marketing

oriented business models such as freemium

• App stores no solution – discoverability an issue –

customers want total solutions

• Penny gap, churn, causing vendors to be unprofitable –

even the SaaS poster children (e.g. Salesforce, Marketo)




Every platform needs a business model




Elements of a Business Model Solution

• Customer-focus rather than vendor-focus (e.g. like AMZN)

• Customizable, flexible bundling to offer complete solutions

• One-click licensing + usage-based payments to vendors

• Bundling across clouds, devices, component types

• Customer dashboard

• Easy replacement of components

in a bundle by bundler and/or customer

e.g. MRI Solution

o radiologist builds a playlist/config files

o social sharing for discovery of best apps/bundles

• Micropayments – to build solutions with thousands of apps;

best apps can be “timeshared”; small teams can be successful

• Vendors reduce churn and can focus on app functionality rather

than on monetization schemes

• Easy API integration




Kachingle – Our Solution for a App Business Model

Bundling Combined with Flat-rate Subscriptions build complete, flexible, heterogeneous solutions.

get customers over the penny gap and reduce dependency on freemium

co-market to share acquisition costs

one-stop shopping

easy app discovery

Usage-based revenue sharing fair to app vendors and subscribers

hands-free

increases market opportunity

Micropayments subscribers – can afford all the apps they need

small subscribers – start with right apps & increase usage as they grow

app vendors – pricing by value received increases market size for large vendors

app vendors of all sizes can more easily make revenue

Bundling & Billing Platform for Apps/IoT




Kachingle App Bundling – 21st Century’s solution

20th Century bundling – think cable TV

• Fixed predefined packages

• Vendors & Subscribers have limited choice

• Pre-negotiated revenue sharing

Bundling works… but how

can it be applied to Apps?

21st Century Virtual Bundling – invented by Kachingle

• Subscribers build and manage their own flexible, changeable, dynamic bundles

• Virtual Partnering – App vendors select their partners

• Usage-based automatic revenue sharing

• Flat-rate has universal appeal to Subscribers




KP Diagram

App Bundling Network Effect Social Media Virality Micropayment Engine

How Subscribers Benefit

Build-Your-Own-Bundle Flexible, Dynamic, Changeable

One-stop Shopping Flat-rate Subscription Fee App Discovery Social Media Friendly Complete Solutions Frictionless App Access

How App Vendors

Benefit

All Users Pay Something Larger Subscriber Base Recurring Revenue Subscriber Evangelism Virtual Partnering Easy API Integration

Application Vendors App Vendors




Revenue Split of each Subscriber’s Fee

Revenue Shared Among App Vendors

in the Bundle Based on Usage Algorithms

Payment

Processing

Kachingle

Marketing

Partner or Marketplace (optional fee)




LIVE DEMOS (examples, only our demo apps are actually integrated, no partnerships with app vendors exist)

GE

MRI

BUNDLE

PIVOTAL

TRACKER

BUNDLES




MRI BUNDLE

(examples, only our demo apps are actually integrated, no partnerships with app vendors exist)




LIVE DEMO





LIVE DEMO

Two active users,

one past user





LIVE DEMO

This is our demo app, it is fully working and integrated)




LIVE DEMO

Vendor

Payout

Page




• Live Demo http://pivotal.kachingle.net/subscriber.php

• create new users (Subscriber accounts) – as many as you want!

• login as an existing Subscriber

email: [email protected] | password: radiology



• login as existing App Vendor (note: all Apps are in this demo account, in real life each vendor would have their own)


…then go to “My Medallions”

• login as Bundle Admin

email: [email protected] | password: ask for this

…click on top admin tab, then use the special admin password = ask for this

• Developer site developers.kachingle.com | developers.pivotal.kachingle.net

Simple APIs for app/app integration – Web & PC done, mobile soon

• Monthly App Freemium/Monetization Meetup (started in April 2012)

http://www.meetup.com/Freemium/

Kachingle – Demo Access | Other Info




http://pivotal.kachingle.net/subscriber.php







http://developers.kachingle.com/

http://developers.pivotal.kachingle.net/




Selected Slides from the Working Demo of Pivotal Tracker

We have also built a working demo of the Pivotal

Tracker ecosystem as a bundled offering.

A few slides from this demo follow.

A complete slide set of the demo is available, and of

course we can also do a live demo.

Pivotal Tracker itself and its ecosystem apps are not

integrated in our demo, but we have demo apps that

are integrated.





Pivotal Tracker Bundle Marketplace Demo

Home page for the live working demo built for Pivotal Tracker

Bundles with Pivotal Tracker, bundles of apps by category, mix and match, even

very low priced apps can be bundled (and free & freemium can be avoided).

Kachingle would be white-labeled or TBD




Pivotal Tracker Apps can also feature bundles

This is very simple example, APIs are available to include

bundle name, price, apps in the bundle, logos, etc. The

working demo app Design & Photo Editor shows this.




In this demo we show a startup

called ShopList that is

developing a “Shopping List

SaaS App”.

ShopList is a potential

customer of Pivotal Tracker.

ShopList determines that they want to use Pivotal Tracker

for their project management. Then they discover that they can not

only buy Pivotal Tracker by itself, but also buy bundles of apps that

work with Pivotal Tracker.

The slides that follow show their discovery process of the entire Pivotal

Tracker ecosystem and their purchases of and management of bundle

subscriptions.




http://pivotal.kachingle.net/subscriber.php



Potential Subscriber ShopList explores the Tracker Startup Bundle.

ShopList is a startup that is developing the world’s best app for integration into other SaaS apps that have

shopping carts and need the ability for their customers to create a shopping list – a “Shopping List SaaS

App”

Note that this page can be white-labeled.






Potential Subscriber ShopList explores the Tracker Startup Bundle.

ShopList finds a set of Pivotal Tracker Apps for a startup! Only $100/mo!





ShopList

learns more

about the

Tracker

Startup

Bundle





ShopList

decides to sign

up for a monthly

subscription to

the Tracker

Startup Bundle.





Subscriber ShopList subscribes to the Tracker Startup

Bundle.





Subscriber

ShopList

Subscription

page.

Now it’s time

to choose

which apps

in the bundle

to turn on

and try out

(they can

always be

swapped out

for others).





Subscriber

ShopList

knows they

want to use

Pivotal

Tracker!

So they turn

it on by

clicking on

the “Start

kachingling”

link. They

can also

Stop.





In the next few slides Subscriber ShopList checks

out SnapABug Business App and learns more about

it, plus which other Subscribers are using it, and how

popular it is based on actual usage!

Subscriber ShopList decides SnapABug Business

App is a good app to experiment with and adds it to

their bundle.

Subscriber ShopList explores other apps in the

same way.





Subscriber ShopList

sees that Subscriber

“Vintage” is a regular,

recent user of

SnapABug Business.

Vintage is a well-

respected developer in

the shopping apps

space so this is a

strong endorsement!

Additionally, lots of

other app developers

are actively using this

app. That’s a positive

sign.





Note that apps (and bundles) are automatically

ranked by various factors – actual daily (or other)

usage, number of subscribers actively or historically

using the app, payments received.

These rankings are further refined by: • app category

• timeframe – all-time and rolling 30-day views which we call

“leaderboards”

These rankings remove the need for hand curation.

The market, in real-time, decides which apps are the

most valuable based on actual usage (or revenue, or

a combination). (examples, only our demo apps are actually integrated, no partnerships with app vendors exist)




Subscriber ShopList

subscription page with

selected apps turned on.

More points are needed

to use for the rest of the

apps, or some of the

currently active apps

need to be turned off.

But for right now, this

is perfect.

Note that we can also

manage licensed

software although we

don’t show this here.

Mobile app management

is in development.





Time passes.

The ShopList launch of

their “Shopping List SaaS

App” is successful and the

company adds more

developers to the team.

They now need

SnapABug Enterprise

instead of SnapABug

Business.

Time to revisit their My

Subscriptions page.





Subscriber ShopList

sees that if they turn off

SnapABug Business that

releases 30 points, and

SnapABug Enterprise

requires 31 more points.

“Hmmm…where can we

find 1 point? We can

buy more points or…

actually we aren’t using

StoryMapper anymore!

It was important earlier

but our needs have

changed. Let’s turn that

one off.”

(note – Apps only make money

if turned on AND used, although

there are admin mechanisms to

modify this rule.)





Subscriber ShopList turns off SnapABug Business and StoryMapper, and then

turns on SnapABug Enterprise.




SWITCHING TO THE APP

VENDOR VIEW

App vendors also sign up for

accounts.

This app vendor is named

“App Vendor.”

This vendor has a lot of apps

because we put all of them in a single

account. Each app vendor would

manage only their own apps in reality.





APP VENDOR VIEW

Management/Marketing

page for an App.

Also links to the

integration

documentation.





APP VENDOR VIEW: Accounting page





APP VENDOR

VIEW

“Crowdsourced

Auditing” proves

to the app

vendors that they

are getting all of

their deserved

revenue. Also

gives them a

window into who

their subscribers

are and their

usage.





Demo App where engineers can pull back the curtain on Kachingle’s simple APIs (Note button in upper right that would return you to the “Normal Version” from this Developer’s Version)

This view shows the APIs recognize the user, but that they are not subscribed to any

bundle containing this app, so the premium features are not available.




In the Developer view, API calls are underlined. Mousing over them reveals the code.




SOFTWARE KEY SLIDE




APP VENDOR VIEW

Management/Marketing

page for an App.

Also links to the

integration

documentation.





Kachingle Enterprise Edition




Kachingle Enterprise Edition Administration Functions

• Company Admin is sole account

manager for enterprise bundles • End-users can not subscribe individually

• Admin can purchase additional points for

the account

• Admin assigns points to end-users

• Admin assigns app access to end-users

• Admin can receive app and bundle

requests from end-users




Kachingle Enterprise Edition Admin Functions: End-user Assignment

• Admin selects bundle for user(s)

• Admin subscribes user via email invitation

• Email to user contains authentication URL • Terms of Use page optional

• After authentication end-user has single sign-

on capability • End-users can not unsubscribe

• No transaction information is displayed to end-

users




Admin can manage own

subscriptions Users authorized

to use this bundle

Add user

with email

validation

Invited user not

yet authenticated

Add/Delete users

from apps

Kachingle Enterprise Edition: Admin Control Panel

Indicates

number of seats

available to

assign

This page displays key account information and allows the admin to activate/deactivate users for each app in a bundle.




Active users can be

unsubscribed from app

Inactive users can

be subscribed to app

Kachingle Enterprise Edition: Admin App Management

Clicking on the Manage button allows the admin to activate and deactivate users of a respective app.




Kachingle Enterprise Edition: End-user Subscription Control Panel

User can stop using app

but can not unsubscribe

If subscribed by Admin to

this app, user can turn it on

Options include sending Admin

a request to use this app

This page allows an end-user to turn apps on and off and also to request access to an app in the bundle.




Kachingle Admin Tool




The following slides show the Kachingle Admin Tool, which has limited functionality

in the Demo environment, but will allow you to explore how bundling is managed.

To reach the Admin Tool within pivotal.kachingle.net…

1) login as admin account xxxxxxxx ask Cynthia for access

- password: pivotal

As an admin, you’ll see a black navigation bar across the top of the site…

2) Click “Admin,” and use the password 9999999 to gain access

3) Click the “Bundles” tab, to find the Pivotal bundles

Note: When logged into the Kachingle front

end as an Admin, some areas behave

differently — e.g., in the Bundles tab every

bundle is visible, whereas regular users see

only activated bundles.

Note: the Admin tool is, for the most, part

just a raw-data view at this point.

Admin view of public Bundles page User view of public Bundles page




The bundles created for the Pivotal demo are highlighted below

Click the ID# to view and manage the Bundle Record




Adding a Bundle

-Description appears on Bundle Profile and in

marketplace, along with customized HTML pivotal.kachingle.net/premium.php?bundle=21

- Root location of customized HTML

pages shown elsewhere

- virtual money =1, real money = 0

* * Actually price per duration (doesn’t have to be a month, of course)

- Once an App is on, how long until it can be turned off (default)

- Do we count every visit to an App, or every day it’s used, or every

hour, etc. (bundle default)




- Root location of customized HTML pages shown in Slide 17 & elsewhere

- Price of the bundle (per week/month/quarter/year, etc.)

- Does the bundle have a limited number of points or not

- Bundles can be paid weekly, monthly quarterly, annually, etc.

- Demo bundle or real-money bundle

- How many points are in the bundle if point-based (roll_your_own)

- Once an App is turned on, how long before it can be turned off

- Is every visit to the app counted, or every day it’s used, or every hour, etc.

Bundle Record

(top of page)

Edit this Bundle (like Add Bundle, but

with a few limits)




Bundle Record

(bottom of page)

Adding an App (see next slide)




Adding an App

to a Bundle

(Here an App is called

“Medallion,” the name

of our our API widget)

Set how much each use/visit is worth,

how often usage is counted, and once

turned on, when an app can be turned off

Points this App requires within this bundle

Fixed/Percent Cut:

Flat $ or % amount from each payment

Pre/Post-Weighted Average Cuts

App receives a cut based on usage

averages across all Apps in bundle

(This can be complicated — we’re happy to

answer any questions!)

Flexibility:

e.g., custom

cut of $$ for

“anchor” apps

$ or % of cut if “fixed” or “percent”




Kachingle Architecture

Logic

Layer




Backup Slides




Kachingle Product Team

Frank Spies: Co-founder, CTO, product definition, software developer (has written 91% of our

70K lines of code) | BS & MS, Computer Science, University of Saarbruecken, Germany.

Previous: Architect/Developer NVIDIA, Founder/CTO - 2 internet startups, Dev Eng Sun

Cynthia Typaldos: Co-founder, CEO, product definition, marketing, business development,

management. | BS, Chemistry, UC Berkeley; MS (nearly complete), Computer Science, UC

Berkeley; MBA, MIT.

Previous: Founder/CEO/COO - 2 internet startups, Dir SW Prod Mgmt/Mktng Sun, SW Eng Bank

of America, Instructor UC Berkeley Extension

Frederic Ranft: designer + UI/UX, html/css, javascript | Diplom, Bergische Universität

Wuppertal (now Folkwang – Hochschule der Künste), Germany, specializing in information

architecture & interface design

Rob Blackwelder: QA, project management, support, site operations | AA, Journalism, Contra

Costa College, Richmond, CA.

Previous: Support Xoom.com & Wine.com

Kachingle Board of Directors: Jens Horstmann, Karen Barnes, Matt Perez, Cynthia Typaldos




Kachingle: Our Story

Our Story - Why we entered the app space (after spending 3 years in the consumer content space)

Approached

by desperate

freemium

vendors

Conversion

rates terrible

Micro-

payment

engine their

salvation?




Penny Gap – the assumption & the reality

Diagram by Josh Kopelman



http://redeye.firstround.com/2007/03/the_first_penny.html


IT administration

department employee administration

Macro Trends in Software

owned licenses

cloud subscriptions monolithic offerings lots of small targeted apps

IT buyers

department

employee

buyers




Elevator Pitch

Kachingle combines the three key technology inflection points occurring today in

software:

• monolithic apps giving way to inter-connected specialized mini- and micro-apps,

• licensed "shelfware" software replaced by cloud-based business process subscriptions,

• purchasing and management of these services now in the hands of the users rather than the IT department,

in a elegant easy-to-use platform that enables business users - from individuals to

departments to enterprises - to build and manage their own tailored, flexible

subscription-based app bundles maximizing their value from each app that they

actually use.

Kachingle's target customers are the "owners" of cloud/mobile/IoT software platforms,

ecosystems, and marketplaces, who can integrate Kachingle with their platform,

offerings, such that their business customers can easily assemble, subscribe, and

manage a plethora of apps and other related services across multiple public and

private clouds.

This ease-of-use drives adoption and revenue for both the owners of the platforms

and the app vendors.




Key points especially beneficial to Apps & Marketplaces

• Free & Freemium biz models can be avoided – many apps having trouble with

monetization – as part of a bundle they automatically get paid only when used

• Apps with very small monthly fees now possible – opens up a whole set of mini/micro

business/SaaS apps– Kachingle handles micropayments

• Manual curation by marketplaces has many problems:

o Doesn’t scale

o Needs constant review – not dynamic/real-time

o Puts Marketplace in awkward position of recommending some Apps over others

o Subject to complaints of favoritism

o The “invisible hand” of the market is a better measure of value

Kachingle builds real-time, category-specific, “leaderboards” based on actual, dynamic, real-

time usage by subscribers

• The “operating system for cloud infrastructure” needs a monetization system.

For example, iOS and Android from the start had built-in core payment mechanisms

for apps to generate revenue!



Kachingle Overview August 2013

Technology

Transcript of Kachingle Overview August 2013