2015 Sales Kick-off Interoute for EntrepreneursSACHA VEKEMAN

Agenda:1995 – 2015 – 2035

1995 Windows 95 Microsoft Online Launch of Amazon Selling Ping Access PSINet near IPO

2015 Move to Dubai. IPO 2020 Trust collapse in Tech Giants Amazon goes after Hollywood Tech News Today: Shazam valued $1bn Interoute

2035How to get to 2035. Let’s talk about Risk taking versus safety nets Free markets versus regulations Startups versus incumbents Technology versus services

“I come with ideas, questions and capital!”

What to expect in 2015?

We have reached the third billion!

Internet World Stats www.internetworldstats.com/stats.htmInternet Live Stats www.internetlivestats/internet-users/

Three billion users are online. The first billion was reached in 2005. The second billion in 2010. 40% of the world population is online.

PenetrationAsia: 34.7%EU: 70.5%USA: 87.7%

---

Online

What to expect in 2018?

Public Cloud Spending Will Reach $127bn

IDC forecasted the public cloud spending has reached $56.6bn in 2014 and grows to more than $127bn in 2018.

5-Year CAGR of 22.8%

This will account for more than half of WW software, server & storage spending

Cloud

What are the drivers?

More Services, Services and Services!

Value creation on top of the cloud is working:

70% of spending in Software-as-a-Service, high demand for more applications.Followed by Infrastructure-as-a-Service, boosted by Cloud Storage at 31% CAGR.

High need for Big Data driven solutions.

Application workloads are in the cloud

SaaS

What to expect from Tech

Wearable Devices Humans wearing sensors

Smart Homes Your house full of sensors

Connected Cars Humans wearing sensors

Home Entertainment 4k TV more storage

Drones & Robots Connected online

One Theme at CES: Internet of Things!

Keynote speech by CEO of Samsung at CES was a pontification of the catchphrase “Internet of Things”But “In 2017, an astronomic 90% of Samsung devices will be connected, knowing it sold 665,000,000 devices last year”

What to expect in 2020?

212bn devices will be connected!

Internet World Stats www.internetworldstats.com/stats.htmInternet Live Stats www.internetlivestats/internet-users/

Market size estimate of $8.9 trillion

IoT

IoT Revenue Opportunity - Worldwide

IDC, Internet of Things Spending Guide by Vertical Market, 2014

Transportation Utilities Government Other

$92 B $472 B $160 B $132 B $156 B $100 B $301 B $877 B

Transportation Utilities Government Other

$154 B $913 B $326 B $313 B $325 B $201 B $570 B $1.79 T

$4.59T

$2.29T

Bringing it togetherIoT and Big Data

Things Connectivity

Data Analytics

Connected world solutions combine

sensors and technologies to enable

objects and infrastructure to interact

with monitoring, analytics and control

systems over Internet-style networks.

Source: Forrester

.

.

.

Connecting The Real(-Time) Economy

Business LevelBig Data

Consumer LevelIoT & Web & Mobile

Datacenters, Cloud, Storage, Software, Processes, Workloads, etc.

IoT: sensors, wearables, IoT platformsSocial & Search: tracking online giants

Sales

TrendsInfrastructure

? We love technology, but will it pay our bills?

It’s BigSo many devices and so much data…

It’s NoisySo many opinions…

It’s ConfusingSo many possible decisions…

Should we wait?

How (where)do we getstarted?

Who can really help us?

Do we need to start over?

What technology do

we need?

.

.

.

So, where do we start now?With Sales of course!

Business LevelBig Data

Consumer LevelIoT & Web & Mobile

Datacenters, Cloud, Storage, Software, Processes, Workloads, etc.

IoT: sensors, wearables, IoT platformsSocial & Search: tracking big players

Innovation LevelEntrepreneurshipWork Strategic: Investing, giant opportunityBe Operational: Pro-active in business development

Sales

TrendsInfrastructure

Where to sell?

But, Sales deals with Realities:What are the Big Data Realities#1 How real is the level of Integration with IoT: Example, although SaaS is hot, how many real Application workloads are in the Cloud“Most people are perfectly happy with their application running on their server in the company”

And what about the desktops? How many run in your cloud?

What other Big Data Realities#1 Level of Integration with IoT: Example, although SaaS is hot, how many real Application workloads are in the Cloud“Most people are perfectly happy with their application running on their server in the company”

#2 Price Reduction & StandardizationThe price of Cloud and Storage is coming down. Seriously down.“Create a long-term partnership with your customer by explaining you’ll be helping him over time”$35 per TB month…. We can currently produce at $2 to $3 per TB per month!

Where are Big Data Opportunities?#3 Find Your Industries and its disruptors- Utilities Smart metering and distribution- Insurance Behavior tracking and biometrics for auto and life product lines- Capital Goods Factory automation, autonomous mining- Agriculture Yield improvement- Pharma Clinical trial monitoring- Healthcare Leveraging of human capital and clinical trials- Medtech Patient monitoring- Automotive Autonomous driving, connected cars- Transport Smarter logistics- Consumer Wearables, extending brands’ digital ecosystems

And many more- Retail Improved supply chain management and smart marketing- Leisure improving customer satisfaction and cost control- …

What about the ecosystem?

Sales Start with Realities:What are the IoT Realities#1 Difficult business models – No upfront money is being made with “Smart… something”“Most people are perfectly happy with the familiar analogue interface. You don’t need an App or a Logarithm to switch off the light.”

Consider #1: Although prices decline and standardization continues of componentse.g. Bluetooth chips at <$1e.g. Processor chips at <$2e.g. Gyroscopes & accelerometers at <$1But, when you need a multiple of 200Bn of these???

Consider #2: Previous wave of computing (Web 2.0: social/local/mobile – SoLoMo)e.g. Foursquare, Google, Facebook, etc.e.g. Uber, AirBnB,

What other IoT Realities?#1 Difficult business models – No upfront money is being made with “Smart… something”“Most people are perfectly happy with the familiar analogue interface. You don’t need an App to switch off the light.”

#2 Sustainability of IoT is with companies that can translate the connectivity into an “Ongoing Service.”“Costs of servicing, replenishing or replacing can be rolled into a regular subscription payment”

This is where you make the difference:Creating the IoT / Big Data Ecosystem#1 Difficult business models – No upfront money is being made with “Smart… something”“Most people are perfectly happy with the familiar analogue interface. You don’t need an App to switch off the light.”

#2 Sustainability of IoT is with companies that can translate the connectivity into an “Ongoing Service.”“Costs of servicing, replenishing or replacing can be rolled into a regular subscription payment”

#3 Long-term, using data collected through a pervasive network of gadgets to make the world better“So, technology will fade away from viewing (e.g. Apps, web interfaces). It’ll become invisible once it understands the user’s preferences”

Infrastructure and the value chain of the IoT industry still needs to be assembled. We are far off the returns from the IoT to happen!!!

It is your job to create the unique Ecosystem to help you sell

IoT and Big Data Ecosystems are invented as we speak. Sales processes are:

So, what to look for? Big businesses are created at the boundaries and edges of the market

Find disruptors, innovators and entrepreneurs that help you design the ecosystem, while they push the edges of the economy and the markets.

Success in our world (Digital, Internet, Connectivity) is being driven by people that are willing to work at the edge

of the economy in order to hack the system:

• E.g. taxi-industry• E.g. hotel-industry

But, don’t start hacking yourself… The trick is to find others to break the boundaries for you! Become their trusted partner.

Examples: Who’s at the edge today?

Let’s break the Hotel monopoly to offer better/alternative hospitality

Let’s break the Taxi monopoly to offer better/alternative transportation

Brian Chesky Travis Kalanick

Who did break the boundaries: Learn from Web 1.0 and 2.0 Successes

PAYPAL “Survived over Money Laundry” Russian Mob Money Transfers

GOOGLE “We don’t care about Copyright” F*** Copyright laws, but we do no evil.

YOUPORN “No more Paid Content” Wasn’t porn the money maker on the Internet?

EBAY “Let’s pay no VAT” a perfect platform to sell anything without paying any taxes.

SKYPE “Founders had built Kazaa first” let’s share music breaking all copyright laws.

SPOTIFY “Ownership of Music” What about the investment in your iTunes library?

FACEBOOK “Do we really care about your Privacy?” Is it a stolen the idea?

Companies that didn’t make it in the first wave. Ask yourself why? They didn’t execute at the boundaries of the markets: Yahoo, PSINet, AltaVista, AOL, etc.

What about Interoute?

How is Interoute Breaking the Boundaries? Discuss this with your peers?How can you work as an Entrepreneur at Interoute?

Ask yourself following question each day when talking to:- your customers- new prospects- your colleagues- your management- your board of directors- potential investors of your customers

Help your prospects and customers to break boundaries and create new ecosystems. Use your company (=your asset) for that.

How to think like an Entrepreneur?

“How can I bring new business “into” Interoute? Am I able to earn enough money on top of the Interoute infrastructure and company operation?”

But also, how do I benefit?

Bar discussion tonight:World Economic Forum at Davos:

“More and more people work from virtual platforms instead at companies”

• Work is auctioned to contractors• Salaries in Central Europe stagnate• Deflation has hit us, will QE help• Returns on capital, rise. A fact!

So, how can you be successful?

How to get started? Hacking Success!

The Theory of Success

Success = Some Talent + Luck

Great Success = Some Talent + A Lot of LuckConclusion: With this Theoretical law You Know Nothing! What about you?

Danny Kahnemans lawNobel price winner 2002

How to get started? Hacking Success!

The Practical Approach to Success

Great Success =

Some Talent + A Lot of Luck + Lance-Factor

Great Success =

Some Talent + A Lot of Luck + Lance-Factor

The Lance-Factor is the only thing that counts!

Break the rules = Doping in cycling

Willpower = Train more than others

Focus = do one thing, Tour the France

Overcome defeat = Learn from mistakesYou+ Kiss Frogs

(many)

+

Great Success =

Some Talent + A Lot of Luck + Lance-Factor

I wish you Great Success!

+ +Avoid Stress:‘It makes you Dumb”Do more sports!

Train Willpower, it’s a muscle:Routines of new meetingsRoutines of prospectionRoutines of re-visitsSay no, many times.

Climb up with a high ambition:“But take many, many recoveries from- Mistakes (don’t take doping)- No’s (learn from defeat)- Changes (evolution)

What do I do?Invest in Growth.I help Corporates, Governments and Individuals to setup Investment Funds for Innovation, Technology and the Development of New Digital Entrepreneurs.

I invest as a business angel and collaborate with VC funds in various tech startups. I support them with international business development and technology marketing.

In 2015 I moved to Dubai.

Conclusion Take-Aways:1. Get actual on the state of technology and economy, its

realities and how to take advantage.

2. Don’t be naïve, the winner takes it all: look for people that commit to break boundaries (for you).

3. Stay focused, but be patient. There is one certainty: it’ll be seriously big and change is constant.

Thank youSACHA@VEKEMAN.NET

@SVEKEMAN