1. 1/18/2011

2. Who we talked to Potential buyers All Covered (interview with former director of IT for GSB) Stealth cloud startup Pulse Mkt research startup Greplin Xambala Zynga Potential Sellers Addepar Industry Experts VMWare Technology consultant to telecoms

3. Testing value proposition hypotheses: Lessons Learned HypothesisFindings Sell-side Service providers Additional marginal revenue at negligible cost (mostly additional customer service cost) TBD- requires further interviews Sell-side Enterprises Lower IT cost – spot market FS- unlikely sellers due to security concerns Telecom good target; want revenue from excess capacity, distributed compute Buy-sideReduced cloud compute infrastructure cost Not high priority for all (some do value, but tradeoffs important) Buy-sideIncreased procurement flexibility Somewhat interested; Amazon generally default. Looking for value-added services that simplify activities Most value for small- mid-sized

4. Major challenges  If seller is private cloud, potential security concerns  For startup buyers, Amazon = Trust  Latency concerns  High switching costs

5. Current thoughts on value prop Seller value proposition Revenue Qualified lead-gen Demand aggregator for public cloud; Turnkey solution for selling excess capacity Buyer value proposition Value-add services Easy buying: enable buyer to purchase the right product from the right provider Cost savings Breaking from vendor lock-in

6. Questions going forward  How do we get past Amazon as the default?  How viable is telecom as potential seller?  Validate buyer & seller value propositions  How do we access the buyers and sellers? What sort of sales structure and sales force does it require?  Who is the main buyer and what are his motivations?  Is buying guide/ matching service superior value proposition to marketplace?