TELEPHONY… THE GIFT THAT KEEPS ON GIVING

● Large market (trillions)

● Dominated by former monopolists

● Resistant to change

● High cost (gouge users)

● More lawyers than designers

● Little product innovation

A LUCKY OBSERVER FOR 15 YEARS

1999 Investor in Dialpad.com

2001 Dialpad

2005 Yahoo! Voice

2006 GrandCentral

2007 Google Voice

2012 UberConference

2014 Switch.co

1996 - THE START OF VOIP

● 33.6kbps modems

● 20% USA online

● Nasdaq booming

● Technology: No SIP / H323 / G.723

● Quality: poor

● Key features: low cost international

STATE OF THE UNION

1999 - OPEN SOURCE

Open source PBX that started a revolution...

● PBX is expensive

● PBX is complex

● PBX is proprietary

2000 - IMPROVEMENTS

● 56kbps modems

● 46% USA online

● Nasdaq hits all time high

● Technology: PC-to-phone, split H323, G.723

● Quality: Poor to OK

● Key features: ease of use, low cost

STATE OF THE UNION STATE OF VoIP

2001 - THE BUBBLE BURSTS

“Internet telephony was a good idea...while it lasted.”

2001 - DIALPAD NEARLY DIES

2003 - QUALITY IMPROVES

STATE OF THE UNION STATE OF VoIP

● Technology: Proprietary P2P, High Bandwidth Codec, GIPS voice engine

● Key features: ease of use, low cost, GREAT quality

● Broadband penetration = 40%

● 63% of USA online

2005 - YAHOO! VOICE

2006 - GRANDCENTRAL

● Technology: Open source SoftSwitch (YATE) SIP

● Customer Value: Great designGreat featuresLow Cost (FREE)

● Quality: GOOD

2007 - GOOGLE VOICE

2009 - API BASED COMMS STARTS

2011 - WEBRTC

WebRTC

2012 - UBERCONFERENCE

No PINs

See Who’s on the Call, Talking

Social Caller ID

Web Call Controls

Screen/Doc Sharing

2014 - SWITCH.CO

Cloud-based Unified Comms

Mobile Centric

Google Apps Focused

DICK TRACY (1931)

APPLE iWATCH (2014)

THE JETSONS (1962)

THE JETSONS (1962)SKYPE VIDEO CALL (2011)

BLADE RUNNER (1982)

FACETIME (2010)

FACETIME (2010)THE JETSONS (1962)

FLIPBOARD (2012)

BACK TO THE FUTURE (1989)

UBER CONFERENCE (2013)

QTR 0 QTR 4 QTR 80

50

100*

*in millions

UNITS SOLD POST LAUNCH

IPHONE IPODIPAD

QTR 6QTR 2

INSANE TABLET GROWTH

2010 2012 20140

1600

3000*

*in millions PC MOBILE

2009 2011 2013 2015

DEVICE UNITS SOLD

MORE PHONES THAN PCS

TRADITIONAL VOICE ON DECLINE

● 55% Drop in Landline phones in NY state over last decade

● Mobile MOU dropped 10% YOY 2010 - 2011

● Office desk phone use dropping as BYOD grows

VOICE REMAINS KEY

HARDWARE - SOFTWARE - APIS

1995 2000 2005 2010 2015

SOFTWARE REQUIRES BOTH SKILLS

GREATTELEPHANYPRODUCT

GREAT WEBPRODUCT

DESIGN AND USABILITY MATTER

Avaya PBX Configuration Switch.co Configuration

DESIGN AND USABILITY MATTER

VSVS