LinPrim is a startup company in Moscow, Russia. Key business - to produce a user friendly Linux server operating system

1. user friendly Linux server OS
INVESTMENT INFORMATION
Version 25.05.2012-2
Introduction
LinPrim is a project intended to create a user friendly Linux server operating system for small and medium LANs
(local area networks). Basing on existing Open-source programs LinPrim team will produce innovative software, that
allows any non-professional user to install and use Linux server operating system.
The Project is aimed at the international market of server operating systems.
LinPrim LLC is resident of SKOLKOVO investment fond and has secured a $133 seed investment from SKOLKOVO.
Market
Worldwide Linux server operating systems sales is estimated by IDC at $1,5-2 billion. Normal sales model in this
industry is selling support services subscriptions. Usually such a subscription consists of software updates, access to
documentation and restricted interaction with the software vendor.
Key products for major data centers are:
- Red Hat Linux
- Suse Linux (from Attachmate Group)
Niche products for smaller networks:
- Ubuntu Linux
- Debian Linux
Linux server operating systems have weak position in smaller companies. There are serious reasons behind this fact:
- Weak documenting: available documentation is not full and can suite only highly qualified Linux specialists.
Documentation usually only answers to ‘How’ question and not answers ‘Why’ and ‘What for’;
- Very high dependency from human factor: usually installation, configuration and maintenance are performed by
one and the same person. As soon as this person becomes unavailable the server operating system becomes
unable to change configuration and loses its scalability;
- Others.
The following table provides key market numbers.
Description Value Comments
LinPrim price acceptable for the market 300 USD. Basic support services
(revenue from one client) on the start
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2. user friendly Linux server OS
Description Value Comments
Projected Average LinPrim revenue from one customer 550 Supposing 30% of subscribers will
use full version
Total Computer Clouds users, worldwide, 2013 9 450 000 Equals Operating system instances
Growth rate, as of 2012 90%
Number of paid OS installations in public clouds, 2013. 1 368 000 Buying for the first time plus 5%
changing existing vendor.
Rational Technology
All Linux server operating systems available on the market need highly qualified system administrator and hence
are used mostly in large companies and data centers. LinPrim is a user friendly Linux server operating system, that
contains all the strong technological features of Linux. RLP (Rational Linux Programming) is a new approach to
implement OpenSource software development projects. This methodology (introduced by LinPrim team) contains
project management ideas and technical requirements.
Key RLP project management idea is to restrict project scope to available resources and time. In LinPrim case we
restrict:
- number of Linux scenarios (administrative tasks) which will have user friendly LinPrim interface;
- number of virtualization platforms on which LinPrim Linux OS will be deployed (we plan to start with Xen,
Virtuozzo).
RLP technical requirements are:
- Supported List of tested/recommended hardware (which is not a common practice in Linux world);
- One-click Install or using extended installation master;
- Roll-back function for accepted software settings (similar to «Undo» function in text editors);
- Applications have ‘switch off’/’full delete’ function;
- Software updates to be installed as one package (This requirement increases system stability and is a rare feature
for Linux);
- Documentation to be released simultaneously with software updates;
- others.
In order to satisfy the market needs LinPrim Project team will produce:
- LinPrim Linux OS (Operating System)
- LinPrim AM (Application Management System)
- LinPrim ASL (Associative Semantic Library)
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Project Team
CEO. Oleg Andreev, Russia has graduated from Moscow State University named by Lomonosov, has Ph.D. in
Computer Sciences. Oleg has eleven years experience in leading IT companies: Lucent Technologies and Oracle. His
commercial experience includes several years successful sales of software, international sales experience. Being
native Russian masters also English and German.
CTO. Igor Lezhnev, Ukraine - сertified AIX (Unix operating system from IBM) specialist, experienced Linux
administrator in Small and Medium enterprises. Author of key technical ideas of LinPrim project.
Key Project Methodologist. Albert Loroch, USA. His current activities are mostly connected with executive
education in bio-technologies. Being an author and co-developer of several educational programs Albert Loroch has
elaborated a methodology to train busy non-professionals in complicated disciplines. This methodology is a now a
cornerstone in «User friendly Linux server operating system» documenting.
Currently there are six persons working on the Project, there is an office of 31 sq. meters in Skolkovo.
First Financing Round
Basing on the available resources LinPrim will complete first ‘seed’ project stage in July 2012. By the end of July
LinPrim will have:
- agreement to protect the trade mark;
- general technical requirements;
- project plan for the product development;
- detailed market analysis;
- business-plan.
From September 2012 till August 2013 LinPrim will be developing the product. LinPrim plans to achieve the
following results by September 2013:
- LinPrim trade mark is registered in Russia, USA, UK;
- IP protection plan in place;
- Detailed technical requirements in place;
- A proved and predictable software development team in place;
- A plan to develop a full scope product version in place;
- Sales & Marketing plan in place;
- Sales start.
For this stage LinPrim needs financing in value of $300 000.
LinPrim plans to attract co-financing from Skolkovo fund in value of $700 000.
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Financing Stages
Stage Timing Financing needs Planned results Approximate
company
evaluation
First «seed» Till July 2012 $134K secured Ready to accept $ 1,5 Million
first investor
Second «early» September 2012 - $300K from the Restricted working $ 3 Million
August 2013 first investor; product;
$700K from Sales start
Skolkovo
Third September 2013 - $700K from the Sales achieve $8 $ 16 Million
«development» August 2014 second investor; Million/ year.
$700K from Break point
Skolkovo passed.
Fourth «exit September 2014 - not clear Sales achieve $26 $ 50 Million
ready» August 2016 Million/ year.
Ready for IPO.
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Sales
Technologically Linux operating systems could be installed in two environments: on hardwares servers and as an
instance in an Internet loud thus forming a virtual server.
Sales in Public Internet Clouds are the target market of LinPrim Project.
We can place LinPrim distributives on AWS (Amazon Web Services) - a major worldwide public Internet Cloud
having 50-65% of market share - basing on ISV (Independent Software Vendor) agreement. Several other public
Internet clouds have similar policies with regards to independent software vendors.
Now, in year 2012, we can state that LinPrim distributives could be placed as ISV on the ‘Community AMIs’ web
page in AWS and similarly on GoGrid cloud. This is a technical action, not requiring any sales effort. This placement
will allow any AWS customer who is choosing an operating system to choose LinPrim. We estimate the number of
AWS users choosing a commercial OS as approximately 760 000 in year 2013 when LinPrim goes to market. The
calculations below are based on LinPrim production plans and LinPrim preliminary Sales & Marketing Plan.
(USD) Sep-2012 - Sep-2013 - Sep-2014 - Sep-2015 -
Aug-2013 Aug-2014 Aug-2015 Aug-2016
LinPrim OPEX & CAPEX 672 635 926 261 1 193 142 2 000 000
Customer number 0 3 200 15 000 40 000
Average rev from one 0 300 550 650
customer
Revenue 0 960 000 8 250 000 26 000 000
Marketing Expenses 0 50 000 400 000 500 000
Profit 0 -16 261 6 656 858 23 500 000
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