The document provides an overview of how cloud computing has changed the venture capital and startup landscape. It discusses how the rise of cloud computing has dramatically reduced infrastructure and operating costs for startups, allowing them to innovate faster, experiment more, and scale more easily. This has led to an explosion in the number of startups and the emergence of micro venture capital firms. Examples are provided of startups like Instagram that were able to achieve massive growth with just a few engineers thanks to the cloud.
7. Which company…
…grew to 14 million users in just over a year
…reached 150 million photos & terabytes of data
…signed up 10 million users in 12 hours after launching an Android app
…with only 3 engineers?
11. Impact of Cloud on Venture Capital
Impact of Cloud on Startups
Netscape vs Instagram
12. “Amazon changed the VC industry. This is
mind boggling. That little online book
company. Not Google. Not Microsoft. Not
IBM, HP, Accenture, Cisco, Salesforce.com or
anybody else. Amazon. 100% of the credit.”
Mark Suster, serial entrepreneur
and MD at GRP Partners
13. 1995 & Before
Technology Startups require physical hardware and
proprietary software to build their business
Typical Series A Spent on… Innovation
• $2.5: marketing, • Not a lot, because
sales, etc.
5-10M • $2.5M on
experimentation is
costly
infrastructure
1995
1996
1997
1998
1999
2000
2001
2002
2003
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2010
2011
14. 2000: Rise of Open Source
Open source software drove technology costs down by 90%,
which spurred innovation in technology
Typical Series A Spent on… Innovation
• Less on technology • A lot more, as
3-5M • More on team, product
development, etc
experimentation is
now less costly
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1996
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15. 2005: Enter the Cloud
Public Cloud led by Amazon drove total operating
costs down by 90%
Typical Series A Spent on… Innovation
500K-
• Staff – the battle for • Explosion in
talent experimentation,
innovation, and
3M • Customer Acquisition
Startups
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1996
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16. 2007: Micro VC / Seed
Public Cloud led to explosion in the number of Startups
and the emerging of “micro VCs”
Angels Incubators VC’s
Angels unite in ‘Super Boom in incubator GP-LP structured
Angels’ for Seed programs, with micro funds to back early-
investments thru VC- investments, stage startups with
like setup mentoring, etc. $500k
E.g. Manu Kumar (K9), Ram Shriram E.g. TechStars, YC, The Morpheus, E.g. True Ventures, First Round
(Sherpalo) Startmate, Innovation Works Capital, Matrix Partners India
1995
1996
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2011
17. “Amazon has kind of transformed our ability
to not just do hundreds or thousands, but
hundred thousands of startups.”
Steve Blank, author of “The Four
Steps to Epiphany”
20. Experiment More & Develop Faster
Launch your infrastructure in a few clicks so you can Reduce
Time to Market
Pay only what for you use, with no commitment and lock in, so you
can Experiment More at Lower Costs
Leverage community support, SDK’s, libraries, and more to
achieve Shorter Development Cycles
21.
22. Full
Elas.city
for
Maximum
Scalability
Scale up to 1000s of servers in minutes
Fully automate the process of scaling up & down
Store billions of objects
Globally distribute petabytes of data
23.
24. Reduce
Costs
&
Grow
revenue
Pay only what for you use, with no commitment and lock in, so
No Up-Front Capital Expense
Leveraging our large scale, we have reduced our prices 19 times
in the last years, leading to Low Costs
AWS removes undifferentiated heavy lifting – allowing you to focus
70:30
on your business and Generate Revenue
25. Economic impact of Elastic Cloud
Infrastructure
Cost $
Unable to serve
customers
Predicted
Demand
Traditional
Opportunity Cost – Hardware
Capital locked up in Actual
idle resources Demand
Elasticity &
Autoscaling
Time
28. • Pay for what you use = saving money
• Most traffic happens in the afternoons
and evenings, so they reduce the
number of instances at night by 40%.
• At peak traffic $52 an hour is spent
on EC2 and at night, during off peak,
the spend is as little as $15 an hour.
The difference is an amazing 71%
29.
30. The Start – Development, Innovation, Iteration
• Manually Install Software on each • Deploy Globally with a Click
server • Scale Out Instantly
• Costly and Lengthy to Fail
• Not Invented Here
• Build Data Centres
• Scale out Slowly
31. And then…scaling up and scaling out
• Build Data Centres • Deploy Globally with a Click
• Scale out Slowly • Scale Out Instantly
• Unlimited Storage
32. Result
Valuation of 1 Billion Dollars at IPO Currently valuated at 1.5 Billion
Staff of 250 People with peak at 2300 during last funding round
Staff of 31
In July 2011 valuated at 1 Billion with
130 Employees
33. Your Applications
Management & Web Interface Identity and Access Deployment & Automation Monitoring
Administration
Console IAM Federation Billing Beanstalk CloudFormation CloudWatch
CDN Messaging Search Distributed Computing Libraries and SDKs
Application
Platform
CloudFront SES SNS SQS CloudSearch EMR SWF
Compute Storage Networking Database
Foundation
EC2 EBS S3 ELB Route 53 VPC RDS Dynamo ElastiCache SimpleDB
Availability
Regions Zones Edge Locations
AWS Global Infrastructure
34. Your Applications
Management & Web Interface Identity and Access Deployment & Automation Monitoring
Administration
Console IAM Federation Billing Beanstalk CloudFormation CloudWatch
CDN Messaging Search Distributed Computing Libraries and SDKs
Application
Platform
CloudFront SES SNS SQS CloudSearch EMR SWF
Compute Storage Networking Database
Foundation
EC2 EBS S3 ELB Route 53 VPC RDS Dynamo ElastiCache SimpleDB
Availability
Regions Zones Edge Locations
AWS Global Infrastructure
35. Your Applications
Management & Web Interface Identity and Access Deployment & Automation Monitoring
Administration
Console IAM Federation Billing Beanstalk CloudFormation CloudWatch
CDN Messaging Search Distributed Computing Libraries and SDKs
Application
Platform
CloudFront SES SNS SQS CloudSearch EMR SWF
Compute Storage Networking Database
Foundation
EC2 EBS S3 ELB Route 53 VPC RDS Dynamo ElastiCache SimpleDB
Availability
Regions Zones Edge Locations
AWS Global Infrastructure
36. Your Applications
Management & Web Interface Identity and Access Deployment & Automation Monitoring
Administration
Console IAM Federation Billing Beanstalk CloudFormation CloudWatch
CDN Messaging Search Distributed Computing Libraries and SDKs
Application
Platform
CloudFront SES SNS SQS CloudSearch EMR SWF
Compute Storage Networking Database
Foundation
EC2 EBS S3 ELB Route 53 VPC RDS Dynamo ElastiCache SimpleDB
Availability
Regions Zones Edge Locations
AWS Global Infrastructure
37. Your Applications
Management & Web Interface Identity and Access Deployment & Automation Monitoring
Administration
Console IAM Federation Billing Beanstalk CloudFormation CloudWatch
CDN Messaging Search Distributed Computing Libraries and SDKs
Application
Platform
CloudFront SES SNS SQS CloudSearch EMR SWF
Compute Storage Networking Database
Foundation
EC2 EBS S3 ELB Route 53 VPC RDS Dynamo ElastiCache SimpleDB
Availability
Regions Zones Edge Locations
AWS Global Infrastructure
38. Your Applications
Management & Web Interface Identity and Access Deployment & Automation Monitoring
Administration
Console IAM Federation Billing Beanstalk CloudFormation CloudWatch
CDN Messaging Search Distributed Computing Libraries and SDKs
Application
Platform
CloudFront SES SNS SQS CloudSearch EMR SWF
Compute Storage Networking Database
Foundation
EC2 EBS S3 ELB Route 53 VPC RDS Dynamo ElastiCache SimpleDB
Availability
Regions Zones Edge Locations
AWS Global Infrastructure
41. Breakout Tracks
Corporate Track Start up & Developer Track
12:45 - 1:25 Planning the Migration to the Cloud 12:45 - 1:20 AWS Enabling the Startup Ecosystem
Santanu Dutt, Solutions Architect, AWS Pieter Kemps, Business Development Manager,
AWS
1:25 - 2:05 CloudFront & Serving Media from the Edge 1:20 - 1:55 Agile Development on the Cloud
Kingsley Wood, Business Development Joe Ziegler, Technology Evangelist, AWS
Manager, AWS
2:05 - 2:40 Security and Privacy in the AWS Cloud 1:55 - 2:30 Partner Presentation by Intel: The Disruption
Miles Ward, Solutions Architect, AWS of Big Data
Trend Micro Mrittika Ganguli, Platform Software Architect, Intel
2:40 - 3:40 Amazon Database Services: DynamoDB: A 2:30- 3:05 Architecting your Killer App on AWS
seamlessly scalable NoSQL datastore & Joe Ziegler, Technology Evangelist, AWS
Relational Database Services Deep Dive
Sundar Raghavan, General Manager, Amazon
RDS, AWS 3:05 - 3:40 Developing for your Target Market: Social,
Games & Mobile Apps
Kingsley Wood, Business Development Manager,
AWS
3:40 - 4:15 Benchmarking and Performance on AWS 3:40 - 4:15 Best Practices: Microsoft on AWS
Robert Barnes, Director, Benchmarking, AWS Miles Ward, Solutions Architect, AWS