HybridLogicSelf-healing cloud hosting

platformswww.hybrid-logic.com

£100k invested to dateProduct ready and sellingFirst customers secured

Seeking £400k investmentProjected Y5 revenue £60m

HybridLogic: Investment criteria

HybridLogic: The pain that we’re solving

• HybridLogic = computer science + real world web hosting pain

Three huge problems:• Hardware and software fails

• Size of problem: £17bn in 2011 [CA technologies]

• Need self-healing• Websites get spikes in traffic

• Need auto-scaling• Users make mistakes

• Need a cloud time machine

HybridLogic: What we’ve done

• Self-healing cloud hosting platform– For web applications and

email– Failover across machines

and data centers– Continuous live backup

and 1-minute auto-recovery

– No expensive storage hardware (SAN) needed, average saving of 70%

• On-demand scalability– Seamlessly & instantly

live-migrate sites, databases, applications and email accounts. No downtime.

– Automatically reacts to spikes in traffic

– Automatically scales up to dedicated hardware for busy sites

HybridLogic: What we’ve done

• Cloud time machine– Let customers revert

to any point in time– Instant recovery to

snapshots of websites, databases or email

– Keep a record of all changes – like a time machine

• High density hosting– HybridLogic

provides 4x better utilization than fully virtualized solution

– Burst customers to dedicated machines automatically – licensees bill them based on quantified usage

HybridLogic: Scale of opportunity and pricing

• There are 30,000 web hosts globally

• Average number of servers per host is 20

• Licensing model yields recurring revenue

• List price is £165 per server per month

• Total addressable market is £1.2bn

• Target market for year 5 is 1,500 web hosts (5%)

• Target market is worth £60m

• … and that’s just the web hosts– Enterprise software

market £150bn– Enterprise storage

market £100bn

HybridLogic: Customer acquisition

• Prospecting• Hosting service

providers– Classic high-tech market

• Key prospecting tools– HostingCon: largest

trade show for this market

– Target key bloggers and industry analysts

– Website and organic SEO traffic

• Converting• Proven customer

acquisition model– Qualification process– 30 day trial– 1:1 webinar demo

• Self-service is crucial– Deploy software

through “Launchpad”

HybridLogic: Web hosting – a commoditising market

• Web hosting industry commoditising– Amazon turning

hosting into a price war

• Compete more effectively– No SAN costs & better

hardware utilisation = better margins

• Price squeeze inevitable

• Weapons to resist price pressure:– Mass market– Self-service– Value added

services e.g. cloud time machine

HybridLogic: Competitive matrix

Factor CPanel HybridLogic

OnApp VMware

Tolerate failure of serversTolerate failure of data centreAutomaticscale-upUser-accessible restore pointsSupports Java, Python, RubyShared nothingreplicated storageHigh density of cust. per serverTotal cost (TCO) $ $$ $$$ $$$$

HybridLogic: Barriers to competition

• Barriers to competition

• Complicated technology– Four years of R&D

resulted in new approach

– R&D difficult and deep

• Get ahead and stay ahead– Continue to

innovate• Intellectual

property– Legal

• Constructing a thicket of 5 patents internationally

• We own all IP to the system

HybridLogic: Financials – PNL Y1-5

1 2 3 4 5£0

£10,000,000

£20,000,000

£30,000,000

£40,000,000

£50,000,000

£60,000,000

£70,000,000

HybridLogic: Financials – Peak cash requirement

0 1 2 3 4 5 6 7 8 9 101112131415161718192021222324252627282930

-£400,000.00-£300,000.00-£200,000.00-£100,000.00

£0.00£100,000.00£200,000.00£300,000.00£400,000.00£500,000.00

Months after investment

HybridLogic: Financials – Breakdown of £400k spend

£85,678.67

£80,945.83

£127,590.67

£56,000.00

£51,000.00

£18,500.00

£20,500.00£17,000.00 Directors salaries

Engineers salariesSales salariesMarketing budget (HC)Marketing budget (HS)T&E including Host-ingConLegal & pro feesOffice

HybridLogic: Committed Team

Luke MarsdenCEO & Founder1st from Oxford in Computer Science;11 years running hosting company

Mike SmithsonVP Sales & Founder20 years experience selling technology, and running web agency

RobHaswellCTO & Founder11 years web development and systems programmer

Jean-Paul CalderoneDeveloperPython and network developer; worked for Apple, co-founder of Twisted project Product team

Technical team

HybridLogic: Investors & Advisors

David MayNEDCTO of XMOS, IP expert, 50+ patents

Eric BartonInvestor & AdvisorCTO and founder Whamcloud

Anne JohnsonAdvisorSilicon Valley advisor

Jason SeatsLead Investor & AdvisorFounder of Slicehost, sold to Rackspace in 2008

Anil HansjeeAdvisorEx-Google M&A, strategy, biz dev, funding, business models

HybridLogic: Investment required

£400,000 • Invested £100k own money• Just raised further £100k angel

money• Looking for £400k seed funding• EIS eligible

• Trade sale in Year 5• Current Sector Valuation is

5-10x EBITDAYr 5 exit

Year 4 EBITDA projection is $18m

• Potential exit value minimum £60m @ 5x EBITDA

• Anticipated ROI at least 15x

HybridLogic: Conclusion & contact

Early to marketCommitted founders

Technology works – provenCustomers love it

There’s a big returnCall Luke on 07791750420

Thank you - questions?

Appendix

HybridLogic: Exit strategy – 20 candidates

DD

Software

HostingServices

Hardware

Logica

Rackspace

AmazonGoogle

OnApp

CPanelParallels

NetApp

HP

Cisco

Unisys

EIG

VMware 3Tera

EMC

Oracle

IBM

HDS

SoftLayer PEER1

HybridLogic: Product roadmap

Milestones:1. Launch Point-in-Time

Restore interface – June

2. Launch self-service “Launchpad” – June

3. Launch new Hybrid Logic website – June

4. Add EC2 support – July

5. Attend HostingCon – July

6. WHMCS plugin – September

7. Work on scaling to 100+ servers – October

8. Target: 10th licensee into live environment – September

HybridLogic: Progress

• Achievements to date:– 2008

• HybridLogic founded as R&D organisation

– 2009• First proof-of-concept

(working MySQL support)

– 2010• Initial funding • Email system completed• Beta programme

– 2011• Accepted into

SETsquared business incubation centre

• Attended HostingCon on ‘reconnaissance mission’

• First licensee goes live– 2012

• Second, third, fourth and fifth licensees go live

• Business plan & strategy review completed