Kachingle Overview August 2013

9/18/2013 | copyright 2013 | all rights reserved | Cynthia Typaldos – CEO | cynthia@kachingle.com 1
Bundling & Billing
Platform for Applications
August 17, 2013
Updated September 18, 2013

Macro Trends in Software Solutions
• Producers: monolithic single-vendor  heterogeneous multi-vendor
• # of apps: a few  many, even thousands of apps
• Development cycle: slow, synchronous  agile development of new
capabilities, asynchronous replacement of functionality from a huge variety
of producers
• Payment: one time license fee + annual support  cloud subscription |
one vendor  thousands of vendors
• Purchaser: IT  end user/department
• Management: IT  end user/department
• Control: Vendor  IT  end user/department
• Enhancements: monolithic vendor  multi-vendors, even users!
Solutions must comprise of the best apps from anywhere…
flexibly available in real-time, configured by end-users.
But the current business models do not support this.

Current App Business Model Problems
• No easy licensing for creating solutions of many apps from
multiple sources (current system requires lawyers!)
• No logical payment system for fairly allocating subscription
revenue to the apps the comprise a complete solution, and
no efficient financial distribution mechanism
• No easy way for users to experiment with apps, and even
configure-their-own solutions
• Apps now fighting each other for users’ mindshare –
causing desperation moves into unprofitable marketing
oriented business models such as freemium
• App stores no solution – discoverability an issue –
customers want total solutions
• Penny gap, churn, causing vendors to be unprofitable –
even the SaaS poster children (e.g. Salesforce, Marketo)

Every platform needs a business model

Elements of a Business Model Solution
• Customer-focus rather than vendor-focus (e.g. like AMZN)
• Customizable, flexible bundling to offer complete solutions
• One-click licensing + usage-based payments to vendors
• Bundling across clouds, devices, component types
• Customer dashboard
• Easy replacement of components
in a bundle by bundler and/or customer
e.g. MRI Solution
o radiologist builds a playlist/config files
o social sharing for discovery of best apps/bundles
• Micropayments – to build solutions with thousands of apps;
best apps can be “timeshared”; small teams can be successful
• Vendors reduce churn and can focus on app functionality rather
than on monetization schemes
• Easy API integration

Kachingle – Our Solution for a App Business Model
 Bundling Combined with Flat-rate Subscriptions
 build complete, flexible, heterogeneous solutions.
 get customers over the penny gap and reduce dependency on freemium
 co-market to share acquisition costs
 one-stop shopping
 easy app discovery
 Usage-based revenue sharing
 fair to app vendors and subscribers
 hands-free
 increases market opportunity
 Micropayments
 subscribers – can afford all the apps they need
 small subscribers – start with right apps & increase usage as they grow
 app vendors – pricing by value received increases market size for large vendors
 app vendors of all sizes can more easily make revenue
Bundling & Billing Platform for Apps/IoT

Kachingle App Bundling – 21st Century’s solution
20th Century bundling – think cable TV
• Fixed predefined packages
• Vendors & Subscribers have limited choice
• Pre-negotiated revenue sharing
Bundling works… but how
can it be applied to Apps?
21st Century Virtual Bundling – invented by Kachingle
• Subscribers build and manage their own
flexible, changeable, dynamic bundles
• Virtual Partnering – App vendors select
their partners
• Usage-based automatic revenue sharing
• Flat-rate has universal appeal to Subscribers

KP Diagram
App Bundling Network Effect Social Media Virality Micropayment Engine
How Subscribers Benefit
Build-Your-Own-Bundle
Flexible, Dynamic, Changeable
One-stop Shopping
Flat-rate Subscription Fee
App Discovery
Social Media Friendly
Complete Solutions
Frictionless App Access
How App Vendors
Benefit
All Users Pay Something
Larger Subscriber Base
Recurring Revenue
Subscriber Evangelism
Virtual Partnering
Easy API Integration
Application VendorsApp Vendors

Revenue Split of each Subscriber’s Fee
Revenue Shared Among App Vendors
in the Bundle Based on Usage Algorithms
Payment
Processing
Kachingle
Marketing
Partner or Marketplace
(optional fee)

LIVE DEMOS
(examples, only our demo apps are actually integrated, no partnerships with app vendors exist)
GE
MRI
BUNDLE
PIVOTAL
TRACKER
BUNDLES

MRI BUNDLE

LIVE DEMO
(examples, only
our demo apps are
actually integrated,
no partnerships
with app vendors
exist)

LIVE DEMO
(examples, only
our demo apps are
no partnerships
with app vendors
exist)

LIVE DEMO
Two active users,
one past user
(examples, only
our demo apps are
no partnerships
with app vendors
exist)

LIVE DEMO
This is our demo
app, it is fully
working and
integrated)

LIVE DEMO
Vendor
Payout
Page

• Live Demo http://pivotal.kachingle.net/subscriber.php
• create new users (Subscriber accounts) – as many as you want!
• login as an existing Subscriber
email: cynthia+rontgen@kachingle.com | password: radiology
email: cynthia+drimig@kachingle.com | password: radiology
email: cynthia+damadian@kachingle.com | password: radiology
• login as existing App Vendor (note: all Apps are in this demo account, in real life each vendor would have their own)
email: cynthia+mrivendors@kachingle.com | password: radiology
…then go to “My Medallions”
• login as Bundle Admin
email: cynthia+mribundle@kachingle.com | password: ask for this
…click on top admin tab, then use the special admin password = ask for this
• Developer site
developers.kachingle.com | developers.pivotal.kachingle.net
Simple APIs for app/app integration – Web & PC done, mobile soon
• Monthly App Freemium/Monetization Meetup (started in April 2012)
http://www.meetup.com/Freemium/
Kachingle – Demo Access | Other Info

Selected Slides from the Working Demo of Pivotal Tracker
We have also built a working demo of the Pivotal
Tracker ecosystem as a bundled offering.
A few slides from this demo follow.
A complete slide set of the demo is available, and of
course we can also do a live demo.
Pivotal Tracker itself and its ecosystem apps are not
integrated in our demo, but we have demo apps that
are integrated.

Pivotal Tracker Bundle Marketplace Demo
Home page for the live working demo built for Pivotal Tracker
Bundles with Pivotal Tracker, bundles of apps by category, mix and match, even
very low priced apps can be bundled (and free & freemium can be avoided).
Kachingle would be white-labeled or TBD

Pivotal Tracker Apps can also feature bundles
This is very simple example, APIs are available to include
bundle name, price, apps in the bundle, logos, etc. The
working demo app Design & Photo Editor shows this.

In this demo we show a startup
called ShopList that is
developing a “Shopping List
SaaS App”.
ShopList is a potential
customer of Pivotal Tracker.
ShopList determines that they want to use Pivotal Tracker
for their project management. Then they discover that they can not
only buy Pivotal Tracker by itself, but also buy bundles of apps that
work with Pivotal Tracker.
The slides that follow show their discovery process of the entire Pivotal
Tracker ecosystem and their purchases of and management of bundle
subscriptions.

Potential Subscriber ShopList explores the Tracker Startup Bundle.
ShopList is a startup that is developing the world’s best app for integration into other SaaS apps that have
shopping carts and need the ability for their customers to create a shopping list – a “Shopping List SaaS
App”
Note that this page can be white-labeled.

Potential Subscriber ShopList explores the Tracker Startup Bundle.
ShopList finds a set of Pivotal Tracker Apps for a startup! Only $100/mo!

ShopList
learns more
about the
Tracker
Startup
Bundle

ShopList
decides to sign
up for a monthly
subscription to
the Tracker
Startup Bundle.

Subscriber ShopList subscribes to the Tracker Startup
Bundle.

Subscriber
ShopList
Subscription
page.
Now it’s time
to choose
which apps
in the bundle
to turn on
and try out
(they can
always be
swapped out
for others).

Subscriber
ShopList
knows they
want to use
Pivotal
Tracker!
So they turn
it on by
clicking on
the “Start
kachingling”
link. They
can also
Stop.

In the next few slides Subscriber ShopList checks
out SnapABug Business App and learns more about
it, plus which other Subscribers are using it, and how
popular it is based on actual usage!
Subscriber ShopList decides SnapABug Business
App is a good app to experiment with and adds it to
their bundle.
Subscriber ShopList explores other apps in the
same way.

Subscriber ShopList
sees that Subscriber
“Vintage” is a regular,
recent user of
SnapABug Business.
Vintage is a well-
respected developer in
the shopping apps
space so this is a
strong endorsement!
Additionally, lots of
other app developers
are actively using this
app. That’s a positive
sign.

Note that apps (and bundles) are automatically
ranked by various factors – actual daily (or other)
usage, number of subscribers actively or historically
using the app, payments received.
These rankings are further refined by:
• app category
• timeframe – all-time and rolling 30-day views which we call
“leaderboards”
These rankings remove the need for hand curation.
The market, in real-time, decides which apps are the
most valuable based on actual usage (or revenue, or
a combination).

Subscriber ShopList
subscription page with
selected apps turned on.
More points are needed
to use for the rest of the
apps, or some of the
currently active apps
need to be turned off.
But for right now, this
is perfect.
Note that we can also
manage licensed
software although we
don’t show this here.
Mobile app management
is in development.

Time passes.
The ShopList launch of
their “Shopping List SaaS
App” is successful and the
company adds more
developers to the team.
They now need
SnapABug Enterprise
instead of SnapABug
Business.
Time to revisit their My
Subscriptions page.

Subscriber ShopList
sees that if they turn off
SnapABug Business that
releases 30 points, and
SnapABug Enterprise
requires 31 more points.
“Hmmm…where can we
find 1 point? We can
buy more points or…
actually we aren’t using
StoryMapper anymore!
It was important earlier
but our needs have
changed. Let’s turn that
one off.”
(note – Apps only make money
if turned on AND used, although
there are admin mechanisms to
modify this rule.)

Subscriber ShopList turns off SnapABug Business and StoryMapper, and then
turns on SnapABug Enterprise.

SWITCHING TO THE APP
VENDOR VIEW
App vendors also sign up for
accounts.
This app vendor is named
“App Vendor.”
This vendor has a lot of apps
because we put all of them in a single
account. Each app vendor would
manage only their own apps in reality.

APP VENDOR VIEW
Management/Marketing
page for an App.
Also links to the
integration
documentation.

APP VENDOR VIEW: Accounting page

APP VENDOR
VIEW
“Crowdsourced
Auditing” proves
to the app
vendors that they
are getting all of
their deserved
revenue. Also
gives them a
window into who
their subscribers
are and their
usage.

Demo App where engineers can pull back the curtain on Kachingle’s simple APIs
(Note button in upper right that would return you to the “Normal Version” from this Developer’s Version)
This view shows the APIs recognize the user, but that they are not subscribed to any
bundle containing this app, so the premium features are not available.

In the Developer view, API calls are underlined. Mousing over them reveals the code.

SOFTWARE KEY SLIDE

APP VENDOR VIEW
Management/Marketing
page for an App.
Also links to the
integration
documentation.

Kachingle Enterprise Edition

Kachingle Enterprise Edition Administration Functions
• Company Admin is sole account
manager for enterprise bundles
• End-users can not subscribe individually
• Admin can purchase additional points for
the account
• Admin assigns points to end-users
• Admin assigns app access to end-users
• Admin can receive app and bundle
requests from end-users

Kachingle Enterprise Edition Admin Functions: End-user Assignment
• Admin selects bundle for user(s)
• Admin subscribes user via email invitation
• Email to user contains authentication URL
• Terms of Use page optional
• After authentication end-user has single sign-
on capability
• End-users can not unsubscribe
• No transaction information is displayed to end-
users

Admin can manage own
subscriptions
Users authorized
to use this bundle
Add user
with email
validation
Invited user not
yet authenticated
Add/Delete users
from apps
Kachingle Enterprise Edition: Admin Control Panel
Indicates
number of seats
available to
assign
This page displays key account information and allows the admin to activate/deactivate users for each app in a bundle.

Active users can be
unsubscribed from app
Inactive users can
be subscribed to app
Kachingle Enterprise Edition: Admin App Management
Clicking on the Manage button allows the admin to activate and deactivate users of a respective app.

Kachingle Enterprise Edition: End-user Subscription Control Panel
User can stop using app
but can not unsubscribe
If subscribed by Admin to
this app, user can turn it on
Options include sending Admin
a request to use this app
This page allows an end-user to turn apps on and off and also to request access to an app in the bundle.

Kachingle Admin Tool

The following slides show the Kachingle Admin Tool, which has limited functionality
in the Demo environment, but will allow you to explore how bundling is managed.
To reach the Admin Tool within pivotal.kachingle.net…
1) login as admin account xxxxxxxx ask Cynthia for access
- password: pivotal
As an admin, you’ll see a black navigation bar across the top of the site…
2) Click “Admin,” and use the password 9999999 to gain access
3) Click the “Bundles” tab, to find the Pivotal bundles
Note: When logged into the Kachingle front
end as an Admin, some areas behave
differently — e.g., in the Bundles tab every
bundle is visible, whereas regular users see
only activated bundles.
Note: the Admin tool is, for the most, part
just a raw-data view at this point.
Admin view of public Bundles page User view of public Bundles page

The bundles created for the Pivotal demo are highlighted below
Click the ID# to view and manage the Bundle Record

Adding a Bundle
-Description appears on Bundle Profile and in
marketplace, along with customized HTML
pivotal.kachingle.net/premium.php?bundle=21
- Root location of customized HTML
pages shown elsewhere
- virtual money =1, real money = 0
* *Actually price per duration (doesn’t have to be a month, of course)
- Once an App is on, how long until it can be turned off (default)
- Do we count every visit to an App, or every day it’s used, or every
hour, etc. (bundle default)

- Root location of customized HTML pages shown in Slide 17 & elsewhere
- Price of the bundle (per week/month/quarter/year, etc.)
- Does the bundle have a limited number of points or not
- Bundles can be paid weekly, monthly quarterly, annually, etc.
- Demo bundle or real-money bundle
- How many points are in the bundle if point-based (roll_your_own)
- Once an App is turned on, how long before it can be turned off
- Is every visit to the app counted, or every day it’s used, or every hour, etc.
Bundle Record
(top of page)
Edit this Bundle
(like Add Bundle, but
with a few limits)

Bundle Record
(bottom of page)
Adding an App
(see next slide)

Adding an App
to a Bundle
(Here an App is called
“Medallion,” the name
of our our API widget)
Set how much each use/visit is worth,
how often usage is counted, and once
turned on, when an app can be turned off
Points this App requires within this bundle
Fixed/Percent Cut:
Flat $ or % amount from each payment
Pre/Post-Weighted Average Cuts
App receives a cut based on usage
averages across all Apps in bundle
(This can be complicated — we’re happy to
answer any questions!)
Flexibility:
e.g., custom
cut of $$ for
“anchor” apps
$ or % of cut if “fixed” or “percent”

Kachingle Architecture
Logic
Layer

Backup Slides

Kachingle Product Team
Frank Spies: Co-founder, CTO, product definition, software developer (has written 91% of our
70K lines of code) | BS & MS, Computer Science, University of Saarbruecken, Germany.
Previous: Architect/Developer NVIDIA, Founder/CTO - 2 internet startups, Dev Eng Sun
Cynthia Typaldos: Co-founder, CEO, product definition, marketing, business development,
management. | BS, Chemistry, UC Berkeley; MS (nearly complete), Computer Science, UC
Berkeley; MBA, MIT.
Previous: Founder/CEO/COO - 2 internet startups, Dir SW Prod Mgmt/Mktng Sun, SW Eng Bank
of America, Instructor UC Berkeley Extension
Frederic Ranft: designer + UI/UX, html/css, javascript | Diplom, Bergische Universität
Wuppertal (now Folkwang – Hochschule der Künste), Germany, specializing in information
architecture & interface design
Rob Blackwelder: QA, project management, support, site operations | AA, Journalism, Contra
Costa College, Richmond, CA.
Previous: Support Xoom.com & Wine.com
Kachingle Board of Directors:
Jens Horstmann, Karen Barnes, Matt Perez, Cynthia Typaldos

Kachingle: Our Story
Our Story - Why we entered the app space
(after spending 3 years in the consumer content space)
Approached
by desperate
freemium
vendors
Conversion
rates terrible
Micro-
payment
engine their
salvation?

Penny Gap – the assumption & the reality
Diagram by Josh Kopelman

IT administration 
department employee administration
Macro Trends in Software
owned licenses 
cloud subscriptions
monolithic offerings  lots of small targeted apps
IT buyers 
department
employee
buyers

Elevator Pitch
Kachingle combines the three key technology inflection points occurring today in
software:
• monolithic apps giving way to inter-connected specialized mini- and micro-apps,
• licensed "shelfware" software replaced by cloud-based business process subscriptions,
• purchasing and management of these services now in the hands of the users rather than the IT department,
in a elegant easy-to-use platform that enables business users - from individuals to
departments to enterprises - to build and manage their own tailored, flexible
subscription-based app bundles maximizing their value from each app that they
actually use.
Kachingle's target customers are the "owners" of cloud/mobile/IoT software platforms,
ecosystems, and marketplaces, who can integrate Kachingle with their platform,
offerings, such that their business customers can easily assemble, subscribe, and
manage a plethora of apps and other related services across multiple public and
private clouds.
This ease-of-use drives adoption and revenue for both the owners of the platforms
and the app vendors.

Key points especially beneficial to Apps & Marketplaces
• Free & Freemium biz models can be avoided – many apps having trouble with
monetization – as part of a bundle they automatically get paid only when used
• Apps with very small monthly fees now possible – opens up a whole set of mini/micro
business/SaaS apps– Kachingle handles micropayments
• Manual curation by marketplaces has many problems:
o Doesn’t scale
o Needs constant review – not dynamic/real-time
o Puts Marketplace in awkward position of recommending some Apps over others
o Subject to complaints of favoritism
o The “invisible hand” of the market is a better measure of value
Kachingle builds real-time, category-specific, “leaderboards” based on actual, dynamic, real-
time usage by subscribers
• The “operating system for cloud infrastructure” needs a monetization system.
For example, iOS and Android from the start had built-in core payment mechanisms
for apps to generate revenue!

Kachingle Overview August 2013

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