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Wireless	
  Innova-on	
  Pla/orm
                                  Bug	
  Labs’	
  Blueprint	
  for	
  2010
                                                                         1


Thursday, February 11, 2010
What if...

                              ...wireless hardware
                           development were as easy
                          as application development?




Thursday, February 11, 2010
What if...
                              ...you could extend what Apple® has
                              done for application development...




                              © 2010 Apple Inc.

Thursday, February 11, 2010
Opportunity
                               ...and apply it to hardware?

                              Gadget Developer Program
                              The	
  fastest	
  path	
  from	
  prototype	
  to	
  market.




                              1. Prototype                       2. Produce                       3. Distribute
                              Develop your device using the      Quickly move to pilot and full   Distribute your new gadget
                              pre-certified prototyping toolset   production using integrated      using retail and online stores
                              and the wealth of technical        Gadget Development and           and quickly reach your
                              resources in the Gadget            Deployment Platform.             audience quickly and
                              Development Center                                                  economically.




Thursday, February 11, 2010
Revolution


                              You’d unlock an explosion of
                                innovation in hardware.




Thursday, February 11, 2010
Long Tail of Electronics
                              Today's Approach – a few devices for the millions
                              - Cellphones
                              - GPS
                              - Digital Video
                              - Smartphones


                                          New Markets – millions of devices for the few
                                          - Vertical markets
                                          - Personalized, networked devices


                    $171B                                                $171B +




Thursday, February 11, 2010
Long Tail of Electronics
                                 Telemedicine
                                 Disease Management
                                 Drug compliance
                                 Wellness/Prevention
                                               Energy
                                               Security
                                               Media
                                                          Telemetry
                                                          Energy
                                                          Media     Utilities
                                                                     Retail/CPG
                                                                     Logistics
                                                                     Industrial

                              Health
                               Care       Home Auto        M2M
                                                                  CRM
                                                                  ERP    Hundreds more...
                                                                  SCM




Thursday, February 11, 2010
Wireless Innovation Platform
             • Pre-certified BUG product development system
             • Network/Cloud services
                   – Bundled air-time, off-the-shelf wholesale packages
                   – API access programs + BUG web apps
                   – Security - authentication, encryption services
             • Support Services
                   – Billing, reporting, call center
             • Distribution
                   – Retail, online
                   – Direct, channel
                                                                          8

                                              Confidential
Thursday, February 11, 2010
How It Works

                              Three Phases




                              1. Prototype   2. Produce   3. Distribute




Thursday, February 11, 2010
Prototype
                              • Prototype new device with BUG hardware
                              • Develop apps with integrated BUG SDK
                              • Take advantage of BUG cloud services/apps
                              • Use certified access to wireless network
                                – Seamless connection - turn it on and youʼre on
                                – Incorporate exclusive network APIs into app
                              • Rapidly iterate, get feedback, iterate again
                              • When itʼs right, proceed to step 2...




Thursday, February 11, 2010
Produce
                        1M+
                                                                                               e   ts
                                                                                           ark
             Quantity




                        100k                                                           ssm
                                                                                    ma
                                                                               to
                                                                          th
                                                                       pa
                                                                  on
                        1000s                             fri cti
                                                     w-
                                                Lo                                                                      ODM
                        100s                                                                 Bug Labs

                                                             Degree of Integration




                                                      BUG Semi-custom                                                  3rd Party
                                BUG Prototype                                                 BUG Full Custom
                                                     Limited Deployment                                               Full Custom

                                  Quantity                      Quantity                                 Quantity      Quantity
                                   1 - 50                        100+                                    1k - 10k       >100k
                                  Est. Cost                   Est. Cost*                                Est. Cost*    Est. Cost*
                                 >$500/unit                   <$500/unit                                < $300/unit   <$100/unit


                                        * Per unit cost, not including Non-Recurring Expenses (NRE)


Thursday, February 11, 2010
Distribute
                              • Distribute online via BUG Gadget Store
                              • Distribute via Bug Labs Partnersʼ
                                – Retail outlets
                                – Online stores
                              • Take advantage of Bug Labs Partnersʼ
                                – Support services
                                  • Billing and reporting
                                  • Call center
                                  • Security - authentication, encryption



Thursday, February 11, 2010
Benefits
             • Fastest, most economical way to develop
               and bring to market new wireless devices
             • Open source IP decreases transaction costs
             • Certified hardware and pre-negotiated air
               time plans removes administrative hurdles
             • Enables the Long Tail of Electronics!



                                                   13

                                Confidential
Thursday, February 11, 2010
Thank You!




                                                14

                                 Confidential
Thursday, February 11, 2010

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Bug Labs - Gadget Development Program

  • 1. Wireless  Innova-on  Pla/orm Bug  Labs’  Blueprint  for  2010 1 Thursday, February 11, 2010
  • 2. What if... ...wireless hardware development were as easy as application development? Thursday, February 11, 2010
  • 3. What if... ...you could extend what Apple® has done for application development... © 2010 Apple Inc. Thursday, February 11, 2010
  • 4. Opportunity ...and apply it to hardware? Gadget Developer Program The  fastest  path  from  prototype  to  market. 1. Prototype 2. Produce 3. Distribute Develop your device using the Quickly move to pilot and full Distribute your new gadget pre-certified prototyping toolset production using integrated using retail and online stores and the wealth of technical Gadget Development and and quickly reach your resources in the Gadget Deployment Platform. audience quickly and Development Center economically. Thursday, February 11, 2010
  • 5. Revolution You’d unlock an explosion of innovation in hardware. Thursday, February 11, 2010
  • 6. Long Tail of Electronics Today's Approach – a few devices for the millions - Cellphones - GPS - Digital Video - Smartphones New Markets – millions of devices for the few - Vertical markets - Personalized, networked devices $171B $171B + Thursday, February 11, 2010
  • 7. Long Tail of Electronics Telemedicine Disease Management Drug compliance Wellness/Prevention Energy Security Media Telemetry Energy Media Utilities Retail/CPG Logistics Industrial Health Care Home Auto M2M CRM ERP Hundreds more... SCM Thursday, February 11, 2010
  • 8. Wireless Innovation Platform • Pre-certified BUG product development system • Network/Cloud services – Bundled air-time, off-the-shelf wholesale packages – API access programs + BUG web apps – Security - authentication, encryption services • Support Services – Billing, reporting, call center • Distribution – Retail, online – Direct, channel 8 Confidential Thursday, February 11, 2010
  • 9. How It Works Three Phases 1. Prototype 2. Produce 3. Distribute Thursday, February 11, 2010
  • 10. Prototype • Prototype new device with BUG hardware • Develop apps with integrated BUG SDK • Take advantage of BUG cloud services/apps • Use certified access to wireless network – Seamless connection - turn it on and youʼre on – Incorporate exclusive network APIs into app • Rapidly iterate, get feedback, iterate again • When itʼs right, proceed to step 2... Thursday, February 11, 2010
  • 11. Produce 1M+ e ts ark Quantity 100k ssm ma to th pa on 1000s fri cti w- Lo ODM 100s Bug Labs Degree of Integration BUG Semi-custom 3rd Party BUG Prototype BUG Full Custom Limited Deployment Full Custom Quantity Quantity Quantity Quantity 1 - 50 100+ 1k - 10k >100k Est. Cost Est. Cost* Est. Cost* Est. Cost* >$500/unit <$500/unit < $300/unit <$100/unit * Per unit cost, not including Non-Recurring Expenses (NRE) Thursday, February 11, 2010
  • 12. Distribute • Distribute online via BUG Gadget Store • Distribute via Bug Labs Partnersʼ – Retail outlets – Online stores • Take advantage of Bug Labs Partnersʼ – Support services • Billing and reporting • Call center • Security - authentication, encryption Thursday, February 11, 2010
  • 13. Benefits • Fastest, most economical way to develop and bring to market new wireless devices • Open source IP decreases transaction costs • Certified hardware and pre-negotiated air time plans removes administrative hurdles • Enables the Long Tail of Electronics! 13 Confidential Thursday, February 11, 2010
  • 14. Thank You! 14 Confidential Thursday, February 11, 2010