Harnessing the Value of a Developer Community

1
Harnessing the Value of a Developer Community

• Gregory Stoner
• Vice President of Business Development and
  Strategy

2
Corporate Profile

• Leading manufacturer of professional software
  development tools
• Headquarters Austin, Texas Employees
  Worldwide 550 (350 in RD)
• Independent subsidiary of Motorola SPS September
  1999
• Worldwide Presence more than 17 offices in 14
  countries

Sweden
Hong Kong
3
Selected Customers Partners
Transportation
Wireless
Networking
Entertainment
4
Building on the Successful Platforms
Strong experience enabling platforms, increasing
market success for platform device vendors
The majority of commercial Mac applications are
built with CodeWarrior tools.
Over 76 of Sony PlayStation 2 titles are built
with CodeWarrior tools.
CodeWarrior tools built the Palm OS platform.
Now have the largest community of Palm OS
developers.
5
Wireless Technology Leadership

• Product Leadership
• Second Java licensee from Sun in 1995
• First to support J2ME MIDP and Personal Java
• First to market a Wireless Development Kit
• First to support KVM
• First to support direct to device KVM debugging
• Only Tool and Solution Vendor with GPRS and CDMA
  Wireless Lab
• 80 Market share of Palm development tools
• Selected tools provider by Symbian
• Selected by Sun to develop only the Java Card
  development tools available
• Selected tools provider for TAO/Intent
• 400,000 CodeWarrior licenses sold worldwide
• CodeWarrior dominates SONY PlayStation2 and
  Nintendo games development

6
Some our Current High Value Developer
Relationships
Eurocom Eidos Kuju Entertainment Kalisto
Entertainment DMA Design AOL Bethesda
Softworks Zipper Interactive High
Voltage Volition Criterion Software Kodiak
Interactive Rainbow Studios
Infogrames Sony Computer Entertainment Real
Networks Sega Titus Cryo Interactive Eden
Studios VIS Interactive Monolith/LithTech Sierra
Online Stormfront Studios Retro Studios
Nintendo of America Capcom Konami Electronic
Arts Koei LucasArts Rare Acclaim THQ Activision In
terplay Midway Ubisoft Intrinsic Graphics
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Entertainment Statistics

• 17.7 billion in 2001 Console Games Revenue
  10,000 Developers
• Leverage Brand Equity longevity and Revenue
  Staying Power via a Franchise
• James Bond 48 Years of Entertainment
• Book novel Casino Royale (1953) ,
• Radio
• Movies First 1962
• Game(N64,PSX, PC, Dreamcast, PS/2)
• Metal Gear Solid First Game 1987-14 Years of
  service
• First on SNES 1987
• Smash Hit on PS/one 1998
• 2001 PS/2 Debut
• Sonic Hedgehog 10th Birthday this year
• Mario Bros (began with Donkey Kong in the arcade
  and first console was
• Atari 2600)
• Zelda (SNES)
• Number One Selling Christmas Entertainment Title
  December 1999 N64
• Madden Football (Sega Genesis) 1989
• Crash Bandicoot (Sony key property from PSX)

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Gaming Success is also Mobile

• Game Boy (Introduced 1989)
• 8Bit Monochrome and Color Handheld Gaming Device
• Total Number of Game Boy Software Unit sold
  Worldwide 400 Million
• Average Number of Game Boy Software Units Sold
  every hour 1000 (July 2001)
• Game Boy Color game Pokemon Crystal between July
  29th to Aug 4th sold 218,743 units at 6,107,782
  Million in revenue in the US Market
• Current Generation Device Game Boy Advances May
  2002 30 Million Units Worldwide 11.3 Million
  Units North America
• In the Second Quarter Top 2 Games Sold were for
  the Game Boy Advanced
• DRAGONBALL Z GOKU 31 550,000 units sold 3 weeks
  (June2002) USD 17,050,000
• SUPER MARIO ADVANCED 2 30 total units sold until
  March 2002 US 311,000 Units USD 9,330,000
• Sega Sonic Advanced 39.95 1,000,000 Unit to
  Date (July 1 2002) USD 39,950,000

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Where we are at in the Mobile Wireless Market

• Limited Story on how you are going to build
  advanced content on the mobile devices
• No Clear Story for productizing and delivery
  these advanced products
• No Clear Story on how you get to market with your
  products and services
• Weak Story on promotion and marketing around
  software that publisher bring in to support the
  wireless market.
• Weak story how you are going to attach and
  collect revenues from the products and services
• Current developer/publishing market and the
  consumer are dazed and confused buy all the hype
• For example Game Boy and Playstation II
• Nintendo and Sony have strong developer program
  which comprise of the following
• Clear Story on how to Create Advanced Content
• Developer Program, Regional Developer
  Conference, Tools, continually upgraded SDK,
  Middleware, Training, Developer System available
  to them prior to Launch, Business Support
• Clear Product Delivery Mechanisms physical media
  (CD, DVD, Cartridge) in Packaging
• Clear path to Market Publisher access the
  consumer via established traditional retail and
  online retail channels
• Clear Story on the promotion and marketing of
  device and software that support it
• PR Campaigns, Trade Shows E3, Review Placement,
  Website Campaigns, etc
• Clear Story how Revenues are comes back to the
  Publisher

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Understand the Developer Business Models

• A point to think about First
• For Electronic Arts to agree to publish a console
  title they are look for a minimum of 20 Million
  Dollar Payback against the current worldwide
  console market.
• What does that mean to you for high value content
  you need to consider true cost of bring a product
  to market.
• What the developer/publisher needs to cover
• Intellectual Property License Fees and Royalties,
  Developer Costs, Overheads, Marketing Cost,
  Operating Costs etc.
• 3 Applications developed 2 Engineers 75,000 Per
  Year, 250,000 Marketing Costs, 1,000,000 IP
  License(Payed over 4 years), Operating Costs
  200,000
• 150,000 250,000 250,000 200,000 850,000
  USD Break Even Revenues First Year
• Revenue with 40 Percent Margin. 1,190,000 USD

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Why do Carriers Need a Managed Developer Program?

• Create a portfolio of value-added high impact
  applications, products, and services to drive
  economic growth through your products
• Bringing Business Opportunities to promote the
  success of new Business Partners
• Developing and Distributing tools for the
  creation of value added complements which drive
  the platforms vendors vision (SDKs and DDKs)
• Build External Trust of the Development Community
• Creation of Competitive Stimulus/Catalyst to help
  drive standards and which help developers move up
  to the next level of innovation
• Create a compelling and loyal community of
  Customers, Developers and Partners
• Provide a highly effective channel for
  communications to help drive current and new
  platform initiatives which are agnostic to the
  changes in technology.
• Provide a responsive support environment for the
  needs of Enterprise Customers, Developers and
  Partners
• Bottom line Increase profits Increased brand
  awareness

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Finite Number of Developer spread into
Overlapping Developer Communities
Java Developer Community
Unix Linux Developer Community
Enterprise Developer Community
Win32 Developer Community
GAME Developer Community
PALM
Windows CE
APPLE MACINTOSH
Embedded Community
Game Console and Apple
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Drive Customer Attachment through Managed
Digital Content Ecosystem
Content Creation
Monetization
Distribution
Technologies
Content Services
Platforms
Content Delivery
Content Aggregation
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The cooperative value chain Carrier Developer
Wireless application value chain
Concepts Prototypes Enablers Technologies
Physical work space
Virtual work space
Developer relations
Technical support for toolkits, handsets,
platforms, enablers, technologies, APIs
Test labs, Prototype Handsets,
Consultancy, Hands-on training classes,
Certification services
Marketing, Events, Conferences, Newsletters,
Open days, Advertising
Web site, Documents, White papers,
Discussion forums, FAQs
Professional Software Development Toolkits
Carrier value chain

Analysis of technical fit
Analysis of strategic fit
Business model
Integration
Partnerships
Deployment
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MDP accelerates evolution of Carriers chosen
platforms!!
Revenue/profit
Critical Mass of Mass Market Application
Developers
Critical Mass of Enterprise Developers
Critical Mass of Third Party Developers
Critical Mass of Middleware Vendors
Critical Mass of First Party Developers
Platform Creation
15
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Drive to a Systematic Application Delivery
Process
Metrowerks Applications and Developers sourcing
Carrier Commercial Relationship
Tech support
Training
Developer program relationship Identify
interesting developers/ applications

• Evaluate potential partners
• Technical
• Commercial

Finalize business case and business model
Web site
Developer Community
Contractual agreement
Commercial Launch
IDEs and SDKs
Handsets
Wireless lab
Commercial Opportunity
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Bounding the ISV and Middleware Vendors
Recruitment - A Tiered Approach
Budget Focus

• 1 to 1 marketing
• Vendor brought into Strategic
• Customer Account

Tier 1 Cornerstone
80

• Strategic Partnerships with ISV
• Participate in product definitions
• Will fund if necessary
• ISV Delivers High Value Content or Service

• Marketing Driven Driven
• i.e.. Direct Email, Direct Mail
• Electronic Catalog
• Joint promotion program
• Run Feature ISV in
• Quarterly customer newsletter

Tier 2 Strategic Nice-to-Have

• ISV Commented Long term Marketing
• and Development resources
• Early access to Product specs
• May fund if necessary
• May Give ISV Goods and Services

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Tier 3 Tactical Opportunistic

• Member of the Entry Level Developer Program
• Self promoted and funded
• Access to product specs of announced products
• Vendors purchases Training and Development
  Boards and Tools

5
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In Entertainment Key Brand are Critical to
Success of Our Products
Titles
Revenues
60
25
15
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Need for a Controlled Product Release for
Consumer Entertainment Products
Maximize Revenue via controlled release of High
Value Properties minimizing the dilution to many
choice
Large
Optimal for Premium Content and Good Business
Dynamics
Revenue
Revenue/Title
Small
Large
Number of Title
Small
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What is a Managed Developer Program?
A robust service platform that enables ATT
Wireless to nurture and cultivate profitable
developer relationships!!!
Metrowerks Services
Typical Carrier Services
Developer Support
Application Business

• Application Publishing/ Distribution
• Digital Download
• Billing Services
• Revenue Sharing
• Development tools
• Compelling Business Model

• Unified web presence
• Tech support
• Pre-Launch Device access
• Evangelism and Seminars
• Technical Documentation
• Developer open days
• Conference Participation

• Application Testing
• Certification
• Training
• Consultancy
• Global Lab Access

Investment
Cost Recovery
Revenue
Increasing Developer Loyalty
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MDP Program Components
Marketing Services
Technical Support
Developer Strategy
IT Integration
Account Management
People
Process
Application Sourcing
Engineering Development
Project Management
Community Management
Content Creation Services
Managed Developer Program
Developer Community MGT
Alliance Mgmt
Data Mining
Integration Labs
Tools
Customer Relationship Mgmt
Technology
ECommerce
Certification Systems
Learning Management Systems
MDP Web System
Analytics
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Developer Program Portfolio
MDP Products Services

• Industry Leading Wireless Tools
• Developer Support
• Field Application Engineers
• Developer Portals/Communities
• Training, Developer Education
• Application Test Labs
• Applications Mining
• Applications Certification

• Early Device Access
• SDK Development and Support
• Go to Market Strategies
• Academic Programs
• Comprehensive Partner Program
• Application Libraries (3rd party apps)
• Program Marketing
• Worldwide Presence

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Rollout Professional Development Solution to
Third Parties Early in your Mobile Platform
Development Cycle

• Example
• Enterprise APP
• J2ME Game

• Example
• Native App
• GAME
• PV APP
• Middleware

• General Consumption
• Mainstream Production
• Version X.01 Community Tools

• Example
• PV Codec Development
• Beatnik Codec
• MMI
• VM

• Beta
• Engineering Samples
• Beta Community Tools
• Limited First Party Content Developer

• ALPHA
• Development System
• Platform Development Tools
• Limited Number of First Party Systems Developers

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Metrowerks Wireless Development Solutions

• Optimized Development Solutions for Wireless
  Developers
• Enable Faster Time to Market
• Handset with or without carrier service
• Development Tools
• Symbian and J2ME Development SDKs
• Cables and Gateways
• Complete Documentation
• Vertical Market Focused Kits
• Enterprise
• Gaming
• Messaging

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Wireless Tools Leadership

• Metrowerks delivers a comprehensive portfolio of
  software and hardware development tools for
  wireless developers
• Symbian OS tools (official toolset for Symbian
  OS)
• Java tools (1st to comprehensively support J2ME
  PersonalJava)
• Palm OS tools (de facto standard toolset for Palm
  OS)
• Linux tools (best-selling commercial toolset for
  Linux)
• Java Card tools (1st integrated toolset for Java
  Card)
• Core Processor Tools (ARM, Dragonball, Xscale,
  Hitachi, M-Core, StarCore, DSPs, and others)

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CodeWarrior University

• CodeWarriorU.com
• Worlds largest source for online training in
  programming
• Approximately 100,000 registrations to date
• Free instructor-led courses
• Current Courses for Wireless Developers
• C and C
• Palm OS
• Java certification
• J2ME

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Academic Initiatives

• Over 1,400 educational institutions teach
  Computer Science with CodeWarrior
• CS Advanced Placement (AP) Exam was ported from
  Pascal to C using CodeWarrior
• Free Online programming courses offered at
  CodeWarriorU.com
• Largest education website worldwide for learning
  how to program
• 40,000 registered students in first 12 weeks

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CodeWarrior Wireless Studio

• CodeWarrior
• Wireless Studio 7

The Ultimate Wireless Development Tool
CodeWarrior Wireless Studio 7 is the most
advanced development tool for wireless Java
development including J2ME and Personal
Java Integrated support for creating
applications for every major handset,
Java-enabled Palm, Linux and PocketPC device
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Java VMs and Emulators

• Sun Java JDK up to version 1.4.0 ()
• Sun Wireless Toolkit ()
• Sun PersonalJava Emulator PJEE 3.1 ()
• Motorola J2ME SDK 1.0
• MotoSDK 7.5
• Nokia Developer Suite (-)
• Sony-Ericsson Device Support
• Siemens Mobility Toolkit for M50
• Sprint-PCS Development Kit
• Insignias Jeode PersonalJava VM (-)
• (-) SDK supported but not shipped with
  product () SDK on tools CD

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CodeWarrior for Symbian OS

• Metrowerks is Symbians strategic tools partner
• Professional and OEM tools to enable device
  creation
• Designed specifically for Symbian OS device
  creation community
• Delivered earlier than corresponding OS release
• ISV Tools to enable applications development
• Derivatives of Professional and OEM product lines
• Arrangement between Metrowerks and licensee
• Delivered in line with ISV SDK schedules
• CodeWarrior Java support
• CodeWarrior is the Tool Chain of the Future
• - Collin Meyers, CEO - Symbian

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CodeWarrior for Palm OS

• CodeWarrior
• The Essential Tool for Palm OS Development
• 80 of Palm Development Tools Market
• (Gartner, Oct2001)
• ..the development tool of choice among
• Palm OS platform developers
• ..the most convenient and powerful way
• to develop C/C Palm software.
• Top Pick 5 stars
• The Best overall development tool for Palm OS
• Handheld Computing, December 2001

Java Symbian Palm OS Java Card ARM intent
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Back Up Slides
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Product Family

• CodeWarrior for Java
• CodeWarrior for Symbian OS
• CodeWarrior for Palm OS
• CodeWarrior for Java Card
• CodeWarrior for ARM Embedded
• CodeWarrior for intent

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Features Overview

• Powerful J2ME development
• Compile, Preverify, Obfuscate, Package and Run or
  Emulate your application in a single step
• Supports J2ME, Personal Java and J2SE
• Support for most devices
• Includes SDKs from Sun, Motorola, Siemens, Sony
  Ericsson, Sprint
• Works with Nokia, Insignia, Kada, Esmertec,
  Savaje, Zentek
• JDK switching, multiple targets for same
  application
• Unrivaled Testing and Debugging
• On device debugging conditional breakpoints,
  watchpoints, etc.
• Productivity
• Code Completion, Class Browser, Wizards,
  Stationery
• RAD tools for drag and drop MIDP LCDUI / AWT
  development

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CodeWarrior Wireless Studio Features

• Powerful J2ME development
• Compile, Preverify, Obfuscate, Package and Run or
  Emulate your application in a single step
• Supports J2ME, Personal Java and J2SE
• Support for most devices
• Includes SDKs from Sun, Motorola, Siemens,
• Sony Ericsson, Sprint
• Works with Nokia, Insignia, Kada, Esmertec,
• Savaje, Zentek
• JDK switching, multiple targets for same
  application
• Unrivaled Testing and Debugging
• On device debugging conditional breakpoints,
  watchpoints, etc.
• Productivity
• Code Completion, Class Browser, Wizards,
  Stationery
• RAD tools for drag and drop MIDP LCDUI / AWT
  development

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CodeWarrior Wireless Studio Features

• Create applications that connect to the
  Enterprise
• PointBase Micro 100 Java powerful database
• XML parser and SOAP implementations for J2ME
• Softwired iBUS//Mobile JMS for powerful, reliable
  messaging
• Award Winning CodeWarrior IDE
• Fully customizable, scriptable, modular IDE
• Blazing fast, mature and proven

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Wireless Studio Endorsement

• "I believe developers will be impressed with the
  wide functionality and testing abilities found in
  this latest version of CodeWarrior, the
  CodeWarrior Wireless Studio 7. -C. Enrique
  Ortiz, Co-author of the MIDP for J2ME
  Professional Developer's Guide
• Developers who want to be successful in the
  wireless industry should look to CodeWarrior
  Wireless Studio 7 as their standard development
  tool. Joe Colletta, VP of Applications,
  Motorola PCS
• Developers can't go wrong with CodeWarrior
  Wireless Studio. - Clint Patterson, VP,
  Handango
• "Metrowerks' strong support for J2ME,
  PersonalJava, and the Java Card platform, will go
  a long way in helping developers create
  applications and content for a wide variety of
  Java technology-based wireless devices," said Ken
  Tallman, Group Manager for Java Software at Sun
  Microsystems, Inc.
• "We believe CodeWarrior Wireless Studio 7 is the
  most advanced development tool for wireless Java
  technology," said Cameron McEachern, EVP, Sales
  and Marketing for PointBase.
• the best development tool for creating Java
  applications that run on devices such as the
  Compaq iPAQ and Sharp's Zaurus. - Mark McMillan,
  president, Insignia Solutions.