Social Media Drives Storage - IDEMA

Storage needs growing exponentiallyWorldwide data storage has grown from 283,000 terabytes in2000 to nearly 161 million terabytes by 2006IDC estimates that worldwide data storage will grow six-fold overthe next four years approaching one zettabyte, or one sextillionbytes (a one followed by 21 zeros) by 2010In 2007, for the first time, the amount of information created willsurpass the storage capacity available (255 EB vs. 246 EB)Average person's data storage growth = 250 megabytes per yearThe average company's data storage needs triple every 18 to 24months with 75% of all IT spending dedicated to data storageCopyright 2007 - DAVE Networks Inc.

No. of Internet users is growing rapidly…Source: IDC, 2007Copyright 2007 - DAVE Networks Inc.

and Internet Usage Continues to GrowYOY % Chhange291.9M-16.0%334.6M14.0%12.0%202.0M-10.0%145.5K-221.4M2,043043-8.0%155.7K14.7%2,1826.0%4.0%9.6%7.0%6.8%2.0%0.0%UniqueWeb PageTotalWebAudience Views TimePagesMinutesPerPersonSource: Nielsen//NetRatings NetView, December 2005 vs December 2006 (US, Home & Work)23:07:49-23:41:232.4%Time PerPersonCopyright 2007 - DAVE Networks Inc.

As digital devices proliferate…Source: IDC, 2007Copyright 2007 - DAVE Networks Inc.

Creating more images and videosSource: IDC, 2007Copyright 2007 - DAVE Networks Inc.

and Online Video Explodes40,000YouTube Google Video MySpace VideosMSN Video Grouper Yahoo! VideoUniqu ue Audience e (000)35,00030,00025,00020,00015,00010,0005,0000Dec-05Jan-06Feb-06Mar-06Apr-06May-06Jun-06Jul-06Aug-06Sep-06Oct-06Nov-06Dec-06Source: Nielsen//NetRatings NetView (US, Home & Work)Copyright 2007 - DAVE Networks Inc.

Driving storage demandsSource: IDC, 2007Copyright 2007 - DAVE Networks Inc.

Far exceeding available storage capacity…Source: IDC, 2007Copyright 2007 - DAVE Networks Inc.

and storage technologiesSource: IDC, 2007Copyright 2007 - DAVE Networks Inc.

So what is Social Networking?A social network is a social structure made of nodes (which are generallyindividuals id or organizations) that t are tied by one or more specific types of relations,such as financial exchange, friendship, hate, trade, web links, or airline routes.- As defined by Wikipedia• Most social networks consist of tools to helpindividuals or organizations connect with one anothermore easily including features such as:• Friends and Groups (Friendster)• Message Boards• Messaging and Email• With Web 20 2.0, the User Participatory Web, new formsof communications have started to take off:• Profiles (MySpace)• Blog (Xanga, Blogger, TypePad)• Podcast (iTunes)• Video Blog / Video Podcast (Rocketboom)• Video / Photo Upload/Sharing (YouTube, Flickr)Copyright 2007 - DAVE Networks Inc.

The History of Communications & Social Networking• Since the dawn of time,Humans have been Social1891Animals• Throughout history, Humanshave constantly beeninventing new ways tocommunicate with theirfellow manNikolaTesla filespatent forthe radio1926John LogieBairddemonstratesfirst workingtelevision.1969DoD launchesArpanet, earlyversion of theInternet.19931998Larry Page andSergey Brinstart Google,Marc Andreessen promise tocreates Mozilla, make thefounds Netscape, world’sfirst popular Web informationbrowser. searchable.2003MySpacelaunches.Reaches 100Musers by 2006.AD A.D.18001900 2000~3000 B.C. 1837 1881 1939 1981 19952005Early forms ofpapyrus are used bythe Egyptians.~1450Samuel Morseinvents theelectrictelegraph.1860AlexanderGrahamBellinvents thetelephone.JohannesThe Pony ExpressGutenberg invents is formedfirst movable typepress, printsCopyright 2007 - DAVE Networks Inc.Gutenberg Bible.Hewlett Packard isFounded. DavidPackard and BillHewlett found Hewlett-Packard in a Palo Alto,California garage. Theirfirst product, the HP200A Audio Oscillatorrapidly becomes apopular piece of testequipment forengineers.IBM introducesits PC, ,g igniting gafast growth ofthe personalcomputermarket.1981Jerry Yang andDavid Filo foundYahoo, firstsearch engine.First mobilephone is put intoservice.YouTube turnsTV worldupside down.Streams 100Mvideos/day byJune 2006.2003Friendster isfounded – first Web2.0 social network.

Powering Branded Video Social CommunitiesABC News – i-Caughtugv.abcnews.go.comCBS – Amazing Racecbs.com/primetime/amazingraceHook.TVhook.tvMGM – Stargatestargatecommunity.comOxygen – America Votesamericavotes.oxygen.comXyience - MyXenergyCopyright 2007 - DAVE Networks Inc.Endemol – Shelariouswww.shelarious.comL.A. Film Festivallafilmfest.com

The Internet TV Revolution• YouTube Streams Over 100 Million Videos per Day– Yet 85% of the top videos on YouTube belong to copyright holders– and monetizing is still a big question as CPMs remain low or non-existant• Branded Content Sites Selling Out– Branded sites, on the other hand, have high CPMs and are selling out adinventory months in advance– but producing enough content is a problem• Professional Content will Attract the Largest Audiences– 80% of ad dollars will flow to 20% of most popular content• 90% of the Revenue Opportunity is in Advertising– 10% of $65B TV ad spend will shift online by 2010• Content Owners will be the Biggest Winners– Almost all will go Direct-to-Consumer to (best margins & control)Copyright 2007 - DAVE Networks Inc.

Media Habits are also changing…Source: Sanford C. Bernstein & Co.Copyright 2007 - DAVE Networks Inc.

As we have way more choices to get mediaSource: Sanford C. Bernstein & Co.Copyright 2007 - DAVE Networks Inc.

Bridging TV and the InternetABC’s America’s Funniest Video – Powered by DAVE.TVIf aBrandedVideo byitselfgenerates1 millionAd AvailsDAVE’sS.O.C.I.A.L.APIs allowBrands toeasily addcommunityfeatures to TVand brandsitesgeneratingg2-5x moreancillary AdAvails aroundexistingcontent atsimilar CPMsDAVE’s S.O.C.I.A.L. APIs create Ancillary Revenue Streams toexisting content and traffic at equivalent branded CPMsCopyright 2007 - DAVE Networks Inc.

Social Media Case Study – Stargate SG1Home Page Community/Members Page Media PlayerControl Room Profile Page Profile BuilderCopyright 2007 - DAVE Networks Inc.

More numbers6 Megapixel Photo = 3MBDigital camera images captured: 2006 – 150 billion, 2010e – 325 billion1.3 Megapixel Photo = 50KBCameraphone images taken: 2006 - 100 billion, 2010e – 200 billion4 Minute YouTube Clip = 15MBVideo on digital cameras/cameraphones: 77% have capabilityAvg. user takes 3.5 clips per monthDigital camera avg. clip = 90 secondsCameraphone avg. clip = 30 secondsYouTube videos uploaded daily = 80,000YouTube videos streamed daily = 100 million4Mi Minute MP3Song = 4MB2 Hour MP4 Movie = 750MB1 Hour Tivo Show Recorded = 900MB1 Hour Tivo HDTV Show Recorded = 8GBNumber of Web Pages indexed by Google = 20+ billionNumber of monthly searches on Google = 4.1 billion (Yahoo = 1.5 billion, MSN = 1 billion)Number of Videos on YouTube = 40.4 millionGmail storage per Person = 2.7+GBNumber of Google Servers = 500,000+Copyright 2007 - DAVE Networks Inc.

Thank YouRex WongCEOrwong@davenw.com