International Technology

Corporate Finance

The Market for Service

Deliver Platforms (SDP) -
Status Quo

August 2006
Definition
The SDP Market can be defined from different angles

¡ SDP = eco-system for cost-effective and speedy creation, deployment,

provisioning, execution, management and billing of a set of “enhanced”
services

¡ SDP = infrastructure that delivers packet-based voice and data centric

advanced services in a device agnostic and network agnostic manner

¡ SDP = set of platforms that aggregate different network capabilities &

services, and content sources, and thus allow application developers a
simplified, uniform / standard way to access to such capabilities, services and
content

¡ SDP = infrastructure that interworks well with:

§ IT infrastructure (BSS) such as billing system, CRM, AAA etc.

§ OSS infrastructure such as provisioning

§ Network elements such as switches, SMSC, MMSC, WAP Gateways

§ Portals
Complex SDP Universe
Some SDP players…
Trends in the SDP Market
The fragmentation of the providers is starting to disappear

¡ Consolidation in the SDP industry has started and is

expected to accelerate over the next 12-18 months
§ Lack of standard architecture
§ Too many (far over 100) point solutions
§ Few middle sized / larger players
§ Many VC funds invested in SDP come to an end
¡ Many M&A initiatives ongoing in the moment
¡ Category leaders can raise significant capital
§ Empower Interactive ($18m)
§ mFormation ($35m)
Trends in the SDP Market
Technology trends impacting SDP

¡ Significant Broadband growth

¡ Wireless is being added for Quad Play

¡ Global IP TV deployments

¡ Fixed and Mobile operators, MSOs and Satellite

Operators, all involved

¡ New technologies will be rolled out, e.g. Wi-Max,

DVB-H, etc.
Market Development
Fast growing market for SDP technology predicted

Source: Yankee Group, 2006

Sector Activity
Recent M&A transactions in the SDP space

Sales
Seller Buyer Intention Details
Multiples
Versify Amazing ¡To enhance product offering ¡ Announced 5/9/05 ¡ 8.4x
Technologies’ Technologies ¡ $48 million
software
application
Elata Qualcomm ¡Lead the expansion of deliveryOne and marketOne ¡ Announced 8/17/05 ¡ 11.4x
offerings. Enable customers to consolidate all of their ¡ Cash
content services with open and agnostic support for all
device platforms
¡ $57 million

HotSip Oracle ¡To build its position in middleware and carrier-grade ¡ Announced 2/15/06 ¡ 3.7x
communications infrastructure ¡ Cash
Musiwave Openwave ¡To enable operators to deliver a broad range of high ¡ Announced 9/26/05 ¡ 4.0x
value music services and associated content, quickly and ¡ Shares and Cash
safely to their customers
¡ $120 million

Sensestream Adamind ¡To expand into China, Hong Kong and Taiwan ¡ Announced 2/8/06 ¡ n.a.
¡To create a global footprint for Adamind as well as ¡ Cash and Stock
shareholder value in the long term

Qpass Amdocs ¡Combine Qpass’ business expertise and leading ¡ Announced 4/18/06 ¡ 8.3x
technology platform, and Amdocs’ unmatched industry ¡ Cash
knowledge, strong services, and global reach
¡ $275 million
PeopleSoft OpSource ¡OpSource's formal entry into the rapidly growing ¡ Announced 6/6/04 ¡ 5.8x
division of enterprise application hosting market ¡ Cash
Fortrust ¡To provide affordable and reliable global IT
Solutions infrastructure services
Sector Activity
Recent fundraising rounds in the SDP space

Company Date Field of Activity Amount Investors

M-Wise Inc. 2/10/06 Development, manufacture and marketing of $10 million Dutchess Capital Management,
interactive messaging platforms for mobile Dutchess Private Equity Fund
commercial applications, transactions and
information services
Motricity 4/25/06 Provide mobile content and solutions $40 million Advanced Equities, New Enterprise
Associates, Technology Crossover
Ventures
mFormation 4/20/06 Provider of mobile device management $15.3 Alex Brown Ventures Partners, Battery
Technologies, Inc. software, offering a complete solution that million Ventures, Carmel Ventures, Intel
enables mobile operators to rapidly accelerate Capital, North Bridge Venture Partners
their data revenues and reduce support costs
Empower 3/28/06 Design, installation and service of data, $18 million Argo Global Capital, Cazenove Private
Interactive Group messaging and multimedia systems for mobile Equity, DN Capital Limited, IDG
operators Ventures Europe, Scottish Private
Equity Partners
The Platform 1/12/06 Provide digital audio and video publishing $8 million Generation Partners, Spark Capital
solutions
July Systems 11/2/05 Provide mobile market solutions to mobile $10+10 Charles River Ventures, JumpStartUp,
and operators and content retailers million Motorola Ventures, NeoCarta Ventures,
9/28/05 Silicon Valley Bancshares, WestBridge
Capital Partners
mPortal 9/26/05 Enable the discovery, delivery and management $4 million Friedli Corporate Finance
of mobile content and applications
Motricity 7/12/05 Provide mobile content and solutions $30 million Advanced Equities, Intel Capital, New
Enterprise Associates, Technology
Crossover Ventures
Definition of SDP
The SDP universe

Application
Domain Enterprise Apps Consumer Apps

Portals
Content
Exposure
Domain
AAA Service Exposure Layer

Web Services Parlay OMA .NET

Service
Creation
Environment
BSS Content Delivery Platform
Service Service
Execution Content Content Content Management
Acquisition Management Delivery
Environment Environment
Content Content Content
Transcoding Adaptation Servers
OSS
Device
Management
Core
Network Network Adaptation Layer
Services

Charging Location QoS

Presence Messaging Call Management

SDP Eco-System
Another View

Service Service Service

SMS-GW Access Management
Discovery Creation
Control
MMS-GW
Personalization
WAP-GW Content
Acquisition
Content
Push Device
HTTP Transcoding Content Rating
Proxy Mgmt
Proxies Content Management
GW
Adaptation Billing
OSA/Parlay Subscriber Content
Mediation
GW Mgmt Content Servers
Delivery
Streaming 3rd Part
Proxy Content Mobile Settlement
Filtering Marketing
Virus
DRM
Protection
Competition in the SDP Space
Winners and losers

Losers
¡ Companies creating a larger product
portfolio organically
(e.g. Telenity, Redknee)

¡ Companies who are acknowledged category

leaders ¡ Companies who miss the M&A wave
(e.g. Volantis, Kabira, Drutt)
¡ Companies who fail to be of critical size
¡ Companies who are able to get their M&A (> €10m)
timing right
(e.g. Qpass, Elata) ¡ Companies who do not have a clear unique
selling proposition

Winners
 Appendix
SDP companies

Application
Domain Enterprise Apps Consumer Apps

Portals
Content
Exposure
Domain
AAA Service Exposure Layer

Web Services Parlay OMA .NET

Service
Creation
Environment
BSS Content Delivery Platform
Service Service
Execution Content Content Content Management
Acquisition Management Delivery
Environment Environment
Content Content Content
Transcoding Adaptation Servers
OSS
Device
Management
Core
Network Network Adaptation Layer
Services

Charging Location QoS

Disclaimer:
This mapping of
companies represents
only a partial view Presence Messaging Call Management
International Technology
Corporate Finance

Contact:

Falk Müller-Veerse

Managing Partner

Cartagena Capital GmbH

Maximilianstrasse 18
80539 Munich, Germany

Phone: +49 - 89 - 242 111 33

Fax: +49 - 89 - 242 111 55
Mobile: +49 163 5506 234

Web: www.cartagena-capital.com

E-Mail: falk@cartagena-capital.com