C O M P E T I T I V E A D V A N T A G E T H R O U G H A C T I V E C O R P O R A T E P A R T N E R I N G T M

The Future of Mobile

ISACA ConferenceHotel Nikko, November 8, 2011

www.allegiscapital.com

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Self Healing Networks

Grid Networks

Cloud Services

Social Platforms

Storage Visualization

LTE

Mobile Video

Location Based

Services

Wireless VoIP

OnlineApplications

SeamlessMobility

Rich MediaSearch

CompositeApplications

RFID

SemanticWeb

Biometrics

i-Book(Education)

GPS

Flexible Displays

Perpendicular Storage

2010

2010

Optical Reader

Symmetric Networks

100MbpsConsumer BB

IPv6Dominates

Interactive Video

LTEAdvanced

CognitiveRadio

CloudServices

VehicularServices

(VAN)

Health Services

(BAN)

Public Safety Services

Ad-hoc MeshSensory

Thumb Print

Scanner

3-D Printing

Fuel Cells

Large Mobile

Storage

ContentAware

Networks

2015

2015

WearableNetworks

Intelligent Optical Chip

On-demandReconfigurable Networks

250B WirelessEndpoints (RFID, Sensors)

100 to 1 Wireless vs. Wireless End Points

Speech to Speech

Translation

Natural Language

Understanding

AffordableGreen Energy

Nano Computers2020

2020

End of Broadcast TV

10TbpsBackbone

2025

Common Robotics

Holographic Storage

Tele-Immersion10Gbps Wireless

Last Wireline Phone Retired

2025

NETWORKS

WIRELESS

DEVICES

CONTENT/APPLICATIONS

Defining Mobile

Devices making up the mobile market (today)

Tablets (iPad, HTC, LG, Motorola and RIM, and others will soon join the fray)Basic cell phones (Casio, HTC, Kyocera, LG, Motorola, Nokia, RIM, Samsung, Sanyo, Sony Ericsson)

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Defining Mobile

Mobile market sectorsMobile + SocialMobile PublishingLocation-based servicesMobile OperatorsMobile Payments and mCommerceWireless Security

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0

200

400

600

800

1000

91 107 109 107168

224 224

328

858917

3.13B

Mobile Phones Use Worldwide

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In Millions

Mobile + Social: Smart Phone Market

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23.1%Apple

16.5%Samsung

15.5%HTC

11.1%RIM

10.7%Motorola

9.1%LG

3.1%HUAWEI

2.4%Nokia

.57%Sanyo

.56%Kyocera

.53%PrivateLabel

.48% .34%Pantech

.25%KDDI

.20%SonySony

Ericsson

(as of end of September 2011)

Mobile Market Event: Recent M&As

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NetLogic MicrosystemsSemiconductor

Acquired byBroadcam $3.7B

Hitachi, Sony, and Toshiba’s small-panel LCD Businesses

Device (Comonent, LCD)

Acquired byJapan Display K.K

$2.6B

LitePointMedia and Application infrastructure

and test platform

Acquired byTeradyne $580M

TelemapMedia and Applications

Acquired byIntel $300M

KGHM Polska Miedz’s Telefonia Dialog unit

Telecom

Acquired byNetia $289.6M

Remaining 50% stake in Volgograd-GSM

Telecom

Acquired byRostelecom $80.5M

Integrated Device Technology’s HQV & FRC Video Process. Assets

Semiconductor

Acquired byQualcomm $60M

Air2WebMedia and Applications

Acquired byVelti $19M

TotilityEnterprise IT

Acquired byMaintelHoldings

$10.7M

Mobile Market Event: VC Financings

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InMobiMedia & Applications

Investors:Softbank

$200M

Eaton ToersTelecom

Investors:Capital international

$150M

LookoutMedia & Applications

Investors:Accel Management, Andreessen Horowitz, Index Ventures, Khosla Ventures

$40M

MeLLmoEnterprise IT

Investors:Sequoia Capital

$30M

NetMobileTelecom

Investors:NTT DOCOMO

$28.4M

QuomosTelecom

Investors:Alven Capital, DFJ Esprit, Fonds Stratégique d’Investissements

$27.4M

VidyoEnterprise IT

Investors:Four Rivers Group, Menlo Ventures, QuestMark Partners, Rho Ventures, Star Ventures

$22.5M

ArcsoftMedia & Applications

Investors:Intel Capital, Tudor Ventures

$20M

iZettleCommerce and Payments

Investors:IndexVentures

$14.4M

FinestrellaTelecom

Investors:Bay Partners,Ignia Fund, Omidyar Networks, Storm Ventures

$13.8M

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Mobile Market Opportunities

Tablet computing: Soaring (Rutberg & Co. and Gartner)

Total tablet shipments will reach 326 million by 2016 Fivefold increase from 67 million tablets expected to be sold in 2011More than half of annual tablet shipments will have cellular connections by 2016Apple iPad more than half the market through 2014

Mobile payment: Mobile payments will exceed $170 billion by 2015, nearly triple the $60 billion forecast for 2011 (Jupiter Research)

Mobile commerce: Mobile commerce accounts for $6 billion, or just 2% of overall commerce could rise to $31 billion by 2016

(Forrester Research)

Mobile health monitoring:

Helps governments, care delivery organizations and healthcare payers reduce costs related to chronic diseases.

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Mobile Market Opportunities (cont’d)

Mobile advertising: Mobile advertising $530 million in 2008, grow to $7.5 billion in 2012. (Gartner)

Location-based services: $526 million in 2012, up from $96 million in 2011 (Gartner)

Mobile gaming: $11.4 billion in 2012 (Gartner)

Mobile security: 1.5 billion connective devices currently to 250 billion connective devices by 2020(Dr. Hossein Eslambolchi, former CTO/CIO of AT&T)

Where Could It All Go Wrong?

Answer: Securing the wireless frontierSecurity threats:

Spectrum of suppliers and technology with a diversified platform No secure standard Open architecture (app stores)Explosion in types and number of devicesUse of personal mobile devices in enterpriseLack of firewall on mobile

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Mobile Security: Opportunities and Challenges

Mobile Payment provides significant opportunity for security hackers

Gartner: number of mobile payment users worldwide : 73.4 million in 2009, up 70.4% from 2008Gartner predicts that the number of mobile payment users will reach more than 190 million in 2012, representing more than 3% of total mobile users worldwide

Security hackers will  focus attention on the mobile industry and target smart devices for financial gain.

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Other Major security threat areas

AppsSpywareMalwareSpam Access and Authentication

Mobile Security: Opportunities and Challenges (cont’d)

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Mobile Security: Opportunities and Challenges (cont’d)

What are the hottest companies in mobile security?

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SUMMARY

The Future is Mobile!

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Questions?