Piper Jaffray Technology, Media and Telecommunications Conference MARCH 12–13, 2013 IN NEW YORK CITY Piper Jaffray Technology, Media and Telecommunications Conference MARCH 12–13, 2013 IN NEW YORK CITY Piper Jaffray does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decisions. This report should be read in conjunction with important disclosure information, including an attestation under Regulation Analyst Certification, found at the end of this report or at the following site: http://www.piperjaffray.com/researchdisclosures. Technology, Media and Telecommunications Conference March 12–13, 2013 CONTENTS Technology, Media and Telecommunications Conference • Event Map .........................................................................................3 • Keynote Speakers .................................................................................. 4 • Panels ........................................................................................... 6 • Participating Companies ............................................................................ 9 • Company Overviews ................................................................................11 • Piper Jaffray Investment Research Team ................................................................41 • Technical Research ................................................................................ 48 • Notes ........................................................................................... 67 • Important Research Disclosures ..................................................................... 70 2 Technology, Media and Telecommunications Conference March 12–13, 2013 LE PARKER MERIDIEN NEW YORK Third Floor BUFFET BALCONY BALCONY AZEKKA TANSA 2 2 TANSA 1 ATRIUM 1 STAIRS ASSEMBLY ASSEMBLY MIRUS 2 BUFFET 3 5 COAT BANQUET 6 ROOM MAITRE’D BUFFET MIRUS 1 GAMSHOGE AUDIO VISUAL 7 OFFICE Second Floor 1 Track One AZEKKA STAIRS 2 Track Two TANSA 1 AND 2 3 Track Three MIRUS 1 AND 2 4 Track Four LORICA (take the stairs to the second floor) FERION 5 Registration TANSA ASSEMBLY 6 1:1 Registration TANSA ASSEMBLY BUFFET 7 Speaker Ready and Internet Access GAMSHOGE ASSEMBLY LORICA BUFFET 4 56TH STREET 3 Technology, Media and Telecommunications Conference March 12–13, 2013 KEYNOTE SPEAKERS Steve Caniano Vice President, Hosting, Managed Applications and Cloud Solutions AT&T Business Solutions Steve Caniano is responsible for developing the strategy and execution plan to scale AT&T’s cloud solutions business. This includes defining and establishing alignment with key industry players to ensure AT&T’s services are embedded in their cloud platforms, providing the broadest enablement of cloud solutions for our customers. Caniano previously led AT&T’s global hosting, application and cloud services business, where he directed product and investment strategy, marketing and communications, and held accountability for customer satisfaction, and the financial health of the business. Caniano developed AT&T’s network enabled cloud strategy and led the transformation of the company’s hosting business into scalable, on-demand solutions. He has been instrumental in forging key partner alliances to support the business, while scaling services globally. Caniano regularly collaborates with customers to ensure AT&T is meeting customer expectations and requirements, but more importantly, incorporating customer insights into AT&T’s cloud solutions strategy and portfolio. He frequently represents AT&T in key industry events and analyst forums to position cloud solutions and to shape marketplace perceptions of AT&T’s role in the “cloud”. During his career at AT&T, Caniano has held positions in sales, operations, program management, product management, strategic planning, supplier management and systems development. Caniano designed and launched the original Global Solution Center in support of business customers, and led the team having responsibility for engagement management, solution strategy and technical solution design for AT&T’s largest enterprise and global customers. He has worked with and managed leading-edge technologies throughout his career, while always maintaining focus on the customer solution. David Kirkpatrick Internet and Technology Expert Author of The Facebook Effect For more than 20 years, David Kirkpatrick was a writer for Fortune, most recently as senior editor of Internet and technology. He is regularly ranked one of the world’s top technology journalists. Kirkpatrick created Fortune’s Brainstorm brand, which ran for five years. Now, with a group of former Fortune colleagues, Kirkpatrick has a media company called Techonomy, focusing on the centrality of technology to business and social progress and the urgency of embracing the rapid pace of change brought by technology. Kirkpatrick’s expertise on technology subjects led him to pen the definitive book on Facebook, The Facebook Effect: The Inside Story of the Company That is Connecting the World. The Facebook Effect uncovers how in little more than half a decade, Facebook has gone from a dorm-room novelty to a company with over 900 million users. It is one of the fastest growing companies in history, an essential part of the social life not only of teenagers but hundreds of millions of adults worldwide. Kirkpatrick had the full cooperation of Facebook’s key executives in researching this fascinating history of the company and its impact on our lives. 4 Technology, Media and Telecommunications Conference March 12–13, 2013 KEYNOTE SPEAKERS Zach Nelson President and Chief Executive Officer NetSuite Inc. Zach Nelson has more than 25 years of leadership experience in the high-tech industry, where he has held a variety of executive positions spanning marketing, sales, product development and business strategy with leading companies including Oracle, Sun Microsystems and McAfee/Network Associates. Nelson has been CEO of NetSuite since 2002. He led NetSuite’s successful IPO in 2007 and its rise from start- up to the industry’s cloud ERP leader. Under his leadership, NetSuite has become the leading provider of cloud computing business management software suites in the world. Nelson holds bachelor’s and master’s degrees from Stanford University. Fred Wilson Managing Partner Union Square Ventures Fred Wilson is a managing partner of Union Square Ventures (“USV”), a New York-based firm that manages $450 million and has been one of the top performing venture funds over the past decade. USV was the initial investor in companies including Twitter, Zynga, Foursquare, Etsy, Covestar, Tumblr, Disqus and Indeed. Wilson writes a widely followed blog called AVC. He has sold portfolio companies to Google, Yahoo, AOL and other prominent Internet consolidators. At the conference, we will hear Wilsons’s view of the technology landscape, trends in the Internet and social media spaces, and his investment philosophy. We will also be exploring the growth of Silicon Alley and the opportunities it has provided. Finally, we will be discussing the differences between the Internet marketplace today and that of the late 90s. Wilson has been a venture capitalist since 1987 and founded Flatiron Partners (JP Morgan) before founding USV. Wilson holds a bachelor’s degree in mechanical engineering from MIT and a Master of Business Administration degree from The Wharton School of Business. 5 Technology, Media and Telecommunications Conference March 12–13, 2013 PANELS Accelerating Design Cycles and Cloud-Based Human Resources Direct Digital Manufacturing Applications IT organizations are beginning to funnel greater amounts of As companies continue to search for ways to accelerate revenue money into HR and talent management solutions as more growth and better compete in the global marketplace, design organizations are recognizing employees as assets to their cycles are constantly being reworked in hopes of improving business rather than simply resources. “Strategic HR” is time to market for new product introductions. 3D printing becoming the talk of the table and next-generation HR processes manufacturers and service bureaus have experienced significant are gaining importance. The emergence of cloud-based systems, growth with product development teams, discovering how 3D which deliver a remarkable user experience and value proposition printer and services can help accelerate design cycles. In addition that eclipses that of pre-Internet solutions, is further catapulting to shortening design cycles, additive manufacturing technologies this trend into an acceleration mode. With a panel of executives have had significant technological improvements and 3D printers from Cornerstone OnDemand and Ultimate Software, we will are now being used for direct digital manufacturing (AKA rapid discuss the impact of cloud-based software on the HR industry prototyping or rapid manufacturing) to produce end user parts. and the contribution of these two companies toward this trend. This panel will include service provider Proto Labs, investment firm Lux Capital Management, and system manufacturers 3D Communicating with Customers in the Cloud Systems, Arcam and Stratasys. The way companies interact with both business and consumers has changed dramatically over the last decade with the All-Flash Storage introduction of SaaS-based