The Butterfly.net Opportunity

1
The Butterfly.net Opportunity

• David Levine, Chief Executive OfficerBreighton
  Dawe, Director of Product Development
• March 19, 2003

2
Introducing Butterfly.netMilitary, Commercial,
Game Industry Team

• David Levine, Chairman, President CEO
• Founder/CEO, Ultraprise Corporation (Financial
  Services Infrastructure)
• Founder/CEO, HuskyLabs (Business and Media
  Internet Software)
• Mark Wirt, Chief Technology Officer
• Nichols Research, Riverside Research
• Directorate Manager, Strategic Defense Initiative
  Systems Simulations
• Barry Bart Whitebook, Chief Software Architect
• Atari Games Major Havok and other successful
  arcade games
• Amiga created fully-functioning, multitasking
  operating system
• Hughes Network Systems developed embedded
  multi-process kernel
• Rusty Breighton Dawe, Director of Product
  Development
• Atari Games Paperboy, I Robot, Cloak and Dagger,
  Star Wars
• Sierra Online, AOL, ATT 3D online games
  infrastructure
• Miacomet Developed sports-oriented controllers
  (hardware/software)

3
Commercial, Military and Consumer
OpportunityPotential for a Powerful, Industry
Transforming Platform

• The Battle for the Living Room
• Gamers stealing market from Cable, DVD
• The Future HDTV PC or console?
• Industry Needs Immersive Applications
• Concurrent Engineering
• Simulations
• Embedded Systems
• Broadband, Services and Grid
• Value migrates onto network
• 3rd generation console business model
• PC manufacturers business model
• Online Platform Model

Content Providers
Gamers
4
Online Games will Drive TechnologyEnormous
Potential Driven by Consumer Demand

• Global video game market is huge and growing
  31 billion in 2002, will spend 60 billion in
  2008.
• Online games revenue 5 of industry in 2002
  25 in 2005 50 in 2008.
• Subscription price-points single game, per
  month 9.95 (The Sims Online, Ultima
  Online)12.95 (Asherons Call, Dark Age of
  Camelot, Anarchy Online)40.00 (Everquest
  Legends).

Online Video Game Market Size Segmented by
Platform
BB
Online PC Gaming
Connected Consoles
Mobile Gaming

• (sources Mercer Consulting Accenture)

5
The State of the Online SimulationsToo
Expensive, Too Difficult

• To create
• Tough technical challenges.
• Not enough talent, experience.
• Too much execution risk.
• To operate and support
• Custom infrastructure, legacy code.
• Inefficient use of computing/network.
• To play
• Each game has a separate monthly fee.

6
Butterfly.net Optimizes the IndustryA Platform
for the Mass Market

• Content provider
• Plugs into art, animation, physics, 3D engines.
• Familiar Linux server API and tools.
• Ongoing operations
• Supported by service providers.
• Common computing and network resource base.
• Highly efficient protocol, server.
• Consumer services
• Targeted game packages.
• Single sign-on, roaming, multi-platform,
  inter-game network.
• One integrated, manageable bill.

Service Providers
Content Providers
Gamers
7
The Butterfly Grid Content Provider ProgramA
Complete Package for the Professional Game
Developer

• Package includes
• Client SDK (PC, console, mobile)
• Server SDK for Linux (Packaged or Hosted).
• Creation tools and 3rd party plug-ins
• Commercial, Government, Consumer
• Game Developers
• Research Institutions
• Notes
• Butterfly Lab Developerecosystem.
• Lock-in through API.
• Training, education, certification programs.

8
The Butterfly Grid Service Provider ProgramA
Value-Added Service for New Subscription Revenue
Streams

• Package includes
• Butterfly server software suite.
• Butterfly game admin apps.
• Globus, policy mgt., billing.
• Shared Grid or Dedicated
• Gamers
• Industrial
• Military
• Notes
• Inter-node resource sharing.
• Value-added broadband package.
• SLAs, QoS guarantees, ratings/certification.
• Most efficient/lowest cost to operate.

9
The Butterfly Grid Demand DrivenGamer Packages
Offered Through Marketing Partnerships

• Gamer Culture
• Theme and genre bundles.
• Demos, previews, mods.
• Guilds, clans, competitions.
• Industry Structure
• Virtualization of the Enterprise
• Cutting op ex/cap ex
• Collaborative engineering
• Notes
• Enforce quality (titles/service).
• Persistent base account, multiple identities.
• Interoperability, single-sign on for multiple
  platforms, roaming.

10
Multi-tiered, Fully-distributed Game OSMaximum
efficiency in managing state of of clients,
network, servers
The Butterfly Grid
11
Developer-Defined Dead-Reckoning ModelsClient
Reduces Packet Transmissions and Defeats Lag

• Synchronize client displays efficiently
• Edge devices only propagate location of objects
  if items stray from anticipated position
  (calculated using position, velocity and
  acceleration).
• Different objects within a gamewill have
  different dead-reckoningmodels.

!
12
Fully-Meshed for Stability, Reliability,
PerformanceNetwork Provides Reliability,
Efficiency

• Network Protocol Stack A thin reliability layer
  on lightweight UDP.
• Multicast Servers subscribe to a multicast
  group during gameplay.
• Globus/OGSA Instrumentation, policy layer.
  Game Configuration Spec.

13
Building Worlds to Span ServersServers Manages
Multiple Games, Resources Dynamically
14
Strategic Alliances and PartnershipsMarketing,
Sales, Collaborative Research and Development

• IBM
• Master relationship agreementSales and
  distribution (ME, Telco), IGS.
• Joint technology agreementGrid, eUtility policy
  mgt.Games
• Other alliances
• Intel Early Access, Sales, Marketing.
• Cisco Grid, SLA, QoS.
• Sony PS2 middleware provider.
• Gateway Consumer Marketing, HDTV, Grid.
• Numerical Design Ltd. Joint marketing 3D engine
  compatibility.
• Havok Co-marketing Physics engine.
• Open Source Projects

15
The FutureMilestones to 2030

• Major Disruptions
• Retinal Projection
• Augmented Reality
• Embedded Systems
• Ubiquitous Mobile Connections
• Location-based Services
• Available now and in the future

16
Thank You

• David Levine, CEO
• David.Levine_at_butterfly.net
• Direct 304-260-9537
• Cell 304-279-6572