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***For Immediate Release***
SKYRIDER'S SMART NETWORKING TECHNOLOGY SUPPORTS THE CREATION, LOCATION, AND MONETIZATION OF CONTENT ON P2P NETWORKS
MOUNTAIN VIEW, CA - AUGUST 3, 2006 – Skyrider, developer of a new peer-to-peer (P2P) networking platform, today formally launched the company. After two years of development, the company is disclosing its vision of the opportunities for monetizing peer-to-peer (P2P) networks and the beginnings of its plan to capitalize on these opportunities. The company has also indicated that its first product will be announced in the fall.
Led by new chief executive officer Ed Kozel, Skyrider's founders and executive management includes a team of experienced media and networking entrepreneurs. To build its initial system, Skyrider is funded by leading venture capital firms Charles River Ventures and Sequoia Capital.
"The use of P2P networks is so widespread that now they are the dominant traffic on the Internet," said Randy Ditzler, of Sequoia Capital a Skyrider Investor. Recent studies reveal that 75 percent of consumer Internet traffic is P2P. "P2P networks are maturing and diversifying and the utilization of these networks has created some very compelling business opportunities. Skyrider is the first to focus on creating a platform and products to seize these business opportunities."
P2P networks have become popular for entertainment file sharing applications because of the dramatically better economics of storing and distributing large data files. As a result of these economics, P2P has the potential to be the dominant network architecture of this century.
Creation, Commercialization and Distribution
According to Mr. Kozel, Skyrider has focused on developing a platform that allows businesses and consumers to utilize the rapidly growing power of peer-to-peer technology in significant commercial applications. Skyrider's technology will allow the peer-to-peer environment and the web to coexist, creating three fundamental opportunities, including keyword-based P2P search; unrestricted and more dynamic access to content; and an explosion of new applications based on P2P architectures.
"Keyword-based search marketing will receive a tremendous boost by operating in the P2P space," said Mr. Kozel. "There are as many as tens of millions of unique users per day, conducting hundreds of millions of searches." An effective search marketing platform would give advertisers several hundred million highly focused searches per day. Mr. Kozel indicated that although currently the searches are entertainment-related, in the near future, searches will include a variety of different varieties of content in many different vertical markets.
The second opportunity, unrestricted and dynamic access to content, Kozel explains, results from the fact that, "Unlike traditional keyword searches, which rely on accessing massive and expensive central indexes, a P2P search can poll millions of network computers simultaneously at effectively no cost. This results in richer, more dynamic results for the end user that do not depend on the vagaries of a central index and a more efficient distribution channel." Content providers such as the entertainment industry and recording artists have been looking hard for an effective model to store and distribute digital media such as video and music. The need for a growing number of central servers has made storage and distribution extremely costly. The inherent shared bandwidth of P2P networks dramatically reduces central server dependency.
"Finally," said Mr. Kozel, "There will be an explosion of innovation in software and applications, once businesses can not only reach P2P users, but can utilize the decentralized, dynamic and community nature of P2P technology. This permits the 'network effect' — which holds that the value of a network grows exponentially with the number of users — to be put back into the network; this will create significant new value for businesses and end users."
According to Tim O'Reilly, founder and CEO of O'Reilly Media, Inc. and well-known commentator on the future of the Web, "Business opportunities surrounding monetizing P2P networks have huge potential. This is because seizing these opportunities requires sophisticated, new technology and there are no established players that already have a lock on the market."
Bridging the Gap
Mr. Kozel further explained that the technology needed for monetizing P2P networks is different from that needed for the Web. The Web is based on a "client-server" architecture, where information is saved in a relatively small number of "master" repositories; P2P architectures are fully distributed, which means that information may be stored on any of the multitudes of "nodes" on the networks.
The advantage of P2P architecture is that every node shares in the burden of storage and distribution of information and that information flows between all participating nodes. Offering search marketing and other business applications, which traditionally requires all information to flow to a central location, in a P2P environment is a far more complex technical undertaking. Because of its long experience with sophisticated network architectures, Skyrider's team succeeded in building a platform that meets this challenge. The Skyrider platform ultimately will enable of several software services that include search services, business and economics services, and community and consumer services, one of which Skyrider has already successfully deployed.
Dave Stewart of the Eurythmics who recently launched a new band, Platinum Weird, commented about the P2P space and the business opportunity it represents for content providers: "Peer-to-peer networks represent an evolving channel for artists to effectively reach a very targeted audience. Recording artists are challenged with the ability to aggressively market their music and events. The vast reach of peer-to-peer networks provides an excellent avenue for cost effective promotion."
Skyrider is creating smart networking technology to support the creation, location and monetization of content on P2P (peer-to-peer) networks. Skyrider's focus is to unleash the power of P2P networks for businesses and consumers. The company's unique platform enables businesses to promote commercialization of P2P through cost-effective content distribution and targeted marketing, and enables consumers to get the greatest opportunity to be creative and connect through P2P networks. Skyrider (www.skyrider.com) is located in Mountain View. The company was founded in 2003 and is funded by Sequoia Capital and Charles River Ventures.