I've put together a brief summary of VTX for potential investors or newbies who are still wrapping their heads around VTX current standing.
Please feel free to add or comment anything that you feel should be added to the summary with keeping in mind the briefer and more succinct the better.
Link to the "Up to Date" version which I will add to and keep as current as possible
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VTX Brief Summary
Who is VTX?
VTX Holdings Ltd (Reverse takeover by NexGen Networks) is a New Zealand technology company which has created a network software system that delivers greater transfer efficiency of data at a lower cost.
Website: http://www.nexgennet.com/
Trading Symbol: VTX.ASX
Market Cap: 10.36M
What does NexGen do?
Network software system that creates and enables material efficiencies to occur between data flows through its proprietary customised algorithms, which leverages and optimises data flows based on historical user experience and usage.
NexGens essentially piggybacks onto a NexGen server which runs it proprietary software to significantly improve network speed through the use of accelerators, compression and congestion avoidance algorithms.
NexGen Acquisition
VTX Holdings Limited signed a binding terms sheet to acquire 100% of equity interests in NexGen Networks Limited. The Acquisition of NexGen strategically diversifies and expands the operations of VTX Holdings into the significant and fast growing global mobile technology sector, worth over $100 billion annually.
NexGen[/B] is a New Zealand based software technology company founded in 2013, by experienced technology entrepreneurs and retail executives Jason Gitmans and Robert Pole.
NexGen has developed cutting edge proprietary software technology “Warpware” - a first to market software - which delivers highly intelligent customised algorithms that enables the re-creation and optimisation of data flow between two geographical points on the globe.
NexGen’s technology disrupts a rapidly growing sector of data usage and transfers allowing bigger packets of already compressed data to be sent more effectively, facilitating faster speeds on existing hardware.
Warpware
Warpware creates and enables material efficiencies to occur between data flows through its proprietary customised algorithms, which leverages and optimises data flows based on historical user experience and usage. In particular, the technology reduces the level of data transferred in excess of 30%, based on intelligent analysis and repackaging of ‘new data’ being transferred between networks.
The ability to deliver such optimal results is due to NexGen’s customised virtual based technology, which re-directs data through to its own proprietary server, delivering faster and more efficient data usage to each user through existing infrastructure.
NexGen’s Warpware technology has a number of competitive differentiators:
Customisation and rebuild of data flows based on historical data flow and user patterns
Optimisation of intelligent data
Superior and sharper user experience, on phone, tablet and laptop
Re-direction of data via Warpware server delivering faster speeds (up to 300%) and more efficient data usage converting to data savings in excess of 30%
Additional features to include higher definition streaming, better quality “voice over Internet protocol” calls and additional security through encryption
Future generations of the software to include gaming competitive advantage
Enhancement services
Minimal level of storage required
Technology can be used on any device and is highly scalable; and intellectual property protected by custom written algorithm creating significant barriers to entry.
https://www.dropbox.com/s/kemvn4mbe7vd2qs/VID_20140504_222351.mp4?dl=0
Technology Breakdown
What is Middlebox ware?
A middlebox or network appliance is a computer networking device that transforms, inspects, filters, or otherwise manipulates traffic for purposes other than packet forwarding. Dedicated middlebox hardware is widely deployed in enterprise networks to improve network security and performance.
NexGen’s Warpware acts as a middlebox by running its own proprietary server in a virtualized environment and utilises WAN optimisation techniques and compression to significantly improve bandwidth consumption and subsequently increase the speed at which data is transferred between two points.
WAN Optimisation
WAN optimisation, also known as WAN acceleration, is the category of technologies and techniques used to maximise the efficiency of data flow across a wide area network (WAN). In an enterprise WAN, the goal of optimisation is to increase the speed of access to critical applications and information.
In 2015 Gartner estimated the WAN optimisation market to be a $1.1 billion market.
WAN optimisation encompasses:
traffic shaping, in which traffic is prioritised and bandwidth is allotted accordingly.
data, which reduces the data that must be sent across a WAN for remote backups, replication, and disaster recovery.
compression, which shrinks the size of data to limit bandwidth use.
data caching, in which frequently used data is hosted locally or on a local server for faster access.
monitoring the network to detect non-essential traffic.
creating and enforcing rules about downloads and Internet use.
protocol spoofing, which is a method of bundling chatty protocols so they are, in effect, a single protocol.
Here is a brief video explaining how WAN Optimisation can take place (Courtesy of competitor Riverbed)
TCP Congestion Avoidance Algorithms
The TCP congestion-avoidance algorithm is the primary basis for congestion control in the Internet.
NexGen employs TCP Congestion Avoidance as one of it’s 16 algorithms used to achieve the impressive improvement of bandwidth compression and network speed.
Data compression proxies
It’s unclear whether Warpware is utilising compression proxying, however it is worth noting that such tech exists. Currently Google offers a Data Compression Proxy, which sends all HTTP (but not HTTPS) traffic through Chrome Data Compression Proxy server, that uses SPDY protocol to speed up web browsing.
The proxy server receives the request initiated on a device, initiates a request for the required resource on the client’s behalf, and then optimises each response before delivering it back to the client. The content optimisation is performed by our open-source PageSpeed libraries, which are specifically tuned for Chrome. The rendering of the page, and all JavaScript execution, is performed by the client’s browser.
Market
VTX Holdings has a significant global market opportunity - $100 billion global market opportunity, initially targeting the mobile technology sector with 2.2 billion smartphone users, expected to grow to c.3 billion by 2018 (GSMA Mobile Economy 2014).
NexGen will be the first to market its cutting edge and unique software technology globally. Access to Warpware is initially planned through the release of mobile apps across three platforms: iOS, Android and Windows, with further potential across the enterprise sector. The Warpware technology can be adapted quickly and cost effectively across multi-sectors.
Target Market
Riverbed Technology, Inc.
An American company founded in 2002 with the goal of reducing the latency and bandwidth constraints in delivering applications via wide area networks (WANs) to multiple locations across long distances. Riverbed is known primarily for pioneering WAN Optimisation with Riverbed SteelHead, which first shipped in 2004 and continues to lead the market with over 50% market share.
The Riverbed Application Performance Platform combines solutions in two key areas, Riverbed SteelHead and SteelFusion for application (see application software) acceleration, and Riverbed SteelCentral for network and application performance management. Together, these solutions help ensure that applications perform as expected, data is always available when needed, and performance issues are diagnosed and cured before end-users even notice.
OPNET Technologies, Inc. is a software business that provides performance management for computer networks and applications.
In October 2012, OPNET was acquired by Riverbed, for about $1 billion US dollars.
AlgoTrim
AlgoTrim, a Swedish startup that builds codecs and designs solutions that maximise performance of data, mobile imaging, video and computer graphics while minimising memory requirements
“Apple buys smaller technology companies from time to time, and we generally do not discuss our purpose or plans.”
-Apple Inc.
Demand
Global demand for Bandwidth
Traffic Breakdown
Estimated Bandwidth Usage by service
Mobile Traffic Growth
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Column 1 |
Column 2 |
| 1 |
Region
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Mobile Traffic Growth Examples
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| 2 |
United States
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As reported by CTIA, mobile data traffic grew 120% in 2013.
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| 3 |
China
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Mobile data traffic of China’s top three mobile operators grew 83% from mid-2013 to mid-2014.
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| 4 |
Japan
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Mobile data traffic grew 43% from Q3CY13 to Q3CY14, according to Japan’s Ministry of Internal Affairs and Communications.
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| 5 |
India
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Bharti Airtel reported mobile data traffic growth of 95% between 3Q 2013 and 3Q 2014.
Reliance Communications reported mobile data traffic growth of 75% between 3Q 2013 and 3Q 2014.
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| 6 |
Australia
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As reported by Australian regulator ACMA, mobile data traffic grew 52% from mid-2013 to mid-2014.
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| 7 |
Italy
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As reported by Italian regulator AGCOM, mobile traffic in Italy in 3Q14 was up 45% year-over-year.
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| 8 |
France
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As reported by French regulator ARCEP, mobile traffic in France was up 107% from 3Q 2013 to 3Q 2014.
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| 9 |
Germany
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As reported by German regulator BNA, mobile traffic in Germany grew 71% in 2013.
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| 10 |
Sweden
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As reported by Swedish regulator PTS, mobile traffic in Sweden grew 32 percent from mid-2013 to mid-2014.
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| 11 |
Korea
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As reported by Korean regulator KCC, mobile data traffic increased approximately 36% between 1H13 and 1H14.
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| 12 |
Other
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Vodafone’s year-over-year global mobile traffic growth was 80% from 3Q13 to 3Q14.
Vodafone’s European traffic grew 65% 3Q13 to 3Q14.
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Global Mobile Data Traffic, 2014 to 2019
Overall mobile data traffic is expected to grow to 24.3 exabytes per month by 2019, nearly a tenfold increase over 2014. Mobile data traffic will grow at a CAGR of 57 percent from 2014 to 2019 (Figure 1).
Cisco Forecasts 24.3 Exabytes per Month of Mobile Data Traffic by 2019
The Asia Pacific and North America regions will account for a little over half of global mobile traffic by 2019, as shown in Figure 2. Middle East and Africa will experience the highest CAGR of 72 percent, increasing 15-fold over the forecast period. Central and Eastern Europe will have the second highest CAGR of 71 percent, increasing 14‑fold over the forecast period. Latin America and Asia Pacific will have CAGRs of 59 percent and 58 percent, respectively.
Global Mobile Data Traffic Forecast by Region
Who is running the show at NexGen?
Jason Gitmans
Managing Director (Chief Executive Officer at NexGen Networks Limited)
Mr Gitmans has extensive experience as an entrepreneur, having founded and successfully managed a number of small to medium size enterprises during his career. These include wholesale and retail businesses. Jason previously built and led a retail chain in over 19 European countries with 450 retail locations with over 2000 staff in just under two years.
His prior roles include top level company and entrepreneurial management, having built global networks across the world. Mr Gitmans currently sits on a number of company boards and provides active and strategic direction into these companies. Jason has helped incubate and foster the NexGen technology bringing together investors and technical contractors to support Mr Pole, in getting the business off the ground.
Rob Pole
Technical Director (Founder & CTO at NexGen NetWorks)
Mr Pole has previous entrepreneurial experience and success creating a company and pioneering solutions using Advanced IT Technology. Rob previously founded a large IT service provider company still operating successfully today. This saw a number of successful years providing complex calling centre solutions plus offering wholesale VoIP to customers.
The largest was a 1500+ seat operation where the advanced solution afforded the transmission of 600 concurrent calls over long-distance full-duplex outdoor wireless between sites >30 km apart. He has over 20 years’ experience in IT, specialising in networking. Rob is a well-respected pioneer leader in his field. NexGen and the resultant NeoNet product range is a result of Rob’s expertise and technical knowhow.
Keaton Wallace
Corporate Director (Founder and executive director of ZipTel Limited)
Keaton Wallace is a Founder and executive director of ZipTel Limited, which successfully listed on the ASX in July 2014. Keaton has overseen the business operations of ZipTel’s two core products - AussieSim and the highly anticipated launch of the ZipT mobile based application. ZipT is a mobile based application utilising proprietary compression technology to allow VOIP calls to be carried at less than 4 Kbps. The company has experience substantial share price appreciation in the past 12 months with gains of over 400%. Keaton will oversee the listing process on behalf of NexGen from Australia and provide high level consultancy to the company during the listing phase until successful listing on the ASX.
Andrew Haythorpe
Chairman at VTX Holdings
During the past 15 years Mr Haythorpe has been involved in a number of junior company turnarounds with ASX and TSX listed companies. Mr Haythorpe is currently the Managing Director of Liberty Resources Ltd. In the past he has held numerous Board positions, including Managing Director of Michelago and Crescent Gold, Non-executive Chairman of Liberty, Aurox Resources, Golden Heritage Mines, (which merged into Address Express Holdings), Central Kalgoorlie Gold Mines and Top End Uranium, as well as a non-executive Director of 131 Shop, Club Crocodile PL, a resort property company and Salmon Resources (Canada). During this time Mr Haythorpe was involved in over $200m worth of equity and debt raisings, often during difficult market times.
Where does NexGen stand?
Milestones
Competitors
AppExNetworks
Revenu: Not publically available information
Income: Not publically available information
Summary:
Established in 2006, AppEx Networks is a leader in web performance optimization and developed robust learning-based acceleration products for web, mobile and cloud applications.
AppEx differentiates itself from the other players by providing advanced learning-based acceleration technology featuring asymmetric web performance acceleration capabilities that adapt to the unique network connection characteristics of each session.
Today, AppEx learning-based acceleration products have gained wide acceptance among Internet service providers, government agencies, educational institutions, small-medium businesses and large enterprises, including global Fortune 500 companies.
Opera (OperaMax)
Revenue: $300m
Income: $60m
Market Cap: $9.6b
Symbol: OPERA.OSE (Olso Exchange)
Summary:
Opera Max is a data-management and data-savings app that shrinks videos and photos on almost any app on mobile data connections, as well as Wi-Fi. Extend your data plan by up to 50% for free.*
Neumob
Revenue:
Income: $2.3m (Seed Funding)
Symbol: N/A
Summary:
Neumob is a mobile app for Android (Android 4.0+, with iOS coming later), that promises to speed up all of your other mobile apps and browsers through a combination of its mobile app, VPN service and application delivery network. The company today announced that it has raised a $2.3 million seed round from a number of top investors, including Accel Partners, Shasta Ventures, Menlo Ventures and Plug and Play Ventures.
Neumob uses mobile WAN acceleration for dynamic API calls (similar to what Riverbed does for the enterprise). The service uses “a UDP-variant to maximize throughput for last-mile and middle-mile specialized routing.”
XipLink
Revenu: Not publically available information
Income: Not publically available information
Summary:
XipLink is the technology leader in developing wireless bandwidth optimization products that deliver the industry's fastest return on investment.
The Space Communications Protocols Specification (SCPS) defines a set of revisions to the Internet protocols to enable them to operate properly over stressed communications links. It extends normal TCP/IP to become an ’upgraded’ TCP.
XipLink is an independent, high performance implementation of the SCPS-TP standard, with further extensions and enhancements for satcom and wireless link optimization. SCPS has been selected as the standard TCP Acceleration mode for all networks, as well as other inernational governments and companies.
XipLink was the first independent implementation of SCPS-TP from the specification. It was also the first in-kernel implementation of SCPS, and remains the most scalable solution today.
NexGen Revenue Model (Licenses and Royalty Payments)
NexGen will initially commercialise its technology to end consumers through monthly subscriptions with further opportunities to license its technology with key global and industry partners.
NexGen is currently in discussions with potential partners to establish such opportunities.
Whats next?
- Soft launch and beta testing of mobile application via consumer market
- Licensing agreements with software providers leveraging NexGen’s unique technology platform
- Partnerships with leading technology providers
- Licensing agreements in discussion with multiple partners globally.
Indicative Timetable of NexGen Investment
- 16 06 2015 - Announcement of transaction
- 13 07 2015 - Satisfaction of due diligence
- 15 10 2015 - Notice of Meeting seeking VTX approval
- 02 11 2015 - Lodgement of Prospectus by VTX
- 16 11 2015 - VTX shareholder meeting
- 30 11 2015 - Closing date of Prospectus offer
- 11 12 2015 - Completion of Acquisition of NexGen
- 16 12 2015 - Expected date for reinstatement to official quotation of VTX on ASX
- 31 12 2015 - End date to satisfy conditions precedent to the transaction
Please Thumbs Up this post to get this information as publicised as possible and to allow newcomers to quickly familiarise themselves with VTX
(20min delay)