® Maynard Webb Chief Operating Officer. 2 Today’s discussion The challenges we face are similar in many ways Day to day demands Innovation exploding around.

®Maynard WebbChief Operating Officer

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Today’s discussion

• The challenges we face are similar in many ways• Day to day demands• Innovation exploding around us

• Technology trends on campuses - fad or strategic priorities?

• Dealing with conflicting themes of delivering secure, stable, responsive systems & services while leveraging innovation

• First – some eBay context

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eBay’s vision

Provide a global online trading platform Provide a global online trading platform where practically anyone can trade where practically anyone can trade

practically anything…practically anything…

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The World’s Online MarketplaceThe World’s Online Marketplace

eBay’s mission

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How eBay works

We make inefficient markets efficient We make inefficient markets efficient

for millions of usersfor millions of users

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Welcome to the Community

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Trading Formats

AUCTION

FIXED PRICE

BY SELLER

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World’s most diverse marketplace

Collectibles

Entertainment

Toys

Technology

Apparel

Jewelry, Gems, Watches

Home

Sports

Everything Else

Motors

Business & Industrial

Health & Beauty

Tickets

% of New listings2000

47%

2004

27%

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Asia/PacificAustralia South KoreaNew ZealandTaiwanChinaSingaporeHong Kong

EuropeAustria BelgiumFrance GermanyIreland Italy Netherlands PolandSpain SwitzerlandSweden UK

eBay site or majority investment

Argentina*Brazil*Chile*Colombia*Ecuador*Mexico*Peru*Uruguay*Venezuela*

*MercadoLibre sites

AmericasUSACanada

Minority investment

Users from over 150 countries

Global footprint

IndiaPhilippinesMalaysia

33Countries

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Registered Users

Q4 Q4 Q4 Q4 Q4 Q4 Q4

135Million

1999 2000 2001 2002 20031998 2004

Ranking 9th on a list of

nations

1999 2000 2001 2002 20031998 2004

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1 2 3 4 5 6 7

Gross Merchandise Volume

1999 2000 2001 2002 20031998 2004

$34.2Billion

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Listings

1 2 3 4 5 6 7

1999 2002 2003 2004

1.4 Billion

5 listings for everyone in

the US

1999 2000 2001 2002 20031998 2004

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1 2 3 4 5 6

Total Company Revenue

$3.27Billion

2000 2001 2002 20041999 2003

Revenue guidance for 2005 is $4.3B

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users

66

49

52

2004 US Subscribers (Millions)

Subscriber comparisons

Source: Company reports

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2223

15

6

19

41

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#1 in e-commerce traffic

Unique Visitors – Monthly Average (Millions) – Q4 2004

Source: Nielsen Net Ratings

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Global success

Leading e-commerce site in 9 of the top 10 markets

Germany UK

France ItalyAustralia

South Korea

China Canada USA

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eBay International fun facts…

…In the UK, generating ~ 2.5 x more GMV

than the sum of all box office receiptsBox Office receipts

Porsche

…In Germany, generating more GMV than the worldwide sales of Porsche

…In China, more visitors than Shanghai’s #1 shopping street

Nanjing Road

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Creating the new global

standard for online

payments

PayPal’s purpose

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Complementary missions

The world’s online marketplace

The world’s online

payments standard

Powering online

commerce

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$18.9Billion

1 2 3 4

Total Payment Volume Growth

2001 2002 2003 2004

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eBay tech fun facts

Page views/day at peak 1.1B

Searches/day at peak 298M

New listings/day at peak 8.7M

Bids/day at peak 15.7M

Total Confirmed Users 132.4 M

Peak Network Utilization 14.1 Gbps

Site Availability 99.94%

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2.8US

2.2

3.4

Inc.

4.4

Transaction velocity

Transactions per day (Millions) - Q4 2004

Source: eBay Estimates

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We face some interesting challenges

• Total transparency

• Innovation, of all kinds

• Bulletproof from a business perspective

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You face interesting challenges as well

You deal with lots of complexity

with constrained budgets.

How do you keep up AND innovate?

How do you embrace the technology trends on campuses today?

Let’s take a look at some of them.

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Connected – all the time, any time

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Blogging

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Facebook.com

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Do you Wiki?

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Open campus. Opencourseware.

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Exhilarating or exhausting?

Scalable, reliable, secure infrastructure

Services your institution’s reputation depends on

New demand from every direction

Innovation exploding

around you

vs.

How do you deal with these conflicting themes:

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Think differently

• Think about what’s possible

• Embrace the opportunities

• Harness the energy. Find ways to leverage the masses to help you solve your biggest challenges.

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Stay connected

• Be open. Listen.

• Know what’s happening in the world

• Learn what world class looks like and how you stack up

• Take advantage of forums like this one

• Leverage your community

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How eBay stays connected

• Monitor ecommerce around the world

• Keep an eye on competitors

• Small staff dedicated to innovation – skunk works

• We watch the Marketplace

• Leverage learnings globally

135 million users provide us with immediate feedback

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Voices of our community

“Voices” groups of buyers and sellers

Monthly meetings at eBay

Share our product & marketing ideas

Listen to their ideas and concerns

Email distribution lists

Communicate with each other &

directly with eBay’s executive staff

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Listening in on discussions

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Embrace the opportunities

• We live in interesting times. Don’t be afraid to experiment.

• Take a toe-in-the-water approach

• Build a sound wave of interest

• Provide an environment that enables others to innovate

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Harness the energy

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Harnessing the energy around eBay

We provide the platform for our community of users.

They help themselves, help us, and help each other.

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Our users help themselves

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Our users help us

• Through our Voices groups we get product and marketing ideas

• Users participate in user interface design sessions

• They help with QA by beta testing our product changes

• They seek out and report suspicious activity on the site

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Our users help each other

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Our users train each other

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Our users help each other grow

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Our users provide solutions

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Problems solved

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Changing the world takes a little energy

Your world is exploding with innovation

Embrace it with openness and wonder

Stay connected

Harness the energy

The challenges are great, but that’s what makes our jobs exciting

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