TeleNav 2015 Annual Report Download - page 29

Table of Contents
our recording and payment of royalties to our third party content providers could have a material and adverse effect on our financial results. We
may also incur losses as a result of any significant error.
Network failures, disruptions or capacity constraints in our third party hosted data center facilities could affect the performance of our
navigation services and harm our reputation and our revenue.
We use hosted services provided by AWS and wireless carrier networks to deliver our navigation and advertising platform services. Our
operations rely to a significant degree on the efficient and uninterrupted operation of the third party data centers we use. In the event that AWS
experiences a disruption in services or a natural disaster, our ability to continue providing our services would be compromised. Depending on the
growth rate in the number of our end users and their usage of our services, if we do not timely complete the negotiation for and scale of
additional hosting services, we may experience capacity issues, which could lead to service failures and disruptions. In addition, if we are unable
to secure third party hosting services with appropriate power, cooling and bandwidth capacity, we may be unable to efficiently and effectively
scale our business to manage the addition of new wireless carrier customers, increases in the number of our end users or increases in data traffic.
AWS hosting services are potentially vulnerable to damage or interruption from a variety of sources, including fire, flood, earthquake,
power loss, telecommunications or computer systems failure, human error, terrorist acts or other events. We have not yet completed a
comprehensive business continuity plan and there can be no assurance that the measures implemented by us to date, or measures implemented by
us in the future, to manage risks related to network failures or disruptions in our data centers will be adequate, or that the redundancies built into
our servers will work as planned in the event of network failures or other disruptions. In particular, if we experienced damage or interruptions to
AWS hosting services our ability to provide efficient and uninterrupted operation of our services would be significantly impaired.
We could also experience failures of our data centers or interruptions of our services, or other problems in connection with our operations,
as a result of:
Poor performance in or disruptions of our services could harm our reputation, delay market acceptance of our services and subject us to
liabilities. Our wireless carrier agreements require us to meet at least 99.9% operational uptime requirements, excluding scheduled maintenance
periods, or be subjected to penalties. Any outage in a network or system, or other unanticipated problem that leads to an interruption or
disruption of our navigation services, could have a material adverse effect on our operating results and financial condition.
We may not be able to enhance our location services to keep pace with technological and market developments, or develop new location
services in a timely manner or at competitive prices.
The market for location services is characterized by rapid technological change, evolving industry standards, frequent new product
introductions and short product life cycles. To keep pace with technological developments, satisfy increasing customer requirements and achieve
product acceptance, our future success depends upon our ability to enhance our current navigation services platform and advertising services
platforms and to continue to develop and introduce new navigation services, advertising services and other location-based product offerings and
enhanced performance features and functionality on a timely basis at competitive prices. Our inability, for technological or other reasons, to
enhance, develop, introduce or deliver compelling services and products in a timely manner, or at all, in response to changing market conditions,
technologies or consumer expectations could have a material adverse effect on our operating results or could result in our services becoming
obsolete. Our ability to compete successfully will depend in large measure on our ability to maintain a technically skilled development and
engineering team and to adapt to technological changes and advances in the industry, including providing for the continued compatibility of our
services platform with evolving industry standards and protocols and competitive network operating environments.
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• damage to or failure of our computer software or hardware or our connections and outsourced service arrangements with third
parties;
•
errors in the processing of data;
•
computer viruses or software defects;
• physical or electronic break-
ins, sabotage, intentional acts of vandalism and similar events; or
•
errors by our employees or third party service providers.