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Jan Lekszycki Sales Manager Hosting Eastern Europe jlekszycki@parallels.com

The CEE Outlook for SMB Cloud Services: Profit from the Cloud with Parallels Research and Product Roadmap. Jan Lekszycki Sales Manager Hosting Eastern Europe jlekszycki@parallels.com. October 2011. Parallels Today and in The Cloud. Parallels Now. 800+ employees, Profitable, 30+% growth

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Jan Lekszycki Sales Manager Hosting Eastern Europe jlekszycki@parallels.com

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  1. The CEE Outlook for SMB Cloud Services: Profit from the Cloud with Parallels Research and Product Roadmap Jan LekszyckiSales Manager Hosting Eastern Europejlekszycki@parallels.com October 2011

  2. Parallels Today and in The Cloud Parallels Now • 800+ employees, Profitable, 30+% growth • 100+ patents filed, pending or granted • Over 3mln Parallels Desktops for Mac – Market Leader in Desktop Virtualization with 80%+ share Based on success of our 5,000+ Service Provider Partners • 150+ million domains, almost all of the 50+ million SMB websites • Proud of 1M+ Parallels Containers in production • Proud of 800+ Certified Partners Profit from the Cloud™ Together!

  3. The Changing SMB IT ecosystem Worldwide numbers

  4. Core Services to Meet SMB IT needs Applications and Services Core Services Web Presence and Web Applications Communication and Collaboration Infrastructure SaaS – Other Applications

  5. Quantifying the German SMB Cloud Opportunity Micro businesses (1-9 employees) account for nearly 65% of this spending and 84% of the total market size. 56% of SMBs paying for at least one online application. Source: Parallels SMB Cloud Insights™ for Germany (2011)

  6. Quantifying the Poland SMB Cloud Opportunity Poland’s Internet usage has grown by 21% since 2007. New adopters moving to the Cloud • SMBs replacing in-house solutions with hosted services Source: Parallels SMB Cloud Insights™ for Poland (2011)

  7. Hosted Infrastructure Services (DE) 480k new servers in the next 3 years Largest Opportunity • 21% of German SMBs use a hosted server • 48% Small Business plan to add servers in the next 3 years • Strong price sensitivity SERVICES SCALING AND CONTROL SELF-SERVICE OPTIONS SMB VIRTUALIZATION TECHNOLOGY BILLING OPTIONS Source: Parallels SMB Cloud Insights™ for Germany (2011)

  8. Hosted Infrastructure Services (PL) 800k new servers in the next 3 years Largest Opportunity • Only 5 % of Polish SMBs use a hosted server • 57% of micro SMB’s is considering adoption • Strong price sensitivity SERVICES SCALING AND CONTROL SELF-SERVICE OPTIONS SMB VIRTUALIZATION TECHNOLOGY BILLING OPTIONS Source: Parallels SMB Cloud Insights™ for Poland (2011)

  9. Web Presence (DE) 220k new web hosting plans in the next 3 years Largest Opportunity • Most SMB have a web site with 50% being hosted • 11% increase their spending in the next three years • Web site design tools and social media are the largest opportunity MOBILITY VIDEOS SEO/SEM PBX WEB TEMPLATES SMB SOCIAL MEDIA IMAGE GALLERY Source: Parallels SMB Cloud Insights™ for Germany (2011)

  10. Web Presence (PL) 800k new web hosting plans in the next 3 years Largest Opportunity • Only 37% of Polish SMBs have a website • 100k subscriptions from switching from self-hosted to provider • 30% upsell with Web design tools, E-commerce and social media. MOBILITY VIDEOS SEO/SEM PBX WEB TEMPLATES SMB SOCIAL MEDIA IMAGE GALLERY Source: Parallels SMB Cloud Insights™ for Poland (2011)

  11. Hosted Communications and Collaboration (DE) 1M new hosted mailboxes in the next 3 years Largest Opportunity • Target for hosted messaging and collaboration offerings is small businesses (<49 emp) • 36% are using in-house severs • 40% SB using an in-house PBX system, hosted PBX is a less complicated, more flexible option for office MOBILITY VoIP ONLINE STORE SECURITY SMB SOCIAL MEDIA ARCHIVAL COLLABORATION Source: Parallels SMB Cloud Insights™ for Germany (2011)

  12. Hosted Communications and Collaboration (PL) 2,4M hosted PBX lines in the next 3 years Largest Opportunity • 10% of small and medium SMB considering paying for hosted e-mail • 160k new premium hosted mailboxes • 62% of small SMB are considering adopting hosted PBX MOBILITY VoIP ONLINE STORE SECURITY SMB SOCIAL MEDIA ARCHIVAL COLLABORATION Source: Parallels SMB Cloud Insights™ for Poland (2011)

  13. Other SMB Applications (PL) 10% SB to add phone conferencing, e-mail archiving, web conferencing, online backup over in the next three years. Largest Opportunity • 56% SMBs using online applications • Top online applications are phone conferencing, file sharing, and online backup, with 30%, 16% and 13% penetration LINE OF BUSINESS ERP HR CRM PROJECT MANAGEMENT SMB HELP DESK Source: Parallels SMB Cloud Insights™ for Germany (2011)

  14. Other SMB Applications (PL) 10% SB to add phone conferencing, e-mail archiving, web conferencing, online backup over in the next three years. Largest Opportunity • 56% SMBs using online applications • Top online applications are phone conferencing, file sharing, and online backup, with 30%, 16% and 13% penetration LINE OF BUSINESS ERP HR CRM PROJECT MANAGEMENT SMB HELP DESK Source: Parallels SMB Cloud Insights™ for Poland (2011)

  15. Turning Opportunity to Reality

  16. The Parallels Enabled Ecosystem Syndicated and SaaS service providers Incremental Services Wholesale VAR applications MSExchange Syndication SI 300+ APSApps Vertical Hoster Parallels Enabled Service Provider Small Hoster Direct MS CRM MS CRM 300+ APSApps 300+ APSApps MSExchange MSExchange MSExchange SharedHosting SharedHosting SharedHosting ParallelsContainers ParallelsContainers

  17. Profitable SaaSDelivery SaaS: Powered by the Application Packaging Standard APSenables a standard method to integrate apps into control panels so you can quickly offer Applications and Services to your SMB customers ISV Applications Service Providers Benefits for ISVs Benefits for Service Providers • Access to more applications • Easier to install & maintain • Higher ARPU, Less Churn • Package application only once • No recompiling • Access to Channel

  18. Packaging Applications in APS APS Certified Applications are placed in the APS Catalog • Self Package www.parallels.com/cloudservices Learn Package Test Certify & Catalog • Or use APS Systems Integrators

  19. The Path to Growth STARTUP MATURE ESTABLISHED 100s of services/ packages, constantly adding & tweaking • 5.000 – 10.000+ Customers • Significant Infrastructure • 100+ employees 3 – 20 core services, cautiously adding more • 500 – 5.000 Customers • Infrastructure + Resell • 5-100 employees • 1 or 2 basic services + basic syndication • 1-500 Customers • Minimal Infrastructure or Resell • 1-5 employees Hoster In-A-Box Automate for Scale Syndicate and Resell

  20. The Right Solution for the Right Time STARTUP MATURE ESTABLISHED Parallels Automation Reseller to Parallels Automation enabled Service Provider Parallels Virtuozzo Containers Hoster In-A-Box Automation for Scale Syndication and Resell Parallels Business Automation Standard Parallels Plesk Panel

  21. The #1 control panel! EasySet up websites and applications in minutes ProfitableUpsell to dozens hosting plan add-ons CompleteBuilt-in Billing, Web Presence Builder, and other tools Startup: Parallels Plesk Panel 10 Shared Web Hosters Web Designers/Developers IT Professionals Over 250.000 servers w/ over 6 million domain names

  22. Upcoming Parallels Plesk Panel Highlights • ParallelsPlesk Panel 10.4 – October Release • Webmatrix Support • Contextual Search • Simple Mode • Parallels Plesk Panel 11 – April 2012 Release • Multi-server Solution • Centralized DNS, Databases and Email servers • Grow your business w/ Smart Upsells • Better integrated Web Mail, File Manager, Site Building • “Small Business Intranet” scenario

  23. Web Presence Builder Easy to use and available three ways As easy as setting up a Facebook Account • Start with a complete and localized website • Drag and drop elements • Integrated with Facebook, Twitter, Youtube, Vimeo, and Picasa • Fully integrated into our industry leading Control Panel • Free 1.000 website license available • Parallels Plesk Panel • Parallels Automation • Stand Alone • Telco Grade cloud delivery system • Billing and provisioning for the widest selection cloud services • Custom solution for large service providers with existing systems • Fully managed for easy deployment

  24. Parallels Virtuozzo Containers Ultra Efficient Virtualization Award winning, lightweight virtualization. Near native server performance, lightening fast operations. Dynamic Resource Control Limit and control CPU, memory, disk and change without reboot. Scale to meet demands on-the-fly. Complete Container Isolation Container isolation prevents workloads fromstealing resources or affecting other workloads. OS & Application Templates Deploy pre-configured containers & applications on-masse with minimal resource usage.

  25. The #1 control panel The #1 cloud virtualization Integrated Parallels Plesk Panel and Parallels Virtuozzo Containers You asked for it! Silver partner • 500 VPSs with Panels on 7 servers Before Now • PVC cost = €1.600 • Plesk 100 cost = €2.500 • Total cost = €4.100 • Deploy PVC and Plesk separately • Total cost = €3.800 • Automated combined Plesk and PVC deployment

  26. Provides you with a billing system for hosting and virtualization at a low initial price No initial license cost PBAS revenue share fee 0% revenue share fee on revenue delivered through PBAS below €5.450 monthly sell-through 2% revenue share fee applied to all revenue delivered through PBAS above €5.450 monthly sell-through Web-based installation and configuration training PBAS Special Offering to Manage Shared Hosting and VPS You asked for it! http://www.parallels.com/PBASignite

  27. Provider Resellers Resellers Customers Customers Customers Parallels Automation 100’s of Applications, Syndicated Services Resellers Hosters Shared Hosting VPS Parallels Business Automation Standard OS Virtualization Applications & Services Container 1 Container 2 Container 3 OS Virtualization Layer Standard Host OS APS Application Hardware

  28. Provider Resellers Resellers Customers Customers Customers Parallels Automation Resellers Hosters Parallels Automation

  29. Special Offer for Attendees Stop by our booth and we will: • Give you a copy of Parallels SMB Cloud Insights™ for Germany and Poland (2011)

  30. Connect with Parallels on Twitter Twitter.com/parallelscloud

  31. February 14-16, 2012 Orlando, Florida

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