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Next Generation of Optimized Computing

Next Generation of Optimized Computing. Serguei Beloussov Chairman and CEO, Parallels. Welcome to the 4th Annual Parallels Summit. Over 1000 attendees this year from 60+ countries 500+ attendees in 2008, 220 in 2007, 150 in 2006 Over 100 ISVs are here 20 ISVs attended in 2008

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Next Generation of Optimized Computing

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  1. Next Generation of Optimized Computing Serguei Beloussov Chairman and CEO, Parallels

  2. Welcome to the 4th Annual Parallels Summit • Over 1000 attendees this year from 60+ countries • 500+ attendees in 2008, 220 in 2007, 150 in 2006 • Over 100 ISVs are here • 20 ISVs attended in 2008 • 50 sessions on 3 tracks • 15 respected external industry speakers • 37 sessions, 2 tracks in 08, 25 sessions in 07 • Special welcome to Parallels Platinum Partners

  3. Special Thank You to Our Sponsors 40+ Sponsors and Exhibitors this year Mural Consulting, Comodo, BobCares, MailChannels, 4psa, Pinnacle Cart, Spreed, Acumatica, Xandros, HeliconTech, Softlayer, Trustwave, Six Apart, BackupAgent, MX Logic, RatePoint, Moveable Type, HostGator, DataCore, Actual Metrics, TekServe, DemoWolf, FuseMail, Wrike, TrackVia, LinuxMagic

  4. Agenda Service Provider Industry Update Parallels’ Vision Summary

  5. The Impact of Cloud Computing • Hosting business moving to mainstream of IT • It is harder and more expensive to get “truly new” customers • More demand for complete solutions (SaaS) vs. infrastructure • Conversation changing from “Hosting” to “SaaS/Cloud” • Economic crisis accelerating this trend • More players trying to ride SaaS + Cloud marketing wave • Giants are certainly grabbing some share • Google, Amazon, Microsoft trying to commoditize clouds with huge investments Since last time…

  6. Definition of Cloud “Cloud computing refers to computing resources being accessed which are typically owned and operated by a third-party provider on a consolidated basis in Data Center locations…. the services that can be delivered from the cloud have expanded past web applications to include storage, raw computing, or access to any number of specialized services” Wikipedia – “Cloud Computing” http://en.wikipedia.org/ Blue Skies?Clearing the Air on Cloud Computing and SaaS Tomorrow: 9:30-10:15am

  7. Parallels’ Cloud Vision • Large portion of computing will move into 5 types of “Clouds”: • Parallels was founded to create solutions, ecosystem and partner with Service Providers and Businesses to build and operate efficient Services Clouds (initially for Type4, later Type5) • Platform Clouds • Services Clouds • Type4: Channel cloudsof Service Providers – mass market hosting, managed, Telco/ISP, SaaS ISV, Online Services, VAR/SI becoming MSP • Type5: In-house clouds of large companies, serving subsidiaries, departments, affiliates and sometimes employees and partners • Type1: Google cloud • Type2: Microsoft cloud • Type3: Other clouds (largest IBM and Apple - but also Yahoo!, EMC, HP/EDS, Amazon, Facebook, SAP, Adobe and more)

  8. Cloud How? Compute Platform App Platform Apps Online Services More Commoditization VARsand Telcos This is your sweetspot Hyped or Platform Clouds Example • Amazon • Dedicated Hosting • VPS Hosting • Managed Hosting • Google App Engine • Microsoft Azure • Force.com • Shared Hosting w/ PHP, Tomcat, JBoss, .NET and more • Salesforce • Netsuite • Intuit • Shared Hosting web apps,ecommerce • Managed Apps, Hosted Exchange • Google • Microsoft • Facebook • Domains • Web Marketing • Secondary Domain Services Hosting or Services Clouds Example Already today Parallels enables Service Providers to offer Cloud Computing Services in any of the above models

  9. Weaknesses Strengths Screen Images Next Steps Internet Giant – Google • Google targeting SMBs with SaaS • Google Sites (collaboration) and Google Apps (productivity tools) • Google targeting developers with Cloud Computing • Google App Engine (Python SDK, DataStore, GFS) • APIs into other Google properties like Earth, Maps, Images, OpenSocial, Android, Gears Online Ads monopoly - 90%of internet users Restrictive. Immature. Has not attracted serious ISVs. Momentum? Build more apps, extend toolsand frameworks beyond Python

  10. Screen Images Strengths Weaknesses Next Steps Internet Giant – Microsoft • Microsoft Office Live and Windows Live and now Azure • Expanding online to developers beyond traditional SMB, Consumers • Azure includes Live Services, SQL Services, .NET Services, Sharepoint Services, Dynamics CRM Service. • Azure is in limited beta by invitation, promised to be released mid year • Plans reported to fold the Windows and Office Live into a single brand Reaches 100% computer users. Familiar to ISVs and developers Immature. Late to market. Restricted to .NET. Business model conflict? . Add VMs Amazon-style and better services. Evolve .NET on Azure

  11. Screen Images Strengths Next Steps Weaknesses Internet Giant – Amazon • Amazon Web Services • Elastic Compute Cloud (EC2), Simple Storage Service (S3), Simple Queue Service (SQS), Simple DB (SDB), Flexible Payment Service (FPS), CloudFront CDN, Windows Server support • Claims 330,000 developers 1st mover. Gaining momentum. ecosystem. Leading services Expensive. Complex. Less synergies with existing businesses . Better tools and new Infrastructure services

  12. For Non-Hoster: Cloud Why? • For Businesses: • “In-house Outsourced” IT • You can do it better and cheaper! • For ISVs: • Cloud is new delivery mechanism • Your new channel. Partner with service providers • For VARs: • Traditional reseller business model threatened • Opportunity to leverage SaaS to your client base • For Telco’s: • Margins on traditional businesses getting squeezed • Cloud is the largest opportunity Value-Added Services ManagingIT as an Internal Service Today: 2:05-2:50pm

  13. For Hoster: Cloud Why? • We’ve established that Cloud is a threat but it is also an opportunity • Traditional hosting $8.0 bn 2008 and growing at 13.7% • “Cloud Services” $15 bn 2008 and growing rapidly 27% • By 2012, “Cloud” will be 9% of all WW IT spending • And all of that even with the somewhat limited definitions of the “Cloud”

  14. Cloud What? • What technologies most SMBs need: • Most SMBs do not need Grid (Burstable Cloud) • How many of your customers overuse resources? • Marketing the Grid Hype…are customers buying it? • Going after Grid: many of you, in fact! • Cloud boosts marketing but… be realistic about ROI In 1998 Today * • Messaging and Collaboration • File server / Networking • Productivity Apps • Security • Accounting system / ERP • CRM • Time Tracking • Web Presence, Marketing and eCommerce • Messaging • File server / Networking • Productivity Apps • Security • Accounting system • CRM • Time Tracking • Web Presence *Microsoft Small Business IT Study 2008

  15. More Amazon: EC2 vs ‘Traditional’ Hosting Key Point Amazon Web Services are more expensive and much more complex You can compete and we can help you Avg VPS $113/mo *http://calculator.s3.amazonaws.com/calc5.html#

  16. Service Providers: First Get the Basics Right Operations and IT Marketing Sales • Do you truly know geographical, vertical and size characteristics of your customers? • Do you have the right products, messaging, bundles, upsell and pricing for your target audience? • How profitable are your different offerings? • Online – how good is your website? • Conversion, drop-off, order processing, SEO, behavior stats – are these used? • How well do you run your sales force? • Does your support sell? • Be super-paranoid about efficiency – Economic crisis is here • What’s your account density per server? • Are you fully automated? • Are your customers happy with your service levels? Upsell rate to Parallels Plesk Panel ++ can be more than 70% Your shopping cart drop-off can be less than 1% Your account density per server can be more than 15,000

  17. Sustain and Go To Where Platform Clouds Would Not • Be a one stop shop. Do not allow customers and partners to leave you • For Customers: Business class email, Office applications, Business Line Applications • For Partners and Developers: Virtual, Dedicated, Managed and Channel Offerings • Own the partner, the customer and their data • Differentiate • Generally: Broadest set of service plans • Many types and kinds of Applications (e.g.: Blackberry, Goodlink, variety of Antivirus and Antispam) • Better & flexible upgrade path • Variety of workloads, sizing options, auto upgrades • Creative Offerings (e.g.: Mac based offerings) Into the Clouds with the Parallels Automation SaaS Module for higher ARPU Today: 4:00-4:45pm Differentiating Your Business Through Mac OS X Server Hosting Today: 2:05-2:50pm

  18. Agenda Service Provider Industry Update Parallels’ Vision Summary

  19. Parallels’ Vision: How to Sustain, Improve and Grow? Partnerto staycompetitive Automatefully or not survive Virtualizeor loseprofitability Standardizeor stopgrowing

  20. Partner: Why Parallels is a Solid Partner for You Partnerto staycompetitive

  21. Partner: Evolving to be a Better Partner • Corporate Update • Completely (almost) integrated prior acquisitions • Unified/ streamlined back-office operations (we’re paranoid about efficiency too!) • Continued focus on building partner ecosystem (Biz Dev, Marketing and more) • Stronger Focus on Service Providers (Biz Dev, Marketing) • Highlights • 300K+ servers, 1M+ containers, 12M+ domains* • 10M+ accounts, 50M+ mailboxes • Close to 2 million Parallels Desktop for Mac  • 30+ Awards in the last 12 months • Major Product Updates • Released Parallels Virtuozzo Containers 4.0 • Released Parallels Plesk Panel 9.0 and Parallels Plesk Billing 6.0 • Released Parallels Operations Automation 2.8 • Released Parallels Desktop 4.0 for Mac • Released Parallels Server for Mac

  22. Partner: Parallels Relentless Support • Restructured support organization • Set up for more sustainable, high-quality support across all product lines • Single front line, single second line across all products, 3rd line product specific • Optimized shift scheduling • Incentive program to drive support team certification: Red Hat, Apple, Microsoft • 3x number of KB articles (5500+ now) • Expanded technical overlap team (CRM) to cover broader set of partners • Relentlessly Improving Support • Overall Satisfaction at 75%+ (COPC) up from 55% 8 month ago. Will improve – to 90%+! “We appreciate your feedback!” Alexei Kandikov, VP Support& Parallels Plesk Panel wecare@parallels.com

  23. Partner: Investing in Partnerships • Parallels Service Provider Partner Program • To- and thru-partner marketing for Parallels Partners • Kerstin Demko, Senior Partner Marketing Manager • Partner Certification & Awards program for ’10 Summit! • Parallels Technology Partner Eco-System Team • Focused on development of ISV/SaaS ecosystems for hosters • Enable ISVs, Hosters and Users to deliver and use Applications • Soeren von Varchmin, VP SaaS, APS • Some Recent Partnership Examples • Intel sales and marketing program with hosters • Parallels Automation SaaS: Open-Xchange, Message Labs,Global Relay, Interspire, keepit.com • Parallels Partner Marketplace ISVs:  Interspire,Linux Magic, Pinnacle Cart, keepit.com, Symantec • 200+ APS-enabled ISVs See them at the Industry Track and Exhibitor Hall Maximize Partnership Success with the Parallels Brand Today: 2:55-3:40pm

  24. Automate: Parallels End-to-End Automation Automatefully or not survive

  25. Automate: Complete and Integrated Parallels Business Automation Parallels Operations Automation • Powerful Ordering, Billing, Up-sell • Service Management • Back-end delivery of services • Focus on your Service • Gain Flexibility • Decrease Churn • Provision any service or application • Complete Operations Management (OS, Applications, Resources, DC, etc) • Increase Revenue per user • Decrease Costs • Reduce Time to Market Inside Parallels AutomationTomorrow: 1:45-2:30pm Build vs Buy. Why have you built in-house billing system Tomorrow: 3:40-4:25pm Parallels Plesk Panel Products Parallels Virtual Automation • Server Administration • Application Lifecycle Management • Hosting Automation in a Box • Easy • Profitable • Complete • Delegated Mgt of Virtual Infrastructure • Cross-Platform Management including Hyper-V, VMware, Parallels Server • Integrated • Comprehensive • Rapid Time to Benefit Parallels Virtualization Automation Tomorrow: 2:45-3:30pm Parallels Plesk Panel 9.0 and Parallels Panel SMB RoadMap and Update. Tomorrow: 3:40-4:25pm

  26. Automate: Enable SaaS for Higher Revenue Advanced Apps(CRM, ERP, vertical e.g. SugarCRM, XRMS,webERP)$250-$1500+ $1,000 Add Business Collaboration(e.g. SharePoint, LCS, VoIP)$200-$500 SaaS Business-Class E-mail(e.g. Hosted Exchange, Open Exchange)$150-$300 Dedicated & Managed Server$100-$500 • Parallels Automation • APS Standard • Correct Marketing Positioning ? ! $100 Revenue Opportunity Virtual PrivateServers$15-$100 Infrastructure Shared DynamicWeb , DB, Apps$5-$20 Shared StaticWeb Hosting$3-$10 DomainRegistration$1-$3 Into the Cloud with the Parallels Automation SaaS Module for higher ARPU Today: 4:00-4:45pm $10 Application Mgmt Email Web Presence E-commerce Collaboration Customer Needs

  27. Automate: Parallels Automation Momentum • Over 160 companies with over 500 automation modules • Total live sites: ‘04 – 2 ‘05 – 7 ‘07 - 80 ‘08 - 160+ ‘06 – 36 Telco/ ISP Mass Market Hosting SaaS ISV

  28. Automate: Let’s Be Very Specific • Stop wasting money developingyour own billing system • Redeploy resources to revenue generating activities • Rapidly launch SaaS, Rich email, CRM,collaboration • Achieve higher customer retention and average revenueper customer • Launch billing for your resellers • Boost new customer registrations and lower your costof customer acquisition • Consolidate silo’d legacy systems • Respond quicker to the market. Integrate your customer data • Don’t be confined by your current automation system • Be more agile. World class billing, ordering, invoicing,service management, business intelligence, help-desk,customer communication, etc. Let our 350+ automation engineers helpto build value for You and Your customers! Inside Parallels Automation Tomorrow: 1:45 - 2:30 pm

  29. Virtualize: Complete Virtualization for Hosting Virtualizeor loseprofitability

  30. Virtualize: Integrated Virtualization Offering Hardware Virtualization (Hypervisors) • Virtualizes access to hardware • Create many instances of virtual HW • Host OS and each guest has full OS • Parallels Server, VMware ESX, Microsoft Hyper-V OS Virtualization (Containers) • Virtualizes access to OS • Create many instances of virtual OS • Single, standard OS kernel per box • Parallels Virtuozzo Containers,Sun Solaris Containers, OpenVZ Hypervisor VM 1 VM 2 VM 3 Guest OS Guest OS Guest OS Virtual Hardware Virtual Hardware Virtual Hardware Virtual Machine Monitor Hypervisor or Standard Host OS Hardware OS Virtualization Container 1 Container 2 Container 3 OS Virtualization Layer Standard Host OS Hardware

  31. Virtualize: Integrated Virtualization Offering Best of Both Worlds • Completely integrated OS and Hypervisor solution • Single integrated management environment • Easily spawn Containers and Virtual Machines • Comes as upgrade to Parallels Virtuozzo Containers Parallels Server Bare Metal VM 1 VM 2 Container 1 Container 2 Guest OS Guest OS Hypervisor and Containers • Zero Copy Migrations (Restart) • UI Integration • Single API • Single Command Line • Single Format • Unified Templates/Appliances • Unified Management • Side by side Upgrade • Unified License Keys • Parallels Virtual Automation Hardware Parallels Virtualization RoadmapToday: 4:00 – 4:45 am

  32. Virtualize: The Right Technology for the Job

  33. Virtualize: Right Technology = Profit • Do not forget - CALCULATE: • Container Density is 2x to 10x Higher than Hypervisors • Containers designed specifically for SaaS/ Hosting • Containers have 4x to 6x lower OS-management costs • *for unmanaged offerings

  34. Standardize: Parallels Open Platform & APS Standardizeor stopgrowing

  35. Standardize: APS & Parallels Open Platform • Parallels eco-system for SaaS • ISVs, Service Providers, Development Communities, and other industry players • Application Packaging Standard (APS) and Catalog • Enabling ISVs and Hosters to deliver a wide variety of services • APS is now primary way to deliver applications for all our products • Marketplace • Upsell your Parallels Plesk Panel customers with set of commercial applications and increase retention • Virtual Templates and Appliances • Ready-to-use applications for you • Automation Development Platform • SDK, Libraries, APIs, Specifications, PTN, development resources Parallels Open Platform z APS Standard & Catalog Virtual Templates & Appliances AutomationDev Platform Marketplace Ecosystem 220+ Apps Why Choose APS? Today: 2:05 - 2:50 pm

  36. Standardize: 250+ Applications and Growing Web &E-commerce Collaboration &Communication Infrastructure Front/Back Office Focus is on quality, we will focus on quantity later

  37. Agenda Service Provider Industry Update Parallels’ Vision Summary

  38. Summary • Cloud is becoming real and Giants are moving in: • Microsoft CAPEX spending is 800 millions US$ / quarter • Google CAPEX spending is 400 millions US$ / quarter • Other Giants have to counter and economy of scale is not only in CAPEX • “Down to earth” cloud (but not a fog ) is the way to go: • Do not get too carried away or scared by over-hyped burstable Grids! • Cloud Services is what you are offering 10+ years; remember the Telco scare • You can compete and also You must - focus on the basics and differentiate! • Cloud Services are growing over 2x faster than Traditional Hosting market. Growth specifically is in: • Virtualized services – be efficient and offer better service level • Managed services – have more of the customer attention • SaaS Applications – have more of the customer data and apps

  39. Parallels: How to Sustain, Improve and Grow? Partnerto staycompetitive Automatefully or not survive Virtualizeor loseprofitability Standardizeor stopgrowing Parallels: Optimized Computingtm

  40. Something Extra: Parallels Desktop Virtualization Parallels Desktop for Mac • Run Windows side-by-side on Mac OS X • Mac now represent 10% of US PC market • Up +30% in market share among your customers • Parallels Workstation (Lin/Win) • Run multiple OSs on your desktop • Run your desktop anywhere (Sentillion) • Special Offer from Our Partner Tekserve at the Summit • Discounts on iMac, MacBook, MacBook Pro, MacBook Air • All bundles complete with Parallels Desktop 4.0 for Mac and Microsoft Windows • Parallels Desktop 4.0 for Mac full version, $59.99 MSRP (regular MSRP $79.99)

  41. Call to Action • Visit Hands-on labs for all our products • Parallels Automation • Parallels Virtuozzo Containers and Parallels Server Bare Metal • Parallels Plesk Panel, Parallels Plesk Billing, Parallels Sitebuilder • Parallels Desktop, Parallels Workstation and Parallels Server for Mac • Learn about APS: www.apsstandard.com • Do not forget our industry track: SaaS starts with software • Take advantage of special Parallels for Mac Offers • We do NEED your feedback • Please do suggest at www.parallels.com/feedbackon how we can improve and (maybe) win a prize • Over 50 Parallels employees are here and we’re very happyto arrange meetings, answer questions and more! • Just look out for the red shirts in the crowd! • And remember we need your help at least as much as you need ours! We can only win as a team! Thank you!

  42. Parallels Punch Party – TODAY! Taste Parallels Punch during Parallels Plesk Panel 9 Launch Party Today Feb 3rd evening event!!!

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