Product Marketing Q2 Analysis

1. Product Marketing Q2 Analysis In-Depth Product Market Analysis Project: VPS and Business Class Shared – Use Cases

2. Project Scope and Objectives • Goals • Gather a better understanding of what business problems are being solved by hosting products. • Conduct customer interviews to create use cases that will help determine where or if there is overlap in Verio product offerings. • Map use cases back to Verio products to determine the best product fit and distribution channels. • Capture general hosting trends and market perceptions.

3. Project Methodology • Internal Interviews • Conduct Internal interviews with product experts to improve the understanding of the internal product perceptions and positioning. • Verio Product Portfolio • Create a product catalogue that includes all Verio hosting plans from Shared to MPS. This catalogue will include key features, pricing and add-ons. • External Market Analysis • Conduct a series of interviews within different categories • Verio and Non-Verio • End Users and Partners • Unix and Windows operating systems • Shared, Virtual and Dedicated servers • Create customer use cases and map them back to Verio products • Conduct web survey about the importance of different features • Verio and Non-Verio, VPS and MPS customers • Review secondary research in relation to hosting trends and perceptions

4. Use Case Building Process • To insure appropriate interview sample coverage for End Users, Partners, Low End Shared, High End Shared, VPS/VWS and MPS/MWS and Windows vs. Unix we created a Call Matrix diagram. • To improve the consistency and completeness of the information gathered during interviews; 2 interview guides were created one for End Users and another for Partners. • To assist with comparing interview data interview answers were summarized into a number of spreadsheets in preparation for creating use cases and other summaries. • To aid in creating use cases the team held an onsite meeting and discussed in great detail our interviews and finalized use case groupings. * All documents mentioned above are posted on SharePoint in the Product Marketing section

5. Use Cases

6. Plain Old Web Business Need and Value 4 page content only website Simple Email solution Importance of hosting is low Not a revenue generator Minimal marketing effort Application Usage Site Building Tool No other applications Resource or Product Requirements Domain Name Email Simple and Easy support (Below Tech I) Trigger Point They need to do something with their site "Online business card"

7. Plain Old Web - Website Example Simple website showing company hours and phone number

8. Plain Old Web – Best Sales Approach Three simple steps and you have a web presence Industry relevant templates QuickBooks via online version

9. Amateur Business Need and Value Simple 10 Page website Simple Email solution Content and interaction is minimal Don’t really understand the features they have No value consideration of hosting Importance of hosting very low Hosting is not a revenue generator Application Usage Easy email “More Info” form submission on website Resource or Product Requirements Easy sign-up and install tools Low Price Consumer grade support Trigger Point They now need to do more with their site "Using online presence to gather and share information"

10. Amateur – Website Example Input form for follow-up Gathering specific information about interest area

11. Amateur – Best Sales Approach Easy installation tools Through the site builder tool you can drag and drop a feedback form into place

12. Pro Amateur Business Need and Value Simple website; starting to learn and dabbling adding complexity or portals Using standard applications such as blogs Forced to learn and understand features Beginner technical knowledge Low importance of hosting Hosting is not a revenue generator Application Usage Easy email (may start dabbling in corporate email) Blogs and feedback forms Resource or Product Requirements Easy signup and install/tools Low Price No limit on the number of web pages Documentation, online help or tutorials Consumer grade support Trigger Point Need for more complex standard applications Maxed out key resources "Using standard applications"

13. Pro Amateur - Website Example Blog and RSS Ties into other social media

14. Pro Amateur – Best Sales Approach Quick Blog can be added to account through customer control panel Applications that can be installed as the user becomes more interested

15. Business Web 1.0 Business Need and Value Simple and complex website Need to interact more with the website Intermediate value of hosting Beginner to intermediate technical hosting knowledge Understand most hosting features Medium importance of hosting (aware of uptime and the importance that it works) Intermediate value for hosting Hosting may become a low revenue generator Application Usage Standard “off-the-shelf” Resource and Product Requirements Corporate email Easy signup and install/tools Interactive and dynamic content (search, catalog, cms, role based logins) Business account rep and customer support Price sensitivity Trigger Point Sluggish performance Need for custom or a specific applications require change "Dynamic content creates a more interactive site"

16. Business Web 1.0 - Website Example Login to Distributor Area Link to Xango Online Shop BUY NOW ! Communication area for US Distributors

17. Business Web 1.0 – Best Sales Approach Source for learning and potential account upgrades Solutions library User reviews and rankings

18. Business Web 2.0 Business Need and Value Simple and complex More interactive and dynamic content Certain features and resources become critical More advanced technical hosting knowledge Strong vendor relationship Intermediate value of hosting Medium importance of hosting and awareness of uptime Application Usage Corporate email Ecommerce Standard and custom combos Resource Requirements Root access or the ability to work around non-root Tech II and possibly development Certain features become critical Security, SSL and backups Trigger Point Resource needs change Custom applications require change Now require root access "Specialized dynamic content"

19. Business Web 2.0 – Website Example More database integration Custom inventory search script Off-the-shelf payment calculator

20. Business Web 2.0 – Best Sales Approach Corporate level email Adding database functionality via control panel

21. Corporate Web 1.0 Business Need and Value Needs and use vary significantly Back office integration Strong understanding of features and resources Importance of hosting varies from some what important to very important Intermediate technical hosting knowledge Application Usage Ecommerce Many applications possible both standard and custom Resource and Product Requirements Corporate email Root access critical and complete configuration control Monitoring and reporting of resources and site availability Flexible hosting platform Customize plan capabilities Tier II support Trigger Point Resource needs increase Changing needs introduce architectural complexity "Business is heavily integrated with hosting service"

22. Corporate Web 1.0 – Website Example Industry specific custom applications Back office integration

23. Corporate Web 1.0 – Best Sales Approach Easily installable core applications Flexible hosting environment Access to install what is needed

24. Corporate Web 2.0 Business Need and Value Use varies from simple to very complex Increased customizable security Back office integration Strong understanding of features and resources Importance of hosting is high Value of hosting maybe low they make money on something else Intermediate technical hosting knowledge Application Usage Ecommerce Varies significantly could be one application or many Resource and Product Requirements Corporate email (could be a server dedicated to email service) Root access critical and complete configuration control Monitoring and reporting of resources and site availability Flexible hosting platform Tier II support Trigger Point Resource needs increase Architectural complexity is mandatory "Optimized for single use"

25. Corporate Web 2.0 - Example Customer login to upload audio files for transcription and download text files Server has been optimized for uploading and downloading files

26. Corporate Web 2.0 - Best Sales Approach Solutions optimized for single uses Upgrades to meet regulatory compliances if needed

27. Use Cases – Side by Side

28. 2 Key Movement Drivers • The 2 top triggers for customers needing to move from one hosting plan to another are resources and access to different types of applications. Some customers simply need more resources and others will need both resources and the ability to install specific applications. • The need for more resources increase because: • Traffic to the website increases • Number or types of applications increased • Popularity of an application increased • The need for different types of applications change because: • The business becomes more integrated with the hosting service • Need for more complex hosting solutions • Ability to install applications not included with hosting package • Customer evolves and wants include more customization with applications