SWSOFT GLOBAL HOSTING SUMMIT 2006

1. SWSOFT GLOBAL HOSTING SUMMIT 2006 Virtuozzo Update and HA Deployment Scenarios (shortened). Jack Zubarev, COO May 2006

2. Tactical Industry Challenges • Facility Related Challenges • Data center inventory is shrinking • Building out from scratch is long and capital intensive • Rising power use, costs and capacity • Hardware Related Challenges • Hardware vendors offer bigger/faster servers per unit price – but it usually exceeds customer requirements • How easy is it to provision, manage and support 1000s of servers over many years? • What to do with the old hardware? • Customer Related Challenges • Low End: Shared hosting competition from Google, Yahoo!, and Microsoft • Mid Level: Budget-conscious customers drive down prices of low-end dedicated servers. They prefer direct control over their hosting environment, but use only a fraction of server’s capacity • High End: Developers of fast-growing web-applications demand rapid, seamless scalability

3. : Operating System Virtualization root root user user user root root Execution Environment #1 root root root root root Execution Environment #1 App 2 user user App 2 user user user user user user user Execution Environment #2 Execution Environment #5 user App 1 Execution Environment #1 Execution Environment #3 Execution Environment #4 user Execution Environment #6 Execution Environment #7 App 3 App 1 App 2 App 2 App 2 App 2 App 2 App 1 App 3 App 1 App 1 App 1 App 1 App 1 Virtualization Virtualization OS OS • Dynamic Partitioning of servers into hundreds of VEs with full dedicated-server functionality - root access, re-bootable, install any application, change any file, any IP settings Virtuozzo creates multiple isolated Execution Environments or partitions or Virtual Environments(VEs) on a single physical server to share DC, hardware, software and management effort with maximum efficiency. Works as light add-on for commodity operating systems and hardware Physical Server #1 Physical Server #2 • Resource Management – CPU, memory, disk, I/O + min/max values and full isolation App 2 App 2 App 2 App 2 • Migration allows VEs to be moved between physical machines w/zero downtime App 4 App 4 App 4 App 4 • Mass Management – Tools and OS & Application Templates to enable automated mass management/deployment/updates of 10s of 1000s of VEs and 1000s of servers OS OS OS OS Provision Update

4. Virtualization Provider Benefits • Enables dedicated-like services with shared-like economies and infrastructure • Efficiency: direct cost savings, cashflow savings and oversell opportunities • Hardware • Electricity • Datacenter • Simplicity and Flexibility: • Zero cost of provisioning and automated management • Comprehensive self management decrease support • Better security • Upgrade and migrate customers dynamically with no downtime • Main result: GROW REVENUE FASTER! • More customers with new high margin services and pricing • Upsell existing customers automatically • Differentiate from Google, Yahoo! and Microsoft Live!

5. Virtualization End-Customer Benefits • Pay less • Better price for better service • Easily upgradeable • Burstable service • Get more • Easier and less to manage • Comprehensive self management • Higher availability and performance: • more reliable and faster hardware and disk systems • zero downtime migration • faster management operations • Sophisticated backup/restore capabilities • Why not: There is nothing to lose! • Suitable for low-end, mid-level and high-end customer

6. Scenarios: TrueVPS TrueVPS - 30+ virtualized partitions per server packaged with subset of low-end dedicated server services. and priced below dedicated. Customer Benefits • Significantly cheaper than dedicated • Somewhat easier than dedicated > MANAGED and tools/recovery • Functionally equal to dedicated Confixx Provider Benefit • Much more profitable than dedicated • Not competing with resellers • Prepares for dedicated 30-300+VPS/Server Server 37 Plesk Best Practices: • Keep competitive price level • Bundle Control Panel • Offer Windows and Linux • Offer some Performance Guarantees • Creative marketing is possible

7. Scenarios: Split-Dedicated Split-Dedicated – dedicated server is provisioned with Virtualization on it and management interfaces is given to the channel or end customers Customer Benefit • Utilizes the resources better • Few Apps/Panels on 1 server • Allows resellers to sell VPS/DS VZMC VZCC Provider Benefit • Better offering for resellers • Not competing with resellers • More money for the provider per server 5-300+VPS/Server Plesk Best Practices: • Just another OS option • Browser based interface • Control Panel packaging for resellers

8. Scenarios: Dynamic Dedicated Migrate/Upsell Migrate/Upsell Dynamic (Dedicated) Servers (DS/DDS) are dedicated-like virtualized services which are packaged and positioned as a better alternative to low-end dedicated and sold at somewhat similar prices Customer Benefits • Complete Self-management • Easy upgrade for scalability • Burstable • Better availability, hardware Provider Benefits • Saving - HW, Electricity, Datacenter • Automatic provisioning and management • Easy upsell and migration 1-50 VPS/Server VZPP+Plesk Other: • Both Linux and Windows • Recovery and Control Panels • P2V and V2P tools • Backup/Restore options • Properly sized, packaged and priced VZMC

9. Scenarios: Split-Shared Migrate Split-Shared when shared hosting accounts or services running on a single server are split into several VPS for manageability and isolation purposes Customer Benefits • Higher uptime • Predictable performance • Opportunity for more services for the same price 25VPS/Server 100 Accounts/VPS Websites Provider Benefits • Higher density - no risk of “crazy” scripts • Convenient backup and restore • Migration for maintenance and upgrades VZMC HSPcomplete VZCC Best Practices: • Really very straightforward • P2V tools could be used to migrate

10. Scenarios: ManagedVPS or Advanced Shared ManagedVPS is offering VPS to the customer with shared hosting like control panel without default root access, fully managed by provider Customer Benefits • Guaranteed SLA • Upgrade SLA or to VPS/DS/DDS • Customized application set • Additional managed services • Potential for Root control level 1-500+VPS/Server HSPcomplete Provider Benefits • Higher ARPU/customer • Fully integrated and automated offering • Never leaving to dedicated PEM In-house System Best Practices: • Offer for shared customers and move to VPS with the same control panel

11. Scenarios: : Virtual Infrastructure - Future Shared Web Server HostedApps SharedMail VPSServer DNS E-Commerce Portal CRM CMS ERP DB Billing Firewall Virtual Infrastructure is when all aspects of provider infrastructure is provisioned on virtualized servers Customer Benefits • Lower costs resulted from saved $$$ and improved service levels by provider 1-500VPS/Server Provider Benefits • Standardized infrastructure • Decreases cost and allows to buy better/reliable servers • Convenient provisioning re-provisioning, backup, restore, • Migration, monitoring mutualbackup VZMC VZCC Other: • There is no downside • P2V could be used for easy migration

12. Scenarios: Complex Hosting - Future • IDC Defines“…Complex managed Web hosting. This type of Web hosting typically involves multiple servers of various types (e.g., Web, database, and application) as well as additional services such as advanced monitoring, load balancing, security storage, stress testing, and content delivery…” • IDC Predicts“The complex managed Web hosting segment reached $2.9 billion in 2003 and will exceed $6.2 billion in 2008, expanding at a CAGR of 16.2%” • IDC ConsidersThis represents ~60% of total US web hosting market opportunity by 2008, 5x more then shared and 3+x more then basic dedicated • Innovative and targeted services • Virtualized infrastructure decreases provisioning and management cost • That enables mass provisioning and management of complex solutions Disaster Recovery VPS Server 01 • VPS01 • VPS02 • VPS03 • VPS04 Backup Standby Server • VPS01 • VPS02 • …. • VPS99 VPS Server 10 • VPS91 • VPS92 • VPS93 • VPS94 Load Balancing Download or Streaming Servers Load Balancer VPS Server 01 VPS Server 02 VPS01 VPS02 VPS03 VPS04 VPS01 VPS02 VPS03 VPS04 Game Server Hosting VPS Server 01 Game SubscriptionStorage VPS Server 03 VPS Server 02

13. v4.0: Summary • New major Virtuozzo release • More than 100 new features in total • Simultaneous availability of all the supported operating systems • Open and easy to integrate high performance Virtualization and Automation solution

14. DRBD Real-Time Replication Without SAN • Disk mirroring across a network to stand-by server. • Hearbeat between the servers. Virtuozzo Services auto-failover script (available from SWsoft). • Active-Passive only. • Protects against hardware and OS failures. Unplanned Downtime = Time to boot all VPSs (1-5min). Performance Penalty = ~<20% Cost Impact = Hardware + DC cost. Not a replacement for Backup! Not an individual VPS/services failover. Guarantee not just on the network availability but on hardware + OS failures! Sell high! Physical Server #1 Physical Server #2 write /root /root /vz /vz heartbeats