Best Practices for IaaS with Parallels Virtuozzo Containers. Lowell Anderson, Director, Product Marketing, IAAS, Parallels

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1 Best Practices for IaaS with Parallels Virtuozzo Containers Lowell Anderson, Director, Product Marketing, IAAS, Parallels

2 Parallels Virtuozzo Containers Worlds Leading Cloud Virtualization Solution - 1,000,000+ containers - 1,500+ Cloud Providers new Service Providers in 2011 Virtual Private Server Market Share Profit from the Cloud 2

3 Best practices enable success for VPS Hosting Increase ARPU Cross-Sell / Up-Sell Drive Loyalty, Stickiness With Differentiated Products Pursue Operational Excellence Optimize Density Ensure Reliability, Stability & Performance Minimize Infrastructure Cost per VPS TM Profit from the Cloud

4 Key to success: ARPU Increase ARPU through cross-sell/up-sell Metric Hosted Infrastructure ARPU VPS: $30 - $50 $60 $50 $40 $30 $20 $10 $- ARPU High Margin Low Margin $50/VPS = $21 $30/VPS = $5 Profit from the Cloud 4

5 Key to success: ARPU Increase ARPU through cross-sell/up-sell Make it easy to upsell and size Maximize $$ at POS - Package Add-Ons like Plesk - Maximize RAM, Storage and BW Proactively Up-Sell - Monitor server usage and offer upsize packages - Upsell Plesk licenses or additional servers as they approach domain limits Best Practice Add-Ons Plesk Backup Monitoring Anti-Virus, Anti-Spam Development Bundles Profit from the Cloud 5

6 Key to success: reduce customer churn Metric Hosted Infrastructure Churn VPS/unmanaged offerings: 2.5-4% per mo Performance gap in churn rate for SMB Cloud providers Annual churn rate, Index 100 for best performer -60% Needs Improvement Best Performer Profit from the Cloud 6

7 Key to success: reduce customer churn Success through free and limited versions 10% increase in adoption with little efforts! Increase Attach Rate - Drive stickiness through freebies, Freebies personalization, special offers Special offers Increase customer retention by bundling Plesk panel on their virtual server offerings Profit from the Cloud 7

8 Key to success: reduce customer churn Branded bundles Offer branded bundles and niche offerings for target customer segments Target Customer Segments Profit from the Cloud 8

9 Key to success: reduce customer churn Use Cloud marketing Use the unique features of PVC to position as Cloud Services Make it cloudy with dynamic content and toggles enabling customers to personalize and tailor their own packages Profit from the Cloud 9

10 Key to success: reduce customer churn Be Unique Leverage unique features of PVC to introduce new pricing models, customer orientation and go-tomarket approaches Charging customers different prices through Stackable containers a new differentiated offering for customers Profit from the Cloud 10

11 Key to success: reduce customer churn 80% leverage Twitter for real-time updates Identify and nurture - Use Social media (Twitter, Facebook) for real-time customer dialogue and engagement 90% maintain a Facebook page for dialogue and testimonials 75% spend less than $5K annually on marketing, increasing their $0 $1,500 $25,000 Low Average High usage of social media Recent Service Provider Voice-of-Customer initiative Profit from the Cloud 11

12 Key to success: reduce customer churn Compete on service and support, not just price - Showcase how you are different. - Look at opportunities to create affinity with customers through through shared values, interests Customer Service & Support as key competitive advantages 80% of Service Providers claim they differentiate on quality of service and customer support you need to develop your niche! Share accolades and testimonials Profit from the Cloud 12

13 Key to success: reduce customer churn Build customer loyalty Customer community Customer forums Rewards programs Customer forums and peer-to-peer support enablement Rewards for longerterm purchases or service contracts Profit from the Cloud 13

14 Key to success: operational excellence Pursue Operational Excellence Disk Recommendations - 4x500GB RAID10 - Select swapspace relative to memory Best Practices Memory 0 4 GB 2 GB 4 16 GB 4 GB GB 8 GB GB 16 GB GB 32 GB Swap - Hotplug compatible disk bays and RAID controllers - Avoid fans on controllers - Use battery backup controllers Optimize Your Environment - Use compatible native environment on the host: (RHEL6 for vz4.7) - Be consistent with HW on nodes to reduce risk of driverrelated problems. - Don t use 3rd-party drivers on nodes - Keep configurations synchronized across all the PVC servers. - Test new hardware before production switch-over Streamline deployment - Use PSBM to streamline deployment - Use PXE boot to automate networkbased installation Profit from the Cloud 14

15 Key to success: density Optimize Density Match Your Server to Your Business Model Workload CPU Memory Density Web Applications/Plesk Database/Compute Intensive 10 Low 2x Quadcore 2x Eight- Core 90 Average 64GB GB` High Recent Service Provider Voice-of-Customer initiative Take advantage of latest PVC 4.7 features CPU Limits - Ensure that CPU core number and limits are set according to your hardware environment Disk I/O Limits - Prevent situations where high disk I/O activities in one container will slow down the performance of other containers - Set to 75% max disk throughput vswap - Limits the maximum amount of allocated memory by specifying physical memory and virtual swap space which can be used by a container Profit from the Cloud 15

16 Profit From The Cloud Increase ARPU Make it easy for customer to purchase add-ons and position your most profitable packages to maximize $$ at POS Know your customer start a customer loyalty program today Best Practices Pursue Operational Excellence Streamline your installation process and optimize your environment using PSBM to deploy PVC Optimize Density Take advantage of the latest PVC features to maximize density and improve performance TM Profit from the Cloud