MPS & VPS: Not Just for Hos1ng!
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1 MPS & VPS: Not Just for Hos1ng! Ivan Hur) Sr. Product Manager Verio Inc Privileged and Confiden/al: NDA Required for External Disclosure 2/11/10 1 Privileged and Confiden/al: NDA Required for External Disclosure
2 Agenda The Hos/ng Perfect Storm Why move past Web Hos/ng? Anatomy of a High Flying Hos/ng Business You know Web hos/ng, but what else is there? Case Study Costs Q&A Privileged and Confiden/al: NDA Required for External Disclosure 2/11/10 2
3 The Hos1ng Perfect Storm 1. Infrastructure Is Ready o Readily available high speed connec/vity o Less expensive servers and network hardware 2. Customers Are Ready o o Economy Need for improved ROI More compe//ve service and delivery models Rapid increase in use online applica/ons use 3. Products Are Ready o Local, State and Federal Service o Tax prepara/on o Collabora/on tools Privileged and Confiden/al: NDA Required for External Disclosure 2/11/10 3
4 Why Move Past Simple Web Hos1ng? The web isn t going anywhere! Capturing and cul/va/ng strong customer rela/onships Growing revenues Improving produc/vity Reducing costs Each organiza/on and industry faces unique challenges doing business on the Web Privileged and Confiden/al: NDA Required for External Disclosure 2/11/10 4
5 Anatomy of a Hos1ng Business Customer Support Staff Marke/ng Billing System Sales A Product! Data Center Provisioning System Technical Staff Privileged and Confiden/al: NDA Required for External Disclosure 2/11/10 5
6 MPS & VPS are Building Blocks Privileged and Confiden/al: NDA Required for External Disclosure 2/11/10 6
7 2 Basic Op1ons or Maybe a Mixed Approach Finance Clinic & Healthcare Law Firms Local & State Gov t Messaging CRM Privileged and Confiden/al: NDA Required for External Disclosure 2/11/10 7
8 So Many Op1ons Where Is The Money? Collaboration Order Management Telco Product Planning Logistics Advanced Web Hosting Special Purpose Project Management Business Intelligence Marketing Procurement Payroll Sales Force Automation Finance Custom Development ecommerce HR Management Niche Customer Service Management Messaging Content Management Privileged and Confiden/al: NDA Required for External Disclosure 2/11/10 8
9 Hot Areas of Customer Interest Comm Content Collab CRM Basic Business Exchange (Advanced ) Instant Messaging VOIP Basic Web Hos/ng Intermediate Web Hos/ng Content Management Authoring and Publishing Enterprise Portals File Sharing Knowledge Sharing (Wiki) Conferencing Customer Service Automa/on Sales Force Automa/on Marke/ng Automa/on Privileged and Confiden/al: NDA Required for External Disclosure 2/11/10 9
10 What Are Other VPS & MPS Customers Using? 1. wpoison An an/ spammer applica/on 2. JDK Java Development Kit Create, test & execu/on of Java code 3. Majordomo A mailing list manager 4. twig "The Web Informa/on Gateway" 5. Samba An open source version of the SMB/CIFS 6. Joomla (Drupal, PHP Nuke, and so on) Content Management Systems 7. CVS (Git, Subversion, Bazaar, SVK) Code versioning and revision control 8. SugarCRM (and market compe/tors) Privileged and Confiden/al: NDA Required for External Disclosure 2/11/10 10
11 Business Web 2.0 Specialized Dynamic Content Business Need and Value o Use both simple and complex apps. o Demand more interac/ve and dynamic content o More advanced technical hos/ng knowledge o Strong vendor rela/onship o Intermediate value of hos/ng o Medium importance of hos/ng and awareness of up/me Applica1on Usage o Corporate , Ecommerce o Standard and custom combos Resource Requirements o Root access or the ability to work around nonroot o Tech II and possibly development o Certain features become cri/cal o Security, SSL and backups Trigger Point to upgrade o Resource needs change o Custom applica/ons require change o Now require root access Privileged and Confiden/al: NDA Required for External Disclosure 2/11/10 11
12 Business Web 2.0 Example More database integration Custom inventory search script Off-the-shelf payment calculator Privileged and Confiden/al: NDA Required for External Disclosure 2/11/10 12
13 Corporate Web 1.0 Business Integrates w/ Web Business Need and Value o Needs and use vary significantly o Back office integra/on o Strong understanding of features and resources o Importance of hos/ng varies from some what important to very important o Intermediate technical hos/ng knowledge Applica1on Usage o Ecommerce o Many applica/ons possible both standard and custom Resource and Product Requirements o Corporate o Root access cri/cal and complete configura/on control o Monitoring and repor/ng of resources and site availability o Flexible hos/ng planorm o Customize plan capabili/es o Tier II support Trigger Point o Resource needs increase o Changing needs introduce architectural complexity Back office integration Industry specific custom applications Privileged and Confiden/al: NDA Required for External Disclosure 2/11/10 13
14 Corporate Web 2.0 Op1mized for Single Use Business Need and Value o Use varies from simple to very complex o Increased customizable security o Back office integra/on o Strong understanding of features and resources o Importance of hos/ng is high o Value of hos/ng maybe low they make money on something else o Intermediate technical hos/ng knowledge Applica1on Usage o Ecommerce o Varies significantly could be 1 applica/on or many Resource and Product Requirements o Corporate (could be a server dedicated to service) o Root access cri/cal and complete configura/on control o Monitoring and repor/ng of resources and site availability o Flexible hos/ng planorm o Tier II support Trigger Point o Resource needs increase o Architectural complexity is mandatory Customer login to upload audio files for transcription and download text files Server optimized for uploading and downloading files Privileged and Confiden/al: NDA Required for External Disclosure 2/11/10 14
15 TCO Build vs Lease (3 year, per server) Build Your Own: Y1 Y2 Y3 Total Lease Server 1, ,196 Network Opera/on System 1,299 1,299 1,299 3,897 Server Maintenance 1,119 1,119 1,119 3,357 Power Cooling System Administra/on 2,543 2,543 2,543 7,630 Physical Space & connec/vity???? Provisioning & Helpdesk???? MPS $3,299 $3,299 $3,299 $9,898 TCO (Build $9,898 vs Lease $17,953) $ 8,055 45% Privileged and Confiden/al: NDA Required for External Disclosure 2/11/10 15
16 Case Study: Partner SaaS Model o They seek out market, license or build applica/ons for each market and sell o Value add 6 SaaS applica/ons with our virtual server o Upsell professional services for customiza/on and configura/on o Their company has less than 2 dozen employees o Verio runs the automated provisioning and deployment Financial Results o $80 million USD in yearly revenue Privileged and Confiden/al: NDA Required for External Disclosure 2/11/10 16
17 Key Benefits of Adding New Hos1ng Solu1ons Focus on core competency Reduce IT Costs Leverage IT Exper/se Scale Quickly Increase Technology Performance Privileged and Confiden/al: NDA Required for External Disclosure 2/11/10 17
18 The Tech World Is Your Playground! Privileged and Confiden/al: NDA Required for External Disclosure 2/11/10 18
19 About Verio Premier Web Hosting, Application Hosting and SaaS applications vendor Financially stable o Part of NTT Communications (world s largest Telecommunications company) Owns the data centers and IP network Award-winning services Highest performance available 24X7 Technical and customer support Industry leading Service Level Agreements 100% focused on channel Privileged and Confiden/al: NDA Required for External Disclosure 2/11/10 19
20 viaverio Partner Program Via 1 Partner Model o 15% recurring commission on all customer sales o You do not have to provide monthly billing, technical or customer support (Verio handles) Via 3 Partner Model o Allows partners to purchase our services at wholesale prices (nearly half retail pricing) o Resell services for a profit to end-customers o You provide monthly billing, technical and customer support to end customers Contact us at or Privileged and Confiden/al: NDA Required for External Disclosure 2/11/10 20
21 The End Thanks! Ivan Hurq Privileged and Confiden/al: NDA Required for External Disclosure 2/11/10 21
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