Creating the cloud bundles SMBs need. John Zanni, VP Marketing & Alliances. Profit from the Cloud. March 22 nd 2012

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1 Creating the cloud bundles SMBs need Profit from the Cloud Oleg Melnikov, SVP Automation ti John Zanni, VP Marketing & Alliances March 22 nd 2012

2 Parallels SMB Cloud Insights Profit from the Cloud

3 Introduction know your customers We invested $2M in primary research We spoke to 5,200 SMBs in 13 countries We share this knowledge with our partners 3 Profit from the Cloud

4 Methodology: how do we characterize buyers? Size Micro (<10 employees) Small (10-49 employees) Medium ( employees) IT Audience No IT (a.k.a. Do-it-yourselfers ) IT consultants IT staff Opportunity type Cloud Converter Cloud Leaper Cloud Expanders 4 Profit from the Cloud

5 Per SMB Consumption Growth $ paid Services per SMB $400 $350 $300 $250 $200 $150 $230 20% CAGR $394 2 $100 1 $ $ Average # of cloud services consumed (paid and unpaid) Average # of paid cloud services consumed Average Cloud spend per SMB in USD / year Source: Parallels SMB Cloud Insights Research 5 Profit from the Cloud

6 Worldwide, the SMB cloud market is $34B and growing fast Current Market (WW, 2011) = $34B 26% CAGR worldwide Estimated WW SMB Market in 2014 = $68B Hosted Web Communication and Business Infrastructure Presence Collaboration Applications Source: Parallels SMB Cloud Insights, Profit from the Cloud

7 Communication & Collaboration Overview Hosted Infrastructure Communication & Collaboration Web Messaging Team Instant Virtual Office Business Presence Collaboration Collaboration Apps Discussions Conferencing VoIP/DID Calendar Documents IM/Chat PBX Contacts Shared Calendar Presence Tasks Voice Chat AS/AV Archiving 7 Profit from the Cloud

8 SMB Cloud Insights Daily Communication & Collaboration Medium SMBs use of premium hosted up 110% Premium hosted saw a staggering 110% growth among US medium SMBs during SMBs switching from free providers like Gmail or upgrading from free hosted fueled this incredible growth. And stay tuned, medium SMBs plan to add another 7M premium mailboxes in the next 3 years. Huge growth in hosted PBX driven by micro SMBs Nearly all of the 75% growth in hosted PBX last year was driven by micro SMBs who did not previously have PBX. Hosted PBX allows these SMBs to have enterprise-level phone systems at a reasonable monthly rate, without the hassle of installation and maintenance. Source: Parallels SMB Cloud Insights, Profit from the Cloud

9 Practical guidance for Hosted Communication & Collaboration Drive profitability through upselling premium Capture micro SMB business with low cost / free and upsell overtime Target micro SMBs with the hosted PBX value proposition Educate micro SMBs about the business benefits of enterprise-level phone system Focus on upselling premium offerings Bundle hosted PBX with domain registration and Web presence to increase ARPU Provide a variety of Leverage Parallels turn-key options by working with voice offerings Broadsoft, Parallels (Microsoft Microsoft Lync, Infratel, Exchange, OX, Zimbra) 4psa/VoipNow p 9 Profit from the Cloud

10 Best Practice: Apptix and SMB messaging 10 Profit from the Cloud

11 Business Applications Overview Business Applications Hosted Infrastructure Web Communication Content Files Teamwork Office &C Collaboration Presence Content Management Backup Conferencing HR Archiving File Sharing Payrol CRM Accounting 11 Profit from the Cloud

12 SMB Cloud Insights Daily Business Applications & SaaS Online backup & storage is the must-have SMB app Across all sizes of SMBs, online backup and storage was the single most popular app to add in the next 3 years. Overall, 13% definitely plan to purchase online back up and storage by 2014, and another 33% are considering adding it. This is the one application service providers don t want to leave out of their offerings. Types of SaaS apps SMBs want vary by size of SMB While all SMBs want online back-up and storage, the hottest online applications differ by SMB size. Micro SMBs also want online accounting and file sharing. Small SMBs add archiving and phone conferencing to their most-wanted apps. Medium SMBs want to add every online application. Web conferencing, phone conferencing, and online accounting are the top three. Source: Parallels SMB Cloud Insights, Profit from the Cloud

13 Practical guidance for Business Applications Create application bundles for different SMB types Target SMBs with specific app bundles to suit their size and/or industry Make sure online backup and storage is included in your bundles Launch a rich application storefront Leverage Plesk Partner Storefront or Parallels Automation for Cloud Marketplace Add 100s of APS-enabled free and paid applications Work with Parallels experts to create the right bundles 13 Profit from the Cloud

14 Best Practice: LuxCloud application store front 14 Profit from the Cloud

15 Address different opportunities Cloud converters A lot of technical features Educate on security and privacy Cloud leapers Work with traditional IT consultants and offer them white-label resell Cloud expanders Upsell of related services, such as business or web presence 15 Profit from the Cloud

16 Deep-Dive Hosted PBX Profit from the Cloud

17 Hosted PBX Opportunity Fastest growing g cloud service 75% Y-Y growth, reaching $2.5B in 2011 Estimated 35% CAGR growth to $6.2B in 2014 Multiple growth drivers - Most of the growth driven by SMBs are less than 20 employees who did not have a PBX - SMBs with existing in-house PBX moving to Hosted PBX is the second largest group Source: Parallels SMB Cloud Insights 2012, Global Market 17 Profit from the Cloud

18 Traditional Telephony Small Business Office 18 Profit from the Cloud

19 Cloud-Based PBX Hosted PBX Provider Joe s Home Small Business Office Mark s Car 19 Profit from the Cloud

20 How Parallels Can Help You Profit from the Cloud

21 Parallels Automation Portfolio 21 Profit from the Cloud

22 Hosted PBX VoIP and Telephony Powered by BroadWorks Benefits for Small Businesses Enterprise PBX features without upfront investments Interactive Voice Response (IVR) touch tone menus Call group Voice mail Simple setup in Parallels Control Panel Business efficiency with tightly integrated messaging and collaboration applications Benefits for Cloud Provider Offer essential communication i service Bundle together with other services like , instant messaging, g web presence Use in-house BroadWorks or syndicate from a wholesaler Press 1 for sales; Press 2 for hours and directions 22 Profit from the Cloud

23 Hosted Microsoft Lync Benefits for Small Businesses Improve Productivity through rich presence and real-time collaboration Control Costs with Voice over IP (VoIP). Consistent User Experience across PC, desk and mobile phone Benefits for Cloud Provider Upsell Exchange mailboxes Supports Lync 2010 Enterprise and Lync SP1 Hosting Pack Bundle IM with telephony through h SIP trunk or BroadWorks PBX to avoid churn 23 Profit from the Cloud

24 VMware Zimbra Benefits for Small Businesses Feature-rich and affordable , calendaring, tasking, documents, social media and enterprise applications Offline access with desktop client and anywhere access from mobile phone Benefits for Cloud Provider Low cost full featured server solution similar to Microsoft Exchange Automated provisioning and easy customer self-service keeps support costs low Flexible deployment scenarios Horizontal scalability 24 Profit from the Cloud

25 APS Ecosystem Profit from the Cloud

26 The Traditional SMB IT Ecosystem 10,000s ISVs/HW Builders 1000s Distributors 100,000s Resellers 148M SMBs Develop, package for physical distribution or download, d l d license, install Aggregate, manage physical distribution, order d ffulfillment, lfill t revenue on each transaction Integrate, upsell, cross-sell, h l iinstall, help t ll configure solution Manually license, deal i h upgrade, d with sometimes install and configure, use 26 Profit from the Cloud

27 The New SMB IT Ecosystem 10,000s ISVs Develop, Development, package for physical infrastructure distribution provisioning, or download, d i i il d installation, license, install configuration, licensing 10,000s Service Providers 100,000s Resellers & System Integrators Aggregate, Aggregation, manage physical infrastructure, distribution, order provisioning d i ffulfillment, i lfilli t automation, revenue on service each billing, transaction recurring revenue Integrate, upsell, cross-sell, help cross-sell, configure solution hfi l iinstall, help t lll ti configure solution M SMBs Use Manually license, deal i h upgrade, d with sometimes install and configure, use Profit from the Cloud

28 Enabling Seamless Distribution 10,000s ISVs 10,000s Service Providers 100,000s Resellers & System Integrators 148M SMBs APS: Application Packaging Standard Standardizes the packaging of software and services for cloud distribution 28 Profit from the Cloud

29 The APS Parallels Enabled Ecosystem Enabled Ecosystem apps & services lesale Who VAR SI Vertical Hoster Service s Incre emental Small Hoster Direct 29 Profit from the Cloud

30 SMB Hosted Service Wave SP-Hosted SP-Hosted Services Services SP-Hosted / SaaS Service Integration APS Se ervice Bus 30 Profit from the Cloud

31 Technical Resources APSStandard.org For ISVs ISV packaging documentation & tools Support queue Certification guidelines & submission process For service providers Application catalog News & events APS Certified System Integration Partners Active.by <Epam> GlowTouch Implement.com isynergy Softtec/SofCloudIT Biz Information Services 31 Profit from the Cloud

32 Summary Profit from the Cloud

33 Summary Communication & Collaboration is not only e- mail, but much more we see big growth in Hosted PBX services. Parallels Automation provides end-to-end automation for a full line of Cloud services. Parallels Automation is backed by large APS ecosystem constantly extending. For more information go to: parallels.com/products/automation/ Get our 2012 SMB Cloud Insights Report parallels.com/smbreport 33 Profit from the Cloud

34 34 Profit from the Cloud

35 APS Today Version 1.2 Profit from the Cloud

36 APS Package Application Types Web Server Hosted by Service Provider Web Hosted Legacy Syndicated Syndicated Service Dedicated Servers or VPSs 36 Profit from the Cloud

37 APS Packaging certification 37 Profit from the Cloud

38 APS Futures DISCLAIMER: Section contains forward looking statements that are not a commitment to deliver any specific product. Profit from the Cloud

39 Enabling a Rich Service Ecosystem Application UI for control panel Single sign on APS Controller API - Service discovery - Cross-service communication and dependencies store.myco.com - Notifications Configurable business terms Auto-scale Service Integration APS Se ervice Bus 39 Profit from the Cloud

40 Enabling a Rich Service Ecosystem Application UI for control panel Single sign on APS Controller API - Service discovery - Cross-service communication and dependencies - Notifications Configurable business terms Auto-scale Service Integration APS Se ervice Bus 40 Profit from the Cloud

41 Enabling a Rich Service Ecosystem Application UI for control panel Single sign on APS Controller API - Service discovery - Cross-service communication and dependencies - Notifications Configurable business terms Auto-scale Service Integration APS Se ervice Bus 41 Profit from the Cloud

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