Get Into the Cloud: Strategies for Adding Cloud Services to Your Mix Monday, October 8, :30-3:15 p.m.

Transcription

1 Get Into the Cloud: Strategies for Adding Cloud Services to Your Mix Monday, October 8, :30-3:15 p.m. Get Into the Cloud

2 PLEASE SILENCE YOUR CELL PHONES THANK YOU! Get Into the Cloud

3 Moderator: Colby Synesael, Director & Sr. Research Analyst, Cowen & Company Speakers: Mark Adolph, EVP & CFO, Hostway Drew Jenkins, Director, Worldwide Channel Sales, SoftLayer Jim Wittry, Director North American Channels, Rackspace Get Into the Cloud

4 Get into the Cloud: Strategies for Adding Cloud Services to Your Mix COMPTEL PLUS Fall 2012 Convention & Expo October 7 10, 2012 Mark D. Adolph Executive Vice President & Chief Financial Officer

5 Hostway Overview Largest Hosting Company You Have Never Heard Of HOSTWAY PROPRIETARY AND CONFIDENTIAL

6 A Broad Product Portfolio Combine to Create Tailored, Secure Solutions Target Markets: What s Delivered: Fast Growth SMBs Managed Complex Hosting Storage, BCDR Cloud Servers VMs Hybrid Options Colocation Power & Bandwidth Hybrid Options Scalable, Easy to Use Solution (e.g. SaaS, Web 2.0, ecommerce, Mobile App Developers and Cloud Service Providers) Niche Markets (e.g. HIPAA, PCI, Security, etc) Shared Retail Web Hosting Ecommerce Cloud Platform Shared Wholesale Web Hosting Hosted Exchange Online Backup Storage Cloud Platform Domain Registration Services Note: Customer details for August 2012 period and LQA revenue for September 2012 period HOSTWAY PROPRIETARY AND CONFIDENTIAL

7 Growth Fueled by Cloud Offerings IaaS, PaaS and SaaS Offerings Delivered From: FlexCloud Servers Managed Hosting Hybrid Cloud Hosting FlexCloud Sites Vancouver NEW! FlexCloud Servers NEW! Hybrid Cloud Managed Hosting Hosting FlexCloud Sites Chicago Hosting FlexCloud Sites Austin FlexCloud Servers Managed Hosting Hybrid Cloud Tampa FlexCloud Servers Managed Hosting Hybrid Cloud FlexCloud Sites HOSTWAY PROPRIETARY AND CONFIDENTIAL

8 A Cloud is a Cloud Or Not Enterprise-Class Functionality at SMB Price Points North America s Largest Hyper-V Cloud Options Public, Private and Hybrid Cloud IaaS, PaaS, SaaS Performance and Security Highly Available, Security Options Public API - Non-proprietary, OpenStack compatible API Surface In Progress Geographically Dispersed Connected Datacenter Network, BCDR Enterprise-Class Technologies Servers, Network, Security, SAN Storage Benefits of Hostway s Cloud: On-demand scalability and flexibility Rapid, automated provisioning 100% SERVER uptime guarantee Fully customizable with administrator access Support to Help You Grow: Free consultations to tailor solutions Account support and maintenance Direct to data center phone numbers 24/7/365 live support Business consultants to help you grow HOSTWAY PROPRIETARY AND CONFIDENTIAL

9 A Cloud Company for Cloud Companies Our Success Directly Tied to Partner/Customer Success Types of Hostway Partners And Customers: Cable Providers Telcos VARs with Integrated IT Solutions Hosting Resellers Companies with Multiple Data Centers Gaming Services SaaS Integrators & Developers Utility & Grid Solutions Providers Application Developers Managed Services Companies HOSTWAY PROPRIETARY AND CONFIDENTIAL

10 Cloud Strategy = Partner Strategy Extensive Collaboration Driving Cloud Market Everyone Wants to Make Money Industry-Leading Partner Payouts Our Partners Resellers Discounts Referral Partners Commissions Private/White Label Resellers Joint Go-To-Market Creation Determine Where to Start Assign Channel Manager Fully-Integrated Partner Portal Ongoing Education Onsite Sales Training Customized Solution Design Business Opportunity Referrals Co-Marketing Initiatives HOSTWAY PROPRIETARY AND CONFIDENTIAL

11 Don t Overlook Cloud Management API-Surface; White-Labeled BSS/OSS System for Partners Minimize market entry risk Increase flexibility Reduce startup investment Leverage product portfolio Minimize cap ex investment Generate stronger IRRs HOSTWAY PROPRIETARY AND CONFIDENTIAL

12 Contact Us For More Information Mark D. Adolph Executive Vice President and Chief Financial Officer Ext. 191 Dave McCrossen Russell Griffin Vice President of Sales Director, Channel Programs Ext Ext Learn More HOSTWAY PROPRIETARY AND CONFIDENTIAL

13 Build the future. Oct. 12 CONFIDENTIAL INFORMATION SOFTLAYER TECHNOLOGIES

14 Corporate Overview SoftLayer provides Cloud, Dedicated, and Managed Hosting, with a commitment to: Innovation Empowerment Automation Integration Founded in 2005, based in Dallas, Texas 24,000+ customers in 150+ countries $350M annual revenue 100,000 + servers deployed Data centers in Houston, Dallas, San Jose, Seattle, Washington D.C., Singapore, and Amsterdam 16 additional network POPs spread across US, Asia and Europe Committed to the Channel CONFIDENTIAL INFORMATION SOFTLAYER TECHNOLOGIES 14

15 Global footprint 13 data centers 19 pods deployed 16 network points-of-presence 20 Gb fiber between data centers 100,000 servers under management 22,000,000 domains hosted CONFIDENTIAL INFORMATION SOFTLAYER TECHNOLOGIES 15

16 Our History $350 Annualized MRR ($ millions) $300 $250 $200 $150 $100 $50 $ JAN SoftLayer goes live in 1,000 ft 2 of data center space in Dallas AUG EBITDA positive DEC Seattle opens MAY Washington, DC opens Combined companies have tripled in size over the last 4 years throughout 22 quarters of non-stop growth APR CloudLayer launch APR Deployed nationwide network AUG Acquired by GI Partners NOV Merged with The Planet MAR Integration complete APR San Jose opens OCT Singapore NOV Amsterdam CONFIDENTIAL INFORMATION SOFTLAYER TECHNOLOGIES 16

17 Current Channel Program & Definitions Partner Type Referral Partner Strategic Partner Hosting Reseller Definition Due to the services referral partners provide, they are in a position to refer new hosting customers to SL. In exchange for referring us new business, we provide referral partners with monthly commission payments and other benefits. Referred customers sign directly with SL. Examples include application developers, MSP s, IT consultants, web designers, etc. Referral partners are managed by channel sales team. Higher-revenue partnership opportunities where hosting is usually a component of the partner s overall solution. A strategic partner s business model will dictate whether they refer or resell SL s hosting services. Initiating a strategic partnership normally includes involvement of several groups within both organization (sales, executive sponsorship, legal, marketing, etc.). Current examples of strategic partnerships are VAR s, distributors, service providers, SI s, SaaS providers, ad agencies, etc. Strategic partners are managed by the channel sales team. Hosting resellers buy hosting services from SL at a discount, mark them up, and resell them. Hosting is their primary source of revenue. May or may not leverage SL s brand. Hosting resellers are managed by global and enterprise teams. CONFIDENTIAL INFORMATION SOFTLAYER TECHNOLOGIES 17

18 Benefits for SoftLayer Partners Higher margins Establish new sources for monthly recurring revenue Access to IaaS market TAM is expected to grow from $4B to $25B in next 5 years Expansion of cloud services Supplement HW sales Fill gaps within services portfolio Provide additional options for customers Increase differential advantages over competition Flexibility of SoftLayer s platform: Month to month or hourly billing Fully integrated suite of hosting solutions Automation Geographical diversity Open API and focus on development Great value CONFIDENTIAL INFORMATION SOFTLAYER TECHNOLOGIES 18

19 Global Cloud Platform CONFIDENTIAL INFORMATION SOFTLAYER TECHNOLOGIES 19

20 Product Differentiation vs Cloud Providers Selectable CPU, RAM, Storage Hybrid environment get cloud services alongside dedicated servers sharing same network infrastructure, management tools, billing engine vs. Managed Hosting Companies Automation of traditional managed services Enable customers to manage own environments Customizable - select which devices to have managed vs. On-Prem. Datacenters or Colocation Greater degree of management and control 24x7 NOC and datacenter support 24x7 technical support Lower TCO More efficient provisioning Ease of technology refresh OpEx vs. CapEx CONFIDENTIAL INFORMATION SOFTLAYER TECHNOLOGIES 20

21 Enablement We get it! SoftLayer is committed to providing our partners with the education and resources they will need to be successful. On-boarding Training (in person or via the web) Services Management portal Differentiators Opportunity identification Dedicated sales, marketing, and technical resources Lead generation activities Joint sales calls Bundled solutions Collateral Free trials Incentives CONFIDENTIAL INFORMATION SOFTLAYER TECHNOLOGIES 21

22 Questions? Contact Information: Drew Jenkins Director, WW Channel Sales direct cell CONFIDENTIAL INFORMATION SOFTLAYER TECHNOLOGIES 22

23 Rackspace September 2012

24 Legal Disclosures Safe Harbor Statement This presentation contains forward-looking statements that involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of Rackspace Hosting could differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including any statements concerning expected operational and financial results, long term investment strategies, growth plans, expected results from the integration of technologies and acquired businesses, the performance or market share relating to products and services; any statements of expectation or belief; and any statements or assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include infrastructure failures, the continuation or further deterioration of the current difficult economic conditions or further fluctuations, disruptions, instability or downturns in the economy, the effectiveness of managing company growth, technological and competitive factors, regulatory factors, and other risks that are described in Rackspace Hosting s Form 10-K for the year ended December 31, 2011, filed with the SEC on February 17, Except as required by law, Rackspace Hosting assumes no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. Trademarks and Service Marks Rackspace and Fanatical Support are our registered service marks. Other trademarks and tradenames appearing in this presentation are the property of their respective holders. We do not intend our use or display of other companies tradenames, trademarks, or service marks to imply a relationship with, or endorsement or sponsorship of us by, these other companies. RACKSPACE HOSTING 24

25 RACKSPACE HOSTING CONFIDENTIAL & PROPRIETARY MATERIAL 4,500+ RACKERS 190,000+ CUSTOMERS 84,000+ SERVERS 22,085+ VM 70 PB STORED GLOBAL FOOTPRINT CUSTOMERS IN 120+ COUNTRIES 8 WORLDWIDE DATA CENTERS WE SERVE 60% OF THE FORTUNE 100 OVER $1 BILLION $$$$ Annualized Revenue We consider our leadership position in Gartner s Magic Quadrant for Managed Hosting providers as further confirmation that Fanatical Support provides great IT outcomes for our customers. Lanham Napier, CEO, Rackspace PORTFOLIO OF HOSTED SOLUTIONS Dedicated - Cloud - Hybrid A LEADER Gartner Magic Quadrant for Managed Hosting Rev

26 Our Passion is Fanatical Support To Be Recognized as One of the World s Greatest Service Companies 26 RACKSPACE HOSTING

27 Rackspace s Portfolio Approach RACKSPACE HOSTING 27

28 WORLDWIDE Partner Network EMEA 750 Partners Americas 3500 Partners Asia/Pacific 150 Partners Over 7000 partners globally. Most Competitive Hosting/CloudChannel Program Partners Addressing Sectors Worldwide: Advertising/Marketing Services E-Commerce IT Services/Software Retail/Wholesale Trade Business Services/Management Consulting Publishing/Media/Social Media/Content Portal Financial Services Healthcare Education/Recruitment Manufacturing/Construction Venture Capital & Private Equity RACKSPACE HOSTING

29 Rackspace Partner PROGRAM BENEFITS Sales Designated Channel Account Manager Expert Racker Sales Resources Comprehensive On-boarding & Training Competitive Compensation & Discount Structure Marketing Partner Portal Full of Online Resources & Tools Co-branded Marketing Tools for Lead Generation Micro Sites for Content Syndication on Your Site Collateral, Sales Aids, & Press Release Tools RACKSPACE HOSTING

30 RACKSPACE HOSTING

31 Speaker Contact Information: Colby Synesael, Mark Adolph, Drew Jenkins, Jim Wittry, Get Into the Cloud

32 THANK YOU FOR ATTENDING! Get Into the Cloud