VERIZON CLOUD SERVICES

Service Description: Insert Title VERIZON CLOUD SERVICES Verizon Compute 1. EXECUTIVE SUMMARY... 2 2. VERIZON CLOUD COMPUTE OVERVIEW... 2 2.1 Verizon Compute Deployment Modes... 2 2.2 Service Tiers... 3 2.3 Use Cases and Challenges... 4 3. DETAILED DESCRIPTION... 4 3.1 Management... 4 3.2 Compute... 5 3.3 Virtual Machine Lifecycle Management... 5 3.4 Storage... 5 3.5 Networking... 6 3.6 Security... 7 3.7 Private On-Premise... 8 3.8 Private Off-Premise... 9 3.9 Service Tiers... 9 3.10 Service Level Agreements... 11 4. AVAILABILITY... 11 5. PRICING... 11 Page 1 of 11

1. EXECUTIVE SUMMARY Verizon Compute provides cloud-based Infrastructure-as-a-Service (IaaS) in both self-service and Verizonmanaged models to support a wide range of customer solutions. You can create, manage and delete Virtual Machines (VMs) as required in different deployment modes: public cloud, (VPC) and private cloud. However Verizon Compute is deployed for you, Verizon provides standard and/or customized management, security and support services to fit your specific requirements. 2. VERIZON CLOUD COMPUTE OVERVIEW Verizon Compute provides a broad range of infrastructure cloud capabilities to address the diverse needs of global enterprise customers. The power and flexibility of Verizon s globally distributed cloud computing platform, combined with the Verizon network and top-tier data centers provide the foundation for reliability and availability. Beyond a world-class platform, Verizon provides value added infrastructure management and security expertise so that large organizations with mission-critical computing needs receive the right technology for their needs delivered by experts. Verizon Compute supports diverse security, performance, and cost requirements. It enables rapid startup for customers with immediate needs. A user can create an account using a credit card and immediately take advantage of our public cloud. IaaS delivers the cost benefits of a secure multi-tenant cloud with the added value of selectable performance and highly configurable networking. Customers can grow their environment on demand to cope with increasing project and application sizes. A streamlined online user experience provides rapid access to additional public and s (VPCs). Users can provision cloud workloads in alternate cloud data centers, create a Space, add management services and request access to additional Verizon expertise to support their business. Dedicated environments, or private clouds, are available for customers who require customization, high performance, or complete segregation. Private clouds based on Verizon s leading technology can be deployed in the customer s datacenter or Verizon s. Verizon understands that maintaining the confidentiality, integrity and availability of mission critical information is a top priority for enterprises and government agencies. Our multi-layer approach to delivering security services enables our customers to purchase appropriate services in order to achieve a desired state of protection at all levels within their Verizon environment. Multi-layer security services can be delivered in the cloud to defend web sites, applications and data from malicious attacks by combining advanced state-of-the-art tools, services and instrumentation; all managed by a team of trained, experienced and certified security professionals. 2.1 Verizon Compute Deployment Modes All Verizon customers have access and control over the Verizon infrastructure via the Console. The first deployment action is to define a Space, which is a logical grouping of resources. VMs in a Space inherit certain qualities or characteristics, depending on how you define the Space. The first characteristic of a Space is the deployment mode. Deployment modes include: Public: Low cost, on demand cloud infrastructure that is delivered in a shared multi-tenant environment providing secure logical isolation between customers. You can select from thirteen pre-defined VM configurations, each with configurable disk size, IP addresses, disk IOPs and NIC performance. (VPC): Three separate VPC configurations exist, each available only in an offline (invoice) payment method: Configuration 1. Reserved Performance VPC providing dedicated VPU (no noisy neighbor), allowing granular configuration of virtual machine VM and network settings, letting you fully reserve CPU, memory, storage, and network performance. Software Defined Networking (SDN) helps mimic existing data center network topologies in Verizon, manage routing, and extend existing IP space into Verizon. Broadcast and multicast can be configured as needed to support DHCP and DNS. Page 2 of 11

Configuration 2. Elastic Resources VPC, great for variable demand workloads yet no resource reservation needed to deploy VMs on demand. Supplies a shared pool of resources for your instance-based VMs, letting you pay for cloud services per use instead of through reserved resource capacity while providing you control of per-vm efficiency. Elastic Resource VPC also gives you value added features such as snapshots, basic monitoring, built in software or dedicated physical firewalls and load balancers, cloning, template management, and VM import/export. Characteristics include private network integration, dedicated address space and dedicated hardware or software networking appliances (firewalls, load balancers). Configuration 3. Resource Pool VPC, providing VPU and RAM as a pool of resources that you can assign to VMs. Great for static workloads and expected resource usage yet allows for busting and oversubscription when additional resources are needed. Supplies a dedicated pool of resources for your VMs, while providing you full control of resource efficiency and performance. Resource Pool VPC also gives you value added features such as snapshots, basic monitoring, dedicated physical firewalls and load balancers, cloning, template management, and VM import/export. Private : Provides a discrete pool of compute resources (process, memory and storage) on dedicated hardware where you can create and manage your own virtual servers. The easy-to-use Web console enables access and control without the need for specialized knowledge or assistance. Management APIs are also available. Private can be delivered On-Customer site, or in a Verizon Data Center: Private Off-Premises: Physical segmentation of compute and storage resources within the Verizon to isolate compute and storage to a single customer with the benefit of shared datacenter components, cloud management tools and Verizon management staff. Private On-Premises: Verizon cloud deployed on customer premises that is managed remotely by Verizon. The payment methods available to each deployment mode are shown below: Payment Method Public Config 1: Reserved Performance Config 2: Elastic Resources Config 3: Resource Pool Credit Card Yes No No No Offline Invoice Yes Yes Yes Yes 2.2 Service Tiers In addition to the deployment mode, Spaces within Verizon Compute are also defined by their Service Tier (CST). All VMs in a given CST are managed at the same CST level. Customers can choose between the following Service Tiers (CSTs): Base Service Tier: Low cost, on demand, rapid access, DIY cloud Guided Service Tier: Value added support, tools and cloud gurus at your service 7x24 Standard Service Tier: Depend on Verizon team to manage your infrastructure and maintain high availability and support (available 4th quarter 2014) Premium Service Tier: Highest touch service and support priority with a Premium Account management team (available 4th quarter 2014) The CSTs available to each deployment mode are shown below: Payment Method Public Config 1: Reserved Performance Config 2: Elastic Resources Config 3: Resource Pool Base Yes Yes Yes Yes Guided No Yes Yes Yes Page 3 of 11

Standard (late 2014) Premium (late 2014) No Yes Yes Yes No Yes Yes Yes 2.3 Use Cases and Challenges Verizon addresses several common business challenges that customers face, including: Underutilized resources that drive up costs. Business applications often reside in organizational silos with dedicated servers and networks; each designed to support peak demand but which are largely underutilized most of the time. This unnecessarily drives up the costs of hardware, software, maintenance, operations, electricity and data center space. Rapid provisioning of capacity on demand. Companies are often faced with fluctuating capacity requirements as a result of both planned and unplanned events. Varying capacity requirements drive the need to provision additional resources quickly and on short notice. Below are few examples of situations that require rapid provisioning and additional capacity. Holiday Retail Auctions End of Year/Quarter Events Seasonal Demand Marketing Promotions Migrations Enrollments Sales Campaigns Mergers & Acquisitions Development Projects Maintaining service levels and controlling costs. Companies are under constant pressure to maintain if not improve the availability, security and performance of their applications and IT infrastructure, yet to control costs in the face of global competition and market pressure. High availability, for example, is a common business requirement for many enterprises but typically requires redundant, enterprise-class hardware, which is expensive and difficult to manage. These competing priorities demand a new approach to IT management. Performance. Unpredictable performance hinders the effective use of cloud computing in the enterprise, specifically as it relates to storage and network services. Most cloud providers either do not provide reserved performance or charge a significant premium for high performance. Flexibility. Marginal flexibility of configuration and choices reduces a business ability to balance computing requirements against cost. Most cloud providers box customers into specific choices for VM types, or provide very specific high cost performance configurations. Networking. Enterprises want the cloud to be a native part of their IT environment. Limited networking capabilities keep customers from extending their existing IP space out to the cloud provider, and also prevent the creation of a true multi-tiered network topology. There are some providers that are taking steps toward this but either the capability is limited on the platform or it does not have all the networking capabilities needed to truly extend your data center networking to the cloud (e.g. support for broadcast and multicast in the cloud to support services like DHCP and DNS) Controls. No transparency around security controls and true auditability of the data centers where a customer s workloads reside hinders the ability of enterprises to address security compliance requirements. Accountability. Outages and unpredictable availability cause major losses to businesses. Organizations demand true enterprise class reliability and availability for workloads in the cloud. 3. DETAILED DESCRIPTION 3.1 Management Customers maintain command and control of cloud infrastructure resources visually through the Verizon Console and programmatically via the Verizon Application Programming Interface (API), enabling: On-demand deployment of cloud resources around the globe through a single pane of glass Management of users and role based access controls (limited to VPC configurations Two and Three) Access to reporting and billing information Single point of contact for support services The Verizon API provides a programmatic interface to the Verizon infrastructure that can be used by any Verizon customer. The infrastructure is a RESTful API module that consists of objects encoded in Page 4 of 11

JSON, and operates over HTTPS. This API provides the ability to programmatically configure, monitor and report on all aspects of the cloud subscription. The API is facilitated via a JAVA SDK that will be available for customers to download. Verizon uses a key based authentication mechanism for the APIs. 3.2 Compute resources are configured and provisioned into the customer s Space by the customer cloud administrator (cloud admin) based on the needs of the workload or project. The appropriate Deployment Option is selected for a workload based on foundational criteria including geography, performance, desired features and deployment type to support the IaaS resources that will fulfill the technical requirements specified by the cloud admin. Multiple Spaces can be provisioned to support a variety of business and technical requirements. Depending upon the Deployment Mode, VMs can be configured with: Virtual Processing Units: Select between 1 and 8 Virtual Processing Units (VPUs) per Virtual Machine (VM). Each VPU can be configured up to 2GHz. Memory: Select between 512 MB and 60 GB of memory In the Public, only predefined configurations of VPU and RAM are allowed. In the VPC or Private, individual levels of VPU and RAM are selectable. Disks: up to 1 TB per disk, up to 15 disks per VM Network: up to four NICs per VM Larger configurations may be available upon request. 3.3 Virtual Machine Lifecycle Management VMs can be created and deleted through the Verizon Console user Interface (UI) or API. During VM creation, customers can select a predefined operating system template or specify a custom defined VM. Customer can select sizing information and features related to their VM (VPU, memory, disk storage, Reserved Storage Performance, and Reserved Network Performance). Customers can choose to add a custom defined VM into their personal template list which can be re-used in the future. Once a VM is created customers can perform common VM lifecycle actions including: Create Power On/Off Configure (add/remove disks, change VPU, memory) Reboot Console Access Shutdown Delete Customers will be able to access their VMs directly via a console built into the Verizon Console. Customers will have the ability access a VM directly from their browser without the need for a jump host or other software. Customers can also add disks, virtual NICs to a VM and request and add/remove public IP addresses associated with a VM. 3.4 Storage Block Storage Functions: A RAID scheme provides built-in redundancy for protection from disk failures at no additional cost Disks can be configured as part of a VM or independent of a VM Disks may be attached/detached/re-attached to VM s Page 5 of 11

Disk size can increased or decreased while the disk is un-mounted A single storage volume can be simultaneously mounted by multiple VMs. Data Integrity: Multi-layered disk redundancy is used to help protect customer data from physical drive failures and I/O path failures and is available as a standard feature. Integrated redundancy to reduce block overhead in mirroring. Small blocks are mirrored or parity protected to provide the ability to sustain multiple drive failures without losing data. 3.5 Networking Verizon Compute allows customers to build their network topology in our cloud. On demand networking reduces the need for complex network designs across the global footprint allowing customers to create: A range of network topologies between VMs Multiple Layer 3 network types (bridged, routed, NAT d). Layer 3 networks to connect data centers or connect back to their data centers Optional Network Resources IPv6 Addresses LAN-to-LAN VPN Tunnels (1, 3, 6, or 10 Mbps Tunnels) Additional Public IP Addresses Private networks with customer-provided IP addresses Customer Provided Dedicated Private IP s Software Defined Networking Software Defined Networking (SDN) helps mimic existing data center network topologies in Verizon, manage routing, and extend existing IP space into Verizon. Broadcast and multicast can be configured as needed to support DHCP and DNS. Firewalls Verizon Compute VMs are protected by firewalls that are configured with firewall rules. Customers manage a firewall via the user interface and add basic firewall rules. The following elements define a firewall rule: Protocol - the IP protocol of the packet (e.g., TCP, UDP, ICMP, or any 1-byte value) Source IP host/network Destination IP host/network Destination TCP/UDP port list Action (accept, discard or reject) In the public cloud, only software firewalls are available. In VPC, both software and dedicated hardware firewalls are available depending upon the selected deployment mode (Software firewalls in Configuration 1, Shared or Dedicated Hardware firewalls in Configurations 2 and 3). Load Balancers Load balancer functionality is available via the Verizon Console with support for many common loadbalancing functions including round robin, least connections, least packets per second, and least response time. Customers have the option to collocate dedicated hardware that can be integrated with the cloud. Page 6 of 11

In VPC Configurations Two and Three (Elastic Performance and Resource Pool), a dedicated load balancer is required for traffic over 50Mbps. Public IPs Customers will have the ability to associate a public IP address to a VM that will allow a VM to send and receive traffic from the public Internet. Customers can reserve public IPs so a given virtual machine can use that public IP address until it is explicitly released. Internet and network connectivity All Verizon Compute deployment modes provide the cloud admin with the ability to enable or disable network access for public Internet connectivity. Public network usage pricing is based on bytes transferred out of the environment through a VM s public IP address... In the VPC: VPC Configurations Two and Three (Elastic Performance and Resource Pool) bill network usage based on metered usage billed at the 95th percentile for all inbound and outbound traffic. VPC Configuration One bills network usage based on bytes transferred out of the environment through a VM s public IP address. Connectivity to other critical infrastructure services including private IP termination points, colocation environments, and managed hosting deployments can be supported upon request. Pre-Built Operating System Templates A variety of popular operating systems and applications are supported within the Verizon. Customers have the option of selecting from Verizon provided templates or Vendor templates available in the software marketplace. Templates commonly available include Microsoft, Red Hat, Ubuntu, and CentOS operating systems as well as popular applications such as Microsoft SQL Server. Customer provided templates can be supported upon request. Logging Customers can access environment system logs including firewall logs and activity task logs through a simple request to Verizon. Metrics and Monitoring Metrics for all virtual machines in the platform will be available to track performance of VMs over time. 3.6 Security Enterprises that require security features for access to the user interface and role based access controls can utilize the following features: Multi-factor telephone authentication x.509 certificate authentication Password expiration policies Role Based Access Controls (Elastic Performance and Resource Pool VPCs) API keys Virtual private networks Object Security / Security Groups Page 7 of 11

3.7 Private On-Premise Private cloud deployed within a customer datacenter provides the flexibility of the cloud with the peace of mind that comes with a fully managed service and a single bill. Private On-Premise includes: Hardened and fully automated virtualization environment provided as a service Low initial cost based on a site survey and Deployment and Installation (D&I) cost. Centralized Management from Verizon for Tier 2-3 issues Consistent and Standardized Verizon Customer Support Unified experience through the Verizon Console. Option to contract separately and deploy into Verizon colocation sites around the world as an extension of customer datacenter capacity Verizon teams require physical access to the Private On-Premise deployment to support management functions including capacity expansion, infrastructure audits, and inventory management. Day to day management is provided by Verizon and any real-time hands-on operations are performed by the customer with direction from Verizon. Only the offline invoice payment method is available for Private On-Premise. All CSTs are available for Private On-Premise. Site Requirements Private cloud deployments require high-density high capacity compute, storage, and network infrastructure. Prospective datacenter locations must meet minimum requirements to support the unique environmental specifications for weight, power, cooling and accessibility: Concurrently capable of maintaining datacenter infrastructure availability of 99.982% or better (e.g. TIA 942 Tier III or better) Power and equivalent cooling requirement for up to 9kW per rack with average of 7KW for the environment Cabinet/Footprint positions (final cabinet count will be based on site and solution size) Initial cabinet count based on site and solution size Additional contiguous space to allow for growth Redundant power feeds for all cabinets Minimum of 9ft clearance, for all access ways, doorways, and floor to ceiling in datacenter to position cabinets and cable plant Floor load capacity of 2000lbs per cabinet Fiber trays mounted overhead or on customer provided ladder rack system Secure loading bay and access to storage room/area (occasional storage and on site spares) Dedicated Isolated Space (e.g. a cage within colocation area or room not shared with other customers) 24x7 Physical Security with monitored (CCTV, Logged Access). Access to logs and video records for the infrastructure (or ability to install security system) Available workspace in a separate area with connectivity to patch panels, phone and Internet 24 x 7 access for designated Verizon support staff Fire Suppression System Insurance coverage of the infrastructure Local onsite technical staff to provide day to day hardware support as trained by Verizon Redundant Management Network with minimum of two 10Mbps Public IP diverse feeds with the primary strongly preferred to be sourced from Verizon with alternate Tier 1 network provider(s) A redundant network connectivity to the nearest regional Verizon hub site Page 8 of 11

3.8 Private Off-Premise Private cloud deployed within a Verizon data center provides the flexibility of the cloud with the peace of mind that comes with a fully managed service and a single bill. Private Off -Premise includes: Hardened and fully automated virtualization environment provided as a service Low initial cost based on a Deployment and Installation (D&I) cost. Centralized Management from Verizon for Tier 2-3 issues Consistent and Standardized Verizon Customer Support Unified experience through the Verizon Console. Option to contract separately, deploy into Verizon colocation and Managed Hosting and cross-connect locally with low latency and data charges. Verizon supports all private cloud management and hands-on operations. Only the offline invoice payment method is available for Private Off-Premise. All CSTs are available for Private Off-Premise. 3.9 Service Tiers All Service Tiers will be available across deployment modes. At the time of Verizon launch, only the Base Tier and the Guided Tier will be available. A summary of the features across Service Tiers is shown below: Base Guided Standard (late 2014) Premium (late 2014) Support Services Online Service Dashboards and Reporting Included Included Included Included Community Forums Included Included Included Included Online Chat Included Included Included Included Online Service Request Entry (Web Ticket) Included Included Included Included 24x7 Phone Support None Included Included Included Targeted Support Response Time - Severity 1 <24 hours <1 Hours < 30 min < 15 min Targeted Support Response Time - Severity 2 <24 hours <12 hours <2 Hours <1 Hours Targeted Support Response Time - Severity 3 <48 hours <24 hours <12 Hours <12 Hours Engineering Advisory Resource N/A 2 Hours/Mo 10 hours/mo Included Assigned Client Engineer N/A N/A N/A Included Page 9 of 11

Assigned Client Service Manager N/A N/A Included Included Client Executive - Account Manager N/A N/A Included Included Base Service Tier All Verizon customers have access and control over the Verizon infrastructure via the Console Customers who elect the Base Service Tier have access to a community of information in forums and online chat resources to self-enable the Base Tier customer in building and managing their cloud infrastructure. Infrastructure Management is provided for the availability of the cloud infrastructure and provided tools. Additional features and tools for customers to self-manage their environment can be unlocked at the Base level, and include features and tools such as: snapshots, backups, self-service monitoring and additional performance features. Fees may vary for these additional features. The Base Service Tier is recommended for customer deployments where DIY is the preferred customer approach and customers are well suited to manage all aspects of the deployment and management of their cloud spaces. Guided Service Tier For Verizon customers requiring additional assistance, Verizon provides additional support expertise at the Guided Service Tier beyond what is included in the Base Service Tier. By adding 7x24 phone access to our Global Support Operations Service Center, Guided Service Tier customers gain live access to skilled technical support personal for greater insights and advice in running workloads on the Verizon Infrastructure. In addition to the 7x24 phone access Guided Service Tier customers receive specific response time targets. At the Guided Service Tier customers can also elect to purchase a Verizon Managed Operating System (OS) image from a selection of standard supported operating system templates. Verizon will then extend to Guided Service Tier Customers the support and management commitments described further in the Managed Services Overview section (available late 2014). The Guided Service Tier is recommended for customer deployments where DIY is the preferred customer approach but where customers may require additional performance capabilities or 7x24 advanced service desk phone support. Standard Service Tier (available late 2014) The Standard Service Tier allows Verizon customers seeking to shift the accountability for provisioning and management of their cloud environment to Verizon Service Management experts. Under the Standard Service Tier Verizon will be responsible for the installation and configuration of Spaces as well as the ongoing Monitoring, Event, Incident response, Configuration Management, Critical Patch Management, and Tier 1-3 Service Desk, as well as Problem Management, and Product Lifecycle Management for all supported services. Standard Service Tier customers will also be assigned a Client Executive and Client Service Manager for customer relationship management and proactive service planning and service management oversight. Customers will also have access to a pool of Assigned Client Engineers to assist with more complex service management support and advice. The Standard Service Tier is recommended for customers with production workloads that prefer to have Verizon provide the core critical support and Service Management functions enabling customer technical resources to focus on development, innovation and business success factors. Page 10 of 11

Premium Service Tier (available late 2014) For customers seeking the utmost in high touch service management support from Verizon, the Premium Service Tier provides the highest level of response time targets, named Premium support team and options for customization of services. The Premium support team of named Client Service Manager, Assigned Client Engineer and Client Executive help customers complex and mission critical workload requirements maintain high efficiency and availability of their Space. This high touch service provides the level of support customers with Mission Critical workloads, Private solutions and custom application support require for a most complete and integrated service experience. The Premium Service Tier is recommended for customers with Business Critical and Mission Critical workloads that wish to partner with Verizon not only on critical support and Service Management functions but also collaboratively work as a team to enhance deployments and application functionality in the Verizon. 3.10 Service Level Agreements Verizon Compute offers the following SLAs: Service Availability: Compute Services will be available for at least 99.95% of the time in any given calendar month in each Verizon Data Center. SLA terms and conditions apply. See your Verizon account manager for details. 4. AVAILABILITY Verizon is available in the following countries: United States (Public, VPC and Private) Brazil (Public, VPC and Private) EMEA (VPC) 5. PRICING Pricing is based on the deployment mode. Please contact your Solutions Executive for the most up-to-date pricing and options. Pricing for Private deployments are based on a usage-based model with a minimum monthly commitment. Private usage rates are the same as those for Public, which allows you to take advantage of the control, isolation and security of Private, at the same low rate as our multi-tenant Public. Regardless of where your workload resides (Private,, or Public ) you pay the same, low hourly rates. cloud.verizon.com 2014 Verizon. All Rights Reserved. 08/14 The Verizon name and logo and all other names, logos, and slogans identifying Verizon s products and services are trademarks and service marks or registered trademarks and service marks of Verizon Trademark Services LLC or its affiliates in the United States and/or other countries. Microsoft and SQL Server are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries. All other trademarks and service marks are the property of their respective owners. Page 11 of 11