1. The transformation of the MSP market Alastair Edwards, Principal Analyst 13 June 2012 Insight. Innovation. Impact. Presentation download www.canalys.com/download/ibm Username: msp Password: london Available until: 30 June 2012 Presentation download www.canalys.com/download/ibm Username: msp Password: london Available until: 30 June 2012

2. Insight. Innovation. Impact. Pads Smart phones Virtual desktop Wireless networks ‘Small’ apps Device management Security Pads Smart phones Virtual desktop Wireless networks ‘Small’ apps Device management Security Public cloud Private cloud Virtualization Big data and analytics Infrastructure refresh Virtual desktop Security and network Public cloud Private cloud Virtualization Big data and analytics Infrastructure refresh Virtual desktop Security and network BYOD App stores Social media Video/UC Multiple platforms New vendors Security BYOD App stores Social media Video/UC Multiple platforms New vendors Security Three mega-trends are driving investment Enterprise mobility Data center transformation Consumerization Key channel challenges Economic uncertainty/ budgets Changing IT consumption models Working capital/ cash flow Shortage of skills Increased competition IT growth opportunities in 2012

3. Insight. Innovation. Impact. The biggest industry inflexion point ever seen Source: Canalys estimates, Netpad and Smart Phone Analysis, March 2012 PCs worldwide 2012: 461 million units 11.3% growth PCs worldwide 2012: 461 million units 11.3% growth WW intelligent devices 2012: 1.1 billion units 23% growth WW intelligent devices 2012: 1.1 billion units 23% growth

4. Insight. Innovation. Impact. Traditional business models are changing Managed/ Hosted/ IT-as-a- Service Managed/ Hosted/ IT-as-a- Service On-premise Outsourced Drivers of customer change Virtualization CapEx to OpEx Migrate to hybrid IT New applications Cost control Mobility IT lacks expertise Drivers of customer change Virtualization CapEx to OpEx Migrate to hybrid IT New applications Cost control Mobility IT lacks expertise Drivers of customer change Flexibility Control Efficiency gains Budget constraints CIO under pressure New applications Mobility Drivers of customer change Flexibility Control Efficiency gains Budget constraints CIO under pressure New applications Mobility ISV Service provider Reseller Systems integrator

5. Insight. Innovation. Impact. Managed services to grow steadily $ (trillions) Worldwide IT infrastructure and PC hardware, software and managed services expenditure (FC) Source: Canalys estimates, June 2012 13.7% 13.8% 14.0% 15.0% 14.5% Managed services as % of total spend

6. Insight. Innovation. Impact. Managed services now part of channel arsenal Source: Candefero quick poll, May 2012 (75 EMEA channel respondents) What percentage of your revenue in 2012 will come from managed services?

7. Insight. Innovation. Impact. Product and services channels are converging End-user Hosting/cloud providers Amazon, NetSuite, Rackspace, United Internet, Pulsant, Savvis Vendors HP, IBM, Dell, Fujitsu, Cisco, Salesforce.com, Microsoft Service providers BT, NTT, Orange Business Services, Telefonica, Verizon, Colt, Vodafone Systems integrators CSC, Accenture, Atos Origin, Capgemini, Logica Corporate resellers Computacenter, SCC Kelway, Softcat, Insight, Logicalis, Imtech ICT

8. Insight. Innovation. Impact. Cloud will play role in specific areas Private $67.5 billion Private $67.5 billion Public $37.4 billion Public $37.4 billion Channel cloud opportunity $3.9 billion $1.0 billion $2.7 billion $31.5 billion $7.2 billion $3.4 billion $7.0 billion $68.5 billion Refer/resell public cloud Own public cloud services Refer private cloud Build private cloud infrastructure Global channel cloud opportunity 2012: $39.5 billion Channel opportunity 2016: $86.1 billion Enterprise cloud 2012: $104.8 billion Source: Canalys estimates, June 2012 CapEx to OpEx New and innovative Already outsourced Customized, hybrid solution

9. Insight. Innovation. Impact. AWS leads in IaaS but pricing under pressure Public cloud revenue ($m) AWS revenue growth (Y-o-Y) AWS Marketplace launched South America region online GovCloud region online Asia Pacific Japan region online Asia Pacific Singapore region online 201020112012 Source: Financial reports and Canalys estimates, April 2012 AWS expansion AWS price declines

10. Insight. Innovation. Impact. SaaS will remain biggest cloud opportunity Service providers Hosters Channel Vendors B2B worldwide public cloud revenue forecasts B2B worldwide public cloud revenue forecasts Global revenue ($ billion) Source: Canalys estimates, April 2012

11. Insight. Innovation. Impact. Resellers Legacy IT IT-as-a-service will drive new ecosystems Private cloud Service providers Public cloud Sales proposition Value------------------------------------Volume Sales proposition Value------------------------------------Volume Business processes Reduced cost End-customer Systems integrators SaaS PaaS IaaS

12. Insight. Innovation. Impact. Power moves to the user, IT must respond Private cloud SaaS Public cloud Large enterprise: CIO/IT dept becomes the ‘service broker’ for the user Large enterprise: CIO/IT dept becomes the ‘service broker’ for the user Sales and marketing HR Finance Procurement User Department On premise On premise Mobility Consumerization

13. Insight. Innovation. Impact. Mid-market needs help to manage hybrid IT Large enterprise: CIO/IT dept becomes the ‘service broker’ for the user Large enterprise: CIO/IT dept becomes the ‘service broker’ for the user Sales and marketing HR Finance Procurement User Department Mid-market/SMB The channel becomes the ‘service aggregator’ Mid-market/SMB The channel becomes the ‘service aggregator’ Private cloud SaaS Public cloud On premise On premise Mobility Consumerization

14. New MSPs/ISVs ICT service providers New MSPs/ISVs ICT service providers In summary Established IT providers Data center Enterprise mobility Consumerization Data center Enterprise mobility Consumerization Systems integrators Specialist resellers Distributors Effective partnerships Develop new skills The power of marketing Hybrid IT environment Apps Corporate resellers Service providers

15. Insight. Innovation. Impact. You can join Candefero now!

16. The transformation of the MSP market Alastair Edwards, Principal Analyst 13 June 2012 Insight. Innovation. Impact. Presentation download www.canalys.com/download/ibm Username: msp Password: london Available until: 30 June 2012 Presentation download www.canalys.com/download/ibm Username: msp Password: london Available until: 30 June 2012