Survey Results from HostingCon Next Gen Partner Ecosystems Research Conducted & Presented by Theresa Caragol

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THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Partnering Highlights from 2016 Hosting Con Survey  61% outsource data centers and partner with colocation providers  72% are likely to raise capital in the next year for their companies.  50% of hosting companies are planning to deliver (resell and manage) massive clouds to their clients.  75%+ of those surveyed were moderately to extremely interested in reselling and managing other SaaS platforms in industry.  90% of those surveyed do at least some of their business indirectly; and 50% do over 1/3 - ½ their business indirectly.  25% plus are doing business with these types partners: Referral Sales Agents Solution Provider Resale Partners National Direct Resellers – CDW/Insight Service Providers System Integrators Two Tier DistributorDevelopers  Other types mentioned include: SaaS provider Freelancer Security / Audit Partners Broker Marketing Agency

THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Top 10 Asks from Channel To Vendors from Hosting Con Survey 1.Defined & Aligned priorities for the partnership 2.Culture and continued cadence for the partnership success 3.Locating, recruiting the right partners & ideal success profiles 4.Balancing competitive partner relationships & vendors with direct sales 5.Sustained success in the cloud. 6.Strong Consistent ongoing communication 7.Managing the costs of a partnership & ROI 8.Time and Trust 9.Managing and supporting the partners’ solutions. 10.Effective lead and demand generation 1.Defined & Aligned priorities for the partnership 2.Culture and continued cadence for the partnership success 3.Locating, recruiting the right partners & ideal success profiles 4.Balancing competitive partner relationships & vendors with direct sales 5.Sustained success in the cloud. 6.Strong Consistent ongoing communication 7.Managing the costs of a partnership & ROI 8.Time and Trust 9.Managing and supporting the partners’ solutions. 10.Effective lead and demand generation

THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM 5 Trends in Partnering Partnering is happening in virtually every business Strategic Alliance and Channel models are blending Partners partnering together is becoming more and more common The “Vendor” Landscape has changed dramatically Effective Partnering is a culture and becomes a DNA when done successfully

THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM 6 Partner Types

THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM 5 Trends in Partnering Partnering is happening in virtually every business Strategic Alliance and Channel models are blending Partners partnering together is becoming more and more common The “Vendor” Landscape has changed dramatically Effective Partnering is a culture and becomes a DNA when done successfully

THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Managing your Vendor Mix Guidelines & Best Practices 50-60% of vendor relationships don’t get off the ground 50-60% of vendor relationships don’t get off the ground Workshops Verticals Solutions Get the Business Strategy Right Hardware and Software Vendors Service Provider Vendors Contracting Services Companies Two Tier Distributors Other Managed and Cloud Business Service Companies Build a Building a Rich and Trusted Ecosystem Would this new vendor put us in the position to have to balance a potentially competitive relationship? Will we need to consider competitive aspects, either with another partner or vendor in our ecosystem, or with a vendor’s direct sales organization? When these competitive situations arise, how will we manage ongoing successful sales engagements? Evaluate the entire partnering experience: What is the commitment the vendor has to the channel?

THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Guidelines & Best Practices (cont.) Consider the Vendor’s go to market Strategy Vendor’s Partner Experience Partner Program Service & Support Model Quality of Service & Support Compatibility with our Service Offerings Marketing / Demand Generation Support Ensure the vendor we will work with also fits well into our broad partner ecosystem Consider the Ecosystem options: Partners Partnering Together

THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Strategic Channel Alliance Continuum of Partnership Types Expand Executive Alignment & Partner Sponsors Alignment on New Market Opportunities Integrated Business Processes Vertical Market Approach Joint Marketing, cobranding, and demand generation Clear accountability & Ownership for Alliance success Culture of Partnering Embedded into DNA Continuing Education on Alliance Aligned Compensation Programs Strong Communications

THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Other Interesting Highlights Developers & Agencies Increasing in Relevance as “Specialized Partner Types Focus on merging Industries and how they impact us: Mobile Data Centers, Robotics, Video Analytics Developers & Agencies Increasing in Relevance as “Specialized Partner Types Focus on merging Industries and how they impact us: Mobile Data Centers, Robotics, Video Analytics Consolidation Continues – Hosting Companies, Distribution, Solution Providers Partnerships continue Verticals, Solutions Consolidation Continues – Hosting Companies, Distribution, Solution Providers Partnerships continue Verticals, Solutions

THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Best Practices for Long Term Partnering Success Defined - Objective Unified Goals Clear Ownership of Stake Holders and Responsible Parties Establish Timeframes for Success Clear Milestones of Success “Mini Goals” Review Cadence: Timeframes & QBRs

THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM