Cloud Computing Opportunity for Service Providers Syed Hashmi Founder & CEO Hosting Controller Inc.

Agenda 1.The Business Case for Service Providers 2.The Opportunity 3.Challenges in Offering Cloud Computing 4.The Hosting Controller Solution 5.Conclusion

1. The Business Case Gartner Says Worldwide Cloud Computing Market has surpassed $68 Billion in Forrestor says Cloud Spending would hit $160B by 2020 Independent studies suggest it could hit $240B by 2020

SMB Cloud Market Size

Communications Service Providers

Leverage the Network Any CSPs biggest asset is its access network. Cloud Computing offers itself as the candidate for the next wave of value added services to generate additional revenues over existing network.

Increasing Loyalty and Reducing Churn Opportunity to earn more from existing customers.

Differentiation of Services cloud computing provides a way for service providers to differentiate their services from the competition.

Peer Pressure With more and more service providers offering some type of cloud computing service, the competition is increasing.

Market Leadership By entering into the market first, you become the de-facto market leader of highly profitable business domain of messaging, collaboration and communication. From customer prospective; as this will be additional offerings from existing vendor, many of prospects will automatically opt for such services.

Cloud Computing offers an added range of high value services over the same access infrastructure; offering better avenues of monetization of same network. Monetization of Access Network

Offering Cloud Computing services is a low capex venture. The nature of business is basically pay as you grow with little CAPEX and all OPEX is directly related to revenue. Low CAPEX

Service Providers are technology driven industries and already have expertise in managing and monitoring their core networks. Adding cloud computing to their offerings does not add any significant requirements in terms of expertise or equipment. Extension of Technology

Higher Margins Providing managed services, Monitoring of services, Maintenance and Upgrades of services different levels of support and so on. Cloud Computing comes with multiple avenues with higher margins:

1.Infrastructure and Virtualization 2.Enterprise Application Platforms –Unified Messaging –Unified Collaboration –Unified Communication –CRM and Others 3.Software as a Service 2. The Opportunity

Gartner estimates that the IaaS market will grow from $3.7 billion in 2010 to $10.5 billion in 2014 Infrastructure and Virtualization Offering computing Infrastructure as a Service has become a big industry of its own and offers a lucrative addition to any Service Providers existing portfolio of services.

Enterprise Applications Enterprise Applications market size including Unified Messaging, Unified Collaboration and Unified Communications is expected to be $4.3 billion by 2013

Software as a Service Software as a Service (SaaS) Providers go a step further on the value chain and also provide the software that runs on the infrastructure. A study by Renub Research shows estimated value of Worldwide Cloud based SaaS market is expected to grow to $25 Billion by 2013.

3. Challenges in offering Cloud Computing Challenges in adding cloud computing to the existing service offerings are an extension to the ones faced by CSPs when data got added to telephony and when voice got added to ISP services as part of converged services.

More Complex Products Service Providers are going beyond their basic Internet Access or Telco Services. A fusion of service providers and cloud computing models is created in the world of multiple services.

Unified Provisioning Enterprises have seen their communications technologies evolving towards greater unification

Subscriptions on Cloud Computing side need to be integrated with existing or other back end billing systems and charged to customers unified billing accounts Unified Billing and Payments

Existing Customer Service Representative Portals need to be enhanced with all the new requirements of cloud computing services. Integration of Operational Requirements in CSR Portal

Self-Serve is a basic requirement of any cloud based service. With multi-tenant servers, self-serve needs to enforce security and make sure that one tenant cannot read/edit/delete data of another tenant on the same shared server Unified Self-Care Portal

Different cloud computing applications and servers offer multiple features and the service provider would like to offer plans and packages allowing monetization of such services down to a single feature available. Monetization Options

A Service Provider needs to have automatic interfaces and provisioning APIs to be able to easily integrate them into their existing billing systems to able to suspend or resume services based on available credit. Automatic Service Management

Many applications offered in cloud computing specially the Enterprise Applications were not designed to run as Multi-Tenant applications. An extra layer of provisioning is required to enforce multi-tenancy options. Multi-Tenancy Layers and Self-Service Portal

Operational reporting is required for monitoring, resource availability, resource utilization and others. Operational Reporting

An important job of the plan and quota manager is to allow the Service Provider to monetize different features/services offered Provisioning through Self- Serve needs to be done within the bounds defined by a Plan & Quota manager Plan Manager and Quota Enforcement

Many services need to be metered for their actual usage done by Customers and metering agents are needed to monitor and report that usage. Service Metering

A reporting interface is required between the cloud computing layer and the back end billing systems to allow generation of single bill. Single Bill to Customer

Separate layer to Support B2B (Reseller) and B2C (Customer) channels. Service Providers may choose to provision umbrella quotas for resellers and they can then provision through their own self- serve for individual customers. Support for Value Added Resellers

Service Providers need a layer of provisioning that abstracts out the underlying infrastructure and applications and offer a unified provisioning interface for all applications on all operating systems whether Windows or Linux. Abstracted Out Provisioning Layer

A comprehensive solution for Service Providers that intend to offer cloud computing services. 4. The Hosting Controller Solution

Hosting Controller Deployment

Offers automation of all infrastructure and virtualization services for both Windows and Linux. Supports automatic provisioning of virtual machines on vmware, Citrix Xen and Microsoft Hyper-V HC Virtualization Solution

HC Enterprise Applications One of the few solutions validated by Microsoft that enables Service Providers to offer Microsoft Exchange and related Products as a Hosted Service.

Provides automated hosting of a large number of common SaaS applications including web server, FTP Server, Server, DNS Server and web applications on cloud. Windows: Linux: HC SaaS Module

HC offers a set of three web based portals for self-serve for both Windows and Linux: –Customers –Value Added Resellers –Administrator Master Console

A large list of web service based APIs allow integration of all the supported use cases with front and back end services and orchestration engines. APIs for Integration

When an order comes from the Order Management system, resources need to be provisioned on servers within the multi- tenant sandbox created for the user Automatic Provisioning for Windows and Linux

Hosting Controller enforces multi-tenancy layer on top of all Enterprise Applications and SaaS applications that it supports. Multi-Tenancy

Management APIs is to suspend and resume services that provide easy integration with back end billing systems. APIs to Integrate in Existing Billing System

Allows creative productization and monetization of newer services which can be easily integrated and billed to customer based on consumed resources. Flexible Service Plan Manager

Managed through HC plan manager that restricts all customers to only provision resources through self- serve within the purchased quotas. Quota Enforcement

Hosting Controller providers full support for Service Management through APIs. This includes basic use cases of Suspend Service and Resume Service that can be integrated behind any billing system. Service Management

Master Console offers multiple use cases for Administrators to manage their infrastructure and resources. Operation and Maintenance Support using Administrative GUIs

HC offers detailed operational reports that can be integrated with any external BI system. Flexible Report Generation

Hosting Controller allows Service Providers to define each and every single feature available in the underlying service as a chargeable entity and enables them to monetize on different features of the cloud based services. Granular Monetization

It totally hides the topology of the underlying infrastructure from the Orchestration layer if needed. Topology Hiding of Infrastructure

Hosting controller provides detailed reports about actual resources consumed for licensing and compliance purposes. License Reporting

Whether provisioned through Administration Portals or Customer Self- Serve Portals, HC maintains detailed lists of all the provisioned resources and their owners. Resource Visibility It keeps track of all the Provisioned, Allocated and Consumed Resources.

Hosting Controller automatically distributes provisioning load onto multiple servers as per policy. Load Distribution

Hosting Controller is one of few Microsoft validated control panel for Exchange and also recognized ISV and Software Development Partner. Microsoft Validated Control Panel

HC addresses Challenges based on Technology Operations Integration of Existing Services Service Assurance Billing and Revenue Assurances Reporting, Audit and Compliances. 5. Conclusion Availability of Flexible API that Service Providers can use to easily integrate existing OSS / BSS Systems.

Customers: Hosts

Customers: Service Providers 100 +

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