Why Successful Cloud Strategies Start with a Solid Partner Strategy Russell Griffin Director of Channel Programs Hostway Corporation

HOSTWAY PROPRIETARY AND CONFIDENTIAL Three Key Messages

HOSTWAY PROPRIETARY AND CONFIDENTIAL About Hostway World’s Largest Cloud Provider You’ve Never Heard Of!

HOSTWAY PROPRIETARY AND CONFIDENTIAL Every Business/Partner is an Enterprise 2 Million Customers 600,000 Direct Customers 1.4M Customers from Partners Enterprise-Class Technologies at SMB Price Points

HOSTWAY PROPRIETARY AND CONFIDENTIAL Why a Cloud Strategy?!? Your Customers Want Cloud Source: Edge Strategy Survey by Microsoft

HOSTWAY PROPRIETARY AND CONFIDENTIAL Concerns are Decreasing The Opportunity to Build/Execute Strategy Is NOW We will NEVER be the Single Source for IT – Many of Our Partners Are. We Rely Heavily Upon Them!

HOSTWAY PROPRIETARY AND CONFIDENTIAL Cloud Considerations Many More, But Four to Start You See the Data, Traditional Delivery of IT Changing Are You Going to Sell/Resell Cloud Services Servers (IaaS), Platform (DaaS), Software (SharePoint, Exchange – SaaS), Consulting (Migrations), Planning (BCDR), etc Which Services Are You Going to Offer CAPEX, Speed to Market, Core Competencies, Virtualization Expertise, Support, Billing, Ongoing Maintenance, Datacenter Standards/Controls, etc Build vs. Buy – Must Evaluate Even if Building; You’ll Need a Solid Partner Strategy Who Will You Trust

HOSTWAY PROPRIETARY AND CONFIDENTIAL An Example, Hostway Obviously, We Chose to Build 600,000+ Clients – Partner Selection Critical for Client Experience A Few of Hostway’s Partners Hypervisor – Microsoft Hardware - Dell Processor – Intel Networking – f5 Storage - NetApp Security – Cisco, Brocade, StillSecure Additional Partners to Consider… CAPEX Consultants Security/risk Analysts Migration Services ISV to SaaS Packaging

HOSTWAY PROPRIETARY AND CONFIDENTIAL Multiple Cloud Offerings Brought to Market Through Partner Collaboration

HOSTWAY PROPRIETARY AND CONFIDENTIAL What to Look for in Cloud Partners Not Specific to IaaS, But Applicable No Different than Any Other Partner Complementary Skills/Offerings Even Cloud Startups Develop a Reputation Online, Quickly Also Ask for a List of Other Successful Partners A Solid Reputation One Partner Should Introduce you to Other Partners and Potential Prospects Network of Contacts to Leverage Some Require Joint Ownership – Know this Upfront Agreement on Who Owns the Client Cloud is a HUGE, Confusing Marketplace – Agree on What Your Business is Capable/Willing to Do and When Agreement on the Business Opportunity

HOSTWAY PROPRIETARY AND CONFIDENTIAL Partner Profile Cynch Migration and Hostway Alignment About Cynch: Full-Service Web Design and IT Services Strong Emphasis on DBs and Migration Partner Experience w/Multiple Hosts Primary Reason for Choosing Hostway: Ability to Grow Two Way Relationship Hostway Services Offered: FlexCloud Server, Hosted Exchange Results: Hostway Referred Over 20 Clients to Cynch in 6 Mos All New Cynch Clients Use Hostway Migration Efforts Underway for Existing Clients

HOSTWAY PROPRIETARY AND CONFIDENTIAL Types of Channel Partners Best Place to Start – A Channel Partner Common Types of Channel Programs Resellers – Discounts Referral Partners – Commissions Private/White Label Resellers Affiliate Programs – Website Referral Commissions (Banner Ads) 3 rd party Agents – Person On Site in Another Country, Access to System Reseller vs. Referral Billing 1 st Level Support Commission vs. Discount

HOSTWAY PROPRIETARY AND CONFIDENTIAL Hostway Advantage – Instant Revenue Reseller Program Industry Only

HOSTWAY PROPRIETARY AND CONFIDENTIAL Hostway Advantage – Experience Assigned Channel Manager All With Channel Experience Fully-Integrated Partner Portal Lead & Sales Tracking, Support, Payments Education/Thought Leadership for Customers Gartner Video, How to Choose a Provider, etc Onsite Sales Training from a Channel Manager Sales Consultation and Custom Solution Design An API Surface Extending Private Label Services to Partners of All Sizes

HOSTWAY PROPRIETARY AND CONFIDENTIAL Hostway Advantage – Bus Dev Marketing & Business Development Support Referrals for Business Opportunities/Leads Partner Locator Launched Creating Partner Lead Community Co-Marketing Planning and Strategy MDF Funding Available Customized Co-branded Materials Road Shows/Event Joint Sponsorships Submit Requests through Partner Portal Microsites on Your Domain Webinars – We’ll Speak or Give You What You Need Newsletters Partner Promotions Featured Partners on Partner/Corporate Website Also Featured in Newsletters to Over 500K

HOSTWAY PROPRIETARY AND CONFIDENTIAL Partner Profile ShopVisible Resells FlexCloud; Instant Scale Provided About ShopVisible: On Demand SaaS eCommerce Platform Clients Include: Tempur-Pedic, Loehmann’s Primary Reason for Choosing Hostway: Instant Scale for New Customers 100% Uptime and Service Hostway Services Offered: Resell on FlexCloud Server Platform Results: Vapor Beauty – Today Show – 20 Orders to 4,000 NO Downtime Seamless Growth When New Clients Acquired Significant Joint Marketing & Press

HOSTWAY PROPRIETARY AND CONFIDENTIAL Proliferation of the aaS Where Do I Start With Designing Offerings How to Integrate? Platform Software Database Security Everything as a Service Infrastructure

HOSTWAY PROPRIETARY AND CONFIDENTIAL You Have to Make Some Bets What Types of Apps Will Your Customers Deploy APPLICATIONEXAMPLES COMFORT W/ CLOUD EASE OF SELLING EASE OF RESELLING SALES EFFORT REVENUE OPP Exchange 2010 HighExtreme ModerateMedium Collaboration SharePoint MediumModerateExtremeHigh Business Growth Marketing, CRM HighExtremeModerateLow Web eCommerce, Portals, etc HighExtreme ModerateMedium DB ERP LowDifficultExtremeHigh Legacy/Mission Critical Billing Systems LowDifficultExtremeHigh

HOSTWAY PROPRIETARY AND CONFIDENTIAL Hostway Solution Portfolio A Provider with a Broad Cloud Portfolio

HOSTWAY PROPRIETARY AND CONFIDENTIAL Types of Hostway Partners Our Partners Are As Diverse As Our Customers

HOSTWAY PROPRIETARY AND CONFIDENTIAL Cloud Growth is Significant (Why You’re Here) Build On A Foundation of Solid Partners Offer Solutions Your Customers Expect from You Jointly Go-to-Market with a Channel Partner Hostway is the Obvious Choice for Cloud Growth What We Hope You Takeaway

HOSTWAY PROPRIETARY AND CONFIDENTIAL Free Cloud Strategy Consultation (not a salesperson!) Free Xbox Kinect Register – Refer/Resell First Customer In 90 Days Partner Portal to Compare and Learn More Special Offers