1. HOSTERS VS MSP’S: What Your Company Can Do To Win Ridley Ruth, COO of Dropsuite

2. THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM No Pitch Presentation Policy Please help us produce more relevant content in the future by rating this session using our event app! Each presenter signs a speaker agreement certifying that their presentation will be educational and not a sales pitch. Attendees have a right to report speakers not adhering to the policy.

3. THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Intro Hosters are now offering MSP like services like professional services and MSP’s are offering hosting services such as web presence, hosting and other cloud offerings via cloud provisioning platforms like Ingram Micro’s cloud marketplace. This session will explore the traditional core areas of expertise between hosters and MSP’s and what both need to do in order to better compete to provide and win the future cloud consumption business of the SME customer.

4. THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Web hosting has traditionally offered web hosting, domains, cloud-based server offerings, email and web presence. MSP’s have traditionally supplied the on premise services needed by SME’s and the professional services needed to support them. As overall business IT consumption moves more SaaS based and Cloud based solutions the line between the two becomes more blurred. Reseller Partners: Hosters &MSPs

5. THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Web hosting meant buyng & maintaining your own servers Or renting server space from a server farm Was costly & prohibitive First hosters appear Geocities, Angelfire, Tripod Megabytes of storage available Advertising biz model More affordable Modern hosters & domain registrars arrive GoDaddy, 1&1, The Endurance Group, Bluehost More services offered Business model evolves to selling small business services Brief History of Web Hosting 1990’sMid 90’sLate 90’s - Today

6. THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM 1.Cloud adoption 2.Demand for more bandwidth & storage 3.Demand for complete & robust product offerings 4.Rapid commoditization What’s Changed For Hosters

7. THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM 1.Decrease in margins as price competition increases 2.Increase pressure to maximize ARPU as profit 3.Revenue shift away from increasing storage or bandwidth to upgrading into VPS or dedicated environments 4.Need to diversify product offerings and solutions to attract new customers 24% of Hosters have adopted a partial MSP type model in the last 12-18 months (The Channel Company / IPED) Impact of the Changes

8. THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM What’s an MSP? A managed service provider (MSP) provides IT services such as server, network, and specialized applications to end users and organizations. These services are hosted and managed by the service provider. DEFINITION

9. THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Fortune 500 build IT networks Businesses move online MSP markets open Break/fix it model - If something broke, they would call someone in to fix it for a fee Preventive maintenance & monitoring become the norm MSP’s now offer a wide range of services Data storage, software, network monitoring and management Everything moving to the cloud Brief History of MSP’s 1990’s2000’s Today

10. THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM 1.Cloud adoption 2.Shift from MSP owned data centers to on premise 3.Demand for complete & robust product offerings 4.Increase focus on recurring revenue What’s Changed For MSP’s

11. THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Cloud Services = 9% On Prem HW = 26% On Prem SW = 19% Managed Services = 18% Project based Services 28% All services revenue = 55% The Channel Company / IPED MSP Revenue Mix 2015 REVENUE MIX - ALL

12. THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM 1.Decrease in margins as price competition increases 2.No longer are MSPs looking to own or build their own data centers instead focusing towards on premise solutions 3.Diversified product offerings and solutions to attract new customers. (47% if MSP sited attracting new customers as the primary focus for 2016 recurring revenue growth (The Channel Company / IPED)) 4.Increase in reliance on regional and Global SP Impact of Changes

13. THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM MSPs Cloud Solutions Strategy Source The Channel Company / IPED Cloud Agent/Reseller Cloud Consultant Cloud Service Provider Now 69% of solution providers clearly identify themselves With one or more Cloud Solution Provider business models Influence customers to adopt Cloud solutions and sell (only) Third-party cloud offerings Design and architect cloud solution for business outcomes Build and manage infrastructure for providing hybrid and public cloud environments Cloud Application Provider Cloud Builder Cloud Broker Build SaaS application for public, private or hybrid cloud solutions Integrate and deploy Technology to build private or hybrid cloud data centers Aggregate various cloud Solution with integrated Management services 201420152016 32%58% 30%33% 22%19% 15%23% 2014 14%27% 9%12%

14. THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Hosters are now offering MSP like services such as professional services, and MSP’s are offering hosting services such as hosting and other cloud offerings via cloud provisioning platforms. Ingram Micro’s cloud marketplace is one of the largest examples of an MSP moving to the cloud. Hosters Evolution

15. THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM 1.Increased choice & lower costs due to competition 2.Increased availability of complete solutions 3.Less time spent sourcing vendors 4.Faster & more plentiful business opportunities Benefits to SMEs

16. THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM With the blurring of lines between and MSP and a traditional hoster where is the opportunity for Hosters? Enterprise still is a sweet spot for your traditional MSP. These clients have long lead times and are high touch which is outside the core competencies of traditional hosters. SMEs on the other hand are lower touch and looking for robust services offerings that hosters are well positioned to supply, especially third party cloud base services that are in high demand. Cloud offerings have further blurred that line and created an opportunity for Hosters to compete head to head with MSPs and vice versa Opportunity for Hosters

17. THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM According to PCmag.com, the term "cloud computing" is everywhere. In the simplest terms, cloud computing means storing and accessing data and programs over the Internet instead of your computer's hard drive. The cloud is just a metaphor for the Internet. THE CLOUD

18. THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM A cloud services reseller is an intermediary who purchases cloud computing services with the intention of reselling them rather than using them Cloud reselling is a fantastic business opportunity. CLOUD OPPORTUNITY

19. THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM 1.Offer one stop solutions 2.Offer sophisticated pricing structures and cart experiences for upselling 3.New integrated marketing techniques 4.Leverage cloud offerings to differentiate and strengthen solution based SME offerings How MSP’s & Hosters Can Win

20. THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM 1.Increased competition in both the hosting and MSP space have created pricing pressure 2.Consumers are looking for full solution based products both from their hosting or MSP driving both to adopt full product suites 3.Bundled and solution selling allows Hosters and MSPs to maximize revenue and margin while providing the services that attract new consumers CONCLUSION