2. Red Bull Racing

3. Introduction - Matthew Parker, Sales Director ‘Stormy Weather’ Perils of the Cloud – Paul Court, Technical Director Simplifying Application Management – Ralph Lorkins, Solutions Architect Manager Break The changing face of UK connectivity – Martin Saunders, Marketing Director Partnering with Claranet – Darren Metherell - Corporate Sales Manager Panel Q&A Lunch Red Bull Presentation – Steve Nevey Red Bull F1 factory tour Summary & Closing statement - Matthew Parker, Sales Director Agenda

4. Attendees Samir to add list of attendees

5. Claranet’s market view We believe: Companies will consume more technology over the next 10 years Companies’ ability to manage technology internally will decrease Providing a wide range of managed services as a single service is key We make our profits by providing a high quality service that improves efficiency, and enables our customers to focus on their core capabilities.

6. What the Analyst’s say…. ‘These are times of transition. The economy is transitioning from recession to recovery. Enterprises are transitioning their strategies from cost-cutting efficiency to value-creating productivity. Technologies are transitioning from ‘heavy’ owner-operated solutions to ‘lighter-weight’ services. In turn, CIO’s are transitioning IT beyond merely managing resources to taking responsibility for managing results’ Gartner 2010 CIO Report

7. The opportunity Mid-market companies need us (or others like us) to help them Save money Grow their business – quality and flexibility of MSP services as contributor Change the game with more relevant SLAs – focus on application availability (connectivity and hosting) Build a profitable business based on providing consistent high quality. Managed Service provider delivering integrated application and network services under a single, business relevant SLA.

8. Who are we? A technically astute partner offering Networks, Hosting and Managed Applications Services An experienced company with 36,000 business customers With an International footprint across 7 countries Our Claranet UK revenue in 2009 was £39 million A Managed Services Provider

9. International Footprint 7 countries 14 Offices 520 employees

10. Our Managed Services Stack GLOBAL SERVER LOAD BALANCER CO-LOCATION SHARED HOSTING DISASTER RECOVERY DATA STORAGE MONITORING SOFTWARE ENGINE DATABASE ADMINISTRATION WEB SERVER MANAGED EMAIL ETHERNET DSL MPLS NETWORK MONITORING NETWORKS HOSTING APPLICATIONS MANAGED SERVICES

11. Solution Management

12. Our Customers

13. Our Vendor Partners

14. Stormy Weather The perils of the ‘cloud’ Paul Court - Technical Operations Director - Claranet UK

15. A technically astute partner offering Networks, Hosting, V Cloud and Managed Applications Services An experienced company with 36,000 business customers 550 employees spread across 7 countries A Managed Services Provider Who are we?

16. Eyjafjallajokull – Big Clouds

17. The perils of the ‘cloud’ ? Unlike children (or Volcano's), it is generally considered a good thing when technology is ‘disruptive’ because, in theory, it has improved a product or service in ways the market did not expect.

18. Hosting, Challenges for a new era Stormy Weather

19. “Cloud Will save you Money” “Virtualise your estate and Save!” “Cloud is the future of Services Computing” “Unrestricted Cloud Computing – All you Can Eat” “The future is Virtualisation!!!” The Hype

20. Back to Basics, What’s Cloud ?? Stormy Weather

21. The Standard Server Model

22. Virtualising a Server Optimise Consolidate Traditional server can only support a single Operating System and Application A server running a Hypervisor can support multiple Operating Systems, each supporting a different application

23. Fault Tolerance The Virtualised Server Model

24. Fault Tolerance

25. The Cloud Services Model

26. Why Cloud ? Agile in deployment. Flexible in resource allocation – i.e. rapid resource increases/decreases – increased during sale period and decreased after. Provides high availability. Does not inhibit growth. All for less money, on a pay as you grow basis – i.e. start small and grow when business does.

27. Why Cloud ? To use another analogy, if you as an individual pick up a telephone, you get the same dial tone and ability to make calls as Barclays or Sainsbury. You just pay less because you use it less. Cloud should enable you to affordably have access to, and use of, the same world-class information technology as any FTSE / Fortune company.

28. Some of the Types of Cloud Stormy Weather

29. Private cloud vs. Public cloud Public Cloud (Contended) – Cloud services that have contended resources (processing and storage open to all) Public Cloud (Shared) – Cloud services that are publicly accessible with shared resources (processing and storage divided into reserved chunks) Private Cloud (Dedicated) – Cloud services but all resources dedicated to a single client or company.

30. What are the Risks ? Stormy Weather

31. Security Risk Assessment Virtualisation Model Model Standard Cloud LOW RISK HIGH RISK

32. Compliance vs PCI Standard

33. Is it possible to run Compliant Services in the Cloud ? Stormy Weather

34. Yes, of Course But with Caveats…..

35. Break Down As enterprises start to run their systems on the cloud without thinking about the bigger picture, existing certifications and compliances can start to break down and business risks go up.

36. Some Common Issues Most certifications assume that the enterprise controls everything, and it's all located within their direct control. In certain cases, compliance will be impossible, It is difficult with Cloud to take full responsibility for who can access data, who sees it and how it is stored. Since the premise of the cloud is that customers don't necessarily need to know or care where their data is, this makes compliance “interesting”.

37. Some Common Issues Virtual servers will typically have multiple functions running on a single physical server. Section 2.2.1 of the PCI DSS, for example, states that a server should perform only one primary function. ?! Companies looking to reduce their IT costs and complexity by tapping into Cloud computing services should first make sure that they won't be stepping on any privacy land mines in the process…

38. What do I need to know / ask ? Stormy Weather

39. Check List What are the goals of the project ? What compliance do I need ? Where is my data ? How does the system currently work ? How am I connecting to it ?

40. What are the goals of the project ? Increased abilities ? Outsource responsibility ? Reduce Capex and/or Opex ? Simplify management ? Reduce risk ?

41. What compliance do I need ? PCI-DSS for merchants with card data FISMA, HIPAA and SOX etc for financial data DPA for systems storing customer data ISO 9000 / ISO 27001 for business compliance

42. Where’s my data? Some may already be with a 3 rd party (Payment Provider) If it’s on your systems, is it encrypted/encryptable Who / What needs access to it ? How Dangerous is the data ?

43. How does my system work ? Can system elements be separated ? Website can normally be sliced by element type – Graphics, HTML, Scripts, Downloads – can any of these be placed on the Cloud ? It there a reliance on other systems / places From a line to the office to 3 rd party data providers Does the system naturally Cloud ?

44. IaaS vs. PaaS Two Levels of Service IaaS – Infrastructure As A Service – Colo infrastructure replacement with the availability and manageability advantages of the Cloud PaaS – Platform As A Service – servers + OS + managed software engine / DB engine with the availability advantages of the Cloud

45. Which Bits ? Database Virtual Servers Physical Firewall

46. How am I connecting to it ? Connectivity will now become a Major factor in uptime. Is that old single ADSL still viable? Should I look at new gen products. Ethernet FTTC FTTP What resilience do I have ?

47. Tasks Stormy Weather

48. Cloud Computing tasks Here are the new Cloud Computing tasks that are coming your way that you’re going to have to find ways to staff or find partners who can help you with and or take ownership of:

49. Cloud Computing tasks Extend: you’re going to have to come up with ways to create bridges between your existing network environment and the cloud. then you’re going to have to maintain those bridges. Pick: you’re going to have to pick a couple of cloud service providers. Once you’re in bed with them, you are going to have to have staff to monitor how they are performing and to provide the human interface to fix the issues that always show up. Monitor: forget outages, what about day-to-day issues? You are going to need staff to monitor and mange the apps that you have running “in the cloud”.

50. Cloud Computing tasks Identify: who on your staff is allowed to do what? Since the old rules about getting access to boxes no longer apply, you’re going to need new rules and new staff to enforce and update them. Encrypt: since you are now going to be storing data off site and “out there, where ever There is”, encryption becomes more than a nice-to-have, now it’s a necessity. Somebody on your staff is going to have to be double checking everything all the time to make sure that it REALLY IS encrypted.

51. Cloud Computing tasks Plan: for the worst. Data link outages are going to be a much bigger deal then they ever used to be. How will you handle being disconnected from your cloud for an hour, a day, a week? Somebody had better be put in charge of solving this problem and keeping this solution updated. Mange: your bandwidth. Now that the link between you and your cloud has become critical to how the business runs, you had better have someone on it at all times.

52. Final words of wisdom Gartner predicts that by 2012, 20 percent of businesses will own virtually no IT assets. Your IT department will eventually use cloud computing. it makes good economic sense and so all other objections will be worked out over time. If your vendors can’t give you their opinion or strategy in relation to your Applications, Cloud and Compliance, should they be your vendors ?

53. Claranet Solutions Shared Virtual Platform (IaaS) – This is where Claranet provides the physical infrastructure and enable clients to purchase slices of said infrastructure. Private Virtual Platform (Iaas) – This is where a client has a dedicated Virtual Platform (exactly the same as SVP but dedicated) and can utilise the whole infrastructure themselves. Shared Virtual Cloud (PaaS) – Built on top of the SVP above, with client solutions compartmentalised and managed to maintain security. Private Virtual Cloud (PaaS) – Built on top of the PVP above.

54. And Finally We’re looking at a brave new future. Do you have the right staff with the right set of skills together with the right partners in order to make the most of it?

55. Any questions?

56. Ralph Lorkins - Solution Architects Manager Claranet Managed Application Hosting: Simplifying Application Management

57. What are applications? Formerly - client-server model Now - era of web-enabled applications 3 tier stack Line between back office and web less distinct

58. Claranet Managed Application Hosting

59. Platform as a Service Wrapped into a comprehensive SLA

60. Technologies - snapshot Windows & Linux. IIS/Apache.NET, Java EE, ColdFusion, PHP, Python + MS SQL Server, MySQL, PostgreSQL, Oracle Microsoft suite: Exchange, SharePoint VMWare, Hyper-V

61. Why use MAH? Of all the businesses who undertake software development projects...only 34% deploy successfully. Source: Standish Group Report

62. Application Deployment Challenges Inadequate scope – functional and technical Focus on the service, not the application Services to do not exist in a vacuum The “Technology Trap” Application Development is not Application Management

63. Claranet Managed Application System How we do it - overview BUSINESS DRIVERS SLA SOW RUN BOOK TIME SCALE IN MINUTES Alert ESCALATION Fix FAQ DOCUMENTATION CHANGE MANAGEMENT REPORT & APPLICATION OPTIMISATION Real Time Monitoring Application Network Infrastructure

64. How we do it – application platform Pre Production DEVELOPMENT VERSIONING TEST PRE PRODUCTION CHECK OUT CHECK IN Fix FAQ CMS PRODUCTION ROLLBACK CUTOVER DEPLOY PATCHING CONFIG CHANGES CUSTOMER CLARANET RELEASE CHANGE MANAGEMENT DEPLOY

65. What about developers? Communication and collaboration Testing, Operational Support Plan, initial Runbook Examples: CDS. In house team. SaaS Ann Summers. 3 rd party developer. Two platforms. Five TV. Silos. Expanding requirements Allows them to focus on development

66. Foundations of Service Management Process Operational Support Plan ITIL-based runbook People Skills 24/7 support, holiday cover Technology Vendor agnosticism

67. CSI Continual Service Improvement Availability Management Capacity Management Data Management – Security Integration Consolidation Partnership

68. Summary – Managed Application Hosting What is it? Reduced costs. Peace of mind. How do we do it? People. Processes. Technology. Why use it? Allows all parties to focus on their core strengths

69. The changing face of UK connectivity Martin Saunders – Marketing Director

70. Agenda Trends of the past Service developments for the next 12 months How this might effect the applications

71. Increasing speeds 1996 Small business – 33.6Kbps – V34 Big business – 128Kbps – ISDN 2000 Small business – 512Kbps – ADSL Big business – 2mbps – E1 leased line 2004 Small business – 8mbps - ADSL Big business – 10mbps – Ethernet 2008 Small business – 16mbps – ADSL 2+ Big business – 100mbps – Fast Ethernet 2012 Small business – 40mbps – VDSL2 Big business – 1Gbps – Gigabit Ethernet

72. Increasing reliability 19962000200420082012 V34 –modem # of Engaged tone V34 –modem # of Engaged tone Small business Big business ADSL Contention ADSL Contention ADSL Max Upload Speed ADSL Max Upload Speed ADSL 2+ Latency and packet loss ADSL 2+ Latency and packet loss VDSL2 Quality of Service VDSL2 Quality of Service 128K ISDN Contention 128K ISDN Contention 2mb Leased Upload Speed 2mb Leased Upload Speed 10mb Ethernet Latency and packet loss 10mb Ethernet Latency and packet loss 100mb Fast Ethernet Quality of Service 100mb Fast Ethernet Quality of Service 1Gbps Ethernet Application awareness 1Gbps Ethernet Application awareness

73. Increasing reach of next gen networks Next Generation networks Legacy networks 1996-2005 National networks only went to Metro PoPs, all further connectivity provided by BT legacy networks 2005-2010 National networks extending to exchanges through LLU and 21CN, rest still on legacy networks 2010 - 2015 National networks extend further again to Cabinets, legacy now only for last 400m London Metro PoPs Local Exchanges Street Cabinet Customer sites 1~120~5500~100k~3m 2012 - 2020 National networks extend all the way to individual customer sites

74. Local Exchanges Street Cabinet Customer sites FTTC – VDSL2 BT’s first service based on ‘Sub-loop unbundling’ – Fibre to the ‘Cabinet’ Speeds up to 40mb down and 10mb up Currently limited availability (10m homes by 2012) Service levels same as DSL (contention/Time to fix etc. Local Loop Unbundling Sub Loop Unbundling Ethernet fibre backhaul

75. BT’s alternative to FTTC where there is no Cabinet Speeds of +100mb down and possibly up to 40mb up Currently very limited availability (2.5m homes by 2012) Service levels same as DSL (contention/Time to fix etc. No Cabinet Local Exchanges Customer sites Ethernet fibre backhaul FTTP

76. Summary of access options Increasing line speed Distance from the exchange ADSL1ADSL 2+ FTTC 15M - 40Mbit/s FTTP up to 100Mbit/s 0 – 4Mbit/s 44% of ADSL1 EU’s see no increase by moving to ADSL2+ Likely to see significant benefit up to 40Mbit/s Not available 4 – 7Mbit/s 39% likely to see increase of ~1 – 3Mbit/s Likely to see significant benefit up to 40Mbit/s Not available 7+Mbit/s 6% likely to see increase of ~ 3 – 6Mbit/s Likely to see significant benefit up to 40Mbit/s Not available ‘Exchange only’ lines 11% lines are all likely to see increase of up to ~13Mbit/s Not available Likely to see significant benefit up to 100Mb

77. Service Harmonisation Industry lead program to simplify and improve copper repair levels Care Level 4 - game changer CARE LEVEL 1 - BASIC ANALOGUE LINES ONLY 1 CARE LEVEL 2 - BB STANDARD CARE CARE LEVEL 3 - BB ENHANCED CARE CARE LEVEL 4 - BB ENHANCED CARE + 4 End of next working day +1 working day, fix Monday – Friday 2 End of next working day, fix Monday – Saturday 3 Report am fix pm. Monday-sunday 6 hours repair

78. Impact on applications Higher availability and reliability = good news More reliable and faster network access enables consolidation / cloud Use of QoS and Care Level 4 makes low cost connections more dependable Lower cost of bandwidth enables bandwidth hungry applications, e.g. Video Greater ‘digital divide’ = bad news Many customers will never get FTTC or FTTP Postcode lottery will becoming increasingly important in site selection Applications will need to be designed to cater for multiple levels of connectivity

79. Any questions?

80. C laranet Y our IT P artner Darren Metherell – Corporate Sales Manager

81. Questions Can you meet current and pending Regulatory compliance requirements – such as PCI? Has your IT network or hosted infrastructure caused you to lose revenues as a result of unplanned downtime? Do you have access to on demand computing power as you require it for unforeseen requirements or short term projects? Is retention of key IT staff a challenge?

82. Established Business Approach

83. CUSTOMER Traditional Direct CLARANET Aggregated services from multiple suppliers wrapped into single contract and SLA Provides cost effective business solution with single contract and supplier relationship

84. Reseller/Partner Approach RESELLER CUSTOMER CLARANET Claranet Service Value Added Service £££ £££ Reseller Terms

85. Composite Solution Offerings allow you to choose what’s right for your business/client Wrapped into a comprehensive SLA Composite Solution

86. Types of Managed Applications Web Applications Extranet Web sites Ecommerce sites SaaS Managed Security Portals Web 2.0 / Mashups / Folksonomies Business Applications CRM DBA Content Management Systems Managed Exchange Managed Archiving Staging & Testing environment

87. Claranet Managed Application System Proactive Monitoring & Fixing - 24/7 BUSINESS DRIVERS SLA SOW RUN BOOK TIME SCALE IN MINUTES Alert ESCALATION Fix FAQ DOCUMENTATION CHANGE MANAGEMENT REPORT & APPLICATION OPTIMISATION Real Time Monitoring Application Network Infrastructure

88. Staging Environment Pre Production DEVELOPMENT VERSIONING TEST PRE PRODUCTION CHECK OUT CHECK IN Fix FAQ CMS PRODUCTION ROLLBACK CUTOVER DEPLOY PATCHING CONFIG CHANGES CUSTOMER CLARANET RELEASE CHANGE MANAGEMENT DEPLOY

89. Established Managed Services Provider Supplier Aggregator - use best of the best Dedicated Account Management team - not just sales Flexible commercial approach - single SLA and MSA Proven ROI Vs In House projects Summarising

90. Any questions?

92. Introduction - Matthew Parker, Sales Director ‘Stormy Weather’ Perils of the Cloud – Paul Court, Technical Director Simplifying Application Management – Ralph Lorkins, Solutions Architect Manager Break The changing face of UK connectivity – Martin Saunders, Marketing Director Partnering with Claranet – Darren Metherell - Corporate Sales Manager Panel Q&A Lunch Red Bull Presentation – Steve Nevey Red Bull F1 factory tour Summary & Closing statement - Matthew Parker, Sales Director Agenda

93. Claranet’s market view We believe: Companies will consume more technology over the next 10 years Companies’ ability to manage technology internally will decrease Providing a wide range of managed services as a single service is key We make our profits by providing a high quality service that improves efficiency, and enables our customers to focus on their core capabilities.

94. What the Analyst’s say…. ‘These are times of transition. The economy is transitioning from recession to recovery. Enterprises are transitioning their strategies from cost-cutting efficiency to value-creating productivity. Technologies are transitioning from ‘heavy’ owner-operated solutions to ‘lighter-weight’ services. In turn, CIO’s are transitioning IT beyond merely managing resources to taking responsibility for managing results’ Gartner 2010 CIO Report

95. Fault Tolerance The Virtualised Server Model

96. The Cloud Services Model

97. Final words of wisdom Gartner predicts that by 2012, 20 percent of businesses will own virtually no IT assets. Your IT department will eventually use cloud computing. it makes good economic sense and so all other objections will be worked out over time. If your vendors can’t give you their opinion or strategy in relation to your Applications, Cloud and Compliance, should they be your vendors ?

98. Impact on applications Higher availability and reliability = good news More reliable and faster network access enables consolidation / cloud Use of QoS and Care Level 4 makes low cost connections more dependable Lower cost of bandwidth enables bandwidth hungry applications, e.g. Video Greater ‘digital divide’ = bad news Many customers will never get FTTC or FTTP Postcode lottery will becoming increasingly important in site selection Applications will need to be designed to cater for multiple levels of connectivity

99. Information User DATA CENTRESERVERCONNECTIVITYROUTER SECURITY END-TO-END SLA APPLICATION OPTIMISATION SECURITY End-to-end Service Management Monitoring Reporting Service ManagementSupport End-to-end Service Management

100. Why use MAH? Of all the businesses who undertake software development projects...only 34% deploy successfully. Source: Standish Group Report

101. CUSTOMER Traditional Direct CLARANET Aggregated services from multiple suppliers wrapped into single contract and SLA Provides cost effective business solution with single contract and supplier relationship

102. Reseller/Partner Approach RESELLER CUSTOMER CLARANET Claranet Service Value Added Service £££ £££ Reseller Terms

103. Red Bull Racing

104. Any questions?