1. Billing Solutions for Hosting Douglas Johnson, SWsoft Product Marketing Director Wednesday, May 9, 2007

2. May 2007 Billing Solutions for Hosting Providers 2 How Tough Can it Be? Customer orders service for $10/month - just use a spreadsheet Customer joins mid-month Customer requests a refund Marketing wants to run a promotion – 10% off if enrolling before 30 days Accounting reminds us that we need to charge tax Customer pays late – finance charge applied IF (today = customer_bill_period) THEN Create_Invoice; Create_Invoice { Invoice_Item = Service_Item_Charge_Amt; } Pro_Rate_Charge { Invoice_Item.Charge_Amt = Invoice * (days_of_service / 30); } Pro_Rate_Invoice(); Calculate_Refund { IF (Refund_Allowed) Invoice_Item.Refund_Amt = Pro_Rate_Charge; } Calculate_Discount { IF (Promotion_Code_Valid) Invoice_Item.Charge_Amt *= Discount_Amt; Pro_Rate?} Calculate_Tax { IF (Tax_Zone in Zone_Array) Determine_Tax_Amount; IF (Pro_Rate)?; IF (Apply Credit); } Calculate_Finance_Charge { IF (Overdue_Balance > 90 days) Determine_Finance_Chrage_Amt; IF (Good_Customer); }

3. May 2007 Billing Solutions for Hosting Providers 3 Deployment of new services  Have billing issues delayed the launch of a new service? Flexible pricing and promotions  Can you respond to market changes in 1 day? Integration with multiple systems  Do you have legacy systems which you want to retain or new services which run on unique platforms? Customized workflow and internal controls  Do you have internal controls required by legislation for you and your customers? Online account management  Can customers manage their account and payments online? Automated renewals and service messages  Can you improve customer retention and revenue per customer? Billing Challenges

4. May 2007 Billing Solutions for Hosting Providers 4 A business support system automates and integrates all aspects of service delivery through a web-based storefront and management control panels. Both PEM and HSPcomplete provide a full set of bundled functionality. Storefront Order Processing Workflow Service Plan Management Discounts, Promotions E-Commerce Reseller Support Trouble Ticketing Fraud Screening BSS Features API and SDK What is a Business Support System?

5. May 2007 Billing Solutions for Hosting Providers 5 Your BSS ties together your other support systems. For each process decide to use BSS functionality or build an interface to an external system SOAP Core Services Billing Manager EcommerceBillingMarketingResellerCRMSupport In-House System Custom Application Virtuozzo Plesk 3rd Party Application Customer Control Panel Domain Registrar Accounting System Trouble Ticketing System Provisioning System Payment Gateway Reseller Control Panel Online Storefront Billing can be a Central Point for Your Operations

6. May 2007 Billing Solutions for Hosting Providers 6 PEM.Billing Core Service Gates (~10)Plug-Ins (~30) Order Processing Workflow Engine Taxation & Payments Notifications Reporting Promos & Discounts Service Plan Manager E-Commerce PEM Gate OpenSRS GoDaddy Payment Gate Manually Provisioned Items Gate Authorize.Net PaymentTech Domain Registration Gate OpenSRS API GoDaddy API PaymentTech API Authorize.Net API Overview of PEM.Billing Architecture

7. May 2007 Billing Solutions for Hosting Providers 7 System Included with PEM.Billing Extended by API and Service Gates Customizable storefront Fraud screening system Centralized account management system Trouble ticketing system Resource usage accounting Reporting Workflow Tax computations Payment gateways* Domain registration with name spinning* Network and resource provisioning* Accounting system PEM.Billing delivers a solution that can be integrated and customized according to service provider needs. * Pre-integrated plug-ins available to interface with external systems PEM.Billing Components

8. May 2007 Billing Solutions for Hosting Providers 8 PEM.Billing supports hosted services: Multiple Service Offerings Domain Registration Shared Hosting Plans Virtual Private Servers Dedicated Servers Application Hosting DSL and Cable VoIP and IM Provider defined plans Disk space Mailboxes Bandwidth Domains Resource Based Billing Applications Services Provider defined resources Open Interfaces Payment gateways Domain registrars Control panels Internal systems Third party systems Provider defined interfaces PEM.Billing Hosting Provider Features

9. May 2007 Billing Solutions for Hosting Providers 9 Service Provider  Develop service plans for resellers and end users  Online marketing of promotions  View system-wide sales and usage reports Resellers  Multiple levels of sub-resellers  Customized branding  Unique service plans End Users  Upgrade from control panel  Pay bills, view invoices  Submit trouble tickets Feature Highlight - Multiple Levels of Control Panels

10. May 2007 Billing Solutions for Hosting Providers 10 Configure the workflow to fit the provider’s operations Flow can include automatic and manual steps Billing Manager is shipped with few pre-defined workflows Fraud Screening Success Charge Credit Card Mark Order As Fraud Put Order On Hold Provision Services Order Placed Yes No Feature Highlight - Workflow Builder

11. May 2007 Billing Solutions for Hosting Providers 11 Insert customer communications into your workflow Re-brand email and customer notifications Retain a copy of all customer communications Notify via HTML, text, PDF, or SMS (using third-party gateways) Order Accepted Manual Process Complete Notify Customer (email) High Bandwidth Usage Automated Process Complete Notify Customer (email) Bandwidth usage warning – HTML version Customized Communications

12. May 2007 Billing Solutions for Hosting Providers 12 Customize your web store  Look and feel  Ordering sequence Add Hosting Plan Add Resources Collect Payment Data Add Domain Name Feature Highlight – Web Store

13. May 2007 Billing Solutions for Hosting Providers 13 PEM Billing Manager can be expanded to bill services not traditionally offered by hosting providers Feature Highlight – Ancillary Services

14. May 2007 Billing Solutions for Hosting Providers 14 Drill down reports for service providers and resellers Feature Highlight – Robust Reporting

15. May 2007 Billing Solutions for Hosting Providers 15 Real-time Payment Processing  Modes of operation: pre-authorization only, authorization and capture SDK (future) delivers rapid integration  Rapidly add new payment gateways and connect to external systems Reconciliation support  Verify cash billed against cash in account Direct Debit and GIRO Support  Supports integration with bank systems for direct debit, GIRO Payment Gate Authorize.Net PaymentTech PaymentTech API Authorize.Net API Billing Manger Core Feature Highlight – Payment Gateways

16. May 2007 Billing Solutions for Hosting Providers 16 Score based fraud system  Over 20 fraud plug-ins: Black IP, Black email, excessive order amount, originating country, phone numbers, black credit cards, etc.  Configure scores and workflow Create new filters  Integrate or design your own fraud filters using the SDK (future) Calculate Fraud Score Order Placed Fraud Screening Complete Reject Order Manual Approval No Score Too High? Reject Order? Yes No Yes Approve? No Yes Feature Highlight – Fraud Screening

17. May 2007 Billing Solutions for Hosting Providers 17 Business ConcernSmall Solutions*Custom Solutions † PEM.Billing Advantage Rapidly launch new services to keep pace with market needs. XInflexible, difficult to add new services. XComplex, long lead times and development schedules. Resource based billing provides rapid deployment of new service plans with different resources. Storefront integration provides instant awareness of price changes and new plans. Integrate with multiple delivery systems. XInflexible, difficult to integrate. APIs usually exist, but can be difficult to integrate. Open API allows integration with new application servers for new service delivery. Provide online account management to reduce service costs. Some functions are automated. Depends upon installation. Delivers full management of accounts including different roles and permissions. Scale to accommodate new customers. XLimited by hardware, requires upgrade. Supported Distributed processes enable the addition of hardware nodes to support nearly unlimited accounts. SWsoft Billing Manger delivers a pre-packaged solution that can be integrated and modified according to service provider needs. * Solutions priced at or below $300/server and install without customization † Solutions which must be customized by a professional services team over a 6+ month deployment schedule Competitive Marketplace for Billing Solutions

18. May 2007 Billing Solutions for Hosting Providers 18 Roadmap - PEM 4.1.6 May June July Aug Sep 4.1.74.2.14.2.2 Reseller capabilities Resell based on fixed margin, not resource consumption Use provider’s merchant account to charge reseller’s customer Apply finance charge to reseller for CC processing Credit limit for resellers Subscription management Improved synchronization logic Install new resources into customer subscriptions Domain management – support bulk availability request PEM.BILLING 4.1.6 Top Features SDK for creating domains and payment gateway plug-ins System Customize menus per reseller Rich text editor to modify notifications and css/html Enforce password change on regular basis Operations Archive orders on completion Add internal domain transfer procedure Service Plans Promotions and refund improvements PEM.BILLING 4.1.7 Top Features Windows Support Windows 2003 Server MS SQL for database Key administrator support Direct provisioning of Plesk service plans OPEN FUSION support Single sign on support PEM.BILLING 4.2.1-2 Top Features.BILLING

19. May 2007 Billing Solutions for Hosting Providers 19 Questions and Answers Conclusions: Billing – it’s not as easy as it looks Billing – you can spend time billing customers or getting new customers Billing – should not be the deciding factor in whether or not you can launch new services or respond to competive pressures in the marketplace