1. May 19-20 l Washington, DC l Omni Shoreham Get More Revenue With SaaS Pat Correia SaaS Marketing Manager, Parallels

2. Parallels - Optimized Computing 2 Objectives for this Presentation Help you Understand The SaaS Opportunity and Challenges How the SaaS Ecosystem can work for you How to Utilize Virtualization, Automation and Standards in SaaS What common Revenue Models there are that will help to motivate you to SaaS

3. Parallels - Optimized Computing 3 Agenda SaaS Opportunity and Challenges Parallels Open Platform A Framework for SaaS Utilizing your SaaS Platform Revenue Model Examples Call to Action

4. Parallels - Optimized Computing 4 SaaS - Opportunity 5% of new business software deployed as a service – 2005 25% of new business software deployed as a service – 2011 Opportunity  $8B (2006) => $40B (2011)  50 million SMB customers Types of applications  CRM, web conferencing, web content management, HR, supply chain, collaboration, email, and more SaaS % of Business Software Market opportunity: $8B increasing to $40B Example Case: 55% of IBM’s over 10,000 PartnerWorld ISVs are considering offering Software as a Service* * IBM PartnerWorld Survey

5. Parallels - Optimized Computing 5 SaaS –Application Categories Software as a Service categories to deploy Web Conferencing CRM Email / Collaboration HR Portals E-commerce /E-marketing ERP Traditional Apps Deployed into VPSs Accounting, business adm., spreadsheets, doc mgmt management, CAD/CAM, etc. Web Infrastructure Shared web hosting Basic email/webmail Dedicated, VPS Online Games Opportunities Available to both Providers and ISVs! Where Service Providers are Today

6. Parallels - Optimized Computing 6 SaaS – The Track to Higher Revenue Customer Needs Web PresenceEmailE-commerceCollaboration Application Mgmt Revenue Opportunity (SMB: 20 Users/Month) $10 $100 $1,000 Domain Registration $1-$3 Shared Static Web Hosting $3-$10 Shared Dynamic Web, DB, Apps $5-$20 Virtual Private Servers $15-$100 Dedicated & Managed Server $100-$500 Business-Class E-mail (i.e. Hosted Exchange) $150-$300 Add Business Collaboration (i.e. SharePoint, LCS, VoIP) $200-$500 Advanced Apps (CRM, ERP, vertical) $250-$1500+ Infrastructure SaaS

7. Parallels - Optimized Computing 7 Service Provider Advantage with Parallels SaaS Parallels Open Platform Extends your Infrastructure  SaaS capable from provisioning to billing  Maximize a platform you are using now Significantly Cut Costs to Implement SaaS  Get to market faster  Without requiring additional resources Leverage Parallels Ecosystem to Offer a Wide Range of High Demand SaaS Applications  Web, Collaboration, CRM, Back Office, Front Office  Centrally located in Catalog, Latest versions SaaS – Parallels Advantage Get all the details at parallels.com/saas

8. Parallels - Optimized Computing 8 Agenda SaaS Opportunity and Challenges Parallels Open Platform A Framework for SaaS Utilizing your SaaS Platform Revenue Model Examples Call to Action

9. Parallels - Optimized Computing 9 SaaS – Ecosystem Example with APS Independent Software Vendor APS Application Packaged and Certified Service Providers ISVsUsers SaaS Clients Corporations SMBs SoHos Individuals SaaS Application Subscribers World-Wide Channel of Service Providers APS Provider Access to hundreds of APS Applications SaaS Services SaaS Applications $ $ Packaged Delivered

10. Parallels - Optimized Computing 10 Parallels Vision – Optimized Computing Eco- system Consumer & Business (On Premise) Service Provider (Hosted & SaaS) Usage Model Solutions APS Standard APS Catalog & Marketplace Virtual Templates & Appliances Automation Dev Platform DesktopWorkstation ServerContainers Virtual Automation Operations Automation Business Automation Virtualization Automation Plesk Control Panel Plesk Sitebuilder Plesk Billing Plesk Expand License Automation Parallels Open Platform Virtualization growing, replacing physical infrastructure  Enabler of SaaS & contributor to overall industry revenue/profit growth All automation products support SaaS & APS today  Offer APS-certified application through Parallels Automation products

11. Parallels - Optimized Computing 11 Agenda SaaS Opportunity and Challenges Parallels Open Platform A Framework for SaaS Utilizing your SaaS Platform Revenue Model Examples Call to Action

12. Parallels - Optimized Computing 12 SaaS Virtualization and Automation SaaS Platforms for Service Providers Platform & Product Parallels Virtuozzo Containers Parallels Automation Parallels Plesk Control Panel TypeTraditionalMulti-TenantMulti-Instance Example Strategy Dedicated Server but can be split with Containers Hosting Services and Apps Value Add Web Apps We will see in the following examples that there are several ways to SaaS  Your Platform and offerings can be basic or complex; it’s up to you  Either way Automation and Virtualization can do the work for you

13. Parallels - Optimized Computing 13 SaaS Virtualization and Automation SaaS Platforms for Service Providers PlatformParallels Virtuozzo Containers TypeTraditional Example StrategyDedicated Server but can be split with Containers Example AppsInventory management Accounting packages Legacy business applications Publishing software PBX and Communications Tool and SourceParallels Virtuozzo Containers Templates RevenueDirect Hosted Service / Application Offering

14. Parallels - Optimized Computing 14 SaaS Virtualization and Automation SaaS Platforms for Service Providers PlatformParallels Automation TypeMulti-Tenant Example StrategyHosting Services and Apps Example AppsBusiness Class eMail Collaboration Web Conferencing Hosted CRM, Exchange, Sharepoint Tool and SourceParallels System Automation Parallels Business Automation RevenueDirect Hosted Service Offering

15. Parallels - Optimized Computing 15 SaaS Virtualization and Automation SaaS Platforms for Service Providers PlatformParallels Plesk Control Panel TypeMulti-Instance Example StrategyValue Add Web Apps Example AppsAPS Applications as both Open Source and Commercial Apps Tool and SourceAPS Catalog: Open Source & Commercial Apps Plesk Add-Ons and Application Vaults RevenueUpSell as part of Plan Offer as SMB Package Offer as Single Upgrade

16. Parallels - Optimized Computing 16 Agenda SaaS Opportunity and Challenges Parallels Open Platform A Framework for SaaS Utilizing your SaaS Platform Revenue Model Examples Call to Action

17. Parallels - Optimized Computing 17 Parallels Virtuozzo Containers Templates Virtuozzo Templates at parallels.com/virtuozzo  Over 588 Parallels Virtuozzo Containers Templates and growing!

18. Parallels - Optimized Computing 18 SaaS - Parallels Virtuozzo Containers (PVC) www.webhosting.com.au. ACT!www.webhosting.com.au  Conectix (company behind acthosting) configures one instance of ACT inside one VE of PVC; sells as Virtual Appliance  They sell this value add VPS for more than a blank VPS Struktur AG’s “Global Conference Room” solution  Multi-tenant app with performance for up to 1000 users  Simplified installation, configuration and maintenance More SaaS examples at parallels.com/saas Hosted IP-PBX 50 virtual environments Billing and Customer Notification Custom VzT ~ 2hrs Provisioning addtl VCs took 2 minutes On-line Backup 2X Performance Up to 50-60 Containers

19. Parallels - Optimized Computing 19 Parallels Automation for SaaS Management Tools and Automation  Overlay platform to optimize internal and hosted infrastructure/services on top of industry standard platforms The most widely used datacenter automation solution in the world  Single, centralized point of management for all deployed services  Minimizes operational costs through streamlining and reducing overhead needed to perform provisioning and billing tasks  Rapidly meet customer demand with fast time-to-market for service offerings Pre-engineered modules for SaaS Applications E-mail Hosting Hosted Exchange Hosted Sharepoint Hosted Dynamics CRM

20. Parallels - Optimized Computing 20 SaaS – Parallels Automation IceWEB‘s IceMAIL  With Parallels Automation SMBs can enjoy the benefits without the expense of owning and maintaining mail servers Exchange My Mail  Using Parallels Automation they are selling Hosted Exchange 2003 / 2007 and Hosted SharePoint 2.0 / 3.0  Customers are adding Blackberry Support to it or Google Mail Security More Recent Examples: Mobile & messaging services Microsoft Dynamics CRM 4.0 Microsoft Exchange 2007

21. Parallels - Optimized Computing 21 Parallels Plesk Control Panel Upgrade/license applications installed via the Application Vault on a domain level directly via the Plesk interface

22. Parallels - Optimized Computing 22 Application Packaging Standard (APS) APS Standard Packaging format to integrate Open Source & Commercial Applications with Control Panels APS Applications Parallels is working with ISVs to package existing Apps to offer as SaaS APS Control Panels Parallels Control Panels work with APS In-House Control Panels such as 1&1, HostEurope, Cohaesio work as well www.apsstandard.com

23. Parallels - Optimized Computing 23 APS Catalog – Parallels Open Platform Over 166 APS Applications APS Apps are both Open Source and Commercial www.APSstandard.com APS Parallels' products establish a basis for delivering APS- compliant applications, central location, latest versions

24. Parallels - Optimized Computing 24 APS Application Catalog Categories Categories Targeted for APS Applications Web Web Development Content Management Web Analytics E-commerce Collaboration E-mail/Calendaring IP Telephony Telecommunications Web Conferencing Community Site Services Project Management Portals Back office Accounting/Financial Asset Management Billing Business Intelligence Business Process Management Channel Management Compliance and Risk Management Customer Relationship Management Dispatch Management Enterprise Resource Planning Expense Management Human Resource Management Knowledge Management Manufacturing Solutions Payroll Portfolio Management Procurement Product Lifecycle Management Product Planning Professional Services Automation Sales Compensation Management Sales Force Automation Supply Chain Management Talent Management Transportation Management Transportation & Logistics Vendor Management Work Order Management Workforce/Field Service Management Front office Appointment Scheduling Help Desk Management Call Center Interactive Voice Response On-line Marketing Productivity Survey Solutions Personal Blog Gallery Site Builder eLearning Infrastructure Security Backup Management Application Management

25. Parallels - Optimized Computing 25 Parallels - Optimized Computing 25 SaaS ISVs on FastTrack can help www.interspire.com/ www.pinnaclecart.com/ www.magentocommerce.com/ www.invisionpower.com/ www.bvsoftware.com/ www.smartertools.com/ www.creloaded.com/ www.open-xchange.com/ www.epages.dewww.epages.de/ www.sugarcrm.com/ www.voipnow.com/

26. Parallels - Optimized Computing 26 Silver Provider Gold Provider Benefits APS Service Provider Certification Benefits Co-MarketingListed on APSstandard.com Use of APS Silver logo Highlighted on APSstandard.com Use of APS Gold logo Highlight in all APS ISV Presentations APS Gold/Silver Provider Promotion Visibility with Press/Analysts/Pubs Search Engine Optimization to drive traffic to APSstandard Highlight with Press/Analysts/Pubs Search Engine Optimization to drive traffic to APSstandard Match MakingPersonal Introduction to ISVs Direct Link to FastTrack ISVs Access to DevelopmentBeta versions of APS API Software Application PackagingOptional 1 Application Packaged exclusively for Provider Control PanelCertification of 1 control panel Silver Provider Gold Provider Fees Initial Certification Cost $2,500 for the first year$10,000 for the first year Certification Renewal $1,250 annual renewal every 12 months $5,000 annual renewal every 12 months

27. Parallels - Optimized Computing 27 Agenda SaaS Opportunity and Challenges Parallels Open Platform A Framework for SaaS Utilizing your SaaS Platform Revenue Model Examples Call to Action

28. Parallels - Optimized Computing 28 SaaS Revenue Examples SaaS Platforms for Service Providers Platform Parallels Virtuozzo Containers Revenue Direct Hosted Service / Application Offering TypeDedicated Virtual Server Example 1SugarCRM $40/user/mo 300 users $75/user/mo 500 users Typical 5 user minimum $5-10 adder with HelpDesk Example 2 Online Backup $5/user/mo 500MB $8/user/mo 1GB $14/user/mo 2GB $5 adder w Anti-Virus

29. Parallels - Optimized Computing 29 SaaS Revenue Examples SaaS Platforms for Service Providers PlatformParallels Automation Revenue Direct Hosted Service Offering Type Hosting Services/Apps Example 1 Microsoft Exchange $9/user/mo $20 - $30 adder with Sharepoint services 10 - 20 users Example 2 Microsoft Dynamics CRM $70/user/mo Prorated scale $10 addr w Blackberry All numbers are only estimates, subject to change and used soley to illustrate possible business models

30. Parallels - Optimized Computing 30 SaaS Revenue Examples SaaS Platforms for Service Providers Platform Parallels Plesk Control Panel Revenue UpSell as part of Plan Offer as SMB Package Offer as Single Upgrade TypeValue Add Web Apps Example 1 eCommerce $55/user/mo $30 adder SupportCenter $15 adder w Email Marketing Example 2 VoIP Now $15 per month X Minutes All numbers are only estimates, subject to change and used soley to illustrate possible business models

31. Parallels - Optimized Computing 31 SaaS Revenue Examples Summary SaaS Platforms for Service Providers PlatformParallels Virtuozzo Containers Parallels Automation Parallels Plesk Control Panel Revenue Direct Hosted Service / Application Offering Direct Hosted Service Offering UpSell as part of Plan Offer as SMB Package Offer as Single Upgrade Type Dedicated Virtual ServerHosting Services/AppsValue Add Web Apps Example 1 SugarCRM $40/user/mo 300 users $75/user/mo 500 users Typical 5 user minimum $5-10 adder with HelpDesk Microsoft Exchange $9/user/mo $20 - $30 adder with Sharepoint services 10 - 20 users eCommerce $55/user/mo $30 adder SupportCenter $15 adder w Email Marketing Example 2 Online Backup $5/user/mo 500MB $8/user/mo 1GB $14/user/mo 2GB $5 adder w Anti-Virus Microsoft Dynamics CRM $70/user/mo Prorated scale $10 addr w Blackberry VoIP Now $15 per month X Minutes All numbers are only estimates, subject to change and used soley to illustrate possible business models

32. Parallels - Optimized Computing 32 SaaS Revenue Examples $11.95/mo$24.95/mo $49.95/mo$2.95/mo$7.49/mo Example of mixed SaaS Application offering

33. Parallels - Optimized Computing 33 Agenda SaaS Opportunity and Challenges Parallels Open Platform A Framework for SaaS Utilizing your SaaS Platform Revenue Model Examples Call to Action

34. Parallels - Optimized Computing 34 SaaS - Next Steps for Service Providers Utilize your SaaS Enabled Platform to Offer SaaS  Virtuozzo Containers => Virtuozzo Templates  System Automation => Pre-engineered modules  Plesk Control Panel => Add-ons/APS Application Catalog Get Certified as an APS Provider  Optional: To up-level your APS Participation Collaborate with ISVs  Many ISVs with Valuable Apps, More on the Way Talk to Us  Success/Challenges/Tools You Need  Send questions to saasbiz@parallels.com

35. Parallels - Optimized Computing 35 Get More Revenue with SaaS - Summary SaaS is a Huge Opportunity! With Parallels help you can get into SaaS quickly Virtualization and Automation are key enablers of SaaS Many ways to offer SaaS and make Money SaaS: Let’s work together to realize the Revenue Opportunity!

36. Parallels - Optimized Computing 36 Appendix