1. ©2014 Parallels IP Holdings GmbH APS Connect: James Raquepau (jraquepau@parallels.com)jraquepau@parallels.com Errol Vanderhorst (evanderhorst@parallels.com)evanderhorst@parallels.com APS Business Development Building Packages and Landing Deployments

2. THE PATH TO DEVELOPING TIGHT INTEGRATION WITH A GREAT USER EXPERIENCE 4 Step Process Service Assessment Service Offer Development Develop In- house or Outsource Service Design Package Coding & Review The APS Opportunity Certified for Parallels Launch & Lifecycle Define Design Develop Deploy Go-to- Market Program

3. APS BUSINESS & TECHNICAL INTRODUCTION – LEARN ABOUT APS What is the APS Ecosystem? ISVs with self-hosted and syndicated cloud services 500 cloud service applications in the APS Catalog 10X growth in SMB users in 2013 Top workloads in 2013 Target channel partners for APS-enabled services Large CSP Operators Hosters Distributors and MSPs The APS Opportunity Email Websites Security Leadership sponsor, Product and Technical contacts assigned

4. APS BUSINESS & TECHNICAL INTRODUCTION – LEARN ABOUT APS What is an APS application package? Automated selling/provisioning/billing of services APS packages defines the Business model for selling a cloud service SMB customer information and resources required to provision a cloud service Billing parameters for invoicing an SMB customer for the consumption of a cloud service Parallels Automation is the platform that runs the APS application package Provides storefront and business (i.e. workflow) automation, including offering bundles, upselling, and cross selling of multiple services Exposes a service via control panels and processes the APS provisioning logic by providing a single pane of “glass” for all SMB services offered Collects and processes billable data from the cloud service The APS Opportunity

5. APS BUSINESS & TECHNICAL INTRODUCTION – CHANNEL READINESS & API REVIEW Is your service ready for the service provider channel? Service Provider Channel Readiness Support: Service & Support SLAs, Support Systems Sales: Partner Program & Business Model for Cloud, Regional Coverage/Localization, Branding/White-label, Multi-Tier Reseller Support Product/Development: Product Management, Docs, Tools, Support, Dev Platforms Key API/UX Readiness Public/Private APIs (Self-Hosted/Syndicated) Multi-tenancy support for accounts & users Channel ready billing, provisioning, & management APIs (CRUD) Reseller friendly user experience (Portal or API Oriented) Identity management service interface Service development/testing/QA support Service Assessment Business and Technical check lists

6. APS BUSINESS & TECHNICAL INTRODUCTION – CHANNEL READINESS & API REVIEW Is your service ready for the service provider channel? Service Assessment Business and Technical check lists

7. APS BUSINESS & TECHNICAL INTRODUCTION – CHANNEL READINESS & API REVIEW Is your service ready for the service provider channel? Service Assessment Business and Technical check lists

8. APS BUSINESS & TECHNICAL INTRODUCTION – BUSINESS/SERVICE MODELING What are you selling and how will you sell it? Web Presence, Communication & Collaboration, IaaS, Traditional or Vertical SaaS Solutions Instances (i.e. Website builder, CDN, SEM/SEO), Seats (i.e. O365, Backup), or Units (i.e. CPU, Storage, Bandwidth, Minutes, Hours, Days) What are the Business / Offering Model Selling Options? Pricing Model (freemium/premium, levels, discounts, bundles)? Business Rules (upgrades, downgrades, reporting)? Billing APIs or data to support the Business / Offering Model? What is the licensing model (ISV  SP & Parallels  SP & SP  SMB)? Is customer interaction with the ISV Service Portal allowed? Have you validated your offering with a launch partner? Service Offer Description Document / Checklist Service Offer Development

9. APS BUSINESS & TECHNICAL INTRODUCTION – BUSINESS/SERVICE MODELING What are you selling and how will you sell it? Service Offer Description Checklist Service Offer Development

10. Will you build it or outsource development? Assess Development Skills –PHP/REST & HTML5/JavaScript –PA Domain/Resource Modeling Architect Skills Assess Development Effort –Typically ~3 man months Decision Point: Build In-house or Outsource –Based on availability of internal resources and skills –Internally built requires APS & PA Training (online or onsite) –Outsourced development requires obtaining proposals/bids Either way –Have a plan to own your APS package Assign a Product Manager & Product Marketing Manager –Support & Maintain your APS package (directly or indirectly) Develop In- house or Outsource APS BUSINESS & TECHNICAL INTRODUCTION – DECISION POINT

11. DEVELOPMENT & DELIVERY PHASE – PACKAGE PLANNING How do I get started once decision is reached? APS Developer Account (www.apsstandard.org)www.apsstandard.org –Documentation –Developer sandboxes –Development tools –Example APS 2 packages –Manage Support requests –Manage package self-validation Documentation templates for Certified for Parallels Automation (CfPA) Training for APS and Parallels Automation (for in-house developers & outsourced projects) Resources committed Develop In- house or Outsource

12. DEVELOPMENT & DELIVERY PHASE – PACKAGE PLANNING What is the APS Service Design process? Service Requirements –Personas –Scenarios –Provider –Reseller –Customer Admin –Customer End-User –Functional Requirements Application Lifecycle Service Lifecycle User Lifecycle Integrations with other Applications Single Sign On Migrations Service Design Service Design Document Review –Non-Functional Requirements Service Dependencies Deployment of Service Branding Support Localization & Internationalization Billing & Licensing Package Design –Resource Model Required POA Types –UX Mockups Service Provider Reseller Customer Admin Customer End-User

13. DEVELOPMENT & DELIVERY PHASE – PACKAGE PLANNING What is the APS Service Design process? Engage your assigned Parallels BizDev partner manager to set up a discovery & design session Resource Model Complete Service Design

14. How should I build my APS Package UI mockup? Engage Parallels and service provider launch partner to get input on the planned offering model and provisioning workflows DEVELOPMENT & DELIVERY PHASE – PACKAGE PLANNING Plan for: Service Provider Panel Reseller Panel Customer Control Panel My (E/U) Control Panel UI Mockup Created & Reviewed with Parallels Service Design

15. APS DEVELOPMENT & DELIVERY PHASE – CODING AND TESTING What are the steps needed to code a great package? Develop both backend (logic) and frontend (UI) package elements Write documentation following Certified for Parallels Automation (CfPA) templates Reengage Parallels & launch partner for pre-package review, including UI Package Coding & Review Package Developed & Reviewed by Parallels

16. APS DEVELOPMENT & DELIVERY PHASE – CODING AND TESTING What are the steps need to certify my package? Submit package for Certified for Parallels process –Package Validation –Security Audit –UI Review –Documentation Review –Publish Certification Only packages Certified for Parallels will be supported by the APS Support team Certified for Parallels Package Certified by Parallels

17. APS DEVELOPMENT & DELIVERY PHASE – CODING AND TESTING What is needed launch and maintain an APS package? Develop APS maintenance and support plan –Product Management ownership of package –Plan for future APS package updates to expose additional services or to support API updates Launch service with Parallels Automation partner –Ensure sales/support training takes place –Co-develop marketing plan to drive awareness Build Go-to-Market plan –Assign Product Marketing Resources –Compete Phase 2 marketing materials (see next section) Package Launch Package Launched

18. THE PATH TO DEVELOPING TIGHT INTEGRATION WITH A GREAT USER EXPERIENCE 4 Step Process Service Assessment Service Offer Development Develop In- house or Outsource Service Design Package Coding & Review The APS Opportunity Certified for Parallels Launch & Lifecycle Define Design Develop Deploy Go-to- Market Programs

19. HOSTERS TELCOS ISPs DISTRIBUTORS MSPs Diverse ecosystem of service provider partners LANDING DEPLOYMENTS: WHO ARE PARALLELS AUTOMATION USERS? SMBs 1 - 1000

20. HOSTERS TELCOS ISPs DISTRIBUTORS MSPs SMBs 1 - 10 / 10 - 25 / 25 – 100 / 100 - 1000 Diverse ecosystem of service provider partners LANDING DEPLOYMENTS: WHO ARE PARALLELS AUTOMATION USERS?

21. GTM diversity within segments TELCO ATELCO B Lift ARPU Retain customers SMB SMB & IT Pro Syndicate Best in brand One size fits all markets Host solution White-label Differentiate by region No two Go To-Market Programs the same! LANDING DEPLOYMENTS: WHO ARE PARALLELS AUTOMATION USERS?

22. Taking Products to Market is Complicated Multiple Orgs Involved Product management  Launch Products, compete for attention IT/Ops  Simplify Life / Play with Cool Stuff / Budget Management Sales  Meet targets, default to traditional products Customer Care  Customer Sat / Cost control Marketing  The “Big Agenda” of the week Sometimes don’t align till Executive gets involved Key to Success Exec sponsor who cares, continual deep engagement across value chain Business Case Go-to-Market Strategy/Plan Market & Sell (GTM Execution) Typically 9-18 months to launch new service; +24 months to scale or fail LANDING DEPLOYMENTS: WORKING WITH LARGE SPs

23. Package GTM & Monetization Barriers Convince multiple P&L owners to dedicate resources to sell non-core products with lower ARPUs and margin The driver: reduce customer churn or exploit new revenue streams Lack of sales momentum (inbound upsell, no campaigns, no marketing) Selling standalone vs bundled services Enable multiple channels Customer activation Compensation considerations Approval for ISV sales incentives on top of corporate plans Marketing: propensity buying lead/demand gen, Productize SKUs Define Service Plans Get PM focus on service creation Compete: cloud vs core services Channel strategy: Multi- channel and geography footprint Buyer journey Convince multiple BUs with different focus and KPI’s Usage reporting (resources, activation…) Business case Go-to- Market Market & sell PA Platform Upgrade to PA 5.5+ Resources to build and test new services Regression testing ISV onboarding Migration path (APS 1.2 to APS 2) Multi-ISV support model LANDING DEPLOYMENTS: WHY SO LONG?

24. Business Case Go-To- Market Market & Sell PA Platform Where is Parallels spending time? >85% <5% Current Focus: Dealing with support, product and account issues, not revenue generation LANDING DEPLOYMENTS: CURRENT STATE

25. Business Case Go-To- Market Market & Sell ISV Service Where are ISVs spending time? <5% >85% Current Focus: Dealing with support, product and account issues, not revenue generation <5% LANDING DEPLOYMENTS: CURRENT STATE

26. Business Case Go-To- Market Market & Sell PA Services Where are Service Providers spending time? 10% ? 40%? 10% ? Current Focus: Dealing with multiple masters, product issues, not revenue generation LANDING DEPLOYMENTS: CURRENT STATE

27. Business Case Go-To- Market Market & Sell Platform & Service Collective focus on driving sales volume Commit resource to: - Cross department Sales training. Support can also sell. - Work with Business/HR to put incentives in place - Who owns the P&L number? Does he/she really own it? - Have a strategy (perhaps a product) for as many channels as possible - Be proactive: perform outbound campaigns with propensity buying analysis - Consider onboarding players LANDING DEPLOYMENTS: PROPOSED STATE

28. Create ‘Marketing & Selling’ Programs Goal: Drive sales volume based on three pillars Marketing execution1Channel expansion2Sales execution3 Customer propensity modelling for effective customer targeting Better messaging Effective online journey Campaign development Channel strategy and planning Introduction and on- board 3rd party telesales partners Sales training Enablement tools/content Cross/upsell strategy Bundle with APS apps Commission/incentives analysis LANDING DEPLOYMENTS: RECOMMENDATIONS

29. Questions

30. Paal15 What do we do? Positioning & messaging Concepting & branding Go-to-market & execution

31. Paal15 What ambitions do we help our customers with? Setting up new channels (direct or indirect) Bringing new services to the market Onboarding and activating new partners or end-users

32. ©2014 Parallels IP Holdings GmbH #ParallelsSummit