1. Completing the Promise of Virtualization. Delivering the Virtualized Information Technology Infrastructure January 30, 2008

2. 22 2 Agenda About Parallels Vision for the Virtualized Information Technology – Optimizing IT Understanding Virtualization Technologies Introduction of Parallels Virtuozzo Containers 4.0 and Parallels Infrastructure Manager Summary Parallels – Optimized Computing TM

3. New Company Name, Logo, Tagline, Assertion Prior name: SWsoft, with many products and brands; name changed on January 28, 2008 New Logo & Brand: Tagline: New Assertion: Optimized Computing. TM A worldwide leader in virtualization and automation software that optimizes computing for consumers, businesses and service providers across all major hardware, operating system, and virtualization platforms. Virtualization + Automation = Optimization3 3 Parallels – Optimized Computing TM

4. 4 Parallels Company Overview Strong Foundation Founded at the end of 1999, 8+ years of rapid growth Profitable with close to 900 employees worldwide 500+ Partners, including Microsoft, Apple, Intel, AMD, Dell, HP & IBM Proven Track Record Powering more than 1 Million Servers and Desktops Serving more than 10 Million End-Customers in 125 Countries 27 Awards in the last 12 months Market Leadership #1 in Desktop Virtualization (Parallels Desktop for Mac) #1 in OS-level Virtualization (Parallels Virtuozzo Containers) #1 in Server Automation Control Panels (Parallels Plesk Control Panel) Parallels – Optimized Computing TM

5. 5 Parallels Products Overview Parallels – Optimized Computing TM Virtualization Parallels Desktop Parallels Workstation Parallels ServerParallels Virtuozzo Containers The best of both worlds with Hypervisor and OS Virtualization Automation Complete automation & management of IT systems and processes Parallels System Automation Parallels Business Automation Parallels Infrastructure Manager Parallels Plesk Products

6. 6 Parallels – Optimized Computing TM Production Deployments 250,000+ physical servers 750,000+ desktops 750,000+ containers 100+ Fortune 500 companies Selected Customers GE Siemens T-Systems Cox Jack Henry Bertelsmann U.S. Congress Mayo Clinic Univ. of Penn. KPN Telefonica Sony CNN SAS Hilton Hotels Credit Suisse Intuit Lucent FAA Moody's Veterans Affairs Lockheed Martin “Cox had an immediate ROI of 300%. The templates and the single copies of software make the configuration really simple to manage.” - Keith Hubbard, Server Team Manager, Cox Communications Parallels Customer Momentum

7. 7 7 Parallels Media Momentum Recent AwardsAnalyst Coverage 3 rd Party Reviews & Coverage “If you think of server virtualization in terms of VMware, Virtuozzo will turn that thinking around…” Paul Venezia, InfoWorld Reviewer “OS Virtualization will become mainstream by 2010…for example Solaris Containers and Virtuozzo” John Phelps, Gartner Research VP Parallels – Optimized Computing TM

8. 8 8 The Virtualized Information Technology Optimizing IT Parallels – Optimized Computing TM

9. 9 9 Persistent IT Challenges Parallels – Optimized Computing TM Managing Costs 80% of enterprise data is isolated on low-cost servers suffering from low utilization and management issues. (ESG Consulting) Managing Complexity While IT infrastructure has obviously accelerated the pace, reach and agility of business, it has also introduced a huge amount of complexity into enterprise fabrics. (ACM) Managing Service Levels Despite increasing costs, IT continues to miss expectations of other business units – stability, performance, responsiveness, availability, flexibility, security

10. 10 Addressing IT Challenges With Virtualization Parallels – Optimized Computing TM 10 Number of Virtual Servers Degree of Management & Automation 1 st Generation Virtualization Development & Test Improve Development 2 nd Generation Virtualization Consolidation Lower Hardware Costs Next Generation Virtualized IT Optimize IT OPTIMIZED IT INFRASTRUCTURE Simple Tools Development & Test Legacy Consolidation Server Consolidation Virtual Server Management Consolidated Desktops - VDI Hosted IT Automation SaaS Management & Automation Virtualization

11. 11 Optimized Computing TM with Parallels Parallels – Optimized Computing TM 11 Optimize Test, Development & OS Compatibility Optimize Hardware Usage Parallels Desktop Parallels Workstation Parallels Server Parallels Virtuozzo Containers Parallels Server Parallels Infrastructure Manager Optimize IT Parallels Virtuozzo Containers Parallels System Automation Parallels Business Automation Parallels Infrastructure Manager Parallels Server

12. 12 Benefits of the Virtualized IT with Parallels 12 Next Generation Virtualized IT Infrastructure Optimize IT Parallels – Optimized Computing TM Parallels Powered Virtualized Information Technology Cost Efficient Virtualization of all datacenter workloads Enabling all of the virtualization benefits for every workload Turning IT into Green IT, optimizing energy costs & consumption Complete Automation of IT system processes Provisioning, patch management, disaster recovery, configuration changes Enabling self-management & delegation across the organization Comprehensive Automation of IT business processes Enabling complete accounting and chargeback of resources Automating routine business tasks for running IT organization

13. 13 Understanding Virtualization Technologies Parallels – Optimized Computing TM

14. 14 What is Virtualization? “…Virtualization is a framework or methodology of dividing the resources of a computer into multiple execution environments...” http://www.kernelthread.com/publications/virtualization “…A key benefit of the virtualization is the ability to run multiple operating systems on a single physical server and share the underlying hardware resources – known as partitioning…” Definition by one of our competitors “…software which enables using one computer for something for which you would need multiple computers without it…” Parallels Virtualization Definition Parallels – Optimized Computing TM

15. 15 Overview of Virtualization Technologies Container 1 Container 2 Container 3 Guest OS VM 1VM 2VM 3 Virtual Hardware Virtual Machine Monitor Hypervisor or Standard Host OS Hardware Standard Host OS Hardware OS Virtualization Layer HypervisorOS Virtualization Hardware Virtualization (Hypervisors) Virtualizes access to hardware Create many instances of virtual HW Host OS and each guest has full OS Parallels Server, VMware ESX, Microsoft Hyper-V OS Virtualization (Containers) Virtualizes access to OS Create many instances of virtual OS Single, standard OS kernel per box Parallels Virtuozzo Containers, Sun Solaris Containers, OpenVZ Parallels – Optimized Computing TM

16. 16 Hypervisor Virtualization: Promise vs. Reality Successes Challenges Assessing Hypervisor Challenges Server Sprawl Partial Success Enhance Manageability OS Sprawl Slow management operations Negative Loss of Optimizations Context switching overhead Lack of Scalability Consistent Performance Hypervisors are a necessary but incomplete solution for virtualization Parallels – Optimized Computing TM Fewer Servers Expensive servers are required Increases OS Management Cost Expensive HW SAN required Reduce Cost Dramatically Partial Success

17. 17 Performance Sensitive Workloads 17 Parallels – Optimized Computing TM Performance Sensitive Workloads Must leverage performance optimizations Require lowest possible overhead Require ability to scale to full server resources Hypervisors have lower performance because They emulate hardware and drivers Operating system optimizations are lost Context switching between different OSs is very expensive even with HW support OS Virtualization solves this problem by Leveraging native HW & device drivers Maintainining all OS optimizations Native context switching between containers Hypervisor Approach Container Approach Application VM or Container Virtualization Layer Hardware Possibly Poor Performance Native Performance Optimized Instruction Generic Instruction Performance Optimization Comparison Optimized Instruction Optimized Instruction Optimized Instruction Generic Instruction Optimized Instruction Optimized Instruction 17

18. 18 Right Technology for the Job Optimize Development & OS Compatibility HypervisorsOS Virtualization Optimize Hardware Usage Optimize IT Development & Test Client-based Desktop Virtualization Legacy Consolidation Production Consolidation Performance Sensitive Workloads Consolidation Centralized Desktop (VDI) Business Continuity Software as a Service IT Hosting & Provisioning Parallels – Optimized Computing TM

19. 19 Right Technology for the Job Optimize Development & OS Compatibility HypervisorsOS Virtualization Optimize Hardware Usage Optimize IT Development & Test Client-based Desktop Virtualization Legacy Consolidation Production Consolidation Performance Sensitive Workloads Consolidation Centralized Desktop (VDI) Business Continuity Software as a Service IT Hosting & Provisioning Combined! Parallels – Optimized Computing TM

20. 20 Parallels Virtuozzo Containers Completing IT Infrastructure Virtualization Parallels – Optimized Computing TM

21. 21 Parallels Virtuozzo Containers Introduction Dynamic Resource Management CPU, memory, disk, I/O, all system resources, min/max Live Migration Move containers without service interruptions and w/o shared storage Mass Management Architecture & tools for multi- container/server admin High Density Partitioning Up to 1,000s+ of containers functionally Identical to standalone servers Complete Isolation Security, address, functional, fault and performance Parallels – Optimized Computing TM The leading OS Virtualization Solution

22. 22 Parallels Virtuozzo Containers Advantages Production Partitions Servers, IBM 4 Quad CPU 32GB Server Cost Only 1,000 VMs 40 Servers > $2,000,000 1,000 Containers < 20 servers < $1,000,000 VMware vi3Parallels Virtuozzo Density – 2x to 10x more than hypervisors (VMware, Hyper-V, Xen, etc.) OS/app code and resources shared across multiple Containers Higher ROI/lower TCO – real customer example – not counting power/space: Manageability – lower management costs Single OS, set of devices to manage, fewer apps – solve OS/application sprawl Fastest virtual server lifecycle operations Dynamic, near real-time resource allocation with finest granularity Performance near-native and unlimited Scalability Each container can seamlessly scale up to the resources of the entire physical server (VMware limited up to 4 virtual equal to 2 real CPU/VM) No virtualized hardware enabling access to native server performance Parallels – Optimized Computing TM

23. 23 Parallels Virtuozzo Containers 4.0 – New! Parallels – Optimized Computing TM Ease of Use & Manageability Easier installation, licensing and configuration Improved resource management and control Centralized Update and Template Server Business Continuity Windows Server Clustering support Red Hat Clustering Support Extensive backup enhancements Efficiency Improved Parallels Virtuozzo Containers File System Real time optimization of hard drive resources Architectural enhancements improving stability & efficiency

24. Parallels Infrastructure Manager – New! Design for large-scale deployments 100s of administrators, 1000s of physical servers, 10s of 1000s of Containers/VMs Logical views of the data center, Role-based security & audit, Multi-level Delegation Complete virtualized IT life cycle management Convert, provision, monitor, backup, deploy, recover, analyze, troubleshoot, repair, migrate, self-manage, p2v, v2v, v2p and more Open – Easy to integrate and extend Industry standard: SOAP, XML RPC, CLI, SNMP APIs and SDK, LDAP End-to-end management Upcoming multi-vendor management: Parallels Virtuozzo Containers, Parallels Server, Microsoft Hyper-V, VMware VI3, Citrix XenServer and more Multi-layer including physical, VMs, containers and applications Easy to Use Powerful dashboards for data center staff, easy download, installation and configuration, intuitive wizards and tutorials 24 Parallels – Optimized Computing TM

25. 25 Parallels – Optimized Computing TM Case Study - Consolidation of Production Servers Entire production environment runs on Virtuozzo  600+ Virtual environments in production today  49 Physical servers  3 Administrators All applications run inside Virtual Containers  Databases: MS SQL, MySQL, Business Objects reporting servers  Critcal Applications: processing, licensing, distribution, royality management Simplfied server management through migrations  Quicker staging from development to production  Faster, more dynamic recovery of applications  Zero down-time server management Benefits from Virtuozzo  Increased availability – better SLA‘s  Significant cost reduction – over 75% InfoWorld Top 100 IT Deployments “ All of these applications need to have 100 percent uptime, and they are very demanding in terms of system resources, system scalability, and especially system security.” Lukas Loesche, Director of IT Operations arvato mobile, Bertelsmann

26. 26 Parallels – Optimized Computing TM Case Study – Cardpoint, Plc – Server Consolidation Industry: Financial, Technology Environment: Windows Challenges: Virtualize High I/O Applications  Microsoft SQL and Oracle  BlackBerry Results/Manageability  Deployed New Virtualized Servers with Virtuozzo  Use Old Servers for Redundancy and Disaster Recovery

27. 27 Parallels – Optimized Computing TM Case Study – Kalido – Server Consolidation Industry: Technology Environment: Windows Challenges: Provide QA engineers with replicas of customer environments Deployment: Development and QA Testing Results/Manageability  30% increase in QA response rates and high levels of customer satisfaction

28. 28 Parallels – Optimized Computing TM Case Study - Cox Industry: Cable/Telco Environment: Windows 2003 Applications: Call Center App IT Challenges  Centralized with Remote Access  Legacy App (do not want to update for multi-users) Deployment  Remote Desktop (VDI) Results  3 Admins  300% Deployment Savings (over VMware + Citrix)

29. 29 Parallels – Optimized Computing TM Case Study – Murphy Oil Industry: Gas / Oil Exploration Environment: Windows 2003 Applications: Exchange, MS SQL, File & Print, Domain Controller, RSA IT Challenges: (Katrina) Create Cost Effective Recovery Plan/Build-out Deployment: DR Results/Manageability  Recovery Time Reduced from Weeks and Days to Hours

30. 30 Parallels – Optimized Computing TM Case Study – System Automation Industry: Government as a Service Environment: Linux Applications: Proprietary Software IT Challenges:  Weekly Software Turnover/Updates  Limited Hardware Deployment:  Server and OS Consolidation Results:  85% reduction in management

31. 31 Parallels – Optimized Computing TM Parallels SaaS – ISV Success Stories ISVs support Parallels SaaS! Aretta Communications, Inc. (www.aretta.com), “Once we tried Virtuozzo, the selection of a virtualization solution was obvious. Virtuozzo helped us deliver a SaaS platform which is easy to manage and cost effective.” Marc Fribush, President, Aretta Communicationswww.aretta.com IT Factory, Inc. (www.itfactory.com), ”IBM middleware and SWsoft Virtuozzo provided a secure environment for developing our SaaS applications and our Platform as a Service offering.”www.itfactory.com Carsten Sjorup, Chief Technology Officer, IT FACTORY Scalix (www.scalix.com), “We were able to rapidly deploy our award winning Scalix application utilizing Virtuozzo’s straightforward templates capability. In addition, SWsoft’s SaaS business team helped to match-make us with a Service Provider for immediate launch of our product”.www.scalix.com Florian von Kurnatowski, Director Program Management, Scalix Spreed (www.spreed.com), “SWsoft Virtuozzo OS virtualization architecture for us clearly represents the ideal solution available on the market!“www.spreed.com Niels Mache, Chairman of the Board and CEO of Struktur AG Read the Case Studies at http://www.swsoft.com/en/saas/spotlights/ http://www.swsoft.com/en/saas/spotlights/

32. 32 Summary Try Parallels Virtuozzo Containers today at: http://www.parallels.com/virtuozzo/ View demos at: http://www.parallels.com/launchevent Virtualization enables next generation IT – fully automated and utilized – Optimized Computing TM Parallels is leading the way into the next phase of Virtualization when every workload could be virtualized and all processes automated OS Virtualization is the only solution for performance sensitive workloads virtualization and is the best for Hosting/SaaS Combination of Hardware (Hypervisors) and OS Virtualization (Containers) approach is required to deliver the best value for every scenario New! - Parallels Virtuozzo Containers 4.0 with 100s of new features is completing the solution for Virtualized IT - Optimized Computing TM New! - Parallels Infrastructure Manager delivers complete virtualization management and automation Parallels – Optimized Computing TM

33. 33 Appendix Parallels – Optimized Computing TM

34. 34 Parallels Virtuozzo Containers Descriptions & Architecture Virtuozzo is the most efficient server virtualization technology on the market and the only one that lowers management costs by reducing OS and application sprawl. Virtuozzo Architecture Container 1 Container 2 Container 3 OS Virtualization Layer Standard Host OS Hardware Containers Isolated & secure homogeneous OS Contains defined set of resources Lightweight, resulting in better consolidation OS Virtualization Layer Virtualizes the Host OS Manages resource allocation, including memory, processor, storage and I/O Standard Host OS Full functional OS Maintains all application optimizations Parallels – Optimized Computing TM

35. 35 Key Scenarios Scenario 1. Internal Hosting & Saas 2. Server Consolidation 3. Commercial Hosting 4. Performance Sensitive Workloads 5. Business Continuity 6. Green Computing 7. Virtual Desktop Infrastructure Why Parallels Virtuozzo Containers Best Resource Utilization Best Consolidation Ratio Best Resource Utilization Native Performance Architecture Support for Microsoft & RedHat Clustering Lower hardware, space, power and people cost More Desktops per Server Parallels – Optimized Computing TM

36. 36 Parallels Virtuozzo Containers 4.0 - Features Solid Foundation Complete Isolation Secure Containers New: Server Failover New: Container Failover New: CPU Lockdown 3x more Density High Density Partitioning 1,000’s of Containers per Server Resource Coaching & Linking Updated: Better Resource Utilization Updated: Better Disk Usage Best Manageability Fast Provisioning: New EZ templates Updated: Dynamic Resource Mgmt New: Management Tools Updated: Global Updates (Patch Svr) Updated: Live Migration Native Performance Native Performance Architecture Fast Parallels Operations Container scales to full server New: Device Sharing & Dedication Updated: Network Mgmt & Control Parallels – Optimized Computing TM

37. 37 Comparing Products Scalability Consolidation Ratio VM/Container Scalability Dynamic Resource Management CPU Architectures Performance Overhead Live Migration Time Required to Provision One Virtual Server Global Patching of VEs or VMs Support for SAN, iSCSI, etc. Physical to Virtual (P2V) Flexible Storage Cluster Support Virtual Server Backup Price 20:1 Scales to full resources of server Yes Dynamic Allocation of CPU, Memory, & I/0 X86, x64, Itanium 1-3% Yes 30 sec-1 minute Yes $2,500/Dual CPU 7:1 Limits: 4 CPU SMP & 16 GB RAM Partial Disk space and memory change requires reboot X86, x64 up to 50% Yes 5-10 minutes No Yes No Yes No $5,750/Dual CPU Parallels Virtuozzo Containers 4.0 VMware VI3 Enterprise Performance Management High Availability Price Parallels – Optimized Computing TM

38. 38 New with Parallels Virtuozzo Containers 4.0 Parallels – Optimized Computing TM General Enhancements Clustering  Container Clustering  Server Clustering Parallels Infrastructure Manager Parallels Transporter (Win2K migrations) Improved backup support Windows Specific Enhancements Bandwidth management VSS Snapshots HW Device Forwarding HW Device Sharing Container Footprint Transparency Virtual CPU Improvements Container Kernel Reporting Expanded Networking Support VLAN Support Linux Specific Enhancements Clustering (RedHat Clustering)  Container Clustering  Server Clustering Burstable CPU limit Easier Installation VZFS Upgrade FUSE support Improved I/O Management Itanium Specific Enhancements Live Migration Support Service Level Management Over 100 Enhancements & features

39. 39 Parallels Vision – Optimized Computing 39 Parallels – Optimized Computing TM Usage Model Ecosystem Product Categories Core Technologies Heterogeneous Support

40. 40 Parallels Virtuozzo Containers - Delivering on the promise of the Virtualized Data Center - Delivering on the promise for Performance Sensitive Workloads Parallels Server - Delivering on the promise of Virtualization for SMBs - Delivering same benefits on Linux, Windows, Mac and on Baremetal - Delivering on the promise of Virtualization for Apple Xserves Parallels Automation - Delivering on the promise of the Virtualized Data Center - Delivering on the promise of virtualization for ISVs and SaaS Parallels Workstation - Delivering on the promise of virtualization for workstation power users Parallels Desktop - Delivering OS integration and application compatibility on the desktop Parallels in 2008 Parallels – Optimized Computing TM