1. B2C Hosting March 21, 2012

2. 2 Executive Summary Business Problem: The primary goal of the project is to provide a world class web hosting Infrastructure and web engineering support for Sony Pictures customer facing web sites and web applications. Currently, it’s targeted to support three major line of businesses within SPE. -Sony Pictures Interactive (Sonypictures.com) -Produces award-winning content, websites and comprehensive digital marketing of Sony Pictures Entertainment business and Production units -Crackle (SPT Crackle.com) -SPE's premium video website featuring high quality original content and television shows, and feature films from the studio's library -SPTI (SPTI Production and Platform Development) -Sony Pictures Television (SPT) hosts over 70 discrete branded international websites for AXN, Animax, and Sony Entertainment Television Worldwide Issues with the current model are: -Satisfactory support from SNEI -High cost of hosting & support

3. 3 Proposed Solution The services provided by of IST will include: - Systems Administrations/Engineering Service o OS Management (Primarily LAMP stacks) o Systems Monitoring - Web Farm Management Service o Virtual Hosting Management (Apache Virtual Hosting and release management) o URLs / Redirect Management (New URL redirect and update) o File Management (Web content publishing management) o Scheduled Publishing Management (Web content publishing management) - Network Management Service o Web Hosting Network Core Infrastructure management o Web Network Security including Firewall and Intrusion Detection management o Network Protocol Analysis and bandwidth management for billing o VIP and DNS update service - Application Management Service o Open source application management such as Tomcat, Alfresco CMS, vBulletin, Google search - Database Management Service o Enterprise MySQL, and MS SQL management - Storage/Backup Management Service o Web Hosting Shared Storage management o Storage and backup monitoring Host the websites within SPE’s data center and create a new group, Internet Systems Technology (IST), to support these sites.

4. 4 Executive Summary Project Costs Software:$ 0K Hardware$ 1,073K Internal Labor:$ 222K External Labor: $ 271K Other/Miscellaneous$ 0K Total Year One Costs:$ 1,566K FY 13 Project Benefits Hard $ Benefits:$ 1,094K Soft $ Benefits (Error prevention): $ 0K Soft $ Benefits (Efficiencies): $ 0K FY13 Project Benefits:$ 1,094K Five-year Summary and Payback Five-year total costs: $8,450K Five-year total benefits: $9,912K Five-year net benefit: $1,461K Internal Rate of Return 24.7% Net present value @ 10%: $622K Payback: 37 months This project is in the FY13 Budget Funding Needed FY13 $ 0K Funding Needed FY14 $ 0K Funding Needed FY15 $ 0K Total Project Costs $ 0K Depreciation: On Going Costs: $ 1,403K

5. 5 Benefits Cost Avoidance $1,896K  1,020K SonyPictures.Com Hosting & Support  876K Crackle.Com Hosting & Support Risk Mitigation $0 00

6. 6 AprMayJunJulAugSepOctNovDecJanFebMarAprMay Project Timeline 20122013 Infrastructure Build Out Migration Of Crackle.Com Hire & Build ITS Team Migration of SonyPictures.Com Migration of First SPTI Web Site Creation of Support Process

7. 7 Appendix

8. Current Operating Cost Sony Pictures Interactive (Sonypictures.com) –Avg. $85,000 per month to SNEI ($1.02M per year) Sonypictures.com - $70,000 per month (example below) Adam Sandler - $6,000 Games Network – $10,000 Crackle –Avg. $73,000 per month ($876K per year) $63,000 per month to Level 3 Colocation datacenter in Emeryville $10,000 per month to SNEI for Systems/Network Support –Crackle expects to reduce their hosting budget drastically, if they can move out of Level 3 datacenter. They expect the hosting fee should be under $45,000 Sony Pictures Television International –Avg. $15,000 per month ($180K per year) to CopperFrog Drupal Hosting provider DESCRIPTIONRATEUSAGEUNITSTOTAL Total Fees Bandwidth – Backbone$9142.8Mbps$1,285 Managed Storage$2.003,560.0GB7,120 Production$1,56527Instance42,255 Non-Production1,15515Instance17,325 TOTAL INVOICE$67,985

9. Infrastructure Initial/Operating Cost Analysis

10. High Level Migration Plan 1.Build out Core Infrastructure at El Segundo Datacenter 1.Order 2 x 10G IP transit cross connect and Infrastructure Hardware 2.Order ARIN for AS and Portable IP space 3.Setup production network, VPN to peers, server farms, and storage 4.Setup Monitoring systems 5.Setup/Migrate Incident/Service ticketing systems 2.Validate Infrastructure fail-over 1.Validate BGP, HSRP, VRRP for network fail-over 2.Validate Server Load balancing and NAS Storage controller fail-over 3.Perform Infrastructure security assessment 1.Address any critical security issues 4.Critical Services Migration 1.DNS Migration (Service from SNEI to UltraDNS) 2.Web Farm Migration (initial Apache image migration) 3.Storage Migration (data migration from SNEI to SPE) 4.Database Migration (MySQL data migration from SNEI to SPE) 5.CDN Updates (Content Distribution Network updates for the new Origin servers) 5.Load Testing 1.Prepare environment for real load simulation from the external load test vendor 2.Run simulated peak load along with DDoS simulation (Network, Server, and Storage fail-over and design validation) 3.Make necessary design and configuration changes to the environment if needed 4.Run another load test for the final confirmation of the Infrastructure performance 6.Final Cut-over 1.Communicate with line of businesses 2.Synchronized all data from SNEI to SPE (Storage, Web/Server configuration, and Database) 3.DNS Cut-over 4.Validation