Serguei Beloussov

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Optimized Computing for Hosting and SaaS

• Serguei Beloussov
• CEO
• May 19th, 2008

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Welcome to the 3rd Annual Parallels Summit

• Over 500 attendees this year from 20 countries
• A little over 220 attendees last year, around 150
  in 2006
• Over 80 ISVs are here. SaaS for Hosting is
  happening?
• Last year less than 10 ISVs attended
• 37 sessions on 3 tracks
• Last year 25 sessions on 1.5 tracks
• Next year summit expect over 1000!
• Special Welcome To Our Platinum Partners

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Special Thank You to Our Sponsors

• 30 Sponsors and Exhibitors this year

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Agenda
Service Provider Industry Update
Parallels Vision
Summary
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Traditional Hosting Mature, Growing but Slowing

• Hosting grew to 8.2B in 2006 (from 6.8B in
  2005)
• US Market represents only 50-60 of worldwide
  market
• By 2011, the market is predicted to grow to
  16.4B

• Trend 1 Traditional hosting market is
  established and growing, but slowing down
• Trend 2 Managed hosting and SaaS are the
  growing segments
• Key Point Changes may be required to sustain
  revenues and continue growth

source IDC presentation at 2007 Parallels
Hosting Summit
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Traditional Hosting Industry Update

• Industry matured- You've grown a lot too
• Its no longer some niche vertical market
• But this could also mean there is more to lose!
• Continued consolidating
• Hostway-gtAffinity, Layered-gtFastServers
• 1and1 and Endurance -gtmultiple acquisitions,
• Melbourne IT -gtWebCentral
• Rackspace just filed for an IPO
• Good for them, good for the industry, read the S1
• Whom could they acquire?
• Virtualization continued to grow and
• replace physical infrastructure
• Enabler of SaaS and contributor to overall
  industry
• revenue/profit growth
• Managed Hosting becoming cheaper and
• accessible from more players
• Virtualization and Automation are enablers
  Parallels is working on it

Get More Revenues with SaaS Tomorrow
1045-1130am
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Internet Giant Google

• Google targeting SMBs with SaaS
• Google Sites (collaboration)
• Google Apps (productivity tools)
• Google historically was not too friendly with
  ISVs or hosting providers

Competitor to providers offering Hosted
SharePoint services.
Google productivity tools for small and medium
sized businesses.
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Internet Giant Microsoft

• Microsoft targeting SMBs with SaaS
• Exchange Hosted Services (recent announcement)
• Workspace (file sharing for office applications)
• Small business (web site and domain tools)
• Microsoft is partnering with ISVs and hosting
  providers
• Take advantage of the opportunity

New offer is targeted at SMBs as well as large
providers.
Online file sharing for office applications. may
include advertising
Template-based websites with branded email and
shared workspace.
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Internet Giant Amazon (and others SFDC)

• Amazon Web Services?
• S3 Amazon Simple Storage Service
• EC2 Amazon Elastic Computer Cloud
• WebStores targets merchants

Found Web Services after scrolling down (not in
the main departments).
Complex usage-based fees which are not understood
by typical SMBs.
Compete with e-commerce offerings - 60/month
plus 7.
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Conclusion Giants are Fighting

• Google is changing the world
• And is a true new monopoly regulators shall
  watch it (!!!)
• Microsoft is addressing Google
• Microsoft was always friendlier than Google to
  partners/3rd party
• But it must address Google threat
• Every other giant IT company must react
• Online Amazon, eBay, FaceBook, Yahoo!
• Application SalesForce, Oracle, Intuit
• Hardware EMC Cloud Computing, IBM Global
  Services, HP acquires EDS
• SI/VAR entering managed hosting space, have huge
  assets to leverage
• When forest is cut, woodchips will fly
• English You cant make an omelette without
  breaking an egg
• Dangerous times are coming for all channel and
  smaller players
• Every time paradigm shift happened channel and
  ecosystem reshuffled
• IT is moving off the premise Threat and
  Opportunity

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Could Hosters Do The Same?

• Stay Competitive not lose customers
• Pricing
• Be paranoid about efficiency
• Service Levels
• Full Automation and Self Management
• Critical Service Offerings
• Business Class email
• Office applications
• Channel Offerings
• Business Line Applications
• Online Marketing integration
• Host/own your customers and partners data
• In the worst case own the customer only
  white-label resell of others services

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Could Hosters Do Better?

• Differentiate new customers and revenues
• Broader Set Service Plans
• Broader set of services
• Many types and kinds of applications
• Example Blackberry, Goodlink, Antivirus,
  Antispam for HE
• Virtual dedicated Servers (customer chooses)
• Better flexible upgrade path
• Variety of workloads
• Variety of sizing options
• Automatic upgrades
• Stay close with your customers and partners
• Example Share customer ownership with partners
• Choose between coopetition and cooperation for
  example Microsoft is a good partner but is
  Google?

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Agenda
Service Provider Industry Update
Parallels Vision
Summary
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Parallels Vision How to Sustain, Improve and
Grow?
Partnerto staycompetitive
Automatefully or not survive
Virtualizeor loseprofitability
Standardizeor stopgrowing
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Partner Why Parallels is a Solid Partner for You
Partnerto staycompetitive
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Partner Parallels Today
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Partner Parallels Organization Update

• Renewed focus on the Service Provider market
• Two business units
• Service Provider Consumer Business.
• Focused Service Provider Unit Management

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Partner Investing in Partnerships and Platform

• Parallels Alliance Program
• NEW program for select Service Providers
• Rob Lovell, Director Alliance Program
• Parallels Technology Partner Eco-System Team
• Focused on development of ISV/SaaS ecosystems for
  hosters
• Soeren Von Varchmin, VP SaaS
• Babak Soltani, Business Development
• Patrick Correia, SaaS Marketing
• Ilya Baimetov, Director Program Management
• Parallels Open Platform Team (New!)
• Best engineering management resources
• Nick Dobrovolskiy, VP Parallels Open Platform
• Development Network Team (8 engineers)
• External Platforms Team (13 engineers)
• Internal Systems Team (10 engineers)

Partnering with Parallels - What We Can Do For
You Today 445-530pm
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Partner Parallels In The Past 12 Months

• Acquisitions
• Helm, H-sphere, Sphera, Ensim Pro and
  ModernGigabyte
• Reasons customers, channel, finance, expertise,
  engineering offices
• Complete integration with (former) Parallels
  Division
• Accelerated delivery of Parallels Open Platform
  for Service Providers (600 engineers and lots of
  IP to cross-leverage)
• Shipped over 1mln Parallels for Mac units
• Are you using Mac with Parallels? Your customers
  are! Buy it through our Partner TekServe here
  (special offer)
• Number of major releases
• Parallels Server Beta4 (try it), Parallels
  Virtuozzo Containers v4, Parallels Automation
  modules MS CRM, Parallels Virtual Automation,
  etc updates to all Parallels Plesk products
• Adopted common company brand across all products
• Parallels is now recognized by millions of people
  across the world

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Partner New Company Logo, Tagline, Assertion

• New Logo Brand
• Tagline
• New Assertion

Optimized ComputingTM
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
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Partner Parallels Vision Optimized Computing
Baremetal/ Hosted X86/x64
Xen
Windows Hyper-V
Linux
Mac OS
IA64
VMware
System Support
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Partner Parallels Products Focused Now!
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Automate Parallels End-to-End Automation
Automatefully or not survive
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Automate Complete and Integrated
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Automate Parallels Automation Momentum

• Over 100 hosters with over 500 automation modules
• Total live sites

2004 2
2005 7
2006 36
2007 80
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Automate Service and Value Creation with
Parallels

• Automating full lifecycle of hosted service and
  software
• Installation, provisioning, management,
  configuration, upgrades, backup, monitoring, DR,
  license management
• For you, your customers, your resellers,
  end-users, and affiliates
• For single tenant, multi-tenant and service
  applications
• For admin, support, finance, marketing and sales
  personnel
• Allowing to deliver full range of services
• Sophisticated, integrated, broad and profitable
  service offerings
• For consumers, SOHO, SMB, and enterprise
• For variety of vertical industries
• In multiple geographies
• Under multiple brands
• With fully integrated back-office
• Billing, ordering, invoicing, service management,
  business intelligence, help-desk, customer
  communication, etc.
• Let our 350 automation engineers help to build
  valuefor You and Your customers!

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Virtualize Parallels Complete Virtualization for
Hosting
Virtualizeor loseprofitability
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Virtualize Parallels - Best of Both Worlds

• 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 Containers
• Virtualizes access to OS
• Create many instances of virtual OS
• Single, standard OS kernel per box
• Parallels Virtuozzo Containers,Sun Solaris
  Containers, OpenVZ

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Virtualize Introducing Parallels Server

• Powerful Hypervisor
• Bare metal architecture w/ hardware accel. for
  optimal performance

Same Tools and APIs as Parallels Virtuozzo
Containers Managed through Parallels Virtual
Automation
Service Level Management Granular control of CPU,
memory, disk, networking, I/O (w/ dedication)
Live Migration Move virtual machines with no
service interruptions
Data Protection Backups and snapshots ensure
data and applications are protected
Parallels Server Demonstration Today 445-530pm
Parallels Server 3.2
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Virtualize Parallels Virtuozzo Containers 4.0
New!

• 100 New Features Enhancements including

Parallels Virtuozzo Containers Roadmap and
Demonstration Tomorrow 1045-1215pm
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Virtualize Right Technology for the Job
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Virtualize Integrated Virtualization Offering
Integrated Virtualization Offering
Zero Copy Migrations (Restart) UI
Integration Single API Single Command Line Single
Format Unified Templates/Appliances Unified
Management Side by side Upgrade Unified License
Keys
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Standardize Parallels Open Platform APS
Standardizeor stopgrowing
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Standardize APS and Parallels Open Platform
Overview

• Parallels is building an eco-system for SaaS
• ISVs, developers, Service Providers, other
  industry players.
• Standards, programs, support, collaboration, and
  certifications.
• Application Packaging Standard
• Unified delivery of applications in hosted
  environment
• Enabling ISVs and Hosters work together
• APS Catalog and Marketplace
• Collection of APS applications and collaboration
  effort with all partners
• Integrated with all Parallels Automation Products
  
• Virtual Templates and Appliances
• Ready to use applications for you.
• Integration with Parallels Virtualization
  Products
• Automation Development Platform
• SDK, Libraries, APIs, Specifications, PTN, dev
  resources
• Allows to extend or integrate Parallels
  Automation products

Application Packaging Standard Today
1045-1130am(Visit Demo Station if missed)
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Standardize Application Packaging Standard (APS)
Success

• Over 166 Applications and Growing
• Web Apps, collaboration, personal productivity,
  infrastructure, line-of-business, and more
• Commercial, Open Source, Windows, Linux

• Hosting Providers Support

• ISV Support

ARSIDIAN LLC
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Parallels Complete Service Provider Vision
Partnerto staycompetitive
Automatefully or not survive
Virtualizeor loseprofitability
Standardizeor stopgrowing
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Parallels Optimized Computing for Hosting and
SaaS
Partnerto staycompetitive
Automatefully or not survive
Virtualizeor loseprofitability
Standardizeor stopgrowing
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Agenda
Service Provider Industry Update
Parallels Vision
Summary
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Cool Note Parallels Desktop Virtualization

• Parallels Workstation (Lin/Win)
• Run different OSs on your desktop
• Parallels Desktop for Mac
• Run Windows on Mac.
• Mac now represent 7 of US PC market. Up-to 20
  among your customers
• Mac is Cool - good for promos
• Ask us about special discount program foryour
  employees and customers

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Summary

• Hosting market has matured but continues to grow
  and could accelerate with SaaS
• Number of new (threatening) entrants as market
  becomes truly large
• Parallels is 100 focused on being the best
  partner helping hosters to compete with bigger
  entrants and benefit from the opportunity
• Over 700 engineers focused on Virtualization and
  Automation. Close to 10 years in this market
• Automation is mandatory to survivie in this
  changing environment
• Automation brings efficiency and is the only way
  to compete with bigger entrants
• Virtualization is important enabler and driver
  behind the profits
• Parallels provides complete virtualization stack
  with both hypervisor and containers on the
  server and desktop
• Parallels is building an Eco System to enable you
  take advantage of SaaS
• Parallels Open Platform and most importantly
  APSstandard!

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Call to Action

• Learn about APS www.apsstandard.com
• Do not forget our industry track SaaS starts
  with software
• Visit Demo Stations for all our products
• Parallels Automation (all products)
• Clustered set-up of Parallels Virtuozzo
  Containers
• Parallels Server Beta4
• Parallels Plesk Control Panel 9 Preview
• Take advantage of special Parallels for Mac
  Offers
• We do NEED your feedback
• Please do submit suggestions www.parallels.com/fee
  dbackon how we can improve and (maybe) win a
  prize
• Next year summit is January 2009
• Over 50 of Parallels employees are here will be
  happy to arrange meetings, answer questions and
  more!
• Hope you could find red shirts in the crowd!