Ensim Corporation

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Ensim Corporation
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Presentation Agenda

• Summary Overview
• Market Opportunity
• Ensim Solution
• Business Highlights
• Summary Financials

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I. Summary Overview
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About Us

• Pre-IPO company
• Founded June 1998
• HQ Sunnyvale, California
• World-class expertise
• 26 technology patents in process
• 135 employees
• International presence Europe, Asia
• Series A 3.3MM through leading angels
• Series B Oct99 raised 18MM from NEA, Onset
  and CMEA
• Series C Aug00 to raise 30MM - 40MM

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ProductConceptJan99
Milestones
Raise Series C (50MM) 131 Employees Sep00
29 Employees ServerXchange 1.6 (L)Jan00
26 Employees ServerXchange 1.5 Ken F. - CEO Oct99
Open for Business May00
Founded June98
Oct99 Raised Series B(18MM) NEA
May99 Move to CA
Jul00 120 Employees ServerXchange 2.0
(L,S) AppXchange 2.0
June99 Raised Series A (3.3MM)
Apr00 ServerXchange 1.6 (S)
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Our Progress Since April 2000

• Customer acquisition and deployment
• 9 customers and 30 in evaluationmostly web
  hosting providers
• Traction from Application Service Providers
• Traction from Content Distribution Networks
  (static content, audio/video streaming, and
  application distribution)
• Released ServerXchange v2.0 in July 2000 (six
  application suites available through AppXchange
  v2.0)
• Opened 6 local sales offices and 3 international
  offices
• Grown from 70 to 135 employees

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Current Round of Fund Raising

• Term Sheet signed
• Oversubscribed, with firm commitments for 86MM
• 350MM pre-money valuation
• Valuation based on conservative revenue estimates
• Sufficient capital to fund the Companys
  operations through mid 2002

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II. Market Opportunity
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Current Landscape
application developer
content developer
hosting provider
content distributor
the proverbial Internet cloud
access provider
consumer
small/mid-market enterprise
large enterprise
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Environmental Trends - 1
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application developer
content developer
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hosting provider
content distributor
the proverbial Internet cloud
access provider
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consumer
small/mid-market enterprise
large enterprise
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Emerging Landscape
dynamic content developer
hosting and distribution provider
the proverbial Internet cloud
access provider
consumer
small/mid-market enterprise
large enterprise
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Environmental Trends - 2
dynamic content developer
content distributor
the proverbial Internet cloud
services pushed to the edge
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access provider
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services pulled to the edge
consumer
small/mid-market enterprise
large enterprise
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October 16
April
July
November 4 (ISPCon)
Dynamic Content Hosting

• ServerXchange 3.0
• AppXchange 3.0
• Additional Gorilla Plans

• ServerXchange 2.5
• AppXchange 2.5
• Gorilla Plans

• SX 2.1
• AX 2.1
• WP 2.1

• SX 2.0
• AX 2.0
• WP 2.0

• SX 1.6

Content Distribution Products

• Project D-to-A

Ensim Product Roadmap 2000-2001
Access Provider Products

• EdgeXchange 1.0
• Edge Gorilla Plans

Form Factor and Distribution Deals

• 1U form factor
• 3U form factor (carrier-class)
• faceplate branding/OS opacity

• Project Red Giant

CY 2000
CY 2001
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Targeted Markets

• Web Hosting, Application Service Provider,
  Content Delivery Networks and Internet Access
  Providers
• Solutions designed to allow Service Providers to
  become more competitive in their respective
  markets
• Facilitate management, provisioning and
  administration of hosting operations
• Increase revenue per acquired customer
• Minimize customer acquisition cost
• Maximize the return on their infrastructure
  investment
• Improve customer satisfaction

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Exploding Market Opportunity
U.S. Web Hosting Revenues1
U.S. Small Businesses with Web Sites2
U.S. ASP Revenues3
U.S. Content Delivery Revenues4

• Source Forrester
• Source IDC
• Source IDC
• The Yankee Group

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Service Provider Challenges

• To build operate a scalable and profitable
  hosting business

Growth
Setup
Operations
Management
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Service Provider Challenges
Installing New Servers Provisioning Hosted
Services Managing the Server Farm Guaranteeing
Service Quality Providing Technical
Support Adding New Service Offerings Upgrading
Systems and Software Disaster Recovery Hiring
More IT Professionals Getting Some Sleep
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III. Ensim Solution
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Ensim ServerXchange
Build and Operate a Highly Profitable Hosting
Operationwith a Complete Solution for Every
Phase of the HostingLifecycle
Growth
Setup
EnsimServerXchangeTM
Operations
Management
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Ensim ServerXchange

• Physical Server Setup
• Customer Management
• Create Private Servers
• Instantly Provision Apps
• Fully Automatable

• Ensim AppXchangeTM Connection
• Drag-and-Drop Between Servers
• Grow CPU, Memory, Disk andNetwork Resources
  Instantly

• Customer Self-Administration
• Server Resource Provisioning
• Quality-of-Service Guarantees
• Full Billing Integration
• Simplified Administration

• Instantly Restore Failed Servers
• Mass Administration
• Upgrade Software
• Integrates with Third-PartyManagement Systems

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Ensim ServerXchange in the Data Center
Easy administration and automation tools to
streamline business processes and data center
operations
Ensim AppXchange delivers updates and new
applications to easily accommodate growth
Collects event based billing information
Comprehensive policy based management
Data Center Administration
Easily manage a farm of servers
Reseller self-administration
Domain/Server self-administration
User self-administration
Private Servers allow higher utilization of
servers and rackspace
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Drag, Drop and Click Management
Ensim ServerXchange Maintenance
A Web based interface to configure, backup, and
link to AppXchange
OpCenter
Provides a drag and drop interface to manage
physical servers, private servers, customers, and
services.
Private Server Administration
Allows the private server administrator to self
provision and manage their private server via the
web.
Account Manager
Enables a reseller to manage private servers and
services deployed on the private server
Command Line
Allows private server users to manage their
personal accounts on the private server via the
web.
Allows automation of commonly Performed tasks
Private Server User Administration
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Ensim ServerXchange Technology

• Guaranteed share of resources
• CPU
• Memory
• Disk
• Bandwidth
• Complete Isolation
• Separate Network Addresses IP/Port Space
• Adjustable resources
• Runs off the shelf apps
• Root Access

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Ensim AppXchange
Increase revenue per customer by adding value
added services andapplications. Ease the morass
of managing and paying a multitude ofvendors.

• Enables automated delivery of applications and
  updates
• Handles licensing of deployed applications
• Connection to Ensim
• Allows for automated billing
• Registration and licensing information

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Solving Real Problemswith Easy to Use Solutions
PROBLEM
SOLUTION
Customers want dedicated hosting
Dedicated hosting at shared hosting price
Allocate CPU, bandwidth, memory, and disk space
on-the-fly
Scalability
Fill physical servers with independent, dedicated
Private Servers
Under-utilization
System Administration
Simple GUI for ISPs, resellers and customers
100 utilization of all physical servers
Infrastructure Costs
Private Servers simplify administration
management
IT Personnel
Application Management and Configuration
Ensim manages licenses, billing relationships
Drag-and-drop apps in 5 minutes
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Advantages to Service Providers

• Increases service provider efficiency, revenue
  and profits
• Automates server and application provisioning to
  optimize server capacity and offer applications
  on-demand
• Offer tiered product bundles generating new,
  higher margin revenue opportunities
• Empowers resellers and customers to self-manage
  their hosted environments and applications.

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IV. Business Highlights
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Representative Customers
Representative Partners
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Management Team
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V. Summary Financials
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Business Model
Ensim AppXchange
Ensim ServerXchange

• Pricing
• One time revenue of 25,000 100/mo
• Recurring revenue 30/private server/month
• Model is based on attractive economics
• high margin
• recurring and predictable revenues
• modest upfront capital commitment

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Ensim Corporation
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Service Provider Economics
Service Providers yield substantially more
revenue per rack with Ensim ServerXchange. Rack
vs. Rack Comparison
Without Ensim ServerXchange
With Ensim ServerXchange
Servers in a Rack 30 Monthly Revenue per
Customer 4001 Cost per Server 9992
Servers in a Rack 30 Private Servers per
Server 20 Monthly Revenue per Customer
150 Cost per Server 3,4903 Ensim Solution
Costs Cost of Server Exchange 25,000 Cost Per
Private Server per month 30
Year 1
Year 2
Year 1
Year 2
Total Customers Total Upfront Investment Net
Monthly Revenue Net Annualized Revenue Time to
payback
30 29,970 12,000 144,000 2.5 months
Total Customers Total Upfront Investment Net
Monthly Revenue4 Net Annualized Revenue Time to
payback
600 129,700 72,000 864,000 1.8 months
30 0 12,000 144,000
600 0 72,000 864,000

• Dedicated web-hosting price of DellHost D-3000
  offering. Source DellHost.com
• Source PowerApp.web Appliance. Source
  Dell.com and SBC
• Includes RAM upgrade expense for a 1GB SDRAM
  (4x256) and 18GB SCSI 10,000 RPM hard drive.
  Source Dell website.
• Net of monthly Ensim charge for each private
  server.