Traditional Telecom Channel Partners Selling Cloud Computing New logo in upper left, The Cloud Services Company replaces the AIS in the footer Whack current icons, replace with 5 new cloud icons (try with new gray/white treatment) Traditional Telecom Channel Partners Selling Cloud Computing Narrated by Tim Allen, CSO

Why Traditional Channel Partners should sell Cloud computing Agenda What Evolve IP Does Why Traditional Channel Partners should sell Cloud computing How Evolve IP helps Traditional Telecom Partners Sell Cloud Computing Case Study – Butz Construction Update bullts to new shape

The Nation’s Only Single-Source Cloud Services Provider Today, dozens of traditional telecom agents have combined to generate over $200,000 of Monthly Recurring Cloud Computing Revenues for Evolve IP selling cloud services like virtual servers, virtual desktops and disaster recovery solutions containing off site Data Back Up. Built from the beginning to provide organizations with a unified option for cloud services, Evolve IP enables businesses to migrate all or select IT technologies to its award-winning virtual private cloud. Show multiple services in a single cloud

Why Traditional Channel Partners Should Sell Cloud Computing 82 percent of Mid Sized Company IT budgets in 2013 were spent on computing related expenses. Only 18 percent of IT spend for those organizations is on telecommunications.

More Work, Less money Competitive PRESSURE in Telco Markets Why Traditional Channel Partners Should Sell Cloud Computing Competitive PRESSURE in Telco Markets 2010 – PRI and Internet T1: $1,200.00 MRR Monthly Income to Partner at 15% = $180.00 Typical 50 Person Company 2012 Renewal – PRI and 5Mbps EOC: $1,080.00 MRR Monthly Income to Partner at 15% = $162.00 More Work, Less money

Cloud Model = More Money? Why Traditional Channel Partners Should Sell Cloud Computing Enter the Cloud Hosted PBX and Call Center Services 2012 – PRI and 5Mbps EOC: $1,200.00 MRR Hosted PBX 50 users: $2,000.00 MRR Cloud Model = More Money?

Triple Your Income Addressing the other 82% Why Traditional Channel Partners Should Sell Cloud Computing Addressing the other 82% Hosted PBX 50 users: $2,000.00 MRR Cloud Services 50 Users: $6,000.00 MRR (minimum) Triple Your Income

Selling any transformational technology takes… Go To Market – Teaching Traditional CPs to Sell Cloud Computing Selling any transformational technology takes… Time Discipline Commitment to a process We have created a consultative sales process we call “making cloud deals F.L.O.A.T.” We teach our traditional CPs how to identify opportunities that are “On Time” (the O in FLOAT) with their customers and prospects in the other 82% Carrier contracts renew every 2-3 years; PBXs age every 7-10 years; BUT every business has something in their IT budget this year that they don’t have the money for, skill to do or time to implement. This increases their chance of engagement in an opportunity and fends off the VAR from moving into their territory. *From there we supply resources and tools to go through the rest of the process F = Financial viability L = Love the value of the solution O= On Time (above) A = Alignment of all key stakeholders T = Technical Fit *See next Slide * Change to picture with yellow boxes pointing out features…..

Projected Path TCO Process Go To Market - The Sales Process – FLOAT and PP TCO The Sales Process Projected Path TCO Process Evolve IP has developed a Strategic Selling Process called FLOAT that enables all channels to identify and qualify opportunities then take them through the financial, Logistical and technical steps necessary for closure As part of the process, Evolve IP has developed tools to quantify the Total Cost of Ownership of the cloud-based model versus the traditional premised based model

Calculating your monthly costs in the Cloud is easy! Go To Market – The Sales Process – Addressing the “F” – Financial viability Calculating your monthly costs in the Cloud is easy! Accurately Projecting forward your costs for the alternative premise solution is more difficult! Change to picture with yellow boxes pointing out features…..

Unlocking Full Case Study available (06/10) 11

Data Center Infrastructure Costs Power & Environmental Software & Licensing Costs Maintenance Costs Disaster Recovery Costs Intangibles Support and Training Costs

Case Study – Butz The Customer: Alvin H. Butz, Inc. was founded in 1920 and has been continuously operated in the Lehigh Valley by the Butz family since 1920.  Butz provides exceptional, comprehensive construction management services, led by strong values and complete customer satisfaction.  The firm possesses significant experience in the construction of healthcare facilities, colleges/universities, corporate office buildings, hi-tech manufacturing facilities, sports and entertainment venues, government buildings, K-12 schools and retail buildings.  The Problem(s): Small IT staff; large and demanding user community (170 users) across 6 offices Multiple production data centers to manage; not fully integrated Aged hardware and software environment; failing e-mail, poor desktop performance, running out of storage Heavy client applications (CAD, Revit) require high refresh rates of physical PC’s and Laptops and expensive to maintain (RAM upgrades) Extensive downtime – network, power issues, printing, and competent but limited IT resources Users unhappy with performance on Citrix – running end-of-support versions and faced with refresh Disparate phone systems – some premise, some hosted – no integration or organizational transparency WAN is slow, unreliable, and QoS was not implemented properly How Cory Communications helped: Corey was engaged in the process to help the customer identify, evaluate, and recommend outsource options for the WAN and HPBX services Corey identified the IT challenges in the their discovery process and convinced the customer that Cloud Computing may be an option to consider for solving their problems while eliminating future capital investment, providing a more stable WAN architecture, and seamless enterprise hosted PBX Corey spent time to fully understand the existing challenges of the client and identify all areas of deficiency After extensive service provider evaluation, Corey engaged Evolve IP as a partner who can meet all requirements within a unified cloud solution and still meet the demanding needs of the users

Triple Your Income Case Study The Process: Cory determined that the client had an immediate problem and that they were “On Time” Cory engaged Evolve IP and the customer in extensive “Technical” design and discovery process to determine the best solution to meet all of the IT, business, and strategic needs of the enterprise Cory and Evolve IP, through a series of meetings over 4 months, delivered – presentations, demo’s, and diagrams to the technical and financial team of the customer to tailor the solution that they “Love” and meets their specific needs Cory and Evolve IP then requested the technical and financial decision maker to allow us to present our solution to the executive team and technology committee to gain “Alignment” of all key stakeholders in the process The Alvin H Butz, Inc. executive team approved the technology pending a completed Projected Path Total Cost of Ownership analysis to ensure the solution had “Financial” merit over the alternative. The Solution: (170) Evolved Office Desktops, Hosted Applications, (7) vServers with file storage, Reflection Data Back-Up, and MPLS WAN services for 6 offices with management HPBX will be signed within 4 weeks for all offices The Prize: WAN ($4800) + HPBX ($3400) = $8200.00 MRC Desktop, vServer, Applications, and Back-Up = $20,200 MRC Triple Your Income

Case Study- John Glover About : The John M. Glover Agency has been servicing the insurance needs of the Fairfield County area for over 30 years. They operate 15 locations throughout CT, NY, and NJ and support over 140 users. Customer challenge: As a former Citrix client, they were experiencing many issues with desktop integration of Microsoft applications, SQL, Line of Business applications, MAC support, email stability, and ongoing printing issues. In addition, there were other issues with voice services since they were attempting to house their existing premise-based telephony system in a local Colocation facility. These applications were supported by multiple vendors and those vendors were not working together to resolve their issues. Evolve IP’s solution: We provided a fully integrated Desktop and Server solution that housed all of their Microsoft, SQL, and Line of Business applications. Our solution, based on VMware’s infrastructure was able to provide a “true” Windows 7 experience. This enabled us to mitigate the printing issues, support a fully hosted Dedicated Exchange environment, and provide universal support of all devices, including their MACs and their existing thin client technology. From a network perspective, we delivered 20MG of Fiber to their HQ and connected all of the outlying offices to their core via the existing broadband connections. The end result has been a significant reduction in downtime and an increased return on revenue by providing an on-demand quote engine that is not susceptible to constant downtime. The Partner: By identifying an “On-time” opportunity with the client, Provado Technologies, our Evolve IP Partner, was able to secure not only the infrastructure but replace their entire telephony system with Evolve IP’s Hosted PBX. This account is currently billing $28,000 per month after starting out as a $8,000 HPBX Opportunity.