Virtualized Hosting Business Models Mike Riolo Director of Sales – Hosting Markets May 8, 2007

May 2007Virtuozzo Business Models2 Efficiency –Highest Density & Performance –Scalability Manageability –Capable of mass management –Near Real time Resource Allocation Full Isolation and Security –Potential Root Access for each VE –End-user freedom Management Tools –Multi-node, multi-VE –Provider, Reseller, end-user Zero-Downtime Migration –No shared storage needed –P2V, V2V or V2P Extensive Platform Coverage –Windows and Linux –x86, x86-64 and IA64 Virtuozzo Advantages for Hosting

May 2007Virtuozzo Business Models3 Hosting Offerings & Deployment Uses True VPS Managed VPS Dynamic Dedicated Split Dedicated Virtualized Infrastructure Split Shared SaaS Hosting

May 2007Virtuozzo Business Models4 Best Practices: Keep competitive price level Bundle Control Panel Offer Windows and Linux Offer some Performance Guarantees Creative marketing is possible Customer Benefits Complete Isolation makes it better than shared Significantly Cheaper than dedicated Easier than dedicated > MANAGED and tools/recovery Functionally equal to dedicated Provider Benefit New Revenue Stream Much more profitable than dedicated Up sell opportunity for shared customers Plesk VPS/Server True VPS virtualized partitions per server packaged with subset of low- end dedicated server services and priced at $20+ /month price range True VPS

May 2007Virtuozzo Business Models VPS/Server Customer Benefits Guaranteed SLA Upgrade SLA or to VPS/DS/DDS Customized application set Additional managed services Potential for Root control level Provider Benefits Higher Revenue/customer Fully integrated and automated offering Never leaving to dedicated Best Practices: Offer for shared customers and move to VPS with the same control panel Sell additional services like back ups and Marketing services Managed VPS - offering fully managed VPS to the customer with shared hosting like control panel without default root access Managed VPS HSPcomplete PEMIn-house System

May 2007Virtuozzo Business Models6 Customer Benefits Complete Self-management Easy upgrade for scalability Burstable Better availability, hardware Provider Benefits Saving - HW, Electricity, Datacenter Automatic provisioning and management Easy upsell and migration VZMC VZPP & Plesk Migrate/Upsell 1-50 DS/Server Best Practices Both Linux and Windows Self Management Panel Control Panel Properly sized, packaged and priced Dynamic Dedicated Servers (DS/DDS) - dedicated-like virtualized services which are packaged and positioned as a better alternative to dedicated and sold at somewhat similar prices Dynamic Dedicated Servers

May 2007Virtuozzo Business Models7 Customer Benefits Utilizes the resources better Few Apps/Panels on 1 server Allows resellers to sell VPS/DDS Provider Benefits Better offering for resellers Not competing with customers More revenue per server VZMC, VZCC and/or Plesk VPS/Server Best Practices: Just another OS option Browser based interface Control Panel packaging for customer Market to Resellers & SME Split-Dedicated – dedicated server is provisioned with Virtuozzo on it and management interface is provided to the channel or end customer Split-Dedicated

May 2007Virtuozzo Business Models8 Provider Benefits Decreases cost and allows to buy better/reliable servers Convenient provisioning, re-provisioning, backup, restore, Migration, monitoring Customer Benefits Lower costs for services More reliable DNS Shared Mail Shared Web Server mutual backup Billing DB E-Commerce CMS Firewall VZMC 1-500VPS/Server Best Practices There is no downside P2V could be used for easy migration Market it! Virtual Infrastructure - when all aspects of provider infrastructure are run on virtualized servers CRMERP Hosted Apps Portal Shared Virtual Infrastructure VPS Server VZCC

May 2007Virtuozzo Business Models9 Customer Benefits Higher uptime Predictable performance Opportunity for more services for the same price Provider Benefits Higher density – lower risk of “crazy” scripts Convenient backup and restore Migration for maintenance and upgrades 3-10VE/Server 100 Accounts/VPS VZMC Migrate Websites Best Practices Really very straightforward P2V tools could be used to migrate Split-Shared - when shared hosting accounts or services running on a single server are split into several VE for manageability and isolation purposes Split-Shared HSPcompleteVZCC

May 2007Virtuozzo Business Models10 SaaS Hosting SaaS Hosting – utilizing Virtuozzo to deliver solutions or applications (as opposed to resources) to individual customers Customer Benefits turnkey solution for any business need less expensive and more predictable than in-house flexible & scalable 24x7 support Provider Benefits higher attach rate higher revenue per customer attracts new types of customers Best Practices offer managed and unmanaged market services not resources focus on vertical market applications Truly Isolated Applications VPS Server Applications Application 1 - $99 / month Collaboration and more – 2 user license Application 2 - $149 / month Business process and CRM – 5 user license Application 3 - $499 / month Web conferencing – 1 simultaneous conference Application 4 - $499 / month Dental office suite – 10 seats Application 5 - $999 / month ERP / inventory management – 20 seats

May 2007Virtuozzo Business Models11 True VPS/DDS - Computer resources HA VPS/DDS - Computer Resources - Infrastructure Services - Clustered Solution Virtuozzo Business Models Evolution Managed VPS/DDS - Computer resources - Infrastructure Services SaaS VPS - Applications - Upgrades - App and Infrastructure Services - Licensing - SLA SOLUTION HOSTING

May 2007Virtuozzo Business Models12 Summary Virtualized offerings are becoming more mainstream Virtuozzo is the best Virtualization software for the Service Provider market Offer many different Virtualized Business Models SaaS is the future – Virtuozzo will make it more efficient and profitable! Your customers want these services – EVEN IF THEY DON’T TELL YOU!