w w w. s w s o f t. c o m SWSOFT GLOBAL HOSTING SUMMIT 2006 Virtuozzo Update and HA Deployment Scenarios (shortened). Jack Zubarev, COO May 2006

w w w. s w s o f t. c o m 2 Tactical Industry Challenges Facility Related Challenges ▪Data center inventory is shrinking ▪Building out from scratch is long and capital intensive ▪Rising power use, costs and capacity Hardware Related Challenges ▪Hardware vendors offer bigger/faster servers per unit price – but it usually exceeds customer requirements ▪How easy is it to provision, manage and support 1000s of servers over many years? ▪What to do with the old hardware? Customer Related Challenges ▪Low End: Shared hosting competition from Google, Yahoo!, and Microsoft ▪Mid Level: Budget-conscious customers drive down prices of low-end dedicated servers. They prefer direct control over their hosting environment, but use only a fraction of server’s capacity ▪High End: Developers of fast-growing web-applications demand rapid, seamless scalability

w w w. s w s o f t. c o m 3 Dynamic Partitioning of servers into hundreds of VEs with full dedicated-server functionality - root access, re-bootable, install any application, change any file, any IP settings Resource Management – CPU, memory, disk, I/O + min/max values and full isolation Migration allows VEs to be moved between physical machines w/zero downtime Mass Management – Tools and OS & Application Templates to enable automated mass management/deployment/updates of 10s of 1000s of VEs and 1000s of servers Virtuozzo creates multiple isolated Execution Environments or partitions or Virtual Environments (VEs) on a single physical server to share DC, hardware, software and management effort with maximum efficiency. Works as light add-on for commodity operating systems and hardware : Operating System Virtualization OS Virtualization OS Physical Server #1Physical Server #2 OS Virtualization OS Execution Environment #1 root user App 1 App 2 Execution Environment #2 user root user App 3 Execution Environment #3 root user App 1 App 2 App 3 Execution Environment #5 user root user App 1 App 2 Execution Environment #4 user root App 1 Execution Environment #1 root user App 1 App 2 Execution Environment #1 root user App 1 App 2 user Execution Environment #6 user root user App 1 App 2 Execution Environment #7 user root user App 1 App 2 OS App 2 App 4 Provision Update

w w w. s w s o f t. c o m 4 Virtualization Provider Benefits Enables dedicated-like services with shared- like economies and infrastructure ▪Efficiency: direct cost savings, cashflow savings and oversell opportunities Hardware Electricity Datacenter ▪Simplicity and Flexibility: Zero cost of provisioning and automated management Comprehensive self management decrease support Better security Upgrade and migrate customers dynamically with no downtime Main result: GROW REVENUE FASTER! ▪More customers with new high margin services and pricing ▪Upsell existing customers automatically ▪Differentiate from Google, Yahoo! and Microsoft Live!

w w w. s w s o f t. c o m 5 Virtualization End-Customer Benefits Pay less ▪Better price for better service ▪Easily upgradeable ▪Burstable service Get more ▪Easier and less to manage ▪Comprehensive self management ▪Higher availability and performance: more reliable and faster hardware and disk systems zero downtime migration faster management operations ▪Sophisticated backup/restore capabilities Why not: There is nothing to lose! ▪Suitable for low-end, mid-level and high-end customer

w w w. s w s o f t. c o m 6 Best Practices: Keep competitive price level Bundle Control Panel Offer Windows and Linux Offer some Performance Guarantees Creative marketing is possible Customer Benefits Significantly cheaper than dedicated Somewhat easier than dedicated > MANAGED and tools/recovery Functionally equal to dedicated Provider Benefit Much more profitable than dedicated Not competing with resellers Prepares for dedicated Confixx Server 37 Plesk VPS/Server TrueVPS virtualized partitions per server packaged with subset of low-end dedicated server services. and priced below dedicated. Scenarios: TrueVPS

w w w. s w s o f t. c o m 7 Customer Benefit Utilizes the resources better Few Apps/Panels on 1 server Allows resellers to sell VPS/DS Provider Benefit Better offering for resellers Not competing with resellers More money for the provider per server VZMCVZCC Plesk VPS/Server Best Practices: Just another OS option Browser based interface Control Panel packaging for resellers Split-Dedicated – dedicated server is provisioned with Virtualization on it and management interfaces is given to the channel or end customers Scenarios: Split-Dedicated

w w w. s w s o f t. c o m 8 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 VPS/Server Other: Both Linux and Windows Recovery and Control Panels P2V and V2P tools Backup/Restore options Properly sized, packaged and priced Dynamic (Dedicated) Servers (DS/DDS) are dedicated-like virtualized services which are packaged and positioned as a better alternative to low-end dedicated and sold at somewhat similar prices Scenarios: Dynamic Dedicated

w w w. s w s o f t. c o m 9 Customer Benefits Higher uptime Predictable performance Opportunity for more services for the same price Provider Benefits Higher density - no risk of “crazy” scripts Convenient backup and restore Migration for maintenance and upgrades 25VPS/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 VPS for manageability and isolation purposes Scenarios: Split-Shared HSPcompleteVZCC

w w w. s w s o f t. c o m 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 ARPU/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 ManagedVPS is offering VPS to the customer with shared hosting like control panel without default root access, fully managed by provider Scenarios: ManagedVPS or Advanced Shared HSPcomplete PEMIn-house System

w w w. s w s o f t. c o m 11 Provider Benefits Standardized infrastructure Decreases cost and allows to buy better/reliable servers Convenient provisioning re- provisioning, backup, restore, Migration, monitoring Customer Benefits Lower costs resulted from saved $$$ and improved service levels by provider DNS Shared Mail Shared Web Server mutual backup Billing DB E-Commerce CMS Firewall VZMC 1-500VPS/Server Other: There is no downside P2V could be used for easy migration Virtual Infrastructure is when all aspects of provider infrastructure is provisioned on virtualized servers CRMERP Hosted Apps Portal Scenarios: : Virtual Infrastructure - Future VPS Server VZCC

w w w. s w s o f t. c o m 12 Scenarios: Complex Hosting - Future Disaster Recovery Load Balancing Download or Streaming Servers VPS Server 01 VPS01 VPS02 VPS03 VPS04 Standby Server VPS01 VPS02 …. VPS99 VPS Server 10 VPS91 VPS92 VPS93 VPS94 Backup VPS Server 01 VPS Server 02 VPS01 VPS02 VPS03 VPS04 VPS01 VPS02 VPS03 VPS04 IDC Defines “…Complex managed Web hosting. This type of Web hosting typically involves multiple servers of various types (e.g., Web, database, and application) as well as additional services such as advanced monitoring, load balancing, security storage, stress testing, and content delivery…” IDC Predicts “The complex managed Web hosting segment reached $2.9 billion in 2003 and will exceed $6.2 billion in 2008, expanding at a CAGR of 16.2%” IDC Considers This represents ~60% of total US web hosting market opportunity by 2008, 5x more then shared and 3+x more then basic dedicated Innovative and targeted services Virtualized infrastructure decreases provisioning and management cost That enables mass provisioning and management of complex solutions Load Balancer Game Server Hosting VPS Server 01 VPS Server 02 VPS Server 03 Game Subscription Storage

w w w. s w s o f t. c o m 13 New major Virtuozzo release More than 100 new features in total Simultaneous availability of all the supported operating systems Open and easy to integrate high performance Virtualization and Automation solution v4.0: Summary

w w w. s w s o f t. c o m 14 Disk mirroring across a network to stand-by server. Hearbeat between the servers. Virtuozzo Services auto-failover script (available from SWsoft). Active-Passive only. Protects against hardware and OS failures. Unplanned Downtime = Time to boot all VPSs (1-5min). Performance Penalty = ~<20% Cost Impact = Hardware + DC cost. Not a replacement for Backup! Not an individual VPS/services failover. Guarantee not just on the network availability but on hardware + OS failures! Sell high! DRBD Real-Time Replication Without SAN /vz /root Physical Server #1Physical Server #2 write heartbeats