May l Washington, DC l Omni Shoreham Jack Zubarev President, Service Provider Division May 19 th, 2008 Parallels Vision for Virtualization

Parallels Virtualization Update Parallels Service Provider Solutions 2 Virtualization Today Virtualized Services Agenda Parallels Virtualization Future

Virtualization Replaces Physical Infrastructure Parallels Virtuozzo Container Growth Over 80% year over the year growth. Providers Dropping Non-Virtualized Services Ipower 1 VE/VM per server model is being adopted Parallels Server to be optimized for this model Desktop (we shipped over a 1mln) Both home and office desktops. Back-end infrastructure Internal systems Accounting, File servers, Shared infrastructure. Parallels Service Provider Solutions 3 Not Virtualized = Not efficient

Why Virtualization? Traditional Reasons Lower cost per workload. More profitable compared to dedicated Better manageability and flexibility Stop gap offering between shared and dedicated Rising power costs Better utilization of DC space New reasons SaaS is enabled by virtualization Managed hosting is much easier to offer using virtualization. On-premise infrastructure can be moved to off-premise if virtualized VDI and other virtualized-only services Parallels Service Provider Solutions 4 SaaS % of Business Software Market Opportunity: $8B increasing to $40B 0% 5% 10% 15% 20% 25%

Parallels Service Provider Solutions 5 How Valuable Is Your Service? Value to the End-UserEnabled By Reduces fixed upfront cost for acquisition of business function -- DC, Hardware, Licenses, Bandwidth Economy of scale. Virtualization Expertise Virtualization Existing assets. Virtualization and Automation are the main contributors to the value of your services Not automated and/or virtualized = not offered. Simplifies the initial installation and provisioning of the function/service: -- Installation and configuration of 100s application. Parallels CP Manages over 150 applications. Automation: Back-end provisioning automation Control Panel automation Simplifies and Reduces “service” cost of the function. --Updates and upgrades (OS & Application), DR, backup, optimization, monitoring. Virtualization and Automation Including Service Automation

Parallels Virtualization Update Parallels Service Provider Solutions 6 Virtualization Today Virtualized Services Agenda Parallels Virtualization Future

Parallels Service Provider Solutions 7 Parallels Virtualization Today Strong Foundation Over 300 engineers Over 800,000 containers in production Over 1,200,000 desktops Multi-platform Linux, Windows, Mac, Bare metal Desktop and Server x86, x86-64, IA64, SPARC Multi-Purpose Consumers, SOHO, SMB, Enterprise, Service Providers Development, Staging, Production

Parallels Service Provider Solutions 8 Parallels Virtualization Products Virtualization Parallels Desktop Parallels Workstation Parallels ServerParallels Virtuozzo Containers The best of both worlds with Hypervisor and OS Virtualization Automation Complete automation & management of Service Provider Business Parallels Operations Automation Parallels Business Automation Parallels Plesk Products Parallels Virtual Automation

Parallels Service Provider Solutions 9 Parallels Desktop and Workstation Overview Parallels Workstation Run different OS on your desktop. Interesting for your technical customers. Parallels Desktop for Mac. Mac is cool. Run windows on your Mac. Over 1mln Parallels customers do. Interested in adding value to your hosting plan? Ask us about program to distribute/resell both at discount for your customers and employees. Virtualization Parallels Desktop Parallels Workstation Parallels ServerParallels Virtuozzo Containers The best of both worlds with Hypervisor and OS Virtualization Do not forget about special offer from TekServe

Parallels Server Products Overview Parallels Virtuozzo Containers: Intelligent Partitioning Complete Isolation Dynamic Resource Management Live Migration Mass Management Parallels Server Powerful Hypervisor Granular Control of Resources SMP Support Inside VMs Linux, Windows, Mac, Bare-Metal Parallels Service Provider Solutions 10 Virtualization Parallels Desktop Parallels Workstation Parallels ServerParallels Virtuozzo Containers The best of both worlds with Hypervisor and OS Virtualization

Parallels Server Virtualization: Best of Both Worlds Parallels Service Provider Solutions 11 Container 1 Container 2 Container 3 Guest OS VM 1VM 2VM 3 Virtual Hardware Virtual Machine Monitor Hypervisor or Standard Host OS Hardware Standard Host OS Hardware OS Virtualization Layer HypervisorOS Virtualization 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

Parallels Service Provider Solutions 12 Why both: Right Technology for the Job Parallels Server Parallels Virtuozzo Containers Combined Hosting & SaaS VPS, Dynamic Servers SaaS Niche Hosting Offerings Kernel Development Environment Applications Loading Kernel Drivers Hosting Desktop OS (Vista, XP) Hosting Legacy OS IT Services Server Consolidation Disaster Recovery

Parallels Virtuozzo Containers Were Designed for Hosing/SaaS The main disadvantage – same kernel on the same server –Not relevant for hosting/SaaS The efficiency and manageability: Density 2+ times higher Reduces OS footprint No Performance overhead No Scalability overhead Dynamic resource management Simple Live Migration Ultra Fast Management Operations Consolidated OS/App update management Parallels Service Provider Solutions 13

Parallels Virtualization Update Parallels Service Provider Solutions 14 Virtualization Today Virtualized Services Agenda Parallels Virtualization Future

Virtualized Services: VPS is not enough VPS Self managed server with Parallels Plesk Control Panel. Dynamic Server Same/better performance than dedicated. Burstable. Migratable. SaaS or Application Applience Focus on application and service; not resources. Optimized for „abc“ application. Learn about APSstandard and application catalogue on Managed Dynamic Server Much easier to implement than on physical machine. Home or Business Virtual Desktop Accessible from anywhere. MS Office, Adobe Acrobat, IM, XP Skin, etc. Parallels Service Provider Solutions 15

More virtualized opportunities Affordable Clustered solutions Easy to configure clustered MS SQL or „abc“ applience. Clustered Dynamic Server – Linux or Windows. Leverage SANs. Server Consolidation offerings. Help SMBs consolidate on-premise infrastructure without hardware investment. Vzp2v plus consulting engagements. Disaster Recovery offerings On-premise servers or within DC. Complete Stack Solutions 3-tier applications – provision 3 containers. Customer-managed through Parallels Virtual Automation. Virtualized Dedicated Server 1VE/VM on a physical server bundled with Parallels Tools. Option for customers to buy additional VE/VMs. Parallels Service Provider Solutions 16 Virtualization services market will grow from $5.5 billion in 2006 to $11.7 billion IDC “Worldwide Virtualization Services 2007–2011 Forecast”

Parallels Virtualization Update Parallels Service Provider Solutions 17 Virtualization Today Virtualized Services Agenda Parallels Virtualization Future

Parallels Server + Parallels Virtuozzo Containers Single Product Create containers or VMs Convert Container into VM and back Side by side Upgrade Single License Keys Unified Management UI Integration Common API Common Command Line Unified Templates/Appliances Parallels Service Provider Solutions 18 Physical Server VM Linux Parallels Virtuozzo Container VM Windows Management Tools Standard API Parallels Automation Tools 3 rd Party Management Tools

Parallels Virtualization Direction Optimize as much as possible – squize efficiency to the limit Performance and Density Stability and Reliability Working with ISVs Parallels Service Provider Solutions 19 Virtual Automation, Automation, Automation For you, your customers, and resellers Mass-managment on large scale Looking individually at each task Automating the service not just individual task. Enabling more services DR and business continuity Managed services Prorgams to help you launch new services.

Optimize Maximizing Density where possible Faster and More compact VZFS Vzcache online Smarter Memory Sharing Continuous Improvements in performance Better SMP scheduler Internal Code Optimizations Optimizations for NUMA Optimizing parallels own software Parallels Plesk 9: Minimal Set of Services Until Used. Parallels Plesk 9 SMB: Lighter version Parallels Service Provider Solutions 20

Enable More Services High-level SLA Services Windows Clustering Support RedHat Clustering support and GFS Disk I/O limiting Clustered file system Online Replication Continuous Backup/Recovery improvements Managed Services Virtualization of any workload Integrated Workflow Engine Delegated Update Server Programs to help you launch services NEW: Parallels Alliance Program APSstandard and our ISV programs Parallels Open Platform and Catalogs Parallels Service Provider Solutions 21

Automate Large Scale Centralized Management 100s of users, 1000s of physical servers, 10s of 1000s of virtual servers Delegated Management of Virtual Infrastructure Physical and logical views, fine-grained permissions for users Easy to Use Powerful dashboards for users and administrators (including customers) Complete Virtualization Lifecycle Monitoring, backup, mass-application updates. Cross-Platform Management Physical, VMs, Containers, Applications Parallels Service Provider Solutions 22 Parallels Virtual Automation v4 - NEW

Automate More Parallels Service Provider Solutions 23 Parallels Virtual Automation v4.5 Parallels Roadmaps not available online –Parallels Partners may contact their sales representative regarding roadmap availability

Automate Virtualized Service Creation and Delivery Parallels Service Provider Solutions 24 Parallels Virtual Automation v5 Parallels Roadmaps not available online –Parallels Partners may contact their sales representative regarding roadmap availability

Parallels Service Provider Solutions 25 Another Angle to Automation How much CO² a single human produces per year? Active human? Stop Exercising? Or Just stay relaxed – Automate Your Operations! Parallels System Automation Parallels Business Automation 480 kg 520 kg

Summary Virtualization continues to replace physical infrastructure. Obvious cost and management advantages. Enabler for all high-growth market trends including SaaS. Parallels now offers complete virtualization stack Virtualize and offer any application, service, or infrastructure Offering all possible virtualized services is important Stay competitive, faster growth, broader market appeal, building brand, up- sell, cross-sell. We are focused on helping you take advantage of virtualization Aggressive virtualization roadmap focused on the needs of hosting and SaaS Automation is the key Automation is really required to take advantage of virtualized offerings. Significant investment at Parallels is going into Virtual Automation. Parallels Service Provider Solutions 26

Call to action Try Parallels Server Beta (and visit today’s session) Upgrade to Parallels Virtuozzo Containers v4.0 (and visit today’s session) Visit our lab – clustered Parallels Virtuozzo for Windows Start offering more services! Questions? Parallels Service Provider Solutions 27