1. HostingCon 2011 Cloud and CDN. Whats stopping you?

2. Been in the hosting biz since 96 Last 6 years as CEO of UK2Group Build several large hosting brands: VPS.NET, 100tb.com, Resell.biz and others. Made 10+ acquisitions in the industry Been through 3 hosting exits Latest one UK2Group sold for ~$77 million Now founder and CEO of OnApp.com Largest provider of cloud software to the hosting industry. As of Monday, the largest CDN federation Ditlev Bredahl

3. OnApp

4. …OnApp?

5. About OnApp Software for hosts OnApp launched July 1 st 2010 300+ clients 80+ employees in US, EU, APAC 2+ clouds per day 400+ clouds deployed

6. The Cloud and CDN market… What are you missing out on? Is it too late? Who has done well, and why? What should you consider before launching yours? And this morning…

7. Cloud

8. IaaS market is $3.7bn in 2011, and Gartner estimates $10.5bn in 2014. Demand that is growing (probably faster than supply) Much higher conversion rate – and lower CPC/CPAs Higher net margins than shared/dedicated Lower capex requirements than dedicated Lower churn than your shared/dedicated market 33k hosters world wide – but less than 1000 public clouds (T1R/451Group) What are you missing out on?

9. The numbers stack up... HostClient

10. Gold rush The longer you wait...3 phases Commoditization Decommoditization 2010-122012-142015 Cloud is no longer the cloud but Just how stuffs done Margin for early (and smart) adopters

11. So, there is a window now, where CPAs are low, margins are high and clients are plenty …but it will commoditize soon Now is the time… So now is the time to get started!

12. What market and segment are you selling to? Tech/Mass market/Niche? (examples to come) What brand will you be using? Is your own brand sexy enough? What are your clients willing to pay for? SAN/redundancy/etc What platform will power your cloud? When do you want to go live? At what level will your expertise start? So, what to consider ?

13. Where can you add value? Build vs Buy De- commoditize

14. Strong growth Good understanding of their clients Taken the first steps towards de-commoditization Not only fed by existing client bases… Who has done well…

15. Eapps.com

16. VPS.NET

17. UK2.NET

18. Caro.net

19. GMO Cloud (USA)

20. Steadfast.net Tiered Storage

21. So whats stopping you? Why are there less than 1000 public clouds online?

22. Maybe its the business plan? Shared hosting: 540 seat Jumbo jet = 700 passengers Dedicated server hosting: 540 seats = 540 passengers Underselling – learn how to monetize spare capacity! Cloud hosting: 540 seats = 4-500 passengers

23. Lack of time? Or is it a simple...

24. CPAs & margins Commoditization The gold rush has already started Time is of the essence

25. Choose a vendor/partner that: Understands your pressures as a host Can help you overcome technical issues Can advise on best practise Most importantly, MAKE the time To sort out your deployment And reap the rewards...the harder it will be

26. How can OnApp help?

27. VM Deployment VM Management VM HA/Failover Autoscaling/LB User management Utility/billing Commodity hardware Cloud infrastructure On-demand resources End users Low set-up cost 24 hour deployment Free support & integration Designed for hosters

28. How can OnApp help?

29. Customer Isolation Module

30. How can OnApp help?

31. CDN

32. CDN market

33. $2.6bn market currently Very consolidated Akamai sitting on 60% 3 largest players on 75% No significant jet-blue player, its all AA/Business class No real disruption CDN market Top Ten CDNs by Revenue, Q3 2010 ($000) Not a functional marketplace!

34. Another touchpoint Clearly attractive to customers Still High margin Very sticky, as any DNS based product The value of CDN for hosters

35. CDNs – enterprise only? CDN has not taken off in the mass market because: There are not many CDN providers None of them has a mass market focus They base a great deal of their business plan on professional services and enterprise features Their pricing is complicated, setup is difficult and USPs are enterprise focused This is basically like the cloud in 2008 – and we think the real market is much larger than the $2.6bn A huge window of opportunity

36. So whats stopping you?

37. CDN and mass-market hosts Most hosts have not setup CDNs: Infrastructure CAPEX is very high There is no turnkey CDN software Client deployment is very complicated Ongoing management is very demanding Got $5-50 million spare?

38. How can OnApp help?

39. Changing the CDN status quo We have introduced a CDN software service stack that will enable any host to deploy a powerful (but simple) CDN service with more than 50 PoPs in less than an hour…without spending a penny.

40. How we will do it By introducing 3 new concepts OnApp CDN Federation Marketplace for hosts to buy & sell CDN capacity OnApp CDN Stack Fully-featured edge server platform OnApp CDNaaS Global Anycast DNS service for OnApp CDN

41. CDNaaS

42. What is OnApp CDN as a Service? A fully-managed CDN business in a box: A managed core Anycast DNS setup that will ensure visitors always are sent to the closest edge PoP Fully hosted, secured and managed by OnApp A granular user management system that handles admins, resellers, end users/clients etc A fully integrated CDN billing engine (WHMCS/Ubersmith/HostBill)

43. OnApp CDNaaS Chief cost of building a CDN is the core infrastructure Hosts connect to OnApps CDN network to replicate/cache their content globally Extremely rapid CDN deployment without CAPEX

44. OnApp CDN Stack

45. What is the CDN cloud stack? An edge server image that can be installed in any OnApp cloud with a few clicks Its integrated with OnApp CDNaaS, and handles: Pull (large/small files) Push Streaming Live streaming It allows for dedicated local CDN storage partitions (SSDs for small files etc)

46. How is it integrated with OnApp? CDN Cloud Stack is an optimized CDN edge server image (OnApp template) It is deployed via the OnApp GUI, and instantly activated as an edge server communicating with the OnApp CDNaaS It scales automatically up/down as needed

47. OnApp CDN Federation

48. What is the CDN Federation? The CDN Federation is a marketplace inside OnApp where hosts can buy and sell CDN edge resources It is fully automated and delivery is instant Suppliers are manually verified and core KPIs are listed (uptime/speed/server specs/etc) There are no minimum purchase commitments (CDRs)

49. OnApp CDN Federation End user makes content request to (eg) VPS.NET Receives content from closest federated provider (eg Dediserve) Transparent to the user: OnApp controls underlying CDN network Federation agreement between OnApp-powered providers

50. Uses spare cloud capacity No infrastructure needed Buy and sell CDN bandwidth Monetize excess capacity OnApp will pay clients, not the other way around… Federated CDN for hosts OnApp CDN Federation Marketplace for hosts to buy & sell CDN capacity OnApp CDN Stack Fully-featured edge server platform OnApp CDNaaS Global Anycast DNS service for OnApp CDN

51. Cloud and CDN markets are great, undersupplied, low entry cost markets They will commoditize like the rest of our industry Time to act is now (OnApp can help) Recap

52. Thanks!