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May 19-20 l Washington, DC l Omni Shoreham Serguei Beloussov CEO May 19 th, 2008 Optimized Computing for Hosting and SaaS
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2 Welcome to the 3 rd Annual Parallels Summit Over 500 attendees this year from 20 countries A little over 220 attendees last year, around 150 in 2006 Over 80 ISVs are here. SaaS for Hosting is happening? Last year – less than 10 ISVs attended 37 sessions on 3 tracks Last year – 25 sessions on 1.5 tracks Next year summit – expect over 1000! Special Welcome To Our Platinum Partners
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3Optimized Computing for Hosting and SaaS Platinum Sponsor Gold Sponsors Silver Sponsors Media Sponsors Exhibitors / Other sponsors Special Thank You to Our Sponsors 30+ Sponsors and Exhibitors this year
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4Optimized Computing for Hosting and SaaS Agenda Service Provider Industry Update Summary Parallels Vision
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5Optimized Computing for Hosting and SaaS Traditional Hosting: Mature, Growing but Slowing Hosting grew to $8.2B in 2006 (from $6.8B in 2005)* US Market – represents only 50-60% of worldwide market By 2011, the market is predicted to grow to $16.4B* Trend #1: Traditional hosting market is established and growing, but slowing down Trend #2: Managed hosting and SaaS are the growing segments* Key Point: Changes may be required to sustain revenues and continue growth * source: IDC presentation at 2007 Parallels Hosting Summit SaaS % of Business Software Market Opportunity: $8B increasing to $40B 0% 5% 10% 15% 20% 25% 2006 2011
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6Optimized Computing for Hosting and SaaS Traditional Hosting: Industry Update Industry matured- You've grown a lot too It’s no longer some niche vertical market But this could also mean – there is more to lose! Continued consolidating Hostway->Affinity, Layered->FastServers 1and1 and Endurance ->multiple acquisitions, Melbourne IT ->WebCentral Rackspace just filed for an IPO Good for them, good for the industry, read the S1 Whom could they acquire? Virtualization continued to grow and replace physical infrastructure Enabler of SaaS and contributor to overall industry revenue/profit growth Managed Hosting becoming cheaper and accessible from more players Virtualization and Automation are enablers – Parallels is working on it Get More Revenues with SaaS Tomorrow: 10:45-11:30am
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7Optimized Computing for Hosting and SaaS Applications Google productivity tools for small and medium sized businesses. Internet Giant – Google Google targeting SMBs with SaaS Google Sites (collaboration) Google Apps (productivity tools) Google historically was not too friendly with ISVs or hosting providers Collaboration Screen Images Competitor to providers offering Hosted SharePoint services. Apps Hosting Note that Google’s service offering is starting to resemble website hosting.
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8Optimized Computing for Hosting and SaaS Workspace Online file sharing for office applications. “may include advertising” Internet Giant – Microsoft Microsoft targeting SMBs with SaaS Exchange Hosted Services (recent announcement) Workspace (file sharing for office applications) Small business (web site and domain tools) Microsoft is partnering with ISVs and hosting providers Take advantage of the opportunity Email Screen Images New offer is targeted at SMBs as well as large providers. Small Business Template-based websites with branded email and shared workspace.
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9Optimized Computing for Hosting and SaaS Targeting Developers Complex usage-based fees which are not understood by typical SMBs. Internet Giant – Amazon (and others SFDC) Amazon Web Services? S3 – Amazon Simple Storage Service EC2 – Amazon Elastic Computer Cloud WebStores targets merchants Home Page Screen Images Found Web Services after scrolling down (not in the main departments). WebStores Compete with e-commerce offerings - $60/month plus 7%.
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10Optimized Computing for Hosting and SaaS Conclusion: Giants are Fighting Google is “changing the world” And is a true new monopoly – regulators shall watch it (!!!) Microsoft is addressing Google Microsoft was always friendlier than Google to partners/3 rd party But it must address Google threat Every other giant IT company must react Online: Amazon, eBay, FaceBook, Yahoo! Application: SalesForce, Oracle, Intuit Hardware: EMC Cloud Computing, IBM Global Services, HP acquires EDS SI/VAR: entering managed hosting space, have huge assets to leverage “When forest is cut, woodchips will fly” English: “You can’t make an omelette without breaking an egg” Dangerous times are coming for all channel and smaller players Every time paradigm shift happened – channel and ecosystem reshuffled IT is moving off the premise: Threat and Opportunity
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11Optimized Computing for Hosting and SaaS Could Hosters Do The Same? Stay Competitive – not lose customers Pricing Be paranoid about efficiency Service Levels Full Automation and Self Management Critical Service Offerings Business Class email Office applications Channel Offerings Business Line Applications Online Marketing integration Host/own your customers and partners data In the worst case own the customer: only white-label resell of others services
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12Optimized Computing for Hosting and SaaS Could Hosters Do Better? Differentiate – new customers and revenues Broader Set Service Plans Broader set of services Many types and kinds of applications Example: Blackberry, Goodlink, Antivirus, Antispam for HE Virtual & dedicated Servers (customer chooses) Better & flexible upgrade path Variety of workloads Variety of sizing options Automatic upgrades Stay close with your customers and partners Example: Share customer ownership with partners Choose between coopetition and cooperation – for example Microsoft is a good partner – but is Google?
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13Optimized Computing for Hosting and SaaS Agenda Service Provider Industry Update Parallels Vision Summary
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14Optimized Computing for Hosting and SaaS Parallels Vision: How to Sustain, Improve and Grow? Partner to stay competitive Virtualize or lose profitability Automate fully or not survive Standardize or stop growing
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15Optimized Computing for Hosting and SaaS Partner: Why Parallels is a Solid Partner for You Partner to stay competitive
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16Optimized Computing for Hosting and SaaS Partner: Parallels Today Strong Foundation Founded at the end of 1999 900 Employees Worldwide 500+ Partners including Microsoft, Apple, Intel, AMD, Dell, HP, IBM Proven Track Record Powering more than 1.5 million Servers and Desktops Serving more than 10 million end-customers in 125 countries 27 Awards in the last 12 months Market Leadership #1 in Server Automation (Parallels Plesk Control Panel) #1 in OS-level Virtualization (Parallels Virtuozzo Containers) #1 in Desktop Virtualization (Parallels Desktop for Mac)
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17Optimized Computing for Hosting and SaaS Partner: Parallels Organization Update Renewed focus on the Service Provider market Two business units: Service Provider Consumer & Business. Focused Service Provider Unit Management: Mike Riolo VP Sales, Americas Michael Gold SVP, Telco & Strategic Channel Jack Zubarev President, Service Provider Nils Hueneke Managing Director, EMEA Jan-Jaap Jager Managing Director, Asia Doug Johnson Director, WW Marketing Soeren von Varchmin VP SaaS Rob Lovell Director, Alliance Program
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18Optimized Computing for Hosting and SaaS Partner: Investing in Partnerships and Platform Parallels Alliance Program NEW program for select Service Providers Rob Lovell, Director Alliance Program Parallels Technology Partner Eco-System Team Focused on development of ISV/SaaS ecosystems for hosters Soeren Von Varchmin, VP SaaS Babak Soltani, Business Development Patrick Correia, SaaS Marketing Ilya Baimetov, Director Program Management Parallels Open Platform Team (New!) Best engineering & management resources Nick Dobrovolskiy, VP Parallels Open Platform Development Network Team (8 engineers) External Platforms Team (13 engineers) Internal Systems Team (10 engineers) Partnering with Parallels - What We Can Do For You Today: 4:45-5:30pm
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19Optimized Computing for Hosting and SaaS Partner: Parallels In The Past 12 Months Acquisitions Helm, H-sphere, Sphera, Ensim Pro and ModernGigabyte Reasons: customers, channel, finance, expertise, engineering offices Complete integration with (former) Parallels Division Accelerated delivery of Parallels Open Platform for Service Providers (600+ engineers and lots of IP to cross-leverage) Shipped over 1mln Parallels for Mac units Are you using Mac with Parallels? Your customers are! Buy it through our Partner TekServe here (special offer) Number of major releases Parallels Server Beta4 (try it), Parallels Virtuozzo Containers v4, Parallels Automation modules – MS CRM, Parallels Virtual Automation, etc; updates to all Parallels Plesk products Adopted common company brand across all products Parallels is now recognized by millions of people across the world
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20Optimized Computing for Hosting and SaaS Partner: New Company Logo, Tagline, Assertion Optimized Computing TM New Logo & Brand: Tagline: New Assertion: A worldwide leader in virtualization and automation software that optimizes computing for consumers, businesses and service providers across all major hardware, operating system, and virtualization platforms
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21Optimized Computing for Hosting and SaaS Partner: Parallels Vision – Optimized Computing Consumer & Business (On Premise) Service Provider (Hosted & SaaS) Usage Model System Support IA64 Baremetal/ Hosted X86/x64 VMware Xen Windows Hyper-V LinuxMac OS DesktopWorkstation ServerContainers Virtualization Solutions Virtual Automation Operations Automation Business Automation Automation Plesk Control Panel Plesk Sitebuilder Plesk Billing Plesk Expand License Automation Ecosystem APS Standard APS Catalog & Marketplace Virtual Templates & Appliances Automation Dev Platform Parallels Open Platform
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22Optimized Computing for Hosting and SaaS Partner: Parallels Products – Focused Now! Automation Complete automation & management of Service Provider Business Parallels Operations Automation Parallels Business Automation Parallels Virtual Automation Parallels Plesk Products Virtualization Parallels Desktop Parallels Workstation Parallels Server Parallels Virtuozzo Containers The best of both worlds with Hypervisor and OS Virtualization Virtualization for Hosting and SaaS – Parallels Strategy: Tomorrow: 9:45:10:30
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23Optimized Computing for Hosting and SaaS Automate: Parallels End-to-End Automation Automate fully or not survive
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24Optimized Computing for Hosting and SaaS Automate: Complete and Integrated Parallels Business Automation Powerful Ordering, Billing, Up-sell Service Management Back-end delivery of services Communication Program Management (coming) Business Intelligence (coming) Improving your Business using Parallels Business Automation Tomorrow: 3:00-3:30pm Parallels Virtual Automation Large Scale Centralized Management Delegated Management of Virtual Infrastructure Easy to Use Complete Virtualization Lifecycle Cross-Platform Management Configuring Parallels Virtual Automation for Hosting and SaaS Tomorrow: 2:15-2:45pm Parallels Operations Automation Support for wide range of integrated services and applications Provisioning Integrated control panels Scalable, Distributed Architecture Extendable and Customizable Centralized management system Scaling your infrastructure using Parallels System Automation Today: 11:30-12:15pm (Visit Demo Station if missed) Parallels Plesk Products Server Administration Application Lifecycle Management Parallels Plesk 9 SMB Edition Integrated Parallels Plesk 9 and Parallels Plesk Billing (formerly ModernBill) Other Parallels Plesk 9 Features Parallels Plesk Control Panel Roadmap Today: 9:45-10:30am (Visit Demo Station if missed)
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25Optimized Computing for Hosting and SaaS Automate: Parallels Automation Momentum Over 100 hosters with over 500 automation modules Total live sites: 2004 – 22005 – 72006 – 362007 – 80
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26Optimized Computing for Hosting and SaaS Automate: Service and Value Creation with Parallels Automating full lifecycle of hosted service and software Installation, provisioning, management, configuration, upgrades, backup, monitoring, DR, license management For you, your customers, your resellers, end-users, and affiliates For single tenant, multi-tenant and service applications For admin, support, finance, marketing and sales personnel Allowing to deliver full range of services Sophisticated, integrated, broad and profitable service offerings For consumers, SOHO, SMB, and enterprise For variety of vertical industries In multiple geographies Under multiple brands With fully integrated back-office Billing, ordering, invoicing, service management, business intelligence, help- desk, customer communication, etc. Let our 350+ automation engineers help to build value for You and Your customers!
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27Optimized Computing for Hosting and SaaS Virtualize: Parallels Complete Virtualization for Hosting Virtualize or lose profitability
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28Optimized Computing for Hosting and SaaS Virtualize: Parallels - Best of Both Worlds 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
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29Optimized Computing for Hosting and SaaS Virtualize: Introducing Parallels Server Powerful Hypervisor Bare metal architecture w/ hardware accel. for optimal performance Service Level Management Granular control of CPU, memory, disk, networking, I/O (w/ dedication) Live Migration* Move virtual machines with no service interruptions Data Protection Backups* and snapshots* ensure data and applications are protected * Parallels Server 3.2 Same Tools and APIs as Parallels Virtuozzo Containers Managed through Parallels Virtual Automation Parallels Server Demonstration Today: 4:45-5:30pm
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30Optimized Computing for Hosting and SaaS Offering Infrastructure with high-level SLAs Windows Server Clustering Support RedHat Clustering Support and Support for GFS Extensive backup enhancements Efficiency and Architecture Enhancements Faster and more compact VZFS. Online vzcache Faster boot, provisioning, and backup for containers New Resource Management Options Integrated Parallels Virtual Automation Simplifying Management of Large Scale Operations. Physical and Logical views of the infrastructure. Group operations on logical views. Multi-level delegation for different roles. Centralized Management: Templates, Samples, Backups, Updates 100+ New Features & Enhancements including: Virtualize: Parallels Virtuozzo Containers 4.0 – New! Parallels Virtuozzo Containers Roadmap and Demonstration: Tomorrow: 10:45-12:15pm
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31Optimized Computing for Hosting and SaaS Virtualize: 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
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32Optimized Computing for Hosting and SaaS Integrated Virtualization Offering Guest OS VM 1VM 2VM 3 Virtual Hardware Virtual Machine Monitor Hypervisor or Standard Host OS Hardware Hypervisor Container 1 Container 2 Container 3 Standard Host OS Hardware OS Virtualization Layer OS Virtualization Virtualize: Integrated Virtualization Offering Zero Copy Migrations (Restart) UI Integration Single API Single Command Line Single Format Unified Templates/Appliances Unified Management Side by side Upgrade Unified License Keys
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33Optimized Computing for Hosting and SaaS Standardize: Parallels Open Platform & APS Standardize or stop growing
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34Optimized Computing for Hosting and SaaS Standardize: APS and Parallels Open Platform Overview Parallels is building an eco-system for SaaS ISVs, developers, Service Providers, other industry players. Standards, programs, support, collaboration, and certifications. Application Packaging Standard Unified delivery of applications in hosted environment Enabling ISVs and Hosters work together APS Catalog and Marketplace Collection of APS applications and collaboration effort with all partners Integrated with all Parallels Automation Products Virtual Templates and Appliances Ready to use applications for you. Integration with Parallels Virtualization Products Automation Development Platform SDK, Libraries, APIs, Specifications, PTN, dev resources Allows to extend or integrate Parallels Automation products Ecosystem APS Standard APS Catalog & Marketplace Virtual Templates & Appliances Automation Dev Platform Parallels Open Platform Application Packaging Standard: Today: 10:45-11:30am (Visit Demo Station if missed)
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35Optimized Computing for Hosting and SaaS Standardize: Application Packaging Standard (APS) Success Over 166 Applications and Growing Web Apps, collaboration, personal productivity, infrastructure, line-of-business, and more Commercial, Open Source, Windows, Linux Hosting Providers Support ARSIDIAN LLC ISV Support
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36Optimized Computing for Hosting and SaaS Parallels: Complete Service Provider Vision Partner to stay competitive Virtualize or lose profitability Automate fully or not survive Standardize or stop growing
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37Optimized Computing for Hosting and SaaS Parallels: Optimized Computing for Hosting and SaaS Parallels: Optimized Computing tm Partner to stay competitive Virtualize or lose profitability Automate fully or not survive Standardize or stop growing
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38Optimized Computing for Hosting and SaaS Agenda Service Provider Industry Update Parallels Vision Summary
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39Optimized Computing for Hosting and SaaS Cool Note: Parallels Desktop Virtualization Special Offer from Our Partner Tekserve at the Summit Discounts on MacBook, MacBook Pro The NEWMacBook Air All bundles complete with Parallels Desktop for Mac and Microsoft Windows XP Brought your Mac with you? Stop by the Tekserve Booth to get your free copy of Parallels Desktop for Mac! Parallels Workstation (Lin/Win) Run different OSs on your desktop Parallels Desktop for Mac Run Windows on Mac. Mac now represent 7% of US PC market. Up-to 20% among your customers Mac is Cool - good for promos Ask us about special discount program for your employees and customers
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40Optimized Computing for Hosting and SaaS Summary Hosting market has matured but continues to grow and could accelerate with SaaS –Number of new (threatening) entrants as market becomes truly large Parallels is 100% focused on being the best partner helping hosters to compete with bigger entrants and benefit from the opportunity –Over 700 engineers focused on Virtualization and Automation. Close to 10 years in this market Automation is mandatory to survivie in this changing environment –Automation brings efficiency and is the only way to compete with bigger entrants Virtualization is important enabler and driver behind the profits –Parallels provides complete virtualization stack with both hypervisor and containers; on the server and desktop Parallels is building an Eco System to enable you take advantage of SaaS –Parallels Open Platform and most importantly APSstandard!
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41Optimized Computing for Hosting and SaaS Call to Action Learn about APS: www.apsstandard.comwww.apsstandard.com Do not forget our industry track: SaaS starts with software Visit Demo Stations for all our products Parallels Automation (all products) Clustered set-up of Parallels Virtuozzo Containers Parallels Server Beta4 Parallels Plesk Control Panel 9 Preview Take advantage of special Parallels for Mac Offers We do NEED your feedback Please do submit suggestions www.parallels.com/feedback on how we can improve and (maybe) win a prizewww.parallels.com/feedback Next year summit is January 2009 Over 50 of Parallels employees are here – will be happy to arrange meetings, answer questions and more! Hope you could find red shirts in the crowd! QUESTIONS ?
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