Leveraging Your Business Assets to

Find the Future

Sue DeFlorioGTA Annual Convention

June 22, 2010

About FiberCloud

• In 2009, we introduced a software platform that enables telephone companies to offer cloud-hosted solutions to their customers using their own brand and retaining customer control.

Microsoft EmailBlackBerry & ActiveSync for mobile devicesSharePoint (collaboration)Online backupFile Transfer (improved communications)Unified Messaging functions (increase productivity)

Cloud-Hosted Solutions

OPASTCO

My Goal Today

• What is Cloud Computing?• How can Cloud-Hosting help generate

bandwidth usage & revenue?• How are customers affected by the

Cloud?• Can a Cloud-Hosting Partnership

“Leverage my Business Assets” to define a better Future?

• Significant industry change• Technology changes• Revenue pressure• Increased competition• Many choices…and more on the

way• Not enough to be “the pipe”• Narrow window of time to take

action…fighting for the future

Sense of UrgencySense of Urgency

Cloud ComputingFrom Wikipedia, the free encyclopedia

• Cloud computing is a style of computing in which dynamically scalable and often virtualized resources are provided as a service over the Internet.[1][2] Users need not have knowledge of, expertise in, or control over the technology infrastructure in the "cloud" that supports them.[3]

• Other recent (ca. 2007–2009)[4][5] technologies that rely on the Internet to satisfy the computing needs of users. Cloud computing services often provide common business applications online that are accessed from a web browser, while the software and data are stored on the servers.

• The term cloud is used as a metaphor for the Internet, based on how the Internet is depicted in computer network diagrams and is an abstraction for the complex infrastructure it conceals.[6]

What’s in the Cloud?

• Platform as a Service: Provider offers hardware & software to facilitate applications. Defers capital cost for users. (Paas)

• Software as a Service: Provider licenses use of software accessed over the Internet. Users pay only for what they need; avoid hardware, software and operating costs; gain access to solutions that might be too expensive if deployed for only one company. (Saas)

• Infrastructure as a Service: Providers offers computing infrastructure, typically in a virtualized environment. Users purchase a fully outsourced service, rather than purchasing servers, software, data center space. The service is typically billed on a pay for use utility basis. (Iaas)

Cloud-Hosting:

Hardware,Softwareand/or ApplicationsDelivered via the Internet

Cloud-Based Applications

• Drive broadband usage - Internet

• Strengthen customer stickiness

• Diversify revenue streams

• Get more with less - no need for add’l CAPEX, technology staff

• Add progressive services quickly

• Cement your Company as the local technology leader

• Expand new revenue opportunities

What can Cloud-HostingWhat can Cloud-Hosting Do for My Company? Do for My Company?

• Business Sector– Small Business: 5-20 Seats– Mid-size Business: 21-100 Seats

• Add $5-$300 per application, per month• Initial sale - typically 2-3 applications • Typical user bills $15-$25 per month• Rural market pricing (=value, education)• As customers grow, so will you• Applicability to Residential markets

Growing RevenuesGrowing RevenuesWith Hosted ServicesWith Hosted Services

Metro

Suburb

SMBSMB

Extend...

Retain...

Expand

You

Growing RevenuesGrowing RevenuesWith Territory ExpansionWith Territory Expansion

Changing Competitive Landscape

• Competition – Google (broadband, too)– Microsoft– Amazon -- EC2– IBM, HP– Comcast

• Telco’s can win at this…understand– Subscription (monthly)

services– Utility Products– How People Communicate

“Information technology and

business are becoming

inextricably interwoven. I

don't think anybody can talk

meaningfully about one

without the talking about the

other.”

Bill Gates

Microsoft

The OpportunityThe Opportunity

Small and medium sized business is the core of the local economy

• Small business have many of the same communications needs as larger companies.

• Their resources are limited (money and time).

• Enterprise-level software helps companies grow (“look larger”, reach beyond the local community).

• Outsourcing is a growing trend.

• Best-in-Class communications, quickly deployed, help meet these needs.

• Customers are accepting “the Cloud”.

Customer Benefits

Cloud-Hosted solutions enable:• Focus on core business

• Business applications (iphone)

• Power to grow (no bounds)

• Match unique business needs

• National/international presence

• Protects business intelligence

• Trusted local support, if serviced by local telco

No Boundaries

City of Darien, Georgia

• You have discovered Georgia's second oldest city, founded in 1736.

• Downtown Darien is thriving and new developments are assisting the city in a community-wide revitalization effort.

• This is one of the last unspoiled places on the Atlantic seaboard, rich in history, the beauty of nature, hospitality— and welcoming to new opportunities.

Linda Tuckerlindatucker@hotmail.com

Why Does the Cloud Matter?

• Future needs to be more than “just a pipe” to be sustainable• Competition is changing• Customers can be in business without boundaries; choices in

providers & services• Individual customers may need different solutions, can’t be all

things to all people• Customer control is a key to success• Telco’s have customer control today• Leverage Your Assets…

“Use it Before you Lose It”

Partnership Program

FiberCloud provides the applications• Best-in-class software service architecture• Back-end technical expertise• Monitoring• Initial marketing support• Single point of contact for partners• Easy ordering and billing• Product expansion

You maintain end-user relationship• Sales and marketing• Market-specific packaging• First-line customer support• Local branding• Billing & collection

Key Questions: Partnerships

• Is this something we can do better, faster, or cheaper with a partner?

• Does the solution take us in the right direction?

• Is it right for our market? Are clients asking for the service?

• Is the technology changing or new?

• Do we have staff or infrastructure to manage the solution?

• Does it require a large up front investment of time or money?

• Will it integrate with our business processes?

• Can we make money as we build/protect market share?

• Can we afford to wait?

Find the Right Partner

• Choose a partner whose products advance your strategy

• Complements your strengths & augment your weaknesses

• Make sure it fits your customer needs

• Technically competent• Offers business terms work• Matches your company values

Hosted Services Platform Benefits for Your Company

•Strengthen customer relationship; improve stickiness

•Higher margin products

•Local solutions for your market

•Add progressive services quickly

•Diversify company revenue streams

•Increase broadband usage

•Lower technology staff costs

The Challenge:Which Best Direction?

Many technology initiatives

compete for attention and

funding. Fiber to Home Soft Switch Over the Top VoIP Content Cellular Services or CATV Cloud-Hosted Solutions

Finding the Future

• Use your assets, strengths and dreams to define strategic direction for the future of our companies

• Meet customer needs and market conditions• Recognize many types of assets

Unique long-term relationship with clients Local - know your business community needs True service based companies History of technology leadership Drive economic development in the community

• To serve the company & customers, partnerships bring solutions & flexibility

Leveraging Assets

• Assets– You have the

customer’s trust– For now, you control

the customer…great power

– Offer Internet products– Truck rolls– Respected service

organization– Brand recognition

• Opportunities– Focus on solving

customer needs– One solutions doesn’t fit

all– Not all technology needs

to be self-provisioned– Use outsourcing to

achieve quicker time to market and manage technology change

Is Cloud Computing Right for Your Company’s Future?

Does a Cloud-Hosting partner?

• Advance your vision• Serve your customers• Aid your timing to market• Advance community success • Preserve capital for other needy projects?

• Simple and Easy!• New Revenues• High Margin• Low Risk• No CAPEX• OP EX is per seat (Pay as you Grow)• Competitive Deterrent• Brings Benefit to Your Customers• The Cloud is here…

Jump In!Jump In!

Thank you!susan.deflorio@fibercloud.com