softlayer company overview

CONFIDENTIAL INFORMATION • SOFTLAYER TECHNOLOGIES

Company Overview

Dec ‘09

CONFIDENTIAL INFORMATION • SOFTLAYER TECHNOLOGIES 2

SoftLayer Value Statement

InnovationWe lead the industry, bringing solutions to market before others realize the need for them.

EmpowermentWe push complete control to the end user to create the virtual data center experience.

IntegrationWe bring together hardware, software, security, networking, and storage in a single easy to use on-demand service.

SoftLayer Delivers World Class, On-demand Virtual Data Center Services.

AutomationWe automate every single facet of the data center environment to bring efficiency and standardization.


Who We Are

Virtual data center OS

Consolidator of technology

No legacy customers or technology

On-demand IT infrastructure – delivered NOW

Dedicated, virtualized, cloud, storage, and HPC solutions

Industry-leading controls via Customer Portal and open API

Geographically diverse data centers – end user experience

Advanced data center pod design targeting maximum efficiencies


Our Difference

Automated Services and Standardized Solutions Customer-controlled, automated management of core functions including

OS installs and reloads, reboots, software installs, network management, monitoring, load balancing, firewall management, and more.

Industry-Leading Customer Portal and Open API Direct access to more than 150 backend systems and activities, executed without

any human intermediation.

Industry Exclusive Private Network Server-to-server communication, out-of-band management, and unlimited data

transfer via VPN over dedicated carriers segregated from our Public Network.

Integrated Geographical Diversity Three data centers connected via private, 10G point-to-point connections,

and integrated through proprietary automated tools.

True Virtual Data Center Services Innovative infrastructure, solutions, and automation capabilities provide unique

advantages for virtualized solutions and a truly virtual data center.


Automation of Traditional Managed Services

The Physical Server is the Fundamental Building Block to All Technologies.


Fully Integrated Computing Environment

SoftLayer Provides the Only Completely Integrated Solution in the Industry.

Dedicated servers, virtualized environments, and cloud solutions all operate together seamlessly to create an on-demand solution that can be scaled in real time.


SoftLayer History


Company Facts $52 million in revenue for 2008 $83 million for 2009 (est) $100 million annualized run rate (Dec 09) $1M in annualized revenue added every 10 days

170 employees

Dallas: 15,000 square feet raised floor Seattle: 10,000 square feet raised floor Washington DC: 11,500 square feet raised floor Capacity of 45,000 servers across current facilities

Customers

More than 5,700 in over 110 countries More than 23,000 deployed servers Average of 4 servers per customer Revenue of ~$1,500 per customer

Financial

Employees

Data Centers

Corporate Headquarters

20,000 square feet of office space Accounting, Sales, Development, Corporate


Financial Trends

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

(50)

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50

100

150

200

250

300

350

Net Revenue

Total EBITDA

Total EBIT

Total Net Income

Mea

sure

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Mill

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of D

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rs


SoftLayer 2009 Roadmap

Q1 - 2009 CDN enhancements Cloud storage HPC solutions

Q2 - 2009

Cloud computing Image management Storage network WAN acceleration Content caching and SSL acceleration

Q3 - 2009

Advanced monitoring API enhancements WebTop / PDA control panels Data mining

Q4 - 2009 Managed colocation


Target Customers

Subject Matter Expert

Core customer segment Technical user Tend to be early adopters and knowledgeable customers

Small / Medium Business

Enterprises

Resellers

Key growth segment Outsource entire IT infrastructure Currently using shared hosting or in-house server (closet)

Large organizations, traditional “brick and mortar” Fortune 2000 Out of space, no capex, but still have big projects

underway Currently looking for test and development environments

Several types of customer:HostingManaged ServicesTraditional VARs


Business Services8%

On-line Games

7%Retail

3%

Hosting15%IT Services &

Hardware36%

Internet & Con-

tent27%

Govt & Not for Profit2%

Industrials2%

Financials1%

What Industry Best Describes Your Business?

Customer Size and Vertical

Personal19%

IT Ser-vices &

VAR16%

Small (1-25 em-

ployees)54%

Medium (25-250 employees)

9%

Large (250 employees or more)

2%

How Would You Classify Your Account?

Sample size represents ~3200 active customers (56% of total customers)


Data Centers

Innovative Data Center Pod Concept Each data center features one or more “pods”Each pod built to the same specs using best-in-class methodsEach pod supports up to 5,000 serversOptimizes key data center performance variables

Current Pod DistributionDallas: 5 PodsSeattle: 2 PodsWashington, D.C.: 2 Pods

Total Current Capacity9 Pods1,200 racks45,000 servers


SoftLayer Facilities

Geographic Diversity

Free, fast, and secure connectionsbetween servers in any SoftLayer facility.


Server Rack Architecture

Network-Within-a-Network TopologyPublic NetworkPrivate NetworkData Center to Data Center Network


Three Distinct Networks Enable Multiple Service Offerings.

SoftLayer Network Overview


Cloud Computing

Market

Cloud Computing = Virtualization with Consumptive BillingVirtualization = Virtual Machines Running on a Hypervisor

Consumptive Billing = Pay for What you Use

SoftLayerCloud Computing = On-demand Computing with Consumptive BillingOn-Demand = Dedicated + Virtualized + Cloud + Storage

Consumptive Billing = Pay As You Go or Monthly Packages


CloudLayer™ Value Proposition

Rapid DeploymentComputing instances – delivered in as little as 5 minutesVirtualized Servers – 1 to 2 hoursDedicated Servers – 1 to 4 hoursContent Delivery – real timeStorageLayer – real timeAncillary Services – real time

Pay-As-You-Go PricingConsumptive billing for all servicesComputing instances will evolve to less than 1 month billing cycles

Fully-integrated SolutionsWork with all SoftLayer ServicesOne environment that can be managed through the API or Portal

SLAStandard SoftLayer SLA applies to all CloudLayer products


CloudLayer™ Service Offerings

CDN

Storage

Computing

Computing instances in “minutes” (5-15) Open source and enterprise OS selections w/ control panels Monthly billing to start, but evolving to hourly models Automated recovery in the event of hardware failure Usage based or packages starting at $.15/hr or $99/mo

Origin Pull or Point of Presence (PoP) Pull Usage based or packages starting as low as $.12/GB Sold with servers or as stand alone service

Access from server, desktop, web, portal, API, and PDA Native apps for iPhone, Blackberry, Windows Usage based or packages starting as low as $0.15/GB Sold with servers or as a stand alone service

CloudLayer is the Umbrella Brand for the Next Generation of Services That Can Be Sold With our Without a Dedicated Server.