Virtualized Hosting Business ModelsMike Riolo

Director of Sales – Hosting Markets

May 8, 2007

May 2007 Virtuozzo Business Models2

• Efficiency– Highest Density & Performance– Scalability

• Manageability– Capable of mass management– Near Real time Resource Allocation

• Full Isolation and Security– Potential Root Access for each VE– End-user freedom

• Management Tools– Multi-node, multi-VE – Provider, Reseller, end-user

• Zero-Downtime Migration– No shared storage needed– P2V, V2V or V2P

• Extensive Platform Coverage– Windows and Linux– x86, x86-64 and IA64

Virtuozzo Advantages for Hosting

May 2007 Virtuozzo Business Models3

Hosting Offerings & Deployment Uses

• True VPS• Managed VPS• Dynamic Dedicated• Split Dedicated

• Virtualized Infrastructure• Split Shared• SaaS Hosting

May 2007 Virtuozzo Business Models4

Best Practices:• Keep competitive price level • Bundle Control Panel• Offer Windows and Linux• Offer some Performance Guarantees• Creative marketing is possible

Customer Benefits• Complete Isolation makes it better than

shared• Significantly Cheaper than dedicated• Easier than dedicated > MANAGED and

tools/recovery• Functionally equal to dedicated

Provider Benefit• New Revenue Stream• Much more profitable than dedicated • Up sell opportunity for shared customers

Plesk

50-300+VPS/Server

True VPS - 50+ virtualized partitions per server packaged with subset of low-end dedicated server services and priced at $20+ /month price range

True VPS

May 2007 Virtuozzo Business Models5

1-500+VPS/Server

Customer Benefits• Guaranteed SLA• Upgrade SLA or to VPS/DS/DDS• Customized application set• Additional managed services• Potential for Root control level

Provider Benefits• Higher Revenue/customer • Fully integrated and automated offering• Never leaving to dedicated

Best Practices:• Offer for shared customers and move to

VPS with the same control panel• Sell additional services like back ups and

Marketing services

Managed VPS - offering fully managed VPS to the customer with shared hosting like control panel without default root access

Managed VPS

HSPcomplete

PEM In-house System

May 2007 Virtuozzo Business Models6

Customer Benefits• Complete Self-management • Easy upgrade for scalability• Burstable • Better availability, hardware

Provider Benefits• Saving - HW, Electricity, Datacenter• Automatic provisioning and management• Easy upsell and migration

VZMC

VZPP & Plesk

Migrate/Upsell

1-50 DS/Server

Best Practices• Both Linux and Windows• Self Management Panel• Control Panel• Properly sized, packaged and priced

Dynamic Dedicated Servers (DS/DDS) - dedicated-like virtualized services which are packaged and positioned as a better alternative to dedicated and sold at somewhat similar prices

Dynamic Dedicated Servers

May 2007 Virtuozzo Business Models7

Customer Benefits• Utilizes the resources better• Few Apps/Panels on 1 server• Allows resellers to sell VPS/DDS

Provider Benefits• Better offering for resellers • Not competing with customers• More revenue per server

VZMC, VZCC and/or Plesk

5-100+VPS/Server

Best Practices:• Just another OS option• Browser based interface• Control Panel packaging for customer• Market to Resellers & SME

Split-Dedicated – dedicated server is provisioned with Virtuozzo on it and management interface is provided to the channel or end customer

Split-Dedicated

May 2007 Virtuozzo Business Models8

Provider Benefits• Decreases cost and allows to buy

better/reliable servers• Convenient provisioning, re-provisioning,

backup, restore, • Migration, monitoring

Customer Benefits• Lower costs for services• More reliable

DNS

SharedMail

Shared Web Server

mutualbackup

Billing

DB

E-Commerce

CMS Firewall

VZMC

1-500VPS/Server

Best Practices• There is no downside• P2V could be used for easy migration• Market it!

Virtual Infrastructure - when all aspects of provider infrastructure are run on virtualized servers

CRM ERP

HostedApps

Portal

Shared Virtual Infrastructure

VPSServer

VZCC

May 2007 Virtuozzo Business Models9

Customer Benefits• Higher uptime • Predictable performance• Opportunity for more services for the same

price

Provider Benefits• Higher density – lower risk of “crazy”

scripts• Convenient backup and restore

• Migration for maintenance and upgrades

3-10VE/Server100 Accounts/VPS

VZMC

Migrate

Websites

Best Practices• Really very straightforward • P2V tools could be used to migrate

Split-Shared - when shared hosting accounts or services running on a single server are split into several VE for manageability and isolation purposes

Split-Shared

HSPcomplete VZCC

May 2007 Virtuozzo Business Models10

SaaS Hosting

SaaS Hosting – utilizing Virtuozzo to deliver solutions or applications (as opposed to resources) to individual customers

Customer Benefits• turnkey solution for any business need• less expensive and more predictable than

in-house• flexible & scalable• 24x7 support

Provider Benefits• higher attach rate• higher revenue per customer• attracts new types of customers

Best Practices• offer managed and unmanaged• market services not resources• focus on vertical market applications

Truly IsolatedApplications

VPS Server ApplicationsApplication 1 - $99 / monthCollaboration and more – 2 user license

Application 2 - $149 / monthBusiness process and CRM – 5 user license

Application 3 - $499 / monthWeb conferencing – 1 simultaneous conference

Application 4 - $499 / monthDental office suite – 10 seats

Application 5 - $999 / monthERP / inventory management – 20 seats

May 2007 Virtuozzo Business Models11

True VPS/DDS- Computer resources

HA VPS/DDS- Computer Resources- Infrastructure Services- Clustered Solution

Virtuozzo Business Models Evolution

Managed VPS/DDS- Computer resources- Infrastructure Services

SaaS VPS- Applications- Upgrades- App and Infrastructure Services- Licensing- SLA

SOLUTION HOSTING

May 2007 Virtuozzo Business Models12

Summary

• Virtualized offerings are becoming more mainstream

• Virtuozzo is the best Virtualization software for the Service Provider market

• Offer many different Virtualized Business Models

• SaaS is the future – Virtuozzo will make it more efficient and profitable!

• Your customers want these services – EVEN IF THEY DON’T TELL YOU!