benefits of cloud hosting and saas solutions for it solution providers and their customers

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Market Leader, Channel Marketing & Programs- Verio

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This presentation provides information on what Cloud, Hosting, and SaaS solutions are, and how they can be resold by IT Solution providers to build a profitable monthly recurring business, and the cost savings benefits to end customers for using these solutions.

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Page 1: Benefits of Cloud Hosting and SaaS Solutions for IT Solution Providers and their Customers

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Page 2: Benefits of Cloud Hosting and SaaS Solutions for IT Solution Providers and their Customers

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Hosted Computing and SaaS Solutions • What Are They?• Market Opportunity• Why Arrow Fusion Solutions?

– Solutions Overview– What’s in it for me?

• How to Position and Sell Them• How to Get Started

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Page 3: Benefits of Cloud Hosting and SaaS Solutions for IT Solution Providers and their Customers

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Page 4: Benefits of Cloud Hosting and SaaS Solutions for IT Solution Providers and their Customers

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• Cloud Computing– Internet-based computing

• Shared resources, software, and information provided on demand through the Web• Think: electricity grid.

– Key Features:• Utility-based billing • Elasticity of usage• Can be managed or unmanaged services

• Managed Hosting Services– Internet-based computing

• Pooled Resources (aka Shared), virtual private servers, or dedicated servers

– Key Features:• Specified computing resources at a set price.• Predictable monthly or annual billing.• Service provider manages ongoing daily management of hardware, OS, network, security,

and core server system updates/patches.

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Page 5: Benefits of Cloud Hosting and SaaS Solutions for IT Solution Providers and their Customers

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• Also known as “software on demand” - Internet Access• Typically hosted by software vendor/ISV or service providers• Sold on subscription basis (per user, or per company)

Advantages:– Monthly payments vs. upfront capital investment– Lower Total Cost of Ownership –

• No hardware investment• Responsibility of maintaining software updates/patches, fixing bugs, etc. is

the vendor’s responsibility

– Instant scalability– Faster Deployment– Security and Reliability

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Page 6: Benefits of Cloud Hosting and SaaS Solutions for IT Solution Providers and their Customers

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• IDC states 2009 worldwide IT Cloud Services Revenue as $17.4 billion• IDC projects by 2013 growth will reach $44.2 billion

Page 8: Benefits of Cloud Hosting and SaaS Solutions for IT Solution Providers and their Customers

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Current Use of Third - Party Hosting Infrastructure Services by Company Size (% of Respondents)

Q. How does your organization host your public Web site and/or internal Web-based applications infrastructure?

Base = respondents who currently have or plan to have public Web sites and/or internal Web/IP-based applications infrastructure

Source: IDC's U.S. WAN Manager Survey, 2009

Page 9: Benefits of Cloud Hosting and SaaS Solutions for IT Solution Providers and their Customers

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Use of Third – Party Hosting Infrastructure Services in the Next 12 Months by Company Size (% of Respondents)

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Base = respondents who currently have or plan to have public Web sites and/or internal Web/IP-based applications infrastructure

Source: IDC's U.S. WAN Manager Survey, 2009

Page 10: Benefits of Cloud Hosting and SaaS Solutions for IT Solution Providers and their Customers

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Top 5 motivations to use Cloud/Hosting Computing

38%

38%

42%

45%

50%

0% 10% 20% 30% 40% 50% 60%

Cost Reduction

Avoidance of CAPEX

Quicker time to value

Agility

Flexibility

Percent of respondents

Source: The 451 Group Cloud Adoption Survey 2010N=120 Sample Size Not Statistically Significant64.5% of Respondents below $250M in Revenue

Page 11: Benefits of Cloud Hosting and SaaS Solutions for IT Solution Providers and their Customers

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Source: The 451 Group Cloud Adoption Survey 2010N=120 Sample Size Not Statistically Significant64.5% of Respondents below $250M in Revenue

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CRM

DR/Backup

Collaboration

Test and Development

Web Applications

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Page 12: Benefits of Cloud Hosting and SaaS Solutions for IT Solution Providers and their Customers

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Today

• Messaging and Collaboration

• CRM and BI• BPO Apps• Accounting/ERP• Time Tracking

2012

• HR and accounting applications

• File server replacement• Internet-based NAS/utility

storage• Project management and

collaboration• Shared database

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Page 13: Benefits of Cloud Hosting and SaaS Solutions for IT Solution Providers and their Customers

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• CIO’s seek solution for apps and not just infrastructure• Cloud Services are the discussion point

– Business Intelligence and chargeback capabilities– Sold in combination with a la carte managed services– Security and uptime is huge consideration– Biggest selling point is agility over cost or technology

• Cloud will become mainstream among all businesses

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Page 14: Benefits of Cloud Hosting and SaaS Solutions for IT Solution Providers and their Customers

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Page 15: Benefits of Cloud Hosting and SaaS Solutions for IT Solution Providers and their Customers

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Increasing website security, requirements, scale, flexibility and

cost

Page 16: Benefits of Cloud Hosting and SaaS Solutions for IT Solution Providers and their Customers

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Price 29.95 44.95 89.95 159.95

Disk Space 10 GB 20 GB 40 GB 60 GB

Bandwidth No charge No charge

No charge No charge

Memory 256 MB 384 MB 512 MB 768 MB

Maximum Memory 512 MB 768 MB 1 GB 1.5 GB

Email Accounts No limit No limit No limit No limit

User Accounts No limit No limit No limit No limit

Domain Names (websites) 5 No limit No limit No limit

Software Firewall Rules 40 100 200 400

Dedicated IPv4 Addresses Included 1 1 1 1

Additonal IPv4 Addresses Available

0 4 (5 Total)

9 (10 Total) 19 (20 Total)

OpenVPN

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Price 274.95 349.95 499.95

Processor(s) Intel Celeron D

Quad Core Xeon

Dual Quad Core Xeon

RAM 1 GB 2 GB 4 GBAdditional RAM Available 15 GB 14 GB 12 GB

Disk Space 100 GB 200 GB 300 GB

Hard Drive Configuration

2 Hardware RAID-protected SATA 7200 RPM Drives + Backup Drive

Domain Names No limit No limit No limit

Virtual Memory 2 GB 4 GB 8 GB

Bandwidth 1 TB 2 TB 3 TB

OpenVPN

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• Flexible Choices to Scale with Ease– Multiple options– Seamlessly scale as your computing needs grow

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4 Plan Options –Virtual Private Servers

3 Plan Options –Managed Private Servers

Page 17: Benefits of Cloud Hosting and SaaS Solutions for IT Solution Providers and their Customers

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Page 18: Benefits of Cloud Hosting and SaaS Solutions for IT Solution Providers and their Customers

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SaaS• Hosted Microsoft Exchange• Hosted Microsoft SharePoint• Shopsite eCommerce

Professional Services• Database Administration and Management Services• Website Design and Management Services

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Page 19: Benefits of Cloud Hosting and SaaS Solutions for IT Solution Providers and their Customers

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Verio is the Leading Global Provider of Hosted Computing Solutions for the SMB Market• Hosted Servers• Application Hosting• SaaS

Verio is Owned by NTT• The world’s 2nd Largest Telecommunications Company• The 31st Largest Company in the World

• As ranked by the global Fortune 500, July 2010

• Proven Track Record of Performance and Financial Strength

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• Global Market Coverage via NTT’s Reliable/Scalable Global IP Network and Data Centers

• Co-located in Many of the World’s Most Robust Data Centers• Data Centers Located on Multiple Continents - Asia, Europe,

Australia, North America and South America• State-of-the-art, Maximum Security SAS 70 Data Centers

Page 21: Benefits of Cloud Hosting and SaaS Solutions for IT Solution Providers and their Customers

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Page 22: Benefits of Cloud Hosting and SaaS Solutions for IT Solution Providers and their Customers

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• Hosting plans are easy to sell, manage, and support• Provision in minutes• No contracts, pay month to month• Earn attractive compounded monthly recurring revenue for life of the

account• Combine with your own value-added services to increase profits• Serve more of your customers’ IT needs – increase loyalty/

relationships

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Sample of Linux VPS and MPS Hosting Plans Profit Margins

Sample of Hosted Microsoft SharePoint and Exchange Profit Margins

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1. Reduce Capital Expenses – Free Up Cash Flow• No hardware and network infrastructure costs• No perpetual software licensing expenses• Reduces barriers for deploying new applications• Predictable monthly expenses

2. Reduce IT and Server Management Costs• No patch management• No installing software upgrades• No dealing with security vulnerabilities or network uptime• Decreases operational expenses• Provides more time and resources to focus on strategic, high-return IT initiatives

3. Reduce Risk – Faster ROI• Fewer upfront costs = less financial risk + faster ROI for new applications

4. Rapid Deployment of Solutions

Page 26: Benefits of Cloud Hosting and SaaS Solutions for IT Solution Providers and their Customers

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• Hosted Servers Can Save Thousands– 3 -Year Savings Over an In-house Server Can be as Much as $20,000

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Verio MPS Basic Server Plan Compared to Equivalent Dell, IBM, SUN and HP Servers

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Page 28: Benefits of Cloud Hosting and SaaS Solutions for IT Solution Providers and their Customers

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Determine the specific business challenges your customers are trying to solve:

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Page 29: Benefits of Cloud Hosting and SaaS Solutions for IT Solution Providers and their Customers

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Contact Juan Flaquer or Your Arrow Line of Business Representative – [email protected]– ph: 800.544.7674 ext. 2431– cell: 303.229.0803

Simple Sign Up Process • Sign Master Services Agreement• Receive Training/Additional information on products/services

available through Arrow Fusion• Leverage Arrow Fusion resources to help you identify and close

opportunities

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