best practices for iaas with parallels virtuozzo...

Best Practices for IaaS with Parallels Virtuozzo Containers Lowell Anderson, Director, Product Marketing, IAAS, Parallels

Profit from the Cloud™ | 2

• Worlds Leading Cloud Virtualization Solution

- 1,000,000+ containers

- 1,500+ Cloud Providers

- 150 new Service Providers in 2011

Parallels Virtuozzo Containers

Virtual Private Server Market Share

Profit from the Cloud TM

Best practices enable success for VPS Hosting

Increase ARPU

Reduce Customer Churn

Pursue Operational Excellence

Optimize Density

Cross-Sell /

Up-Sell

Drive Loyalty,

Stickiness With

Differentiated

Products

Ensure Reliability,

Stability &

Performance

Minimize

Infrastructure Cost

per VPS


Key to success: ARPU

Increase ARPU through cross-sell/up-sell

Metric Hosted Infrastructure

ARPU • VPS: $30 - $50

$-

$10

$20

$30

$40

$50

$60

High Margin Low Margin

ARPU

Profit @ $30/VPS = $5

Profit @ $50/VPS = $21


• Maximize $$ at POS - Package Add-Ons like Plesk

- Maximize RAM, Storage and BW

• Proactively Up-Sell - Monitor server usage and

offer upsize packages

- Upsell Plesk licenses or additional servers as they approach domain limits

Key to success: ARPU

Increase ARPU through cross-sell/up-sell

Add-Ons

• Plesk

• Backup

• Monitoring

• Anti-Virus, Anti-Spam

• Development Bundles

Best

Practice

Make it easy to

upsell and size


Key to success: reduce customer churn


Metric Hosted Infrastructure

Churn • VPS/unmanaged offerings:

2.5-4% per mo

Best

Performer

Needs

Improvement

-60%

Performance gap in churn rate for SMB Cloud providers

Annual churn rate, Index 100 for best performer


• Increase Attach Rate - Drive stickiness through freebies,

personalization, special offers



Special

offers

Success through free and

limited versions – 10% increase

in adoption with little efforts!

Freebies

Increase customer retention by

bundling Plesk panel on their virtual

server offerings


• Offer branded bundles and niche offerings for target customer segments



Branded

bundles Target Customer

Segments


• Use “Cloud” marketing



Make it “cloudy” with dynamic content

and toggles enabling customers to

personalize and tailor their own packages

Use the unique features of PVC to

position as “Cloud Services”


• Be Unique



Leverage unique features of PVC

to introduce new pricing models,

customer orientation and go-to-

market approaches

Charging customers different

prices through “Stackable”

containers – a new differentiated

offering for customers


• Identify and nurture - Use Social media (Twitter,

Facebook) for real-time customer dialogue and engagement



• 80% leverage Twitter for

real-time updates

• 90% maintain a Facebook page

for dialogue and testimonials

• 75% spend less than $5K annually

on marketing, increasing their

usage of social media Low High

$25,000 $0

Recent Service Provider Voice-of-Customer initiative

$1,500

Average



Reduce Customer Churn • Compete on service and support, not just price

- Showcase how you are different.

- Look at opportunities to create

affinity with customers through

through shared values, interests Customer Service &

Support as

key competitive

advantages

80% of Service Providers

claim they differentiate on

quality of service and customer

support – you need to develop

your niche!

Share accolades

and testimonials




Customer forums

and peer-to-peer

support enablement

Rewards for longer-

term purchases or

service contracts

• Build customer loyalty • Customer community

• Customer forums

• Rewards programs


Pursue Operational Excellence

Key to success: operational excellence

• Disk Recommendations - 4x500GB RAID10

- Select swapspace relative to memory

- “Hotplug compatible“ disk bays and RAID controllers

- Avoid fans on controllers

- Use battery backup controllers

Memory Swap

0 – 4 GB 2 GB

4 – 16 GB 4 GB

16 – 64 GB 8 GB

64 – 256 GB 16 GB

256 – 512 GB 32 GB

Best

Practices

• Optimize Your Environment - Use compatible native environment

on the host: (RHEL6 for vz4.7)

- Be consistent with HW on nodes to reduce risk of driver-related problems.

- Don’t use 3rd-party drivers on nodes

- Keep configurations synchronized across all the PVC servers.

- Test new hardware before production switch-over

• Streamline deployment - Use PSBM to streamline

deployment

- Use PXE boot to automate network-based installation


Take advantage of latest PVC 4.7 features

• CPU Limits - Ensure that CPU core number and

limits are set according to your hardware environment

• Disk I/O Limits - Prevent situations where high disk

I/O activities in one container will slow down the performance of other containers

- Set to 75% max disk throughput

• vSwap - Limits the maximum amount of

allocated memory by specifying physical memory and virtual swap space which can be used by a container

Key to success: density

Optimize Density

Match Your Server to Your Business Model

Workload CPU Memory Density

Web

Applications/Plesk

2x

Quad-

core

64GB 80-100

Database/Compute

Intensive

2x

Eight-

Core

128GB` 80-100

Low High

200+ 10

Recent Service Provider Voice-of-Customer initiative

90

Average

Profit from the Cloud TM

Profit From The Cloud

Best

Practices

Increase ARPU Make it easy for customer to purchase add-ons and

position your most profitable packages to maximize

$$ at POS

Reduce Customer Churn Know your customer – start a customer loyalty

program today

Pursue Operational Excellence Streamline your installation process and optimize

your environment using PSBM to deploy PVC

Optimize Density

Take advantage of the latest PVC features to

maximize density and improve performance

best practices for iaas with parallels virtuozzo...

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