New Hosting Products

Robert Hoffmann

August 2013

Hosting Market

Hosting market is growing fast due to market penetration but also need for eMarketing

® 1&1 Internet 2013 2

Global Public Cloud Services Growth

The total market is expected to grow from $77 billion in 2010 to $210 billion in 2016

Gartner predicts the highest annual growth in SaaS to be with office suites (49.1%) as well as digital content creation such as eMarketing (34.0%).

210

181

155

131

11093

77

20162015

+18%

20142013201220112010

Source: Gartner (February 2013)

Billion US-Dollar

SMB success factors

Web presence & eMarketing is key to success when starting a business

® 1&1 Internet 2013 3

Consumers seek engagement with SMBs before they spend

Consumers are online more, especially via mobile

Consumers are purchasing online

58% of SMBs do not have a website

56 % of consumers don‘t trust a business without a website

75% of SMBs believe they cannot create a high quality website

60% of consumers are frustrated by sites that don‘t work proper on mobile phones and tablets

Source: Google Consumer Surveys, Google/IPSOS, SiteSwan, Zoomerang, BCG

SMB demands

3 out of 4 SMBs want more from their website

4® 1&1 Internet 2013

Top demands of SMBs

More Lead Generation Sell and manage business processes online - orders, payment processes, dispatch/ shipping

Work with other people online - via protected login areas on the website, virtual office, etc.

More eBusiness Capabilities Generate relationships with prospects

Win more customers

More Web Presence Establish an Internet presence for the company Be easily found on the Internet Create visibility across multiple platforms

More Communication Communicate online with customers/prospects/business partners Leverage social media platforms for communication

More Brand Protection Establish security for the business name and domain

27%

24%

23%

17%

10%

Source: 1&1 survey of 1505 businesses worldwide

Hosting Acquistions and Consolidations

5

Acquisition growth in hosting industry

2011 2012 2013• AUG - United

Internet acquires Arsis (Spain)

• JUL – Convene Group acquires Host Europe (UK)

• MAR - Endurance International acquires Moonless (USA)

AUG – Web.com acquires Network Solutions (USA)

AUG – HostEurope acquires Heart Internet (UK)

DEC – Go Daddy sells majority stake to KKR, Silver Lake and Technology Crossover Ventures (USA)

JUN – Endurance Intl acquires HostGator (USA)

AUG – Endurance Intl acquires Intuit (USA)

DEC - Cogeco acquires PEER 1 Hosting (USA)

MAR - Endurance International acquires Mojoness (USA)

JUL – Cinven Group acquires Host Europe (UK)

AUG - United Internet acquires Arsys (Spain)

® 1&1 Internet 2013 Top 4 competitors

6

Still many opportunities for further consolidation

web.com

2%~$0.4bn

Endurance International

3%~$0.5bn

United Internet

5%~ $1.1 bn

GoDaddy.com

7%~ $1.4 bn

Market Shares of Top 4 Global Hosts in 2012

United Internet is the leading European Internet company

10,000’s of small web hosting brands worldwide

® 1&1 Internet 2013 1&1 growing (Contract Bases)

1&1 is the leading Webhoster in Europe

United Internet Business Customer Contracts (millions)

5,5

5,0

4,5

4,0

3,5

3,0

2,5

2,0

1,0

0,0

1998 1999 2000 20032001 2002 2004 2005 2006 2007 2008 2009 2010 2011 2012

® 1&1 Internet 2013 7

Data Center Karlsruhe

Hosted eShop Solution

10 million Domains registered

DIY introduced at CEBIT

Innovation

Internationalization

1&1 business segments

> 5.000 staff worldwide addicted to helping SMBs

15 years of experience

5 green data centers with > 70,000 servers

1&1 portfolio offers tailored eBusiness solutionsfor all needs and segments

® 1&1 Internet 2013 8

SMBsReal estate, Restaurants, Retailers,

Craftsmen…

ProfessionalsAgencies, Freelancers, Web Developers, Medium Businesses

MyWebsite Web Hosting

Domains

Mail & Productivity Solutions

Individual great page

Internet Business Success

Best in class usability

Performance & Security

Design & Success

ServersDedicated Server

Virtual Server

Dynamic Cloud Server

Shop/eCommerce Solutions

Seg

men

tW

eb

Pre

sen

ceC

ross

-Pro

du

ctF

eatu

re E

nri

chm

ents

Application-Expertise & Support

Online/Search Marketing Social/CRM Analytics

eBusiness hoster transformation

9

1&1 is addicted to online success for both segments - transformation from Web host to eBusiness provider

® 1&1 Internet 2013

Payment solutionsE-shops

Sector content

Business apps

SEO tools

Local listings Mobile conversion

Display advertising

E-mail marketing

Homepage

700 nTLDs

2013 More than 700 new Top Level Domains

10

700 new gTLDs will be launched over the next year or so

1&1 expects around 5 million pre-registrations from approx. 500,000

customers by year-end

SMBs awareness levels need to be raised on the timelines and benefits

2012 32 TLDS

1998 5 TLDs

® 1&1 Internet 2013

NEW: More than 700 new TLDs coming next years

Benefits of nTLDs

Number of domains offered by 1&1

11

Reasons for professionals and SMB owners to buy new TLDs

• New opportunities to gain short and memorable online identity

• Signal to potential visitors what your site or business is about or where you are from

• Be better found in Search Engines

• Secure your Internet identity from competitors

Benefits for ALL types of website owners or those new to the Web:

® 1&1 Internet 2013 nTLD: 1&1 best hoster

12

Pre-order portal provide FREE reservations and guidance through nTLD launches

100% secure, transparent, confidential and quick as possible

Expert advice on hand

Optimal domain prices through 1&1’s Global scale

FREE reservation

® 1&1 Internet 2013 DIY success story

Agreements in place with ICANN 2013 RAA recently signed

TV and print ad campaigns worldwide

1&1 understands SMBs and is a Key player in raising awareness levels with SMB audiences

1&1 is the best provider of nTLDs to customers

13

1&1 delivers to new gTLD registrants…

WIDE SELECTION

INTERNATIONAL REACH

FLEXIBLITY

Among the largest portfolio of all providers (over 700 nTLDs)

All regional nTLD launches covered

1&1’s domain expertise accessible to users of other hosting platforms

EXPERIENCE Large-scale industry experience

TRUST 1&1 knows the demands of SMBs

TIMELINESS 1&1 on top of every registry

process

® 1&1 Internet AG 2013 nTLD reservations

® 1&1 Internet 2013

Continuing 1&1 MyWebsite Success Story

Choose from hundreds of

attractive designs and layouts

 Get found via social and

search

Quick and easy Make changes online at any

time

Choose from over120 business sectors 

14

More than 500,000 MyWebsite subscribers in less than 2 years of marketing

DIY customer Jacob

Jacob, restaurant owner – why online and social business is now so important

Gain greater awareness with a local audience

Take table bookings and payments for takeaway

Engage with customers, his community and potential suppliers

Create online identity and branding

1 billion users 4 billion views/day

1.1 billion users

LinkedIn has 225 million

500 million total, 200 million active

users

® 1&1 Internet 2013 151&1 Social media centre

® 1&1 Internet 2013

NEW: 1&1 Social Media Center makes social easy

16

Core features of 1&1 Social Media Center

Facebook Page Creator

Content synchronization between MyWebsite and Facebook

Central hub for your social media management

Real MyWebsite example

Facebook Fan Page1&1 Social Media Center

By synchronizing the DIY homepage and Facebook business page, 1&1 MyWebsite now offers Jacob a fully integrated solution for social media management for his restaurant.

1&1 App Store

NEW: 1&1 ‘Drag & Drop’ App StoreAdding eBusiness functionality easy

New 1&1 Appstore with over 250 Apps provides 1&1 MyWebsite customers with a secure way to attract, interact and transact online

Quick & Easy

Affordable

Ideal for website users

® 1&1 Internet 2013 17Hosting Principles

…with maximum

security from geo-

redundancy

…to speak to an expert

…to upgrade or

downgrade your

package

…monthly or flexible upfront

payment

…of all products for

30 days

18

NEW: 1&1 Principles for SMBs and Professionals

® 1&1 Internet 2013 Cloud Offerings

Money back guaranteed

Billing flexibility and

affordability

Always have the optimal package

Request quickly resolved by 1&1

expert team

Data stored in two separate locations

Cloud Services for SMBs and Professionals

19® 1&1 Internet 2013

Overview of 1&1 cloud products and solutions

1&1 Office Solutions = Cloud Computing Web-based Online Applications that use cloud resources for high performance and convenience

SMBs are always up-to-date via automatic software updates and 1&1 expert support

Cloud Server

SMBs Professionals

Apps / Marketing-Services

1&1 CMS / App-Store

Shared Hosting

Marketing-Services

Managed OS / C&B Apps / Dev-Tools

Shared / Cloud Hosting / Cloud Data Center

eBusiness

PaaS

IaaS

1&1 Shared Hosting = Cloud Hosting Our Shared Hosting solutions are cloud based and 100% flexible and reliable

SMBs and Professionals can scale their web projects to their needs due to our dynamic resources

1&1 manages hosting environments and provides expert services to SMBs and Professionals

1&1 increases value creation of our customers by offering best-in-class cloud hosting

Software developers

Web developers

Web designers

System admins

Flexible infrastructure Dedicated resources according to project

requirements

Adapt as you need Allow projects to stop, grow

and reduce in both short and long terms

Power for short periods Benefit from maximum power

but on hourly basis

Completely SecureNo compromise of reliability or

security

Pay as you use Only pays for what he needs

Cloud Servers - Core demands from professional users

Paul, web developer, needs an online solution…

- Delivering a web server and

an email server - Allow copies of machines to

be made easily- As flexible as he is

® 1&1 Internet 2013 20DCS Flex

NEW: Dynamic Cloud Server Flex

For Paul, the Dynamic Dedicated Cloud Server allows him to create his own

network of individual servers for each customer or project – up to 99

Reliable, dedicated

power

New: Fully flexible

(per hour)

New: Free sleep mode

Extremly affordable

® 1&1 Internet 2013 21Need for Apps

22

Webhosting: Performance of Apps now critical

2007 2008 2009 2010 2011 2012 20130

5,000

10,000

15,000

20,000

25,000

30,000

1,0442,933

4,245

9,982

14,533

19,344

26,576

Growth of WordPress Plugins

Year

d

Performance of Apps can make or break the usability of a website

d

Plug-ins and widgets for Apps need to be

easy to install, adjust and always up to date

d

Hosting solution needs sufficient power

for Apps

® 1&1 Internet 2013 New 1&1 Hosting Portfolio

23

NEW 1&1 Webhosting – Most powerful shared hosting

® 1&1 Internet 2013

App Expert Support

Expert support for Click & Build Apps, PHP and MySQL databases

App Expert Center Introducing Free Mode (fully customizable / every plug-in), Safe-Mode (managed by 1&1)

and more than 250 Web Apps

Forum with extensions, support and advice from experts & App developers

Software & Mobile Website Builder included Latest version of NetObjects Fusion 2013 in 10 different languages , as well as Adobe

Dreamweaver CS 5.5

Mobile Website Builder to easily create mobile websites

Content Delivery Network

Providing maximum performance for your website with Points of Presence (PoPs) distributed in 23 locations worldwide on different backbones

Guaranteed performance

2 GB RAM for guaranteed performance of resource-intensive applications (performance leader in shared hosting)

NEW

NEW

NEW

NEW

NEW

Florian

Florian Weigmann

Head of Product Management Webhosting

® 1&1 Internet 2013 25

We know what professionals need:

Flexible modules that integrate perfectly with one another to meet the requirements for developing

great web projects

® 1&1 Internet 2013 26

Key Take Aways: It‘s all about Apps

The latest versions of 40 popular open source apps

The ability to install with a few clicks in either safe or free mode

Apps come preloaded with best practice plug-ins and themes for our top 5 apps

HTML code snippets for over 100 Web Apps

Information and news on top apps is at your fingertips

® 1&1 Internet 2013 27

Key Take Aways: It‘s all about expertise and performance

App Experts available for the top 5 apps +

MySQL + PHP

Active members in App Support Forums & we keep up-to-date on

trends

We are now offering guaranteed

performance (2 GB)

CDN is available and can be incorporated

for even faster delivery

® 1&1 Internet 2013 28

Key Take Aways: It‘s all about Mobile & Design

Easy-to-use Mobile Site Builder allows

customers to choose between:

Converting an existing or building a new desktop site for an optimized view on mobile devices

Building a new website directly from scratch - the newest

version of NOF