Canada Web Hosting Your Partner for Software as a Service David Flawn SVP Sales & Marketing.

Canada Web Hosting Your Partner for Software as a Service

David FlawnSVP Sales & Marketing

Agenda

• Canada Web Overview

• Considerations for the Delivery of SaaS (S+S)

• SaaS Enablement Onramp

• Partner Ecosystem

• Case Study

About Us

• Canada Web Hosting (CWH). Specializes in fully managed, enterprise-class hosting services for companies with mission-critical Windows, Linux, Unix and High End Database Internet applications. Passionate about being a great service company.

• Strong Growth. Over 3000% growth over the last 5 years and named one of Canada’s 100 fastest growing companies by Profit Magazine in 2006.

• World Class Facilities. State-of-the-art data centers at 151 Front in Toronto and the Harbor Centre in Vancouver. Customer Service Centers in Toronto, Vancouver and Kelowna, B.C.

• Financially Stable. Well funded, privately owned and profitable company founded in 1999. Company built on quality of service – at least 25% of its growth each month comes from existing customers.

• Strong Management Team. Brian Shepard, CEO and President with over 10 years executive experience in the hosting and managed IT services industry; Kelly Beardmore, Chief Technology Officer and former-Operations Manager at Rackforce Hosting Inc. David Flawn, SVP Sales & Marketing with over 20 years of executive experience in IT

• Experienced Board of Advisors: Joseph Kibur, founder and former-CEO of NetNation; Lorien Gable, founder and former-CEO of Bird on a Wire Networks; Sandip Gupta, former-CEO of Ensim; and Tom Schill, former-VP Operations of Quest Hosting Division, Bill DiNardo CEO of Eventi Capital, VC investor and founder of Grocery Gateway

CWH Managed Hosting

Colocation DedicatedHosting

FullyOutsourcing

TraditionalDedicated

Hosting

(Areas of Responsibility) CWHManagedServices

Business Process Layer

Application Infrastructure Layer

Application Layer

Operation System Layer

Device Layer

Networking Layer

Data Center Layer

Technical Support Approach

• ITIL Best Practices Approach to IT Management

• Dedicated Technical Account Teams lead by ITIL Certified Technical

Account Managers

• Top IT talent drawn from hosting industry and large enterprise

• Customer Support Portal provides 24/7 access to critical account and

system information

• Operating procedures are flexible to meet current and future business

needs of customer.

• Intensive Infrastructure and Application Management backed by

industry leading Service Level Agreements.

• Co-administration or CWH-only administration models

Managed Services Portfolio

• Professional Consulting Services

• Managed Infrastructure Services

• Managed Application Services

• Managed Security Services

• Database Administration Services

• Managed Storage Services

• Business Continuity / Disaster Recovery

• Communications / Messaging

• Collaboration and Content Management Tools

• Media Streaming

• Global Load Balancing and Content Delivery

What is SaaS?

• Fundamental shift in the creation, delivery, and consumption of business services

• Ultimately means software delivered as a hosted service vs. “on-premise” installations

• Typically subscription license models

• Opportunity for transactional and ad-based revenue

• Major segments are Enterprise, SMB and Consumer

SaaS the Driving Force

SaaS is threatening to disrupt the software industry and drive the hosted apps. market….

Software as a Service comprises two distinct business models: a) software on demand, b) hosted application management

A. Software on Demand• Special Software for one-to-many model• Customers share the same public infrastructure• Bundled software licensing and hosting revenue• Software is configured but not customized

(e.g.,Salesforce.com)

B. Hosted Application Management• Licensed packaged software hosted as a service• Priced traditionally with license fee and recurring

support fee.• Hosting cost is charged separately• Complete customization for a customer is possible in

this model (e.g., Canada Web Hosting, OpSource, Equinix, IBM, Savvis)

Software as a Service (SaaS) is emerging as a new growth area and is expected to grow at 21% CAGR to reach US$ 3.2B in 2009.

Managed SaaS Revenues ($M)

CAGR (’06-’09) = 21%

ISV Drivers for SaaS Adoption

• Market Potential• Participate in the “long tail” of the services market• More compelling value proposition when tying usage fees to individual

productivity and benefit• Ongoing annuity revenue stream and tie to customer’s business processes• Ability to pursue business service opportunities independent of time or place• Reseller ecosystem to extend application reach and integration

• Operational Efficiency• More efficient application delivery and support• Version control• Patches, fixes and new releases

• Customer Connection and Feedback• Better product/service feedback due to real-time usage analysis and

feedback

Business Drivers for SaaS Adoption

• Pricing tied more directly to economic benefit

• Reducing IT Operations cost

• Shift Capex to Opex

• Easier to trial

• Always working with the current version

• Collaborative potential exploiting presence and virtualization

• Focus on core business

Business Factors to Consider

• Planning• Business planning, profit and loss• Licensing and subscription models

• Process• Sales processes (inside, outbound…)• Marketing processes• Web presence and process• Billing processes

• Service• Professional services• Service Level Agreements

• Oversight• Compliance, Security, Privacy, and Governance

IT Factors to Consider

• Technologies• Multi- tenant application structures and scalability• Switch to SaaS likely requires complete application redevelopment• Service-Oriented Architecture (.NET, Java, Apache, Ajax, etc.)• GUI and usability

• Competency and Skill Sets• New skills to deliver SaaS• Staff with service background• New service development process, no longer “product” development

• Operational Control• Operation or management of outsourced provider• Management of service provider’s SLA• Project management discipline• Change management protocol• Migration

Immediate Concerns

• Business Model• Current business models for sales, marketing and business

development may not be appropriate to exploit the SaaS opportunity

• A transition from large one time licensing fees to monthly usage fees can put financial stress on an ISV

• Don’t underestimate the complexity of rendering monthly user based fees for services

• Redevelopment• Although many applications can be modified to run as a service

application redevelopment may be required• A rebuilding of web properties will likely be required

• Complexity and Reliability• Resources required to launch a SaaS offering may be extensive • A single point of failure for service delivery could affect a very large

audience (you will need a belt and suspenders)

SaaS Delivery Consulting

SaaS Enablement Services

SaaS Enablement Services is a structured approach for helping new and existing

businesses accelerate their SaaS initiatives.

• Reduce time-to-revenue

• Increase probability of success

• Drive customers to the SaaS platform

SaaS Enablement Services is a structured approach for helping new and existing

businesses accelerate their SaaS initiatives.

• SaaS Readiness Assessment

• SaaS Delivery Consulting

• SaaS Platform Services

SaaS Readiness Assessment

The SaaS Readiness Assessment (SRA) is a consultative engagement to help ISVs

understand the steps they need to take bring their application to a SaaS platform.

• Business engagement and plan development

• Technical engagement and software architecture review

• Gap analysis and assessment results

SaaS Development Platform

SaaS Delivery Consulting

SaaS Delivery Consulting enables customers to execute on their SaaS vision. With

access to an ecosystem of partners, ISVs can quickly work through business and

technical challenges and build lasting service relationships.

• IT and Business alignment

• Project Management

• Business and technical delivery through ecosystem of partners

Partner Ecosystem

iVAS SaaS – Middleware PlatformPayment GatewayFinancial Load BalancingShopping CartCustomer GUI CSR GUI for CRMRecurring Billing

Application Integration & DevelopmentEnd to End QA and Functional Testing

IT Service Management – ITIL Guidance & ImplementationBusiness Continuity – Planning and Implementation

Risk & Compliancy – PCI DSS / Privacy Assessments & Controls ImplementationControlPath SaaS – Compliancy

OASYS SaaS – BPM PlatformWSS SharePoint Services

Professional ServicesApplication Capacity Planning

Fixed Cost ProjectsPM / Software Development (WAS, Sun Solaris, Oracle)

Hardware & Software Sales & Service

Eosensa Partnership Overview

Core Competencies

• Professional Services

• Risk & Compliance

• IT Security

• Business Continuity

• IT Service Management

Eosensa Capabilities

• Professional Services engagement for Assessments,

Compliancy, Controls and Systems Architecture

• Hosting and Managed IT Services Implementation

Partner for Production, DR Systems, and ControlPath

SaaS

• ITIL Process Partner for Service Desk (Incident &

Problem) and Change Management

Client Benefits

• Professional Services for Risk & Compliance, IT Security, Business Continuity, IT Service Management (ITIL)

• ControlPath SaaS for Asset Management

Clochase Partnership Overview

Core Competencies

• Professional Services

• iVAS – SaaS Value Added Service Platform

• Application Integration & Development

• End to End QA and Functional Testing

Client Benefits

• Professional Services to guide and manage requirement definitions and resolutions

• Integration and development of online services into existing business applications

• Access to proven 3rd party applications integrated as part of the a shared or dedicated environment.

Clochase Capabilities

• Professional Services Engagements for

Integration

Development and Testing projects

• Hosting and Managed IT Services

Implementation

Partner for Production Clients and iVAS middleware

platform

• ITIL Process Partner for Service Desk (Incident &

Problem) and Change Management

Blue Sands Partnership Overview

Core Competencies

• Professional Services

• Application Capacity Planning

• Business Process Management

• OASYS and Windows SharePoint Services

(WSS)

• Microsoft Office SharePoint Services (MOS)

Client Benefits

• Visibility and predictability on current and future application performance

• Improve the ability to forecast application / infrastructure requirements

• Scalability and growth of user base

• Reduce Incidents and Problems (ITIL)

Blue Sands Capabilities

• Professional services engagement for capacity

planning

• Lead into BPM tools, hosted WSS / MOS and

Professional services (customization)

Case Study: Guest Logix (GLX)

Background

Challanges

• Fast growth raising concerns on ability to scale

• Sales engagement require high levels of IT Services information

• Customer SLAs are driving requirements

• Want their IT resources focused on product development

• Customers require a 24x7x365 service

• Multi-national security, privacy, and compliancy requirements

• New to IT Service Management best practice (ITIL, ISO 27001)

Guest Logix is a leading ISV in the Guest Services industry. The Company is servicing major airlines around the world has recently completed an IPO. Canada Web Hosting customer since 2005.

Case Study: Guest Logix (GLX)

Solutions

Services Provided

Worked in conjunction with GLX executive team and senior application team to design a scalable, secure, and flexible SaaS platform. Solution delivered in stages over the course of 12 months.

• Virtual CTO – work closely with Guest Logix CTO

• Onsite Resource to drive projects and further knowledge

• High availability production environment

• Pre-Production and Disaster Recovery environment

• White Labelled Service Desk for application support (telephone)

• Compliance Automation and Threat Mangement Services

• Tiered Backup and Offsite Archive

Case Study: Guest Logix (GLX)

Partnerships

Summary

• Canada Web Hosting can help ISVs grow their businesses by providing

services and expertise to support the delivery of hosted software and

services

• Disaster planning and recovery and the elimination of single points of

failure

• IT service management discipline that extends from network to hardware

to operating systems and applications

• Detailed application and service monitoring and reporting

• Service level agreements that support the demands of the always

connected, online world

Contact Information

David Flawn

Canada Web [email protected]

647-723-6137

Backup Slides

Core Values

Great People. Great people make great service companies. To offer a compelling managed hosting service, CWH does everything possible to recruit, train and retain IT professionals passionate about their work and exceeding their customer’s expectations. Every effort is made to encourage and recognize extra-ordinary customer service efforts in it team members.

Operational Excellence. CWH managed services are engineered with fanatical attention to detail to consistently deliver the highest levels of quality, performance and value. CWH believes strongly in implementing best practices at all levels of its business and subscribes to internationally accepted standards: ITIL, ISO 9001 and ISO 17799. CWH is also a Microsoft Gold Certified Partner.

Partnership Approach. Achieving the service levels required for mission-critical Internet applications requires a partnership approach. CWH’s goal is to establish a cooperative framework which ties CWH’s managed hosting services into the customer’s overarching business objectives.

The CWH Promise

Hosting Experts. CWH’s entire business focus is managed hosting services. As a result, it has built up a wealth of specialized knowledge, experience, partners and best practices. Working with CWH gives you immediate access to world-class networks and data centers as well as some of Canada’s top IT talent in core Windows and Linux technologies.

100% Reliability. Without reliability, nothing else matters. Through its investments in training and technology and dedication to operational excellence, CWH systematically eliminates the sources of unreliable and inconsistent service. This is backed by Industry leading Service Level Guarantees.

Flexibility & Responsiveness. CWH does not believe in “one-size-fits-all” solutions. Our mission is to help our customer’s grow their business by establishing a common understanding of roles, responsibilities and expected results within a flexible framework of ITIL best practices. CWH prides itself on its responsiveness in all areas of its business and its ability to exceed clients expectations in every engagement.

Superior Value. Getting the best value from IT resources is the bottom line for all companies. CWH offers significant reductions in the total cost of ownership while offering an excellent quality of service at all stages of the IT service cycle. The value of CWH’s service grows proportionally with corporate demand for higher service levels and larger investments in enterprise-class personnel, processes and infrastructure.

Managed Hosting Platform

Comprehensive Services Platform. CWH’s aim is to work cooperatively with clients through the entire IT service cycle - planning, implementation, maintenance, measurement and review - to deliver a comprehensive solution that supports their business objectives.

Custom Application Support. CWH does not merely support a finite set of common commercial and open source OSs and applications. To achieve the highest quality of service, CWH works with clients to understand the impact of their custom code and development processes on their hosting infrastructure.

Cost Predictability. CWH includes a comprehensive set managed hosting services with every eMax solution. There are no support fees and very few usage fees or other cost variables. CWH does not believe in a “nickel-and-dime” approach.

Reduced Time to Market. Through its pre-provisioned inventory and pre-engineered systems in Toronto and Vancouver, CWH can get clients up online very quickly. Successful implementations of complex hosting solutions by experienced Technical Account Teams are done in days and weeks rather than months.

SaaS Adoption by Software Type

Delivery and Business Model for SaaS

Software Delivery Models

Traditional Software Software as a Service

On Premise In the Cloud

Centralized Decentralized

Large Upfront Cost Pay As You Go

Software-as-a-Service Business Model

Application Hosting Net-Native Software-as-Services

Perpetual License Subscription

One-to-Few One-to-Many

Private Infrastructure Public Infrastructure

Source: Software On Demand’s Impact on the Software Industry: Transformation, Extinction or Rebirth?; July 2005

Source: U.S. Software On-Demand Delivery Model 2005–2009 Forecast; IDC #33493 June 2005