Dramatically increase revenue on verio template

Proprietary and Confidential Information of Verio 12/14/2010 1Proprietary and Confidential Information of Verio

Dramatically Increase Revenue through Hosting Services Discover the market opportunity and what you need to know to

offer and support these services.

Janine Soika, Market Leader of Reseller Channel Programs

December 14, 2010

Proprietary and Confidential Information of Verio 12/14/2010 2

Speaker Bio – Janine Soika

Janine Soika

Janine Soika Market Leader of Reseller Channel Programs, Verio Inc.

Janine Soika has over 15 years experience in B2B marketing, with more than 10 years managing Channel Partner programs for High-Tech Fortune 500 companies. Ms. Soika has held Marketing leadership positions with IBM, The Equitable Group, Arrow Electronics, Level 3 Communications, and Epsilon Data Systems. She also served as a marketing consultant for Wells Fargo Bank in addition to smaller start up organizations. In 2009 Janine was recognized by CRN Magazine as one of the “Top 100 Most Powerful Women of the Channel.” She holds an MBA from Pace University and resides in Denver, Colorado with her husband, Tom and their two boys, Michael (8) and Ryan (5).


Agenda

• Hosting Services overview• Market opportunity• What it takes to become a hosting reseller• How to position and sell them• How to select a Hosting Service Provider• How to get started


Hosting services are managed servers provided by a Hosting Service Company:

• Provides the technical infrastructure and ongoing support

• Typically sold on a monthly basis at a fixed monthly price• Clients of Hosting services don’t have to worry about the

burden of maintaining the hosting server, operating system, supporting server applications or network

Hosting Services Overview - What are Hosting Services?


Technology Stack

Hosting Company Manages

With Managed Computing You Maintain Control


Types of Hosting Services

Increasing website security, requirements, scale, flexibility and cost


SaaS• Hosted Microsoft Exchange• Hosted Microsoft SharePoint• eCommerce

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

Complimentary Services


• 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

Profitable and Easy to Sell


Market Opportunity


Uses for Hosting

Hosting infrastructure services: not just Web Hosting anymore

o Web sites and associated applicationso Internal enterprise applications o General-purpose ITo SaaS enablement and SaaS applications


Why End-Customers use Hosting

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


Hosting Adoption by Workload

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

CRM

DR/Backup

Collaboration

Test and Development

Web Applications

0% 20% 40% 60% 80%

Next 12 Mo.


Number of Employees

Total 50–99 100–499 500–999 1,000–4,999 5000+

In-house 48.4 29.7 39.1 60.2 50.9 57Service

Provider 26.9 36.6 31.8 25 25.7 20.3

Hybrid 22.1 30.7 26.4 14.8 21.1 19.2

Don't Know 2.6 3 2.7 – 2.3 3.5

n= 642 101 110 88 171 172

Adoption by Company Size

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


Number of Employees

Total 50–99 100–499 500–999 1,000–4,999 5,000+

In-house 47.7 34.7 38.2 60.2 49.7 52.9Service provider 23.7 29.7 27.3 22.7 21.6 20.3

Hybrid 24.6 28.7 30.9 17 23.4 23.3

Don't Know 4 6.9 3.6 0.1 5.3 3.5

n= 642 101 110 88 171 172

Planned Use by Company Size

Q. Will your organization hosting be in-house, outsourced, or a combination of both in the next 12 months?

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


2010-2014 CAGR 6.7%

10.0 10.611.3

12.112.9

13.8

1.0

3.0

5.0

7.0

9.0

11.0

13.0

2009 2010 2011 2012 2013 2014

US

$B

Market Forecast Growth Rate

6.7% Growth

6.7% Growth

6.8% Growth

6.9% Growth

6.5% Growth

Source: IDC, May 2010

U.S. Hosting Infrastructure Services Forecast


What it Takes to Become a Hosting Service Provider


Hosting Reseller Defined o Hosting resellers purchase Hosting at wholesale discounts

from a hosting service provider such as Verio. o Resellers typically combine other services with hosting and

resell them to their clients at a profito Hosting resellers maintain the client relationship, bill, and

support.o In exchange for these services, the client pays the Hosting

Reseller a monthly fee.

Overview

Hosting Provider Hosting Reseller End-Customer

Purchases Services

Resells, bills, and supports


• Advise clients on appropriate Hosting solution to meet their specific business requirements• Provide additional value-add services:

• Website Design• Website Content Management• Email Services• Marketing Services (SEM, SEO, PPC, Social Media)• Database services• SaaS applications

Reseller’s Role


Depending on the services you plan to provide, you may need the following expertise:

• Basic website design (HTML and CSS at the least)• Website application integration for eCommerce, merchant

accounts , SSL certificates• Internet protocols (e.g., HTTP, HTTPS, FTP)• Understanding of domain names and the Domain Name System

(DNS) – domain name registration and transfer• Email services and how e-mail works• Specific commercial application knowledge• Database set up and management• Leading Operating Systems: Windows, Linux or Unix, Solaris, etc.

Technical Expertise


• Wholesale Reseller (Verio’s Via3 partner program)• Sells, bills and supports• Purchases hosting services at wholesale prices• Sets Profit Margin

• Hosting Purchase Price + Additional Services = End-Customer Price • Profit Margin = End Customer Price – Purchase Price/Operating Costs

Modified Reseller Program (Verio’s Via2 partner program)• Sells and Bills• Hosting Service Provider supports end-customer• Reseller purchases Hosting services at reduced discount rate

•Agent/Referral Reseller (Verio’s Via1 partner program)• Sells or refers business to Hosting Service Provider• Receives commission or one time payment

Types of Programs


How to Position & Sell


Customer Benefits

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


How to Select A Hosting Service Provider


• Reliability – how often do they experience unplanned server outages and how quickly are they resolved? • Security - what security measures does the provider take to ensure the integrity of your clients’ applications, websites and data, how do their measures compare to industry standards.• Scalability – infrastructure built for performance and scalability• Responsiveness –what are the technical support hours for resellers, and are there multiple ways for resellers to request support? • Financial Stability – is the company solvent? You want to make sure you build your business upon a reliable service provider that will be around for the long-term.• Global Presence – if you have customers outside of the US, you’ll want to find a service provider that can provide hosting services to these clients • Expertise – how long has the service provider been in business? Do they have a proven track record of performance?• Reseller Program –make sure the Hosting service provider offers a reseller program and that their compensation and support to channel partners is competitive within the industry.

How to Select a Hosting Provider


How to Get Started


1. Evaluate your company strengths2. Ensure you have the appropriate business

infrastructure3. Select a Hosting Service Provider4. Select the right partner program for your company5. Advertise and Promote your business

How to Get Started


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

Verio Company Overview

2010 Top Women In The Channel


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

Verio Company Overview -Global Network


Interested in Learning More About Verio’s Partner Programs?:

Contact Brandon Miles:

Phone: [email protected] or visit viaverio.com

mailto:[email protected]

http://www.viaverio.com/


QUESTIONS?

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