- The document discusses the evolution of SaaS and cloud computing delivery models and how legacy ISVs can take advantage of the opportunity to transition to SaaS. - It outlines NaviSite's services that can help ISVs with SaaS enablement including managed hosting, security services, and the NaviCloud platform optimized for ISVs. - ISVs are encouraged to work with NaviSite to explore their SaaS opportunities and position themselves in the SaaS evolution model to expand their market and upgrade existing customers.

1. March 2010 Presented by: NaviSite: Sumeet Sabharwal Microsoft: Trina Horner SaaS-it Consult: Anders Trolle-Schultz SaaS as a Business & IT delivery model

2. Definitions SaaS Cloud Computing SaaS – the present market Market drivers Customer expectations are changing Vanilla is not the flavour of the year Microsoft Vision Distribution model – the supply chain Other businesses do it SaaS distribution – the supply chain The opportunity - where are we heading “ Legacy” ISVs have the opportunity now! The SaaS Evolution model Where are we heading Topics for the future of an ISV in the SaaS Ecosystem What an ISV needs to do Suggested Process Call to action together with NaviSite Don’t miss the opportunity NaviSite SaaS Enablement Services for ISVs - How can NaviSite help? NaviSite ISV Customer Examples Closing/Next Steps Agenda

3. Definition of SaaS Software as a Service: IT-services delivered on-premises/off-premises independent of the traditional perpetual licensing models with focus on the services delivered as a subscription based expense and not the licenses or technology required to deliver the services

4. Definition of Cloud Cloud Computing: NaviCloud is production level enterprise class Infrastructure-as-a-Service Cloud combining the best features of cloud with enterprise class management. Services are presented on-demand and are scalable and usage billed ”

5. SaaS – the present market

6. Economic climate Ecological concerns Competitive needs We work/will be working differently Non-IT decision makers move into the choice of IT-services Rapid changing technologies New Players in the game Funding of long-term projects not available Market drivers in SaaS/Cloud computing

7. Capital Investment moves to Operation Expense Complexity & Customization moves to Simplicity & Utilization Reactive Maintenance moves to Proactive Management Slow Response Times moves to Ongoing Monitering Customer expectations are changing The Customer wants the benefits from IT-tools here and now

8. Commodity services under pressure The big players are ramping up Profitability is under pressure due to lack of understanding the game of selling services The business model of reselling Hosted Services is still only adopted by a few Vanilla is not the flavour of the year

9. The Microsoft Vision

10. Microsoft’s Software plus Services Portfolio On-Premises Partner Hosted Microsoft Hosted

11. Microsoft Resources For Every Stage of SaaS/Cloud Development Advisory Services: From Business Case to Design to Solution Launch and Sales www.microsoft.com/hosting/isv Readiness Investigate Software plus Services ISV Roadmap Portal Online Readiness Self-Assessment Best Practices Training Ramp Build Out S+S Incubation Hosters for ISVs BizSpark for Startups Website Spark for Developers NXT program – to select/connect with S+S developers Microsoft Technology Centers Release Market & Sell Business Growth Webinars/Events Microsoft Partner Network Hosting Licensing Microsoft Sales/ Marketing Support: Direct and Channel Lead Generation Sales Campaigns

12. NaviSite is a select Microsoft incubation center partner! Microsoft Software + Services Incubation Center Program Catalogue Proof of Concept/Launch Architecture Design Sessions Business Design Sessions

13. Distribution Model The supply chain

14. Telco Subscription Mobile broadband + device Car industry Leasing Renting Accommodations Renting vs. Buying Tax reasons for buying? Buying because of investment? Utility Power plants quickly went that way Other Businesses do it........... The World is turning away from CapEx and moving to OpEx

15. IT Delivery System as of today Partner Perpeputal licensing is the dominating license model in the present IT deliveries Vendor ISV End Customer Dealer Distributor Facility Management Outsourcing Managed Hosting Hosted Services System Integration

16. We need to learn from......

17. Factory Uses Wholesalers Different outlets Sales & Marketing Support Outsources production Nobody really knows how it is made Coca-Cola does this........

18. Factory Use Wholesaler Different outlets Sales & Marketing Outsources production Nobody really knows how it is made SaaS will be doing it......

19. Distribution of SaaS Hosted Service S+S+HW Hosted Service Hosted Service Technology + Licenses Technology + Licenses Microsoft Supplier of Hosted Services End Customers Reseller Reseller Reseller Reseller Reseller Supplier of Hosted Services ISV Vendor X Reseller

20. SaaS distribution – the supply chain Hardware Vendor Software Vendor Hardware Vendor Software Vendor Hosted Services Production Customer Off-line channel Reseller On-line Channel Portal This is the future marketplace

21. The opportunity - where are we heading

22. SaaS-it Evolution Model™ On-premise On-premise Off-premise Off-premise Perpetual Local infrastructure Perpetual Dedicated Hosting Subscription Dedicated Hosting Local Infrastructure Subscription Subscription Multi-tenant Hosting ASP Traditional IT delivery SaaS Local Infrastructure Application Streaming Subscription

23. “ Legacy” ISVs have the opportunity now GROWTH TIME 2010 2011 2012 Force.com Netsuite ver 2 Azure Uptake Cloud computing today Bridge the Gap Complete the ”SaaS-it evolution model” Software as a Service Platform as a Service Infrastructure as a Service Traditional Datacenter

24. Hardware part of the service offerings The big hardware vendors moving into the Service and System Integration game Managed Services securing on-premises IT Subscription services as on-premises delivery Non-IT players move into the channel Cloud standards and regulations Where are we heading?

25. Topics for the future of an ISV in the SaaS Ecosystem

26. Suggested Process What is SaaS ISV insight Present position Future path Call to action Subscription on-premise Subscription off-premise Dedicated Hosting Not SaaS Subscription off-premise Shared Hosting

27. Call to action together with NaviSite Facility Management Partner Hosting Partner SaaS Incubation Center Business Consulting NaviSite NaviSite NaviSite Call to action Subscription on-premise Subscription off-premise Dedicated Hosting Not SaaS Subscription off-premise Shared Hosting Sales Partners Marketing Partners Training Partners Business Process partners

28. Don’t miss the opportunity! You as an ISV can benefit from the SaaS/Cloud computing market uptake now! Work with NaviSite to explore your opportunity

29. Services Portfolio Complete portfolio of Complex Infrastructure Hosting Solutions Email, Collaboration, Business Applications Solutions Hosted and Fully Managed Enterprise Class Custom Hosting Managed Messaging & Applications The leading provider of cloud enabled hosting services offering a comprehensive suite of IT-as-a-Service solutions. 10+ Years Experience 15 Data Centers 9,000+ Managed Servers SaaS Enablement, ISV Sandbox Services, SaaS Hosting ISV SaaS Services Complete portfolio of Pre-packaged Infrastructure Solutions Enterprise Class Packaged Hosting

30. NaviSite ISV Partner Program

31. NaviCloud – Optimized for ISVs NaviCloud is production level Infrastructure-as-a-Service combining the best features of cloud with enterprise class management . These services are presented on-demand and are scalable and usage billed” The Next Generation Cloud Computing Platform setting the standard for Enterprise Class performance based on VMware vSphere, Cisco Unified Compute, and IBM XiV. Storage Unified Compute Virtualization Storage

32. Security verification and hardening of hosts Secure dedicated back-end network per customer requirements Enterprise-class firewalls, IDS, application firewalls, two factor authentication and other common security products SAS 70 Type II, PCI, HIPAA compliant datacenters ISV Requirements in the Cloud Security Performance Availability Enterprise vendors: Microsoft Windows Server, Microsoft SQL Server, CISCO, IBM and VMware to provide Enterprise Class Performance High-Speed Server Quality CPUs and RAM 40 GB Ethernet and Fiber channel infrastructure 99.999% resource availability as per SLAs Built in local HA and available disaster recovery services Multiple backup options

33. Leading Indicator Systems NaviSite ISV Services Managed Hosting & Security Visibility Corporation NaviSite ISV Services Managed Hosting & Security On-Premise Security Management Sample NaviSite ISV Customers WorkPlace Systems NaviSite ISV Services Managed Hosting & Load Balancing, and Security Services InMobi NaviSite ISV Services - Mobile Managed Hosting & Security Managed Colocation

34. SaaS-it Evolution Model™ - Recap On-premise On-premise Off-premise Off-premise Perpetual Local infrastructure Perpetual Dedicated Hosting Subscription Dedicated Hosting Local Infrastructure Subscription Subscription Multi-tenant Hosting ASP Traditional IT delivery SaaS Local Infrastructure Application Streaming Subscription

35. Position your business in the SaaS evolution model Expand your addressable market with a SaaS offering Upgrade your existing customers to the SaaS model Engage with NaviSite to explore your SaaS Infrastructure Needs NaviSite ISV Enablement Services NaviSite Managed Virtual, Dedicated and Cloud Hosting Platforms NaviSite custom solutions for ISVs – Hybrid – On-Prem and Hosted Infrastructure and Application Monitoring and Management Partner with NaviSite’s ISV Partner Program Access to SaaS Experts Discounted Hosting Services Marketing & Case Study Support Next Steps

36. Contact NaviSite

37. Contact SaaS-it Consult

38. Questions?