1. The document discusses how open source software like Open-Xchange can help service providers and businesses offer Software as a Service (SaaS) solutions to meet growing user demands for collaboration and mobility. 2. Open-Xchange provides messaging, contacts, calendar, and file sharing features through a web interface and mobile apps, allowing teams to work together from any device. 3. Service providers are pioneers in offering SaaS solutions using open source software, helping proliferation of the internet and hosted email accounts. The next big opportunity for SaaS is business-class email and groupware.

1. Save your business with SaaS, Open Source, mobile solutions Rafael Laguna de la Vera CEO & President, Open-Xchange, Inc.

2. What this is going to be about “ You never change things by fighting the existing reality. To change something, build a new model that makes the existing model obsolete.” R. Buckminster Fuller

3. User Demands Users today are challenged by information overflow, Especially by too many and too big emails and the Web Requires functions beyond simple eMail to avoid overflow and attachment-hell Strong need for more advanced groupware and sharing capabilities Access information from almost any device – mobile device support Intuitive easy-to-use user interface either AJAX web UI or MS Outlook Integration into other Internet Applications through Mesh-Ups

4. This is what advanced Messaging and Collaboration provides: Open-Xchange features Enables teams to work together – anytime, anywhere from almost any device Mail, Calendar, Contacts, Tasks, Folders “ Smart Document Sharing” with Versioning (InfoStore) Support for Mesh-Ups (UWA Support) Available via all standard browsers Cool AJAX GUI Platform Integration for Win/Mac (MS Outlook…) Mobility support: Push Mail, Calendar, Contacts… Built for SaaS from ground up, built in up-sell layers -> increases ARPU Advanced Collaboration InfoStore Linking Privacy controls Mashups Messaging Email Contacts Collaboration Calendar Tasks Folders

5. Where is the money? eMail is for free these days… “ Driven by dropping prices and new vendors, the long-nascent market for hosted e-mail mailboxes is poised for rapid growth over the next five years, from 1% of enterprise seats in 2007 to 20% in 2012. ” “ The move to a hosted delivery model for e-mail will create opportunities for new e-mail suppliers.” “ E-Mail Hosting: Poised for Explosive Growth” Matthew W. Cain, Gartner, Feb 22, 2008 “ Growth in the hosted business eMail segment will be driven by SOHOs and small to medium-sized businesses. The continually improving functionality of hosted business e-mail services is a boon for these businesses, enabling them to deploy advanced messaging and collaboration features to end users without having to purchase and manage costly insourced software.” Radicati Group Hosting E-mail Market, 2006-2010

6. Growth in SME SaaS adoption creates $2.4B addressable market for Messaging and Groupware As SaaS becomes dominant method of application adoption in the SME market, the total addressable SaaS market will grow quickly to $2.4B Drivers include convenience, low price, availability of broadband, mobility, growth in devices, Web 2.0 technology, Open Source software, social networks, and unified messaging solutions (SMS, Instant Messaging, VoIP, GSM…) SME SaaS Versus In-house $ Million Sources: IDC, Radicati, OX Proprietary

7. Service Providers are SaaS pionieers …also thanks to Open Source Software Used and extended Open Source Software to build and sell services First SaaS offerings: eMail, Web, Hosting… Started 10+ years ago already Developed own infrastructure on Open Source Provisioning, Billing, Administration, Help-Desk, Services… Helped the proliferation of the internet 150 million websites (Jan 2008*) 1 billion hosted email accounts (2006**) *http://news.netcraft.com/archives/2008/01/28/january_2008_web_server_survey.html ** Radicati Group, Hosting E-mail Market, 2006-2010

8. The “next big” SaaS application is Business-Class Email and Groupware After getting a web site and simple email, next SaaS application is business-class webmail and personal information management (“PIM”) Then access to groupware is prerequisite to competitiveness in global economy Functional applications like CRM and industry vertical applications complete the SaaS adoption hierarchy OX’s platform and PIM data portability are basis for future functional and industry vertical integration, enabled by i.e. OSGI, GUI plug-in architecture, & open standards (support mobility, unified messaging, ISV applications, mesh-ups, etc) # of Seats Mobility Data Portability Simple Email, Mobile Phones, Broadband Acces, Web Site Hosting OX Webmail + PIM OX Groupware + Collaboration Functional Applications Vertical Applications

9. But look who’s coming to eat your cake and have theirs, too Microsoft: http://afp.google.com/article/ALeqM5gTao5X071ouBJjXJZjWoSo4sZBHA Google: http://www.usatoday.com/money/industries/technology/2008-02-12-google-apps_N.htm

10. Service Providers and Telcos can compete - but must battle Google and Microsoft entering the SaaS field Service Providers today Competitive when using Open Source Customer ownership, broad base But new entrants threatening core business The expanded SaaS Strategy From offering technology to offering Services Requires applications that fit the DNA Need to integrate into Infrastructure and Processes Requires flexible licencing and smart up sell models End-user prices and service levels need to be disruptive

11. SaaS platforms need to be designed from the ground up for SaaS; architecture needs to leverage provider infrastructure Multi Tenant / Multi Domain Scalability 0100101 1101100 0010010 1011001 Server Density Architecture Integration

12. Cost and time-to market requires “slide in” architecture, avoids migration, creates up-sell opportunities OX Servers Request Email Mail Store Web Servers Webmail Servers Provisioning Servers Billing Servers $ Load Balancer Mail Transfer Agent Database Servers

13. Product Packaging Business-Class Webmail Replace all existing webmail accounts No migration efforts, simple integration Easy Up-Sell to full Groupware and Mobility Available via standard browser, AJAX GUI Disruptive price point Desktop-like user experience Including private contact management Optional : Mobility up sell Messaging Email Contacts

14. Product Packaging Personal Information Manager (OX PIM) Replace all existing webmail accounts No migration efforts, transparent integration Easy Up-Sell to full Groupware and Mobility Available via standard browser Disruptive price point Desktop-like user experience Including private contact management Optional : Mobility upsell Personal calendar management Personal task management Messaging Email Contacts PIM Calendar Contacts Tasks

15. Product Packaging Groupware and Mobility Support Full product package with all features No migration efforts, transparent integration Disruptive licencing model Desktop-like Groupware solution Available via standard browser, AJAX GUI Fully featured groupware InfoStore (Documents, Knowledge, Bookmarks) Platform Integration for Win/Mac (Outlook…) Mobility: Push eMail, Calendar, Contacts ‏ Groupware InfoStore Linking Privacy controls Mashups Messaging Email Contacts PIM Calendar Contacts Tasks

16. Open-Xchange reference customers ~4 Million paying seats Customer focus on Europe, US & Japan Customer Description Status 1&1 #1 Web Hosting Company worldwide Groupware and mobility in opera-tions since Feb 2007, U.S. Roll-out end of June 2008 Network Solutions #3 Hosting Company in U.S. Webmail replacement for 1+ million users, Groupware up sell OVH #1 Hosting Company in France Webmail replacement and Groupware up sell Hostpoint #1 Hosting Company in Switzerland Webmail replacement, Groupware in June 2008

17. 1&1 MailXchange - Open Source SaaS © 2007 Rafael Laguna de la Vera

18. Parallels / Open-Xchange Partnership Partnership announced Friday, May 16, 2008 This partnership enables Hosting and Service Providers to deploy and sell Open-Xchange with Parallels' automation tools Parallels and Open-Xchange are creating “Parallels supported” connectors for Open-Xchange Hosting Edition, Parallels Plesk Control Panel and Parallels Business Automation This integrated solution enables Service Providers to expand their product offerings quickly, enabling an easily accessible SaaS model.

19. Open-Xchange, Open Source and SaaS - Conclusion Open Source is the foundation of disruptive SaaS offerings Open Source based SaaS offerings fit the DNA of Service Providers and Telcos Next big SaaS thing is the “middle-layer” of the application stack, CRM, Groupware, VoIP, Wiki‘s Open-Xchange is an Open Source, “built for SaaS”, Business-Class Groupware with tight integration into the Parallels ecosystem Cost savings for end-users of such SaaS offerings is up to 90% compared to on-premise solutions -> this is disruptive but… Microsoft and Google are coming to get your customers Retain price control, branding, your customers, growth and profit margins by competitive Open Source based SaaS offerings !