George Karidis, CSO, gave this presentation at the Stifel Nicolaus Technology, Communications and Internet Conference in San Francisco on Feb 10 2011.

1. Stifel Nicolaus: Technology, Communications and Internet
Conference 2011
02
10
11
CONFIDENTIAL INFORMATION • SOFTLAYER TECHNOLOGIES

2. SoftLayer Facts ®
§ $280 million in revenue for 2010
Financial § $105 million in EBITDA for 2010
§ 550+ employees
Employees
Employees § Mainly in Dallas and Houston
§ Dallas
§ Seattle
Data Centers § Washington DC
§ Houston
§ San Jose (Q1-11)
§ Amsterdam (Q4-11)
§ More than 24,000 customers in over 110 countries
Customers § More than 76,000 deployed servers
§ More than 7.9 million domains hosted (#2 worldwide)
§ Dallas, TX
Corporate § 60,000 square feet of office space
Headquarters § Accounting, Sales, Development, Corporate
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3. SoftLayer Target Markets
SoftLayer target customers are components of attractive, high growth markets
Channel partners (21% of revenue)
§ Businesses that use SoftLayer’s platform to
provide customized services on an “asset
light” basis to a diverse customer base
§ Extremely low customer churn
§ Provide sizeable orders to SoftLayer
§ ~6,000 end-customers across 4+ million
domain names
21%
Internet-centric SMBs (79% of revenue)
§ Businesses that are benefiting directly
from trends of mobile and streaming
media, remote application hosting, and
social networking
79% § Web 2.0 § Internet
retail
§ SaaS
§ iPhone
§ Social gaming
developers
§ Provide high organic growth and a
steady source of new customers
§ Large market ($1.4bn domestically)
growing rapidly (20%+)
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4. A Broad Group of Dynamic Customers
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5. SoftLayer is an IT Production Facility
Internet-centric businesses and SoftLayer channel partners utilize SoftLayer
as their “manufacturing plant” to produce the services they deliver to their
customers
Internet-Centric SMBs
Channel Partners
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6. SoftLayer Value Statement ®
SoftLayer Delivers World Class, On-demand Virtual Data Center Services.
We lead the industry, bringing solutions to market
Innovation
before others realize the need for them.
We push complete control to the end user to create
Empowerment
the virtual data center experience.
We automate every single facet of the data center
Automation
environment to bring efficiency and standardization.
We bring together hardware, software, security,
Integration networking, and storage in a single easy to use on-
demand service.
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7. What we provide
Dedicated Servers
§ Single, dual, and quad proc multi-core systems
§ Specialty redundant power, mass storage, and private network configs
CloudLayer™ Services
§ Computing (Public, Private, Bare Metal, and Build Your Own Cloud), Storage, and CDN
Industry-Leading Customer Portal and Open API
§ Direct access to more than 150 backend systems and activities, executed without any
human intermediation.
Integrated Geographically Diverse Data Centers
§ Three data centers connected via private, 10G point-to-point connections, and
integrated through proprietary automated tools.
§ Advanced data center pod design targeting maximum efficiencies
High Speed Network with Proprietary, Highly-Secure Architecture
§ Server-to-server communication, out-of-band management, and unlimited data transfer
via VPN over dedicated carriers segregated from our Public Network.
§ Nationwide Network Points of Presence for more direct connections
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8. Proprietary Technology Platform
Substantial IP in the business has driven:
Customer Value Proposition
§ Total control over configuration and provisioning
§ Ability to add servers on-demand as customer platform scales
§ Over 1600 proprietary APIs allow end-users a high degree of software
and hardware flexibility and customization
§ Private network
Operating efficiency
§ Automated systems + standardization keep incremental operating costs
low, driving unit-level profitability and industry-leading EBITDA margins
Scalability
§ Ability to add incremental servers and scale up quickly and efficiently with
few people
Capital efficiency
§ Just-in-time servers; capex tightly linked to growth
Competitive differentiation
§ Customer benefits and efficiencies provide competitive advantage in the
marketplace
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9. Hybrid Environments from a Common Core
The Physical Server is the Fundamental Building Block to All Technologies
A Fully Managed Environment
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10. Fully Integrated Computing Environment
SoftLayer Provides the Only Completely Integrated Solution in the Industry
Dedicated servers, virtualized environments, and cloud solutions all operate
together seamlessly to create an on-demand solution that can be scaled in
real-time to best meet business needs.
Regardless of the solution, (standalone, or hybrid) delivery is managed via the
same user interface, using the same APIs and is billed on a single bill.
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11. CloudLayer™ Service Offerings
CloudLayer is the Umbrella Brand for the Next Generation of Services That
Can Be Sold With our Without a Dedicated Server.
§ Origin Pull or Point of Presence (PoP) Pull
CDN § Usage based or packages starting as low as $.12/GB
§ Sold with servers or as stand alone service
§ Access from server, desktop, web, portal, API, and PDA
§ Native apps for iPhone, Blackberry, Windows, Android
Storage § Usage based or packages starting as low as $0.25/GB
§ Sold with servers or as a stand alone service
§ Computing instances in “minutes” (5-15)
§ Open source and enterprise OS selections w/ control
Computing panels
§ Monthly or hourly billing methods
§ Automated recovery in the event of hardware failure
§ Usage based or packages starting at $.15/hr or $50/mo
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12. With a Managed Solutions Wrapper
Our Managed Hosting service is industry leading because of the
flexibility and accuracy that our automated infrastructure provides.
Automation allows us to offer advantages that others cannot,
including:
• One Day Provisioning
• Monthly Contracts with Unparalleled Pricing
• Hybrid Managed + Self Managed + Cloud Solutions
• Real-Time Reporting
For our customers, all of this equals higher scalability, stability, and
performance and cost effectiveness.
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13. Data Center and Network Locations
Note: San Jose, CA is in final lease negotiations and is expected to open in Q4 2010
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14. SoftLayer Summary
§ Continue to enhance and develop our leading
Hybrid Environment
hybrid computing environment
§ Extensive product and feature roadmap
Continued Innovation
§ Enhancement of current features and services
§ Data center and network expansion
Continued Growth
§ Grow customer base
§ Grow geographically, including internationally
True Virtual Data § Innovative infrastructure, solutions
Center Services § Automation of all aspects of operations
§ Integration with 3rd party management tools
§ Extend management to colocation environments
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15. Contact Information
§ George Karidis, Chief Strategy Officer gkaridis@softlayer.com
Direct number: 214-442-0625
§ Mark Quigley, Director Corporate Communications mquigley@softlayer.com
Direct Number: 214-442-1842
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