Structure for Success:How Telcos Can Improve Revenue and

Reduce Churn Through VAS

Presented by Jay Christensen

January 15, 2017

CONFIDENTIAL

2

Hostway at a Glance

This image cannot currently be displayed.

Hostway Partner Direct

8 data-centers worldwide

(Asia, Canada, US, Europe)

500,000+

3

Give every customer, regardless of size, the exceptional service they deserve

Provide 24×7 phone access to a dedicated account team – cloud hosting experts committed to partner success

Deliver unmatched technical expertise, including deep Microsoft/Azure knowledge as Microsoft Gold Certified Hosting partner

Empower customers to run their apps where they run best – enabled through our broad hybrid cloud portfolio

Develop and promote a comprehensive professional services network available to all Hostway partners

Hostway CommitmentGoing Above & Beyond for Partners

4

The Train Has Left the StationMarket has Moved Past Value Add Services 1.0

• Telco SMB prospects and customers already have a Domain Name, Email and Website.

• DNR• Email• Websites

VAS 1.0

VAS 2.0

SMB ExpressSMB Express

• SMB’s want “As a Service” business enablement tools/services and providers who can deliver them

SMB ExpressSMB Express

• Business Enablement• Compliance & Security• Managed Services

5

It’s Time to ActThe 5G Clock is Ticking

Fast-approaching 5G wireless transition will

reduce reliance on connectivity/broadband

services from Telcos

• Prospects – Favor providers offering SMB enablement

tools beyond VAS 1.0

• Customers – Churn rate will accelerate through

5G transition

VAS 2.0 can help stop the bleeding AND attract

new prospects!

5G

6

Telco SMB Revenue Mix Shift

VAS 1.0• DNR• Email• Websites

Connectivity

Fixed Line

Telco SMB

Services Today

Telco SMB Services

Tomorrow

VAS 2.0• VAS 1.0 +• Business

Enablement• Cloud

Connectivity

Fixed Line

Mix grows from expanding portfolio

Mix shrinks as customers move to 5G

wireless

7

Partner Pain Points

• Core service

attrition/churn

• Revenue growth

• Automation

VAS 2.0 Value

SMB Pain Points

• Limited time/ budget

• Account Acquisition

• Making decisions w/

uncertainty

• Low Technical

Knowledge

Addressing Partner AND SMB Challenges

Value Add Services 2.0

8

VAS 2.0 Offerings

VAS 1.0

Domain Name

Basic Email� Inbox� Calendar� Tasks� Contacts

Basic Websites

CRM

Security

File Sync, Share

Social Media MgrFax “aaS”

POS/Accounting

Site Builder

Migration Svc

EcommerceCloud Hosting� Public� Private� Dedicated

Rev/Lead Gen

Email Marketing Archiving

Encryption Cloud Storage

Ad Engine

VAS 2.0

Pro Services Managed Service

9

OX App Suite

ROBUST EMAIL AND COLLABORATION PLATFORM:

�OX Core: Email, Calendar, Contacts, and Tasks

�OX Drive: Cloud Storage Solution

�OX Documents: Text, Spreadsheets, and Presentation

�OX Ad Engine: Optimized Ad Monetization in AppSuite

White-Labeled, Fully Customizable, and Integrates into your existing environment

Responsive Design – Seamless experience regardless of form factor

Native Applications for both iOS and Android

10

SocialClime

Customer Review Generation

Key Benefits:

• Make it easy, mobile, and really fast

• Get 15x review response of other services

• Display only positive reviews

• Drive reviews to key platforms

• White label options for seamless brand experience

• Rest API for POS Systems

• Flexible data collection and delivery

• Automated review solicitation

90%

88%

85%

86%

of consumers use reviews in decision making process

of consumers trust reviews as much as personal recommendations

of consumers say they read 10+ reviews before making a decision

say that positive reviews make them trust a local business

Integration Options

11

Yola enables SMBs to create websites, sell products and services online, and grow their businesses with integrated marketing tools in one end-to-end solution.

• Raise MRR: From freemium to over $1,000 Marketing SKUs

• In-App upsells automatically pull customers up the value chain

• Dynamic contact forms deliver over 35X more leads than static contact forms

• Mobile feature for end users including click to call and click for directions.

• Mobile apps for SMB owners to check stats and leads, manage a store, and manage campaigns

• DIY and Do-it-for-Me

Create. Sell. Grow.

12

Tool to Help SMB’s Adopt CloudIT Assessment & Migration Service

TimeLack of time to properly

assess current IT environment

StaffingLack of in-house expertise,

team focused on other projects

UncertaintyWhere to start, what apps

to migrate, what cloud hosting platform is best?

BudgetPressure to do more with

less, need for an economical solution

Common Challenges of Moving to the Cloud

+

13

Dedicated Team Partner Focused Customizable Sales Enablement

Consultative Approach• Plan, Migrate, Deploy,

Support

Account Management• 24/7 Program ops and

Support

Solution Architect• Expert Solutioning

Ecosystem• Growing partner network

for referrals

Lead Generation• Work together to promote

your business

White Label• Sell under own brand or

Hostway

Economics• Cost structure supports

margin focus or growth

Sales Support• Cobranded collateral

production• Event coordination

Hostway Partner ProgramFostering Relationships

“The Hostway team is excellent at communicating with

each other. If I tell something to one team member,

the others all know it immediately.”

~ Jignesh Patel, Director of IT, ShopVisible

14

Thank You

15

Backup

16

Upsell to Freeium to Cloud/Managed Services

from Cablevsion

Case Studytbd

17

• Inventory - all visible server, data and web assets, apps, workloads, accounts and services from the source environment

• Analysis - an WSM systems migration engineer provides project insight and technical intelligence customized for the unique migration requirements

• Migration plan –identification of apps and workloads to be included in migration, refactoring needs, risk identification, mitigation, dependencies, project timeline and estimated migration cost.

• Prerequisite: Assessment and migration plan

• Guaranteed migration of the source environment to the new cloud hosting environment.

• Leverage of proven automated migration tools where possible – reducing cost and accelerating delivery

• WSM professional services help ensure uptime targets are met, migrated apps and workloads are extensively tested, secure and fully functional in the target environment.

Assessment Migration

IT Assessment & Cloud MigrationEngagement Process

18

Multi-Cloud & Hybrid Adoption

38.4%

27.4%

21.4%

12.9%

We will focus primarily on a

single cloud environment, not

multiple clouds

We will have multiple cloud

environments, but there will be

little to no interoperability…

We will have multiple cloud

environments to migrate

workloads or data between…

We will have multiple cloud

environments where the delivery

of a single business function…

n = 777

Q: Which of the following best describes how your organization will use different on-premises and off-premises cloud environments over the next two years?

Source: 451 Research, Voice of the Enterprise: Cloud Computing, Q3 2015

multi-cloud

Hybrid cloud

19

Apps deployed in multi-environments (dedicated, private, public, in-house)

Key Market Forces and TrendsDriving Hostway Strategy

Hyper-scale cloud growth (AWS, Google, Azure) and need for managed support and expert guidance

Demand for IT as a Service outsourcing IT driving integration of hosting, service, systems

Security and Compliance top of mind with organizations of all sizes

20

Private Cloud DedicatedOn-Premises Public Cloud

Spikey Load Apps

Legacy Apps

Rapid Scalability Apps

Aligning Apps to PlatformThere is no One-Size-Fits-All

Cloudy / Infrastructure Aware Apps

Compliance & Security Dependent Apps

Configuration-Dependent Apps

Steady Load Apps

21

- Managed Server

- HostedVirtualization

Dedicated Public Private

On-Demand Agility

Power & Configurability

Performance & Control

• Leading hyper-scale public cloud

• Proven Hostway managed support

• Extensive hardware and software options

• Run your hypervisor of choice

• Single tenant compute, storage, management – root-level access

• Powered by Azure

• Physically isolated clusters with N+1 design for maximize uptime

• Familiar toolset/API, easy resource management

- Azure Public Cloud - Virtual Private Cloud

Ultimate Flexibility

- Hybrid Cloud –powered by Azure

Hybrid

• Run your apps where they run best – Public or Private

• Azure-consistent environment

• Wrapped in proven Hostway managed support

Hostway Portfolio

22

Hostway is founded by University of Chicago alumni

NetNation Acquired

Hostway re-launches with new Executive Management team

Hostway purchased by private equity firm Littlejohn

Hostway launches first Private / Public Cloud Solutions

Hostway selected as Microsoft Hyper-V Cloud Partner of the Year

Affinity Acquired

Hostway Timeline

Hybrid cloud and application level support launch

23

WebsiteDomain Name Reg

(DNR)

Email• Inbox• Calendar• Tasks• Contacts

Archive &Compliance

Encryption

Cloud Storage

Ad Engine

DIFM

Accounting

POS

Social Media Management

Review Generation

Lead Generation

eCommerceSite Builder

Security Email Marketing

Fax aaS

CRM

Migration Services

Capabilities SMB’s need

File, Sync, Share

Cloud Hosting, etc

24

The Train Has Left the StationMarket has Moved Past Value Add Services 1.0

• Telco SMB prospects and customers already have a Domain Name, Email and Website.

• Customers currently getting connectivity from traditional Telcos and cable companies.

• Telcos and cablecos looking to expand revenue stream with other services.

• SMB’s are exploring “As a Service” business enablement tools (VAS 2.0) and providers who can deliver them

DNREmail

Websites

VAS 1.0

VAS 2.0

2014

2020