May 19 -20 l Washington DC l Omni

May 19 -20 l Washington, DC l Omni Shoreham Parallels Vision for Virtualization Jack Zubarev President, Service Provider Division May 19 th, 2008

Agenda • Virtualization Today • Parallels Virtualization Update • Virtualized Services • Parallels Virtualization Future 2 Parallels Service Provider Solutions

Virtualization Replaces Physical Infrastructure • Parallels Virtuozzo Container Growth • Over 80% year over the year growth. • Providers Dropping Non-Virtualized Services • Ipower • 1 VE/VM per server model is being adopted • Parallels Server to be optimized for this model • Desktop (we shipped over a 1 mln) • Both home and office desktops. • Back-end infrastructure • Internal systems • • • Accounting, File servers, Shared infrastructure. Not Virtualized = Not efficient 3 Parallels Service Provider Solutions

Why Virtualization? • Traditional Reasons • • Lower cost per workload. More profitable compared to dedicated Better manageability and flexibility Stop gap offering between shared and dedicated • Rising power costs • Better utilization of DC space • New reasons • Saa. S is enabled by virtualization • Managed hosting is much easier to offer using virtualization. • On-premise infrastructure can be moved to off-premise if virtualized • VDI and other virtualized-only services 4 Parallels Service Provider Solutions Saa. S % of Business Software Market Opportunity: $8 B increasing to $40 B 25% 20% 15% 10% 5% 0% 2006 2011

How Valuable Is Your Service? Value to the End-User Enabled By Reduces fixed upfront cost for acquisition of business function -- DC, Hardware, Licenses, Bandwidth • • Simplifies the initial installation and provisioning of the function/service: -- Installation and configuration of 100 s application. Parallels CP Manages over 150 applications. Automation: • Back-end provisioning automation • Control Panel automation Simplifies and Reduces “service” cost of the function. --Updates and upgrades (OS & Application), DR, backup, optimization, monitoring. Virtualization and Automation • Including Service Automation Economy of scale. Virtualization Expertise Virtualization Existing assets. Virtualization and Automation are the main contributors to the value of your services Not automated and/or virtualized = not offered. 5 Parallels Service Provider Solutions

Agenda • Virtualization Today • Parallels Virtualization Update • Virtualized Services • Parallels Virtualization Future 6 Parallels Service Provider Solutions

Parallels Virtualization Today Strong Foundation • Over 300 engineers • Over 800, 000 containers in production • Over 1, 200, 000 desktops Multi-platform • Linux, Windows, Mac, Bare metal • Desktop and Server • x 86, x 86 -64, IA 64, SPARC Multi-Purpose • Consumers, SOHO, SMB, Enterprise, Service Providers • Development, Staging, Production 7 Parallels Service Provider Solutions

Parallels Virtualization Products Virtualization Automation The best of both worlds with Hypervisor and OS Virtualization Complete automation & management of Service Provider Business Parallels Desktop Parallels Server 8 Parallels Workstation Parallels Virtuozzo Containers Parallels Service Provider Solutions Parallels Business Automation Parallels Operations Automation Parallels Virtual Automation Parallels Plesk Products

Parallels Desktop and Workstation Overview Virtualization The best of both worlds with Hypervisor and OS Virtualization • Parallels Workstation • Run different OS on your desktop. Interesting for your technical customers. • Parallels Desktop for Mac. • Mac is cool. • Run windows on your Mac. Over 1 mln Parallels customers do. Parallels Desktop Parallels Workstation • Interested in adding value to your hosting plan? • Ask us about program to distribute/resell both at discount for your customers and employees. Parallels Server Parallels Virtuozzo Containers Do not forget about special offer from Tek. Serve 9 Parallels Service Provider Solutions

Parallels Server Products Overview Virtualization The best of both worlds with Hypervisor and OS Virtualization Parallels Desktop Parallels Server 10 Parallels Workstation Parallels Virtuozzo Containers Parallels Service Provider Solutions • Parallels Virtuozzo Containers: • • • Intelligent Partitioning Complete Isolation Dynamic Resource Management Live Migration Mass Management • Parallels Server • • Powerful Hypervisor Granular Control of Resources SMP Support Inside VMs Linux, Windows, Mac, Bare-Metal

Parallels Server Virtualization: Best of Both Worlds Hypervisors • • OS Containers • Create many instances of virtual HW • Host OS and each guest has full OS • Parallels Server, VMware ESX, • Microsoft Hyper-V Virtualizes access to hardware Virtualizes access to OS Create many instances of virtual OS Single, standard OS kernel per box Parallels Virtuozzo Containers, Sun Solaris Containers, Open. VZ Hypervisor OS Virtualization VM 1 VM 2 VM 3 Guest OS Virtual Hardware Container 1 Container 2 Virtual Machine Monitor Hypervisor or Standard Host OS Hardware 11 OS Virtualization Layer Hardware Parallels Service Provider Solutions Container 3

Why both: Right Technology for the Job Parallels Server VPS, Dynamic Servers Hosting & Saa. S Kernel Development Environment Niche Hosting Offerings Applications Loading Kernel Drivers Hosting Desktop OS (Vista, XP) Hosting Legacy OS Server Consolidation IT Services Disaster Recovery 12 Parallels Service Provider Solutions Parallels Virtuozzo Containers Combined

Parallels Virtuozzo Containers Were Designed for Hosing/Saa. S • The main disadvantage – same kernel on the same server – Not relevant for hosting/Saa. S • The efficiency and manageability: • • 13 Density 2+ times higher Reduces OS footprint No Performance overhead No Scalability overhead Dynamic resource management Simple Live Migration Ultra Fast Management Operations Consolidated OS/App update management Parallels Service Provider Solutions

Agenda • Virtualization Today • Parallels Virtualization Update • Virtualized Services • Parallels Virtualization Future 14 Parallels Service Provider Solutions

Virtualized Services: VPS is not enough • VPS • Self managed server with Parallels Plesk Control Panel. • Dynamic Server • Same/better performance than dedicated. Burstable. Migratable. • Saa. S or Application Applience • Focus on application and service; not resources. Optimized for „abc“ application. Learn about APSstandard and application catalogue on www. parallels. com. • Managed Dynamic Server • Much easier to implement than on physical machine. • Home or Business Virtual Desktop • Accessible from anywhere. MS Office, Adobe Acrobat, IM, XP Skin, etc. 15 Parallels Service Provider Solutions

More virtualized opportunities • Affordable Clustered solutions • Easy to configure clustered MS SQL or „abc“ applience. • Clustered Dynamic Server – Linux or Windows. • Leverage SANs. • Server Consolidation offerings. • Help SMBs consolidate on-premise infrastructure without hardware investment. Vzp 2 v plus consulting engagements. • Disaster Recovery offerings • On-premise servers or within DC. • Complete Stack Solutions • 3 -tier applications – provision 3 containers. Customer-managed through Parallels Virtual Automation. • Virtualized Dedicated Server • 1 VE/VM on a physical server bundled with Parallels Tools. Option for customers to buy additional VE/VMs. Virtualization services market will grow from $5. 5 billion in 2006 to $11. 7 billion IDC “Worldwide Virtualization Services 2007– 2011 Forecast” 16 Parallels Service Provider Solutions

Agenda • Virtualization Today • Parallels Virtualization Update • Virtualized Services • Parallels Virtualization Future 17 Parallels Service Provider Solutions

Parallels Server + Parallels Virtuozzo Containers • Single Product • Create containers or VMs • Convert Container into VM and back • Side by side Upgrade • Single License Keys Management Tools Parallels Automation Tools 3 rd Party Management Tools Standard API Physical Server • Unified Management • • 18 UI Integration Common API Common Command Line Unified Templates/Appliances Parallels Service Provider Solutions Parallels Virtuozzo Container VM Windows VM Linux

Parallels Virtualization Direction • Optimize as much as possible – squize efficiency to the limit • Performance and Density • Stability and Reliability • Working with ISVs • Enabling more services • DR and business continuity • Managed services • Prorgams to help you launch new services. • Virtual Automation, Automation • • 19 For you, your customers, and resellers Mass-managment on large scale Looking individually at each task Automating the service not just individual task. Parallels Service Provider Solutions

Optimize • Maximizing Density where possible • Faster and More compact VZFS • Vzcache online • Smarter Memory Sharing • Continuous Improvements in performance • Better SMP scheduler • Internal Code Optimizations • Optimizations for NUMA • Optimizing parallels own software • Parallels Plesk 9: Minimal Set of Services Until Used. • Parallels Plesk 9 SMB: Lighter version 20 Parallels Service Provider Solutions

Enable More Services • High-level SLA Services • • • Windows Clustering Support Red. Hat Clustering support and GFS Disk I/O limiting Clustered file system Online Replication Continuous Backup/Recovery improvements • Managed Services • Virtualization of any workload • Integrated Workflow Engine • Delegated Update Server • Programs to help you launch services • NEW: Parallels Alliance Program • APSstandard and our ISV programs • Parallels Open Platform and Catalogs 21 Parallels Service Provider Solutions

Automate Parallels Virtual Automation v 4 - NEW • Large Scale Centralized Management • 100 s of users, 1000 s of physical servers, 10 s of 1000 s of virtual servers • Delegated Management of Virtual Infrastructure • Physical and logical views, fine-grained permissions for users • Easy to Use • Powerful dashboards for users and administrators (including customers) • Complete Virtualization Lifecycle • Monitoring, backup, mass-application updates. • Cross-Platform Management • Physical, VMs, Containers, Applications 22 Parallels Service Provider Solutions

Automate More Parallels Virtual Automation v 4. 5 • Parallels Roadmaps not available online – Parallels Partners may contact their sales representative regarding roadmap availability 23 Parallels Service Provider Solutions

Automate Virtualized Service Creation and Delivery Parallels Virtual Automation v 5 • Parallels Roadmaps not available online – Parallels Partners may contact their sales representative regarding roadmap availability 24 Parallels Service Provider Solutions

Another Angle to Automation • How much CO² a single human produces per year? 480 kg • Active human? 520 kg Stop Exercising? Or Just stay relaxed – Automate Your Operations! Parallels System Automation Business Automation 25 25 Parallels Service Provider Solutions

Summary • Virtualization continues to replace physical infrastructure. • Obvious cost and management advantages. • Enabler for all high-growth market trends including Saa. S. • Parallels now offers complete virtualization stack • Virtualize and offer any application, service, or infrastructure • Offering all possible virtualized services is important • Stay competitive, faster growth, broader market appeal, building brand, upsell, cross-sell. • We are focused on helping you take advantage of virtualization • Aggressive virtualization roadmap focused on the needs of hosting and Saa. S • Automation is the key • Automation is really required to take advantage of virtualized offerings. • Significant investment at Parallels is going into Virtual Automation. 26 Parallels Service Provider Solutions

Call to action • Try Parallels Server Beta (and visit today’s session) • Upgrade to Parallels Virtuozzo Containers v 4. 0 (and visit today’s session) • Visit our lab – clustered Parallels Virtuozzo for Windows • Start offering more services! Questions? 27 Parallels Service Provider Solutions