This presentation provides information on what Cloud, Hosting, and SaaS solutions are, and how they can be resold by IT Solution providers to build a profitable monthly recurring business, and the cost savings benefits to end customers for using these solutions.

1. Market Leader, Channel
Marketing & Programs- Verio

2. Hosted Computing and SaaS Solutions
• What Are They?
• Market Opportunity
• Why Arrow Fusion Solutions?
– Solutions Overview
– What’s in it for me?
• How to Position and Sell Them
• How to Get Started

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• Cloud Computing
– Internet-based computing
• Shared resources, software, and information provided on demand through the Web
• Think: electricity grid.
– Key Features:
• Utility-based billing
• Elasticity of usage
• Can be managed or unmanaged services
• Managed Hosting Services
– Internet-based computing
• Pooled Resources (aka Shared), virtual private servers, or dedicated servers
– Key Features:
• Specified computing resources at a set price.
• Predictable monthly or annual billing.
• Service provider manages ongoing daily management of hardware, OS, network, security,
and core server system updates/patches.

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• Also known as “software on demand” - Internet Access
• Typically hosted by software vendor/ISV or service providers
• Sold on subscription basis (per user, or per company)
Advantages:
– Monthly payments vs. upfront capital investment
– Lower Total Cost of Ownership –
• No hardware investment
• Responsibility of maintaining software updates/patches, fixing bugs, etc. is
the vendor’s responsibility
– Instant scalability
– Faster Deployment
– Security and Reliability

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• IDC states 2009 worldwide IT Cloud Services Revenue as $17.4 billion
• IDC projects by 2013 growth will reach $44.2 billion

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Current Use of Third - Party Hosting Infrastructure Services by Company Size
(% of Respondents)
Q. How does your organization host your public Web site and/or internal Web-
based applications infrastructure?
Base = respondents who currently have or plan to have public Web sites and/or internal
Web/IP-based applications infrastructure
Source: IDC's U.S. WAN Manager Survey, 2009

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Use of Third – Party Hosting Infrastructure Services in the Next 12 Months by
Company Size (% of Respondents)
Base = respondents who currently have or plan to have public Web sites and/or internal
Web/IP-based applications infrastructure
Source: IDC's U.S. WAN Manager Survey, 2009

10. & ' ( )
Top 5 motivations to use Cloud/Hosting Computing
38%
38%
42%
45%
50%
0% 10% 20% 30% 40% 50% 60%
Cost Reduction
Avoidance of CAPEX
Quicker time to value
Agility
Flexibility
Percent of respondents
Source: The 451 Group Cloud Adoption Survey 2010
N=120 Sample Size Not Statistically Significant
64.5% of Respondents below $250M in Revenue

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Source: The 451 Group Cloud Adoption Survey 2010
N=120 Sample Size Not Statistically Significant
64.5% of Respondents below $250M in Revenue
CRM
DR/Backup
Collaboration
Test and Development
Web Applications

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Today
• Messaging and
Collaboration
• CRM and BI
• BPO Apps
• Accounting/ERP
• Time Tracking
2012
• HR and accounting
applications
• File server replacement
• Internet-based NAS/utility
storage
• Project management and
collaboration
• Shared database
. - /+ . ' , % 0 1 2

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• CIO’s seek solution for apps and not just infrastructure
• Cloud Services are the discussion point
– Business Intelligence and chargeback capabilities
– Sold in combination with a la carte managed services
– Security and uptime is huge consideration
– Biggest selling point is agility over cost or technology
• Cloud will become mainstream among all businesses
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15. Increasing website security,
requirements, scale, flexibility and
cost

16. Price 29.95 44.95 89.95 159.95
Disk Space 10 GB 20 GB 40 GB 60 GB
Bandwidth No charge
No
charge
No
charge
No charge
Memory 256 MB 384 MB 512 MB 768 MB
Maximum Memory 512 MB 768 MB 1 GB 1.5 GB
Email Accounts No limit No limit No limit No limit
User Accounts No limit No limit No limit No limit
Domain Names (websites) 5 No limit No limit No limit
Software Firewall Rules 40 100 200 400
Dedicated IPv4 Addresses
Included
1 1 1 1
Additonal IPv4 Addresses
Available
0
4 (5
Total)
9 (10
Total)
19 (20 Total)
OpenVPN
Price 274.95 349.95 499.95
Processor(s)
Intel Celeron
D
Quad Core
Xeon
Dual Quad
Core Xeon
RAM 1 GB 2 GB 4 GB
Additional RAM
Available
15 GB 14 GB 12 GB
Disk Space 100 GB 200 GB 300 GB
Hard Drive
Configuration
2 Hardware RAID-protected SATA 7200
RPM Drives + Backup Drive
Domain Names No limit No limit No limit
Virtual Memory 2 GB 4 GB 8 GB
Bandwidth 1 TB 2 TB 3 TB
OpenVPN
& 7
• Flexible Choices to Scale with Ease
– Multiple options
– Seamlessly scale as your computing needs grow
4 Plan Options –
Virtual Private Servers
3 Plan Options –
Managed Private Servers

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18. % %! &
SaaS
• Hosted Microsoft Exchange
• Hosted Microsoft SharePoint
• Shopsite eCommerce
Professional Services
• Database Administration and Management Services
• Website Design and Management Services

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Verio is the Leading Global Provider of Hosted
Computing Solutions for the SMB Market
• Hosted Servers
• Application Hosting
• SaaS
Verio is Owned by NTT
• The world’s 2nd Largest Telecommunications Company
• The 31st Largest Company in the World
• As ranked by the global Fortune 500, July 2010
• Proven Track Record of Performance and Financial Strength

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• Global Market Coverage via NTT’s Reliable/Scalable Global IP
Network and Data Centers
• Co-located in Many of the World’s Most Robust Data Centers
• Data Centers Located on Multiple Continents - Asia, Europe,
Australia, North America and South America
• State-of-the-art, Maximum Security SAS 70 Data Centers

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• Hosting plans are easy to sell, manage, and support
• Provision in minutes
• No contracts, pay month to month
• Earn attractive compounded monthly recurring revenue for life of the
account
• Combine with your own value-added services to increase profits
• Serve more of your customers’ IT needs – increase loyalty/
relationships

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Sample of Linux VPS and MPS Hosting Plans Profit Margins
Sample of Hosted Microsoft SharePoint and Exchange Profit Margins
% &
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1. Reduce Capital Expenses – Free Up Cash Flow
• No hardware and network infrastructure costs
• No perpetual software licensing expenses
• Reduces barriers for deploying new applications
• Predictable monthly expenses
2. Reduce IT and Server Management Costs
• No patch management
• No installing software upgrades
• No dealing with security vulnerabilities or network uptime
• Decreases operational expenses
• Provides more time and resources to focus on strategic, high-return IT initiatives
3. Reduce Risk – Faster ROI
• Fewer upfront costs = less financial risk + faster ROI for new applications
4. Rapid Deployment of Solutions

26. ? !
• Hosted Servers Can Save Thousands
– 3 -Year Savings Over an In-house Server Can be as Much as $20,000
Verio MPS Basic Server Plan Compared to Equivalent Dell, IBM, SUN and HP Servers
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Determine the specific business challenges your customers are trying to solve:
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Contact Juan Flaquer or Your Arrow Line of Business
Representative
– juan.flaquer@arrow.com
– ph: 800.544.7674 ext. 2431
– cell: 303.229.0803
Simple Sign Up Process
• Sign Master Services Agreement
• Receive Training/Additional information on products/services
available through Arrow Fusion
• Leverage Arrow Fusion resources to help you identify and close
opportunities

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