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January 30, 2008

January 30, 2008. Completing the Promise of Virtualization . Delivering the Virtualized Information Technology Infrastructure. Agenda. About Parallels Vision for the Virtualized Information Technology – Optimizing IT Understanding Virtualization Technologies

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January 30, 2008

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  1. January 30, 2008 Completing the Promise of Virtualization .Delivering the Virtualized Information Technology Infrastructure

  2. Agenda • About Parallels • Vision for the Virtualized Information Technology – Optimizing IT • Understanding Virtualization Technologies • Introduction of Parallels Virtuozzo Containers 4.0 and Parallels Infrastructure Manager • Summary 2 Parallels – Optimized ComputingTM 2 2

  3. New Company Name, Logo, Tagline, Assertion • Prior name: SWsoft, with many products and brands; name changed on January 28, 2008 • New Logo & Brand: • Tagline: • New Assertion: TM Optimized Computing. • A worldwide leader in virtualization and automation software • that optimizes computing for consumers, businesses and service • providers across all major hardware, operating system, and • virtualization platforms. 3 Virtualization + Automation = Optimization 3 Parallels – Optimized ComputingTM

  4. Parallels Company Overview Strong Foundation • Founded at the end of 1999, 8+ years of rapid growth • Profitable with close to 900 employees worldwide • 500+ Partners, including Microsoft, Apple, Intel, AMD, Dell, HP & IBM Proven Track Record • Powering more than 1 Million Servers and Desktops • Serving more than 10 Million End-Customers in 125 Countries • 27 Awards in the last 12 months Market Leadership • #1 in Desktop Virtualization (Parallels Desktop for Mac) • #1 in OS-level Virtualization (Parallels Virtuozzo Containers) • #1 in Server Automation Control Panels (Parallels Plesk Control Panel) 4 Parallels – Optimized ComputingTM

  5. Parallels Products Overview Virtualization Automation The best of both worlds with Hypervisor and OS Virtualization Complete automation & management of IT systems and processes Parallels Business Automation Parallels System Automation Parallels Desktop Parallels Workstation Parallels Server Parallels Virtuozzo Containers Parallels Infrastructure Manager Parallels Plesk Products 5 Parallels – Optimized ComputingTM

  6. Production Deployments • 250,000+ physical servers • 750,000+ desktops • 750,000+ containers • 100+ Fortune 500 companies • Selected Customers • GE • Siemens • T-Systems • Cox • Jack Henry • Bertelsmann • U.S. Congress • Mayo Clinic • Univ. of Penn. • KPN • Telefonica • Sony • CNN • SAS • Hilton Hotels • Credit Suisse • Intuit • Lucent • FAA • Moody's • Veterans Affairs • Lockheed Martin “Cox had an immediate ROI of 300%. The templates and the single copies of software make the configuration really simple to manage.” - Keith Hubbard, Server Team Manager,Cox Communications Parallels Customer Momentum 6 Parallels – Optimized ComputingTM

  7. Parallels Media Momentum Recent Awards Analyst Coverage “OS Virtualization will become mainstream by 2010…for example Solaris Containers and Virtuozzo” John Phelps, Gartner Research VP 3rd Party Reviews & Coverage “If you think of server virtualization in terms of VMware, Virtuozzo will turn that thinking around…” Paul Venezia, InfoWorld Reviewer 7 Parallels – Optimized ComputingTM

  8. The Virtualized Information Technology Optimizing IT 8 Parallels – Optimized ComputingTM 8

  9. Managing Service Levels Despite increasing costs, IT continues to miss expectations of other business units – stability, performance, responsiveness, availability, flexibility, security Persistent IT Challenges Managing Complexity While IT infrastructure has obviously accelerated the pace, reach and agility of business, it has also introduced a huge amount of complexity into enterprise fabrics. (ACM) Managing Costs 80% of enterprise data is isolated on low-cost servers suffering from low utilization and management issues. (ESG Consulting) 9 Parallels – Optimized ComputingTM

  10. Automation SaaS Addressing IT Challenges With Virtualization 1st Generation Virtualization Development & Test Improve Development 2nd Generation Virtualization Consolidation Lower Hardware Costs Next Generation Virtualized IT Optimize IT Management & Automation Virtual Server Management Hosted IT Degree of Management & Automation OPTIMIZED IT INFRASTRUCTURE Simple Tools Consolidated Desktops - VDI Server Consolidation Legacy Consolidation Virtualization Development & Test Number of Virtual Servers 10 Parallels – Optimized ComputingTM

  11. Optimized ComputingTM with Parallels Optimize IT Parallels Business Automation Optimize Hardware Usage Parallels System Automation Optimize Test, Development& OS Compatibility Parallels Virtuozzo Containers Parallels Infrastructure Manager Parallels Workstation Parallels Desktop Parallels Server Parallels Virtuozzo Containers Parallels Server Parallels Infrastructure Manager Parallels Server 11 Parallels – Optimized ComputingTM

  12. Benefits of the Virtualized IT with Parallels Cost Efficient Virtualization of all datacenter workloads • Enabling all of the virtualization benefits for every workload • Turning IT into Green IT, optimizing energy costs & consumption Complete Automation of IT system processes • Provisioning, patch management, disaster recovery, configuration changes • Enabling self-management & delegation across the organization Comprehensive Automation of IT business processes • Enabling complete accounting and chargeback of resources • Automating routine business tasks for running IT organization Parallels Powered Virtualized Information Technology Next Generation Virtualized IT Infrastructure Optimize IT 12 Parallels – Optimized ComputingTM

  13. Understanding Virtualization Technologies 13 Parallels – Optimized ComputingTM

  14. What is Virtualization? “…Virtualization is a framework or methodology of dividing the resources of a computer into multiple execution environments...” http://www.kernelthread.com/publications/virtualization “…A key benefit of the virtualization is the ability to run multiple operating systems on a single physical server and share the underlying hardware resources – known as partitioning…” Definition by one of our competitors “…software which enables using one computer for something for which you would need multiple computers without it…” Parallels Virtualization Definition 14 Parallels – Optimized ComputingTM 14 14

  15. Hypervisor OS Virtualization VM 1 VM 2 VM 3 Container 1 Container 2 Container 3 Guest OS Guest OS Guest OS Virtual Hardware Virtual Hardware Virtual Hardware Virtual Machine Monitor OS Virtualization Layer Hypervisor or Standard Host OS Standard Host OS Hardware Hardware Overview of Virtualization Technologies Hardware Virtualization (Hypervisors) • Virtualizes access to hardware • Create many instances of virtual HW • Host OS and each guest has full OS • Parallels Server, VMware ESX, Microsoft Hyper-V OS Virtualization (Containers) • Virtualizes access to OS • Create many instances of virtual OS • Single, standard OS kernel per box • Parallels Virtuozzo Containers,Sun Solaris Containers, OpenVZ 15 Parallels – Optimized ComputingTM

  16. Enhance Manageability OS Sprawl Slow management operations Server Sprawl Partial Success Hypervisor Virtualization: Promise vs. Reality Assessing Hypervisor Challenges Challenges Successes Expensive servers are required Increases OS Management Cost Expensive HW SAN required Fewer Servers Reduce Cost Dramatically Partial Success Consistent Performance Loss of Optimizations Context switching overhead Lack of Scalability Negative Hypervisors are a necessary but incomplete solution for virtualization 16 Parallels – Optimized ComputingTM

  17. Performance Optimization Comparison Hypervisor Approach Container Approach Optimized Instruction Optimized Instruction Optimized Instruction Optimized Instruction Optimized Instruction Optimized Instruction Application VM or Container Generic Instruction Generic Instruction Virtualization Layer Hardware Possibly Poor Performance Native Performance Performance Sensitive Workloads Performance Sensitive Workloads • Must leverage performance optimizations • Require lowest possible overhead • Require ability to scale to full server resources Hypervisors have lower performance because • They emulate hardware and drivers • Operating system optimizations are lost • Context switching between different OSsis very expensive even with HW support OS Virtualization solves this problem by • Leveraging native HW & device drivers • Maintainining all OS optimizations • Native context switching between containers 17 17 Parallels – Optimized ComputingTM

  18. Right Technology for the Job Hypervisors OS Virtualization Development & Test Client-based Desktop Virtualization Legacy Consolidation Production Consolidation Performance Sensitive Workloads Consolidation Centralized Desktop (VDI) Business Continuity Software as a Service IT Hosting & Provisioning Optimize Development& OS Compatibility Optimize Hardware Usage Optimize IT 18 Parallels – Optimized ComputingTM 18 18

  19. Right Technology for the Job Hypervisors OS Virtualization Combined! Development & Test Client-based Desktop Virtualization Legacy Consolidation Production Consolidation Performance Sensitive Workloads Consolidation Centralized Desktop (VDI) Business Continuity Software as a Service IT Hosting & Provisioning Optimize Development& OS Compatibility Optimize Hardware Usage Optimize IT 19 Parallels – Optimized ComputingTM 19 19

  20. Parallels Virtuozzo ContainersCompleting IT Infrastructure Virtualization 20 Parallels – Optimized ComputingTM 20

  21. Parallels Virtuozzo Containers Introduction The leading OS Virtualization Solution High Density Partitioning Up to 1,000s+ of containers functionally Identical to standalone servers Complete Isolation Security, address, functional, fault and performance Dynamic Resource Management CPU, memory, disk, I/O, all system resources, min/max Live Migration Move containers without service interruptions and w/o shared storage Mass Management Architecture & tools for multi-container/server admin 21 Parallels – Optimized ComputingTM

  22. Parallels Virtuozzo Containers Advantages Density – 2x to 10x more than hypervisors (VMware, Hyper-V, Xen, etc.) • OS/app code and resources shared across multiple Containers • Higher ROI/lower TCO – real customer example – not counting power/space: VMware vi3 Parallels Virtuozzo Production Partitions Servers, IBM 4 Quad CPU 32GB Server Cost Only 1,000 VMs 40 Servers > $2,000,000 1,000 Containers < 20 servers < $1,000,000 Manageability – lower management costs • Single OS, set of devices to manage, fewer apps – solve OS/application sprawl • Fastest virtual server lifecycle operations • Dynamic, near real-time resource allocation with finest granularity Performance near-native and unlimited Scalability • Each container can seamlessly scale up to the resources of the entire physical server (VMware limited up to 4 virtual equal to 2 real CPU/VM) • No virtualized hardware enabling access to native server performance 22 Parallels – Optimized ComputingTM

  23. Parallels Virtuozzo Containers 4.0 – New! 23 Parallels – Optimized ComputingTM

  24. Parallels Infrastructure Manager – New! • Design for large-scale deployments • 100s of administrators, 1000s of physical servers,10s of 1000s of Containers/VMs • Logical views of the data center, Role-based security & audit, Multi-level Delegation • Complete virtualized IT life cycle management • Convert, provision, monitor, backup, deploy, recover, analyze, troubleshoot, repair, migrate, self-manage, p2v, v2v, v2p and more • Open – Easy to integrate and extend • Industry standard: SOAP, XML RPC, CLI, SNMP APIs and SDK, LDAP • End-to-end management • Upcoming multi-vendor management: Parallels Virtuozzo Containers, Parallels Server, Microsoft Hyper-V, VMware VI3, Citrix XenServer and more • Multi-layer including physical, VMs, containers and applications • Easy to Use • Powerful dashboards for data center staff, easy download, installation and configuration, intuitive wizards and tutorials 24 Parallels – Optimized ComputingTM

  25. Case Study - Consolidation of Production Servers • “All of these applications need to have 100 percent uptime, and they are very demanding in terms of system resources, system scalability, and especially system security.” • Lukas Loesche, • Director of IT Operations • arvato mobile, Bertelsmann 25 Parallels – Optimized ComputingTM • Entire production environment runs on Virtuozzo • 600+ Virtual environments in production today • 49 Physical servers • 3 Administrators • All applications run inside Virtual Containers • Databases: MS SQL, MySQL, Business Objects reporting servers • Critcal Applications: processing, licensing, distribution, royality management • Simplfied server management through migrations • Quicker staging from development to production • Faster, more dynamic recovery of applications • Zero down-time server management • Benefits from Virtuozzo • Increased availability – better SLA‘s • Significant cost reduction – over 75% • InfoWorld Top 100 IT Deployments

  26. Case Study – Cardpoint, Plc – Server Consolidation • Industry: Financial, Technology • Environment: Windows • Challenges: Virtualize High I/O Applications • Microsoft SQL and Oracle • BlackBerry • Results/Manageability • Deployed New Virtualized Servers with Virtuozzo • Use Old Servers for Redundancy and Disaster Recovery 26 Parallels – Optimized ComputingTM

  27. Case Study – Kalido – Server Consolidation • Industry: Technology • Environment: Windows • Challenges: Provide QA engineers with replicas of customer environments • Deployment: Development and QA Testing • Results/Manageability • 30% increase in QA response rates and high levels of customer satisfaction 27 Parallels – Optimized ComputingTM

  28. Case Study - Cox • Industry: Cable/Telco • Environment: Windows 2003 • Applications: Call Center App • IT Challenges • Centralized with Remote Access • Legacy App (do not want to update for multi-users) • Deployment • Remote Desktop (VDI) • Results • 3 Admins • 300% Deployment Savings (over VMware + Citrix) 28 Parallels – Optimized ComputingTM

  29. Case Study – Murphy Oil • Industry: Gas / Oil Exploration • Environment: Windows 2003 • Applications: Exchange, MS SQL, File & Print, Domain Controller, RSA • IT Challenges: (Katrina) Create Cost Effective Recovery Plan/Build-out • Deployment: DR • Results/Manageability • Recovery Time Reduced from Weeks and Days to Hours 29 Parallels – Optimized ComputingTM

  30. Case Study – System Automation • Industry: Government as a Service • Environment: Linux • Applications: Proprietary Software • IT Challenges: • Weekly Software Turnover/Updates • Limited Hardware • Deployment: • Server and OS Consolidation • Results: • 85% reduction in management 30 Parallels – Optimized ComputingTM

  31. Parallels SaaS – ISV Success Stories ISVs support Parallels SaaS! Aretta Communications, Inc. (www.aretta.com), “Once we tried Virtuozzo, the selection of a virtualization solution was obvious. Virtuozzo helped us deliver a SaaS platform which is easy to manage and cost effective.” Marc Fribush, President, Aretta Communications IT Factory, Inc. (www.itfactory.com), ”IBM middleware and SWsoft Virtuozzo provided a secure environment for developing our SaaS applications and our Platform as a Service offering.” Carsten Sjorup, Chief Technology Officer, IT FACTORY Scalix (www.scalix.com), “We were able to rapidly deploy our award winning Scalix application utilizing Virtuozzo’s straightforward templates capability. In addition, SWsoft’s SaaS business team helped to match-make us with a Service Provider for immediate launch of our product”. Florian von Kurnatowski, Director Program Management, Scalix Spreed(www.spreed.com), “SWsoft Virtuozzo OS virtualization architecture for us clearly represents the ideal solution available on the market!“ Niels Mache, Chairman of the Board and CEO of Struktur AG Read the Case Studies at http://www.swsoft.com/en/saas/spotlights/ 31 Parallels – Optimized ComputingTM

  32. Summary • Virtualization enables next generation IT – fully automated and utilized – Optimized ComputingTM • Parallels is leading the way into the next phase of Virtualization when every workload could be virtualized and all processes automated • OS Virtualization is the only solution for performance sensitive workloads virtualization and is the best for Hosting/SaaS • Combination of Hardware (Hypervisors) and OS Virtualization (Containers) approach is required to deliver the best value for every scenario • New! -Parallels Virtuozzo Containers 4.0 with 100s of new features is completing the solution for Virtualized IT - Optimized ComputingTM • New! - Parallels Infrastructure Manager delivers complete virtualization management and automation Try Parallels Virtuozzo Containers today at: http://www.parallels.com/virtuozzo/ View demos at: http://www.parallels.com/launchevent 32 Parallels – Optimized ComputingTM 32 32

  33. Appendix 33 Parallels – Optimized ComputingTM

  34. Virtuozzo Architecture Containers • Isolated & secure homogeneous OS • Contains defined set of resources • Lightweight, resulting in better consolidation Container 1 Container 2 Container 3 OS Virtualization Layer • Virtualizes the Host OS • Manages resource allocation, including memory, processor, storage and I/O OS Virtualization Layer Standard Host OS • Full functional OS • Maintains all application optimizations Standard Host OS Hardware Parallels Virtuozzo Containers Descriptions & Architecture Virtuozzo is the most efficient server virtualization technology on the market and the only onethat lowers management costs by reducing OS and application sprawl. 34 Parallels – Optimized ComputingTM

  35. Key Scenarios Scenario 1. Internal Hosting & Saas 2. Server Consolidation 3. Commercial Hosting 4. Performance Sensitive Workloads 5. Business Continuity 6. Green Computing 7. Virtual Desktop Infrastructure Why Parallels Virtuozzo Containers Best Resource Utilization Best Consolidation Ratio Best Resource Utilization Native Performance Architecture Support for Microsoft & RedHat Clustering Lower hardware, space, power and people cost More Desktops per Server 35 Parallels – Optimized ComputingTM

  36. Parallels Virtuozzo Containers 4.0 - Features Solid Foundation • Complete Isolation • Secure Containers • New: Server Failover • New: Container Failover • New: CPU Lockdown Best Manageability • Fast Provisioning: New EZ templates • Updated: Dynamic Resource Mgmt • New: Management Tools • Updated: Global Updates (Patch Svr) • Updated: Live Migration 3x more Density • High Density Partitioning • 1,000’s of Containers per Server • Resource Coaching & Linking • Updated: Better Resource Utilization • Updated: Better Disk Usage Native Performance • Native Performance Architecture • Fast Parallels Operations • Container scales to full server • New: Device Sharing & Dedication • Updated: Network Mgmt & Control 36 Parallels – Optimized ComputingTM

  37. Comparing Products Parallels Virtuozzo Containers 4.0 VMware VI3 Enterprise Consolidation Ratio VM/Container Scalability Dynamic Resource Management CPU Architectures Performance Overhead Live Migration Time Required to Provision One Virtual Server Global Patching of VEs or VMs Support for SAN, iSCSI, etc. Physical to Virtual (P2V) Flexible Storage Cluster Support Virtual Server Backup Price 20:1 Scales to full resources of server Yes Dynamic Allocation of CPU, Memory, & I/0 X86, x64, Itanium 1-3% Yes 30 sec-1 minute Yes Yes Yes Yes Yes Yes $2,500/Dual CPU 7:1 Limits: 4 CPU SMP & 16 GB RAM Partial Disk space and memory change requires reboot X86, x64 up to 50% Yes 5-10 minutes No Yes Yes No Yes No $5,750/Dual CPU Scalability Performance Management High Availability Price 37 Parallels – Optimized ComputingTM

  38. Over 100 Enhancements& features New with Parallels Virtuozzo Containers 4.0 General Enhancements • Clustering • Container Clustering • Server Clustering • Parallels Infrastructure Manager • Parallels Transporter (Win2K migrations) • Improved backup support Windows Specific Enhancements • Bandwidth management • VSS Snapshots • HW Device Forwarding • HW Device Sharing • Container Footprint Transparency • Virtual CPU Improvements • Container Kernel Reporting • Expanded Networking Support • VLAN Support Linux Specific Enhancements • Clustering (RedHat Clustering) • Container Clustering • Server Clustering • Burstable CPU limit • Easier Installation • VZFS Upgrade • FUSE support • Improved I/O Management Itanium Specific Enhancements • Live Migration Support • Service Level Management 38 Parallels – Optimized ComputingTM

  39. Parallels Vision – Optimized Computing Usage Model Ecosystem Product Categories Core Technologies Heterogeneous Support 39 Parallels – Optimized ComputingTM

  40. Parallels in 2008 • Parallels Virtuozzo Containers • Delivering on the promise of the Virtualized Data Center • Delivering on the promise for Performance Sensitive Workloads • Parallels Server • Delivering on the promise of Virtualization for SMBs • Delivering same benefits on Linux, Windows, Mac and on Baremetal • Delivering on the promise of Virtualization for Apple Xserves • Parallels Automation • Delivering on the promise of the Virtualized Data Center • Delivering on the promise of virtualization for ISVs and SaaS • Parallels Workstation • Delivering on the promise of virtualization for workstation power users • Parallels Desktop • -Delivering OS integration and application compatibility on the desktop 40 Parallels – Optimized ComputingTM

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