1. Proprietary and Confidential, Copyright 2013 Gravitant, Inc. Making Money in the Cloud by Becoming a Next-Generation Channel PartnerPraveen Asthana Chief Marketing and Strategy Officer September 12, 2013

2. Proprietary and Confidential, Copyright 2013 Gravitant, Inc. Cloud Services: A threat or opportunity for Channel Partners 3. Proprietary and Confidential, Copyright 2013 Gravitant, Inc. An Industry in Transition Traditional IT moving to Cloud IT Infrastructure IT Governance + IT Ops + Systems Management Applications Development & Management Enterprise Packaged Apps MSP/Channel Partners Public Private Hybrid Cloud Mgmt Business of Cloud Mgmt Cloud Governance DevOps PaaS Cloud App Middleware Salesforce.com Workday Office 365 Google Docs Cloud Aggregation & Solution as a Service Biz Process as a Service Hardware Outsourced Data Center Buss Process Outsourcing PaaS CMaaSCMaaS SaaSIaaS 4. Proprietary and Confidential, Copyright 2013 Gravitant, Inc. Enterprises are serious about cloud Base: 2,200 to 2,444 IT software decision-makers; Source: Forrsights Software Survey, Q4 2012 What are your firms plans to adopt the following as-a-service technologies? 0% 10% 20% 30% 40% 50% 60% 70% 2010 (Actual) 2011 (Actual) 2012 (Actual) 2013 (Planning to implement in the next 12 months) 2014+ (Planning to implement in a year or more) By the end of 2013, about 40% of all companies will be using IaaS (50% by 2014!). SaaS IaaS PaaS 5. Proprietary and Confidential, Copyright 2013 Gravitant, Inc. Channel partners must quickly capitalize on the shift in IT infrastructure spend Channel hardware infrastructure revenue slowing or shrinking Cloud service providers capturing the fastest growing category of infrastructure revenue, bypassing the channel Traditional managed services are not optimized for a cloud-based DC Monolithic outsourcing contracts being replaced with cloud-based, point offerings Enterprise IT has a gap in its business ability to manage multiple clouds, private and public Servers (1) IaaS (2) Infrastructure Revenue Growth 1. Total global server factor revenue, Q1-2013 IDC Worldwide Quarterly Server Tracker, May 2013. 2. Forecast Overview: Public Cloud Services, Worldwide, 2011-2016, 2Q12 Update, Gartner Research, August 2012. -7.7% +43% Server revenue has fallen five of the last six quarters.1 6. Proprietary and Confidential, Copyright 2013 Gravitant, Inc. Cloud Disrupts the IT Channel Today Risk of Being Left Out One third of revenue at risk to CSPs; potential for greater customer loss No capability to meet customers cloud needs (e.g., no cloud-centric design) Less ability to attach managed services Uncertain demand creates risk for cost basis and profitability MSFT SAP ORCL IBM HP VMW CSCO Solution Design & Delivery System Integrator Biz Units Public Cloud Managed Services Yesterday The Trusted Advisor 30-45% margin business Deliver custom integrated on-premise solution stacks with attached managed services Build ahead of anticipated demand Improve cost basis by scaling demand and improving processes over time MSFT SAP ORCL IBM HP VMW CSCO Solution Design & Delivery System Integrator Biz Units 7. Proprietary and Confidential, Copyright 2013 Gravitant, Inc. What does this mean for your Enterprise IT Customers? 8. Proprietary and Confidential, Copyright 2013 Gravitant, Inc. Promise and Peril of Cloud Benefits Low cost Improved agility Elasticity Issues Rogue IT Enabled Cloud Sprawl More silos to manage Which apps/which cloud? Sourcing complexity IT Planning is harder Elasticity management Unpredictable cost Security 9. Proprietary and Confidential, Copyright 2013 Gravitant, Inc. On the CIOs Whiteboard Today Gaps in our current cloud strategy and capabilities What app should I move to the cloud? What infrastructure design for cloud? What cloud matches my need? How do I provision and orchestrate to different clouds? Web server in public cloud Database in private cloud Image data in public cloud10010 Amazon Google VMware Private OpenStack Private What are the right: - Features - Packaging - Pricing Cloud Design API 1 API 2 API 3 How do I read these bills? Are they accurate? How do I manage these contracts? Pricing keeps changing! - Cost - Utilization - SLA - Demand v Supply - Compliance Analytics for business support KPI Dashboard How can I get a business support system that allows me to manage my business objectives and provide decision support? I need multi-level integration with my existing IT and financial management systems and investments Cloud Mgmt $ Financial Procurement Current IT General concerns: Many clouds lots of complexity Potential for lock-in? How do I ensure resiliency? How do I ensure governance? Takes too long to deploy new app infrastructure Growing shadow IT CLOUD IS HARD!!! 10. Proprietary and Confidential, Copyright 2013 Gravitant, Inc. Problem: Cloud Makes it Harder as it Fractures the Current Value Chain Cant make money in Cloud.. CIO/CFO Sourcing/Contract Management Ordering, Billing, Metering Resource, Cost, SLA Control BU/Developers DevOps Tools of Choice Deploy Apps on AWS or any cloud Service Management Architects, IT Admins Complete Solution Design Multi-Cloud Production Ops (Int/Ext) Global Resource Management SaaS PaaS IaaS Ancillary Services Virtualized /Physical ALM Tools/Platform Sprawl, Time to Production Issues High Risk , Compliance Issues, Cant Save Money, Lock In Continuously meet demand for resources, quickly deliver solutions Enterprise Challenges SI/VAR Platform for selling Cloud Quickly construct solutions Cost effectively deliver Solutions Today, 70% of Enterprise IT is served by the Channel 11. Proprietary and Confidential, Copyright 2013 Gravitant, Inc. Gravitant Connects the Cloud Value Chain Integrated Cloud Value across Enterprises, SIs and Providers Today, 70% of Enterprise IT is served by the Channel Run a High Volume, Transaction based Cloud Business Model Aggregate and Sell Cloud Solutions Sales Velocity Solution to Quote to Transaction 15-25% Growth Business 5X-7X reduction in Time to Solution Delivery SaaS PaaS IaaS Ancillary Services Virtualized /Physical CIO/CFO BU/Developers Architects, IT Admins Time to Solution: Months to Days Solution Portability Integrated Ops 30% - 50% Cost Savings Increased Choice Reduced Risk with Compliance Financial System of Record Quick time to production Choice of DevOps Platforms/Tools Single Point for Support SI/VAR Gravitant cloudMatrix 12. Proprietary and Confidential, Copyright 2013 Gravitant, Inc. Gravitants Cloud Brokerage and Management Software Platform Streamlines the Cloud Value Chain Public Clouds Managed Services Private Clouds (VMWare, OpenStack) ITO Advanced Cloud Analytics Matching & Metering Pricing & Commerce Engine Cloud Service Bus & Registry Collaborative Solution Design & Provisioning cloudMatrix Platform Enterprises Design & Simulate Match & Source Order & Fulfill Control & Align 13. Proprietary and Confidential, Copyright 2013 Gravitant, Inc. Cloud services brokerage allow customers to get more out of the cloud Providing cloud IT and business management Lower Cost Reduce infrastructure cost by 20-40% and improve staff productivity Better Choice Match the best providers and services with the right business need More Control Gain visibility, ensure governance, and reduce risk Greater Speed Faster path to revenue for the business 14. Proprietary and Confidential, Copyright 2013 Gravitant, Inc. On the CIOs whiteboard today The ideal solution get more out of cloud Collaboratively Design Security $ Backup Monitor SLA Match to Right Clouds Add Managed Services Estimated Bill of IT Order, Orchestrate & Provision Manage, Control, Decide + Connect Current IT Financial Mgmt IT Service Mgmt IT Ops Mgmt Supply Chain Mgmt Change Change Change Technical Financial Legal Flow of Approvals Key benets: Provide IT value add to biz users; corral Shadow IT Speeds overall process to deliver app infrastructure Improves my staffs productivity through automation Reduces lock-in and makes me future proof Provides governance and cost management Masks cloud complexity 15. Proprietary and Confidential, Copyright 2013 Gravitant, Inc. Gravitants cloudMatrix Enables Enterprises to Realize the True Value of the Cloud Without Gravitant With Gravitant 16. Proprietary and Confidential, Copyright 2013 Gravitant, Inc. Gravitant Cuts Through the Complexity of Choosing the Best Fit Cloud Provider: Provider Match Description Average Price Location Security SLA Provisioning Time On demand commodity cloud provider. Enterprise support available at additional cost Compute: $17,234 Storage: $625 Network: $802 SW: NA Operations: $16,137 US East (VA) US West (OR) US West (N. CA) EU (Ireland) AP (Singapore) AP (Tokyo) Virtual Perimeter Firewall and Routing between VLANs 99.95% annual uptime only for access to VM in particular region. Service credit up to 10%. VM provisioning: 10-15 min 1st VDC: Hours Subsequent VDC: Hours 85% Higher-level security & SLA: optimized for eCommerce & Web Hosting Compute: $23,623 Storage: $7,489 Network: $500 SW: NA Operations: $12,957 US East (VA) US West (CA) Asia EMEA Enterprise Grade Virtual Perimeter Firewall Additional Cost for IDS/ IPS 100% infrastructure 99.9% end-to-end availability of customer assets. Service credit up to 30% VM provisioning: 2-4 hours 1st VDC: 2 days Subsequent VDC: 4 hours 100% Reserved capacity-based dedicated resources; fixed cost, simpler management, supports bursting Compute: $45,000 Storage: $5,991 Network: $500 SW: $0 Operations: $11,897 Culpepper, CA Miami, FL Sao Paulo, Brazil Amsterdam, Netherlands Enterprise Grade Virtual Perimeter Firewall Additional Cost for IDS/ IPS 99.9% end-to-end availability of customer assets. Service credit up to 50%. VM provisioning: 10-15 min 1st VDC: 10 days Subsequent VDC: 10 days 135% Private, community cloud with dedicated capacity; fixed costs; physically secure Compute: $15,000 Storage: $400 Network: $500 SW: $0 Operations: $18,000 Austin, TX Enterprise Grade Virtual Perimeter Firewall Limited outside access 99.9% end-to-end availability of customer assets. Service credit up to 50%. VM provisioning: 15-30 min 1st VDC: 2-3 day Subsequent VDC: hours 115% Pricing based on a production environment for a CRM. 30% variance between choosing any provider versus choosing the right one. Terremark 135% Monthly cost: $63,388 Arbitrary Selection Savvis 100% Monthly cost: $44,569 Optimal Selection 17. Proprietary and Confidential, Copyright 2013 Gravitant, Inc. Gravitant: Cut Solution Cycle Time by 10X Address the longest and most expensive part of the app deployment lifecycle Design >3 months Order 3-6 months Deploy 4 weeks Provision 6 weeks Changes 1-3 weeks Todays Enterprise with Virtualization Enterprise with todays Hybrid Cloud Management Design > 3 months Order 2 months Hours to days Hours to days Changes 1-3 weeks CMP can reduce VM deployment & provisioning to hours days 2 weeks Days to weeks Hours to days Hours to days Hours to days Gravitant-enabled Multi-Cloud Management Weeks saved = more Revenue earned An ideal broker compresses the entire lifecycle and automates the management of the cloud supply chain > Nine month s ~ Six month s < One month 18. Proprietary and Confidential, Copyright 2013 Gravitant, Inc. How you can become a Cloud Services Broker 19. Proprietary and Confidential, Copyright 2013 Gravitant, Inc. We help you make money from the cloud Captured cloud infrastructure spend Make consumption of your managed services easier Improve your customers experience Outpace your competition by satisfying new customer needs Gravitant allows you to provide a suite of integrated IT-as-a-Service products with a Unified Services Delivery Platform that harnesses the full potential of cloud and managed services. 20. Proprietary and Confidential, Copyright 2013 Gravitant, Inc. Case Study: Top 25 WW System Integrator The New SI Business Model CIO/CFO CTO/IT Architect Procurement Sys Admin/IT Ops Dedicated Cloud Services Brokerage for Enterprise IT 3rd Party Public Clouds Managed Performanc e Monitoring Cloud Application Integration Third-party Managed Services SI Cloud/Managed/ Consulting Services Volume discounts from CSPs 7-9% markup for management services SaaSIaaS PaaS Managed Security Services Cloud App Consulting Managed Backup Service Hosted Private Cloud Unified Services Delivery Platform (managed by System Integrator)Gravitant cloudMatrix platform 21. Proprietary and Confidential, Copyright 2013 Gravitant, Inc. Gravitant Market Experiences With Channel Partners Cloud services brokerage optimized for state and local governments and US FED agencies that offer affordable and manageable hybrid cloud computing solutions. Cloud services brokerage (CloudCuity) for US FED agencies; awarded Network Centric Operations Industry Consortium contract (geospatial applications) Service delivery platform for public cloud infrastructure and its managed and consulting services for mid-market enterprise customers 22. Proprietary and Confidential, Copyright 2013 Gravitant, Inc. Full Service Cloud Services Broker Dedicated implementation of cloudMatrix platform Profile: larger channel partner with significant managed and professional cloud services offerings Benefits Highly customizable implementation that provides differentiation Greater granularity to broker business management capabilities: pricing engine and business reporting Better integration with channel partners IT and business systems Easier inclusion of channel partners services in main catalog Better longer term profitability software-like margins Licensing Model Annual fixed software license Per-use software license that includes volume discounts 23. Proprietary and Confidential, Copyright 2013 Gravitant, Inc. Cloud Services Broker Reseller CSB-as-a-Service Channel Partner NEW! Profile: mid-sized channel partner with lower upfront investment capability Benefits Lower initial investment to become a CSB Simpler marketing and sales: resale of defined and standardized packages Reseller Terms Resell margins of ~15-30% on various packages Monthly franchise fee that supports channel partners enablement to become a CSB Currently accepting applications for our Early Access Program through October 15th Go to www.gravitant.com/CSBaaS to apply 24. Proprietary and Confidential, Copyright 2013 Gravitant, Inc. Cloud creates the opportunity for SIs to become integrated ITaaS providers Today Risk of Being Left Out One third of revenue at risk to CSPs; potential for greater customer loss No capability to meet customers cloud needs (e.g., no cloud-centric design) Less ability to attach managed services Uncertain demand creates risk for cost basis and profitability MSFT SAP ORCL IBM HP VMW CSCO Solution Design & Delivery System Integrator Biz Units Public Cloud Managed Services Yesterday The Trusted Advisor 30-45% margin business Deliver custom integrated on-premise solution stacks with attached managed services Build ahead of anticipated demand Improve cost basis by scaling demand and improving processes over time MSFT SAP ORCL IBM HP VMW CSCO Solution Design & Delivery System Integrator Biz Units >25% arbitrage by consolidating customers public cloud spend; participate in fast growing IT category Seamlessly combine cloud services with managed services into unique & integrated ITaaS offerings Better customer experience MSFT SAP ORCL IBM HP VMW CSCO Solution Design & Delivery System Integrator Biz Units Public Cloud Managed Services Tomorrow Integrated ITaaS Provider 25. Proprietary and Confidential, Copyright 2013 Gravitant, Inc. Gravitant is garnering signicant industry recognition 10 Tools to Avoid Cloud Lock-In Enterprise clouds are more attainable with solutions like Gravitants cloudMatrix -Wayne Pauley, Enterprise Strategy Group Gravitant cloudMatrix helps IT take advantage of the transformational aspects of cloud computing by enabling a methodical yet agile approach to end-to-end IT management. -Paul Burns, Neovise As both an enabler and a cloud brokerage, Gravitant pulls together a number of the capabilities that IT organizations, VARs and SIs, and public cloud providers can use to extend the value of their offerings. -Daryl Plummer, Gartner Research