05-2010 ACG Utah Presentation by George Naspo of IKANO

George Naspo – CEO IKANO and the Cloud Evolution May 11, 2010

First a story

My Story

2005 Visit to IKANO

•  No EBITDA •  Fragmented management team

The Turnaround mid-2005 •  Dialup only; no broadband •  Positive Cash Flow •  Bloated overhead; dysfunctional management

mid-2010 •  Completed 3 acquisitions (Dialup USA, DSL Extreme, Virtacore) •  DSL >60% of revenue •  Very Cash Flow Positive •  Substantial telco, headcount and overhead reductions to drive

margins

IKANO Innovation Timeline

TURNKEY VISP

REGIONAL ISP

RETAIL BRANDS

1999 2008 2002 2003 2004 2005 2006 2007 2009

WHOLESALE DSL COST

REDUCTIONS

WIFI

ORGANIC GROWTH / CLOUD COMPUTING

ACQUISITION CLOUD

COMPUTING WHOLESALE DIAL

ACQUISITIONS BROADBAND

IKANO and the Cloud Evolution

Major Components •  IT industry transformation •  Company transformation •  Service transformation •  Employee transformation

The unique story of how IKANO went from ISP services to cloud enabler.

IT Industry Transformation


What made the cloud evolution possible?

Change #1 Redefining IT for Consumers

•  Internet changes everything •  Broadband changes everything •  Mobile changes everything

•  Geoffrey Moore – Google Atmosphere 2010 Mary Meeker Presentation Google Atmosphere 20010

Mary Meeker Presentation - Google Atmosphere 2010

Change #2 The Recession

•  Companies wanting to save money •  Companies looking to do more with less •  Companies seeking to focus on revenue

related projects

Company Transformation


It all Surrounds the Cloud

Cloud Connectivity Cloud Communications Cloud Hosting

It all Surrounds the Cloud We deliver services in and around the cloud. IKANO offers the following in wholesale and retail services.

Virtacore Services

Infrastructure

Virtualization

Virtual Private Clouds

Management Services

Consulting

Cloud Computing Strategy

All of IKANO’s brands and customers are powered by Google Apps. Mid-sized ISPs (<100,000 subs) targeted for aggregation by IKANO, in partnership with Google.

Virtual Machines Dedicated Servers Private Cloud/Data Center Virtualization Consulting Dedicated Server Hosting Complex Hosting Solutions Colocation Solutions Data Center Services Engineering Services Additional Solutions

IKANO’s DNA mail service provides Microsoft hosted services for small and mid-sized businesses, including Exchange (with Blackberry) and Sharepoint.

Key Partners IKANO provisions and resells vendor services.

Service Transformation


Employee Transformation


IKANO Summary

Cloud solutions Strategic Partnerships Future Growth Initiatives

05-2010 ACG Utah Presentation by George Naspo of IKANO

Business

Transcript of 05-2010 ACG Utah Presentation by George Naspo of IKANO