1

Save your business with SaaS, Open Source, mobile solutions

Rafael Laguna de la Vera

CEO & President, Open-Xchange, Inc.

What this is going to be aboutWhat this is going to be about

“You never change things by fighting the existing reality.

To change something, build a new model that makes the existing model obsolete.”

R. Buckminster Fuller

2

User DemandsUser Demands

Users today are challengedby information overflow,Especially by too many andtoo big emails and the Web

Requires functions beyond simple eMail to avoid overflow and attachment-hell

Strong need for more advanced groupware and sharing capabilities Access information from almost any device – mobile device support Intuitive easy-to-use user interface either AJAX web UI or MS

Outlook Integration into other Internet Applications through Mesh-Ups

3

4

Advanced Collaboration

●InfoStore ●Linking●Privacy controls●Mashups

Messaging

●Email●Contacts

This is what advanced Messaging and Collaboration provides: Open-Xchange featuresThis is what advanced Messaging and Collaboration provides: Open-Xchange features

Enables teams to work together – anytime, anywhere from almost any device

Mail, Calendar, Contacts, Tasks, Folders

“Smart Document Sharing” with Versioning (InfoStore)

Support for Mesh-Ups (UWA Support)

Available via all standard browsers

Cool AJAX GUI

Platform Integration for Win/Mac (MS Outlook…)

Mobility support: Push Mail, Calendar, Contacts…

Built for SaaS from ground up, built in up-sell layers -> increases ARPU

Collaboration

●Calendar●Tasks●Folders

Where is the money? eMail is for free these days…Where is the money? eMail is for free these days…

“Driven by dropping prices and new vendors, the long-nascent market for hosted e-mail mailboxes is poised for rapid growth over the next five years, from 1% of enterprise seats in 2007 to 20% in 2012.”

“The move to a hosted delivery model for e-mail will create opportunities for new e-mail suppliers.”

“E-Mail Hosting: Poised for Explosive Growth”

Matthew W. Cain, Gartner, Feb 22, 2008

“Growth in the hosted business eMail segment will be driven by SOHOs and small to medium-sized businesses. The continually improving functionality of hosted business e-mail services is a boon for these businesses, enabling them to deploy advanced messaging and collaboration features to end users without having to purchase and manage costly insourced software.”

Radicati GroupHosting E-mail Market, 2006-2010

5

6

Growth in SME SaaS adoption creates $2.4B addressable market for Messaging and Groupware

Growth in SME SaaS adoption creates $2.4B addressable market for Messaging and Groupware

As SaaS becomes dominant method of application adoption in the SME market, the total addressable SaaS market will grow quickly to $2.4B

Drivers include convenience, low price, availability of broadband, mobility, growth in devices, Web 2.0 technology, Open Source software, social networks, and unified messaging solutions (SMS, Instant Messaging, VoIP, GSM…)

SME SaaS Versus In-house

$ M

illio

n

Sources: IDC, Radicati, OX Proprietary

Service Providers are SaaS pionieers…also thanks to Open Source SoftwareService Providers are SaaS pionieers…also thanks to Open Source Software

Used and extended Open Source Software to build and sell services First SaaS offerings: eMail, Web,

Hosting… Started 10+ years ago already Developed own infrastructure on Open

Source Provisioning, Billing, Administration,

Help-Desk, Services… Helped the proliferation of the internet

150 million websites (Jan 2008*) 1 billion hosted email accounts

(2006**)

7

*http://news.netcraft.com/archives/2008/01/28/january_2008_web_server_survey.html** Radicati Group, Hosting E-mail Market, 2006-2010

8

The “next big” SaaS application is Business-Class Email and GroupwareThe “next big” SaaS application is Business-Class Email and Groupware

After getting a web site and simple email, next SaaS application is business-class webmail and personal information management (“PIM”)

Then access to groupware is prerequisite to competitiveness in global economy

Functional applications like CRM and industry vertical applications complete the SaaS adoption hierarchy OX’s platform and PIM data portability are basis for future functional and industry vertical integration, enabled by i.e. OSGI, GUI plug-in architecture, & open standards (support mobility, unified messaging, ISV applications, mesh-ups, etc)

Simple Email, Mobile Phones, Broadband Acces, Web Site Hosting

OX Webmail + PIM

OX Groupware + Collaboration

Functional Applications

Vertical Applications

# of Seats

Mob

ility

Data Portability

But look who’s coming to eat your cake and have theirs, tooBut look who’s coming to eat your cake and have theirs, too

9

Microsoft: http://afp.google.com/article/ALeqM5gTao5X071ouBJjXJZjWoSo4sZBHAGoogle: http://www.usatoday.com/money/industries/technology/2008-02-12-google-apps_N.htm

10

Service Providers and Telcos can compete - but must battle Google and Microsoft entering the SaaS field

Service Providers and Telcos can compete - but must battle Google and Microsoft entering the SaaS field

Service Providers today Competitive when using Open Source Customer ownership, broad base But new entrants threatening core business

The expanded SaaS Strategy From offering technology to offering Services Requires applications that fit the DNA

Need to integrate into Infrastructure and Processes Requires flexible licencing and smart up sell models End-user prices and service levels need to be

disruptive

11

Multi Tenant /Multi Domain

SaaS platforms need to be designed from the ground up for SaaS; architecture needs to leverage provider infrastructure

SaaS platforms need to be designed from the ground up for SaaS; architecture needs to leverage provider infrastructure

Scalability

0100101110110000100101011001

Server Density

ArchitectureIntegration

12

OXServers

Cost and time-to market requires “slide in” architecture, avoids migration, creates up-sell opportunities

Cost and time-to market requires “slide in” architecture, avoids migration, creates up-sell opportunities

Request

Email

MailStore

Web Servers

WebmailServers

ProvisioningServers

BillingServers

$Load

Balancer

Mail TransferAgent

DatabaseServers

13

Messaging

●Email●Contacts

Product PackagingBusiness-Class Webmail

Replace all existing webmail accounts

No migration efforts, simple integration

Easy Up-Sell to full Groupware and Mobility

Available via standard browser, AJAX GUI

Disruptive price point

Desktop-like user experience

Including private contact management

Optional: Mobility up sell

14

Messaging

●Email●Contacts

Product PackagingPersonal Information Manager (OX PIM)

Replace all existing webmail accounts

No migration efforts, transparent integration

Easy Up-Sell to full Groupware and Mobility

Available via standard browser

Disruptive price point

Desktop-like user experience

Including private contact management

Optional: Mobility upsell

Personal calendar management

Personal task management

PIM

●Calendar●Contacts●Tasks

15

Groupware

●InfoStore ●Linking●Privacy controls●Mashups

Messaging

●Email●Contacts

Product PackagingGroupware and Mobility Support

Full product package with all features

No migration efforts, transparent integration

Disruptive licencing model

Desktop-like Groupware solution

Available via standard browser, AJAX GUI

Fully featured groupware

InfoStore (Documents, Knowledge, Bookmarks)

Platform Integration for Win/Mac (Outlook…)

Mobility: Push eMail, Calendar, Contacts

PIM

●Calendar●Contacts●Tasks

16

Open-Xchange reference customersOpen-Xchange reference customers

Customer Description Status

1&1#1 Web Hosting Company worldwide

Groupware and mobility in opera-tions since Feb 2007, U.S. Roll-out end of June 2008

Network Solutions

#3 Hosting Company in U.S.

Webmail replacement for 1+ million users, Groupware up sell

OVH#1 Hosting Company in France

Webmail replacement and Groupware up sell

Hostpoint#1 Hosting Company in Switzerland

Webmail replacement, Groupware in June 2008

~4 Million paying seats Customer focus on Europe, US & Japan

17

© 2

007

Raf

ael L

agun

a de

la V

era

1&1 MailXchange - Open Source SaaS 1&1 MailXchange - Open Source SaaS

18

Parallels / Open-Xchange PartnershipParallels / Open-Xchange Partnership

Partnership announced Friday, May 16, 2008

This partnership enables Hosting and Service Providers to deploy and sell Open-Xchange with Parallels' automation tools

Parallels and Open-Xchange are creating “Parallels supported” connectors for Open-Xchange Hosting Edition, Parallels Plesk Control Panel and Parallels Business Automation

This integrated solution enables Service Providers to expand their product offerings quickly, enabling an easily accessible SaaS model.

19

Open-Xchange, Open Source and SaaS - ConclusionOpen-Xchange, Open Source and SaaS - Conclusion

Open Source is the foundation of disruptive SaaS offerings Open Source based SaaS offerings fit the DNA of Service

Providers and Telcos Next big SaaS thing is the “middle-layer” of the application

stack, CRM, Groupware, VoIP, Wiki‘s Open-Xchange is an Open Source, “built for SaaS”, Business-

Class Groupware with tight integration into the Parallels ecosystem

Cost savings for end-users of such SaaS offerings is up to 90% compared to on-premise solutions -> this is disruptive but…

Microsoft and Google are coming to get your customers

Retain price control, branding, your customers, growth and profit margins by competitive Open Source based

SaaS offerings !