Domain Names and Web Hosting in 2009 and Beyond

1. Domain Names and Web Hosting in 2009 and Beyond Adam Eisner Product Manager, Domains Tucows Inc.

2. About Adam and Tucows • Adam: • Product Manager, Domains • With Tucows five years • 10 years in technology journalism, marketing • Tucows: • One of the world’s largest domain registrars • Manage ~9 million domain names • Also provide wholesale email, SSL certificates • Operate Tucows.com, Butterscotch.com 2 Parallels – Optimized ComputingTM

4. What We’ll Talk About in 18 Minutes or Less • The state of the domain name market • Opportunities in web hosting and domain names • Emerging trends in web hosting and domain names for 2009 and beyond 4 Parallels – Optimized ComputingTM

5. 2008 Was a “Shakeout” Year for Some • Domain name ‘tasting’ issue was addressed at the policy level • Parking revenues started to slow • Oversee: parking/aftermarket valuation $1.2b in 2007, $0.9b in 2009 • VeriSign: 8% of com/net names are for parking • VeriSign: slow growth due to Google AdSense changes, ‘softness’ in online ad spending • Nominet: gTLD base grew less than 10% in 2008 (compared to 30% in 2006) 5 Parallels – Optimized ComputingTM

6. It’s Not All Doom and Gloom • Most ‘softness’ applies to speculators, investors; not hosts • All sectors still buying domain names: • USA, international • Corporate, SMB • Consumers • Premium domain names are more valuable than ever (think real estate) • Strong growth in ccTLDs (now about 40% of the market) • Many ccTLD markets are ‘white hot’ 6 Parallels – Optimized ComputingTM

7. Significant Growth in ccTLDs • Top 10 ccTLDs (totals are approximate): • .CN (12 million) • .DE (12 million) • .UK (7 million) • .NL (3 million) • .EU (3 million) • .AR (1.8 million) • .RU (1.6 million) • .IT (1 million) • .BR (1 million) • .US (1 million) • gTLD market share was 50% in 2005, 45% now! 7 Parallels – Optimized ComputingTM

8. .CN: Hot or Not? • Surged to beyond 12 million names in 2008 • 88% growth year over year • Generated a lot of hype • Caution: some of this growth is artificial 8 Parallels – Optimized ComputingTM

9. Domain Growth: Linked to GDP? Source: Nominet 9 Parallels – Optimized ComputingTM

10. What Sells Well Right Now? • .ME: Relatively new, popular offering • .EU, .ES, .CH, .NL selling well in Europe • .EU just passed three million • .CA, .UK should be staples • Keep an eye on .TEL - landrush beginning now! • Average domains per registrant is more than one - so you should be selling multiple names. • Sold them the .COM? Offer them the .INFO too. 10 Parallels – Optimized ComputingTM

11. 2009 Predictions

12. Emerging Trend: New Domain Extensions • Approved @ Paris ICANN meeting in June • Allows anyone with $185k to apply • Up to 1000 applications to be submitted • Among those being considered: .sport, .nyc, .paris, .gal, .web, .africa, .quebec, .london and many more • .ebay? .nike? .shoes? .webhost? Who knows. • Some will be closed/not require registrars Source: Nominet 12 Parallels – Optimized ComputingTM

13. The Impact to You • New markets = new opportunities • Education will be key • Some closed off to you • May not require registrars • Still early, much to be determined • Lots of extensions = brand protection nightmare (or opportunity!) Source: Nominet 13 Parallels – Optimized ComputingTM

14. Is There Room? Source: Nominet 14 Parallels – Optimized ComputingTM

15. Timelines Source: Nominet 15 Parallels – Optimized ComputingTM

16. Emerging Trend: I Want to Be A Registrar • Key benefits: own name on accreditation, access to ICANN constituencies and policy • Weigh the option carefully! • A few thousand names isn’t necessarily a good threshold • There are many ‘hidden’ factors to consider • Policy (compliance, ICANN, UDRP, legal) • Registry updates (on both policy and technical levels) • What to do with existing names Source: Nominet 16 Parallels – Optimized ComputingTM

17. Emerging Trend: The SMB Aftermarket • Names which cost between $500 and $3000 • SMBs have a budget for the ‘perfect’ name • Most names resolve to SMB site in six months • Recent sales by Tucows resellers: • Grouplaw.com • Emailmagic.com • Bluelabs.com • Webhostbiz.net • Techwriters.net • Firstinterstate.net • Reversemortgage.net • Netkeepers.com Source: Nominet 17 Parallels – Optimized ComputingTM

18. Emerging Trend: The Personal Web • Using domains as a personal identity is becoming very popular: • Tucows: Acquires NetIdentity.com, resellers (including) web.com sign on to offer Personal Names • .ME launches in July: biggest ccTLD launch ever • Apple snaps up ME.COM, .ME names • VeriSign: Purchases .NAME registry in October (popular among Tucows resellers) 18 Parallels – Optimized ComputingTM

19. Emerging Trend: Functional Hosting 19 Parallels – Optimized ComputingTM

20. Emerging Trend: Functional Hosting All-purpose Web Hosts (Budget/Ecommerce/Shared) Web 2.0 20 Parallels – Optimized ComputingTM

21. Other Emerging Trends • Mobile computing and related services • .MOBI, .TEL functions of this • Wireless-formatted websites becoming increasingly important, relevant • Extended Validation digital certificates • Going mainstream faster than expected 21 Parallels – Optimized ComputingTM

22. Questions?

23. Thank You! Adam Eisner Product Manager, Domains Tucows Inc. aeisner@tucows.com