Leveraging Your Business Assets to Find the Future

1. Leveraging Your Business Assets toFind the Future Sue DeFlorio GTA Annual Convention June 22, 2010

2. About FiberCloud • FiberCloud is an IP solutions company, incorporated in • 2001. • We are a wholly-owned subsidiary of Whidbey Telecom, • incorporated in 1908, and family-owned since 1953. • Our focus is to provide outstanding service with a • personal touch, and the highest level of service quality. • We provide a secure computing environment, multiple top-tier data centers in Western Washington, connected by a highly redundant Cisco powered MPLS network.

3. Cloud-Hosted Solutions • In 2009, we introduced a software platform that enables telephone companies to offer cloud-hosted solutions to their customers using their own brand and retaining customer control. • Microsoft Email • BlackBerry & ActiveSync for mobile devices • SharePoint (collaboration) • Online backup • File Transfer • (improved communications) • Unified Messaging functions • (increase productivity)

4. OPASTCO

5. My Goal Today • What is Cloud Computing? • How can Cloud-Hosting help generate bandwidth usage & revenue? • How are customers affected by the Cloud? • Can a Cloud-Hosting Partnership “Leverage my Business Assets” to define a better Future?

6. Sense of Urgency • Significant industry change • Technology changes • Revenue pressure • Increased competition • Many choices…and more on the way • Not enough to be “the pipe” • Narrow window of time to take action…fighting for the future

7. Cloud ComputingFrom Wikipedia, the free encyclopedia • Cloud computing is a style of computing in which dynamically scalable and often virtualized resources are provided as a service over the Internet.[1][2] Users need not have knowledge of, expertise in, or control over the technology infrastructure in the "cloud" that supports them.[3] • Other recent (ca. 2007–2009)[4][5] technologies that rely on the Internet to satisfy the computing needs of users. Cloud computing services often provide common business applications online that are accessed from a web browser, while the software and data are stored on the servers. • The term cloud is used as a metaphor for the Internet, based on how the Internet is depicted in computer network diagrams and is an abstraction for the complex infrastructure it conceals.[6]

8. What’s in the Cloud? • Platform as a Service: Provider offers hardware & software to facilitate applications. Defers capital cost for users. (Paas) • Software as a Service: Provider licenses use of software accessed over the Internet. Users pay only for what they need; avoid hardware, software and operating costs; gain access to solutions that might be too expensive if deployed for only one company. (Saas) • Infrastructure as a Service: Providers offers computing infrastructure, typically in a virtualized environment. Users purchase a fully outsourced service, rather than purchasing servers, software, data center space. The service is typically billed on a pay for use utility basis. (Iaas)

9. Cloud-Hosting:Hardware,Softwareand/or ApplicationsDelivered via the Internet

10. Cloud-Based Applications

11. What can Cloud-Hosting Do for My Company? • Drive broadband usage - Internet • Strengthen customer stickiness • Diversify revenue streams • Get more with less - no need • for add’l CAPEX, technology staff • Add progressive services quickly • Cement your Company as the • local technology leader • Expand new revenue opportunities

12. Growing Revenues With Hosted Services • Business Sector • Small Business: 5-20 Seats • Mid-size Business: 21-100 Seats • Add $5-$300 per application, per month • Initial sale - typically 2-3 applications • Typical user bills $15-$25 per month • Rural market pricing (=value, education) • As customers grow, so will you • Applicability to Residential markets

13. Growing Revenues With Territory Expansion Metro Suburb Retain... Extend... You SMB Expand

14. Changing Competitive Landscape • Competition • Google (broadband, too) • Microsoft • Amazon -- EC2 • IBM, HP • Comcast • Telco’s can win at this…understand • Subscription (monthly) services • Utility Products • How People Communicate “Information technology and business are becoming inextricably interwoven. I don't think anybody can talk meaningfully about one without the talking about the other.” Bill Gates Microsoft

15. The Opportunity • Small and medium sized business is the core of the local economy • Small business have many of the same • communications needs as larger companies. • Their resources are limited (money and time). • Enterprise-level software helps companies grow (“look • larger”, reach beyond the local community). • Outsourcing is a growing trend. • Best-in-Class communications, • quickly deployed, help meet these • needs. • Customers are accepting “the Cloud”.

16. Customer Benefits • Cloud-Hosted solutions enable: • Focus on core business • Business applications (iphone) • Power to grow (no bounds) • Match unique business needs • National/international presence • Protects business intelligence • Trusted local support, if serviced by local telco

17. No Boundaries City of Darien, Georgia • You have discovered Georgia's second oldest city, founded in 1736. • Downtown Darien is thriving and new developments are assisting the city in a community-wide revitalization effort. • This is one of the last unspoiled places on the Atlantic seaboard, rich in history, the beauty of nature, hospitality— and welcoming to new opportunities. Linda Tucker lindatucker@hotmail.com

18. Why Does the Cloud Matter? • Future needs to be more than “just a pipe” to be sustainable • Competition is changing • Customers can be in business without boundaries; choices in providers & services • Individual customers may need different solutions, can’t be all things to all people • Customer control is a key to success • Telco’s have customer control today • Leverage Your Assets… “Use it Before you Lose It”

19. Partnership Program • FiberCloud provides the applications • Best-in-class software service architecture • Back-end technical expertise • Monitoring • Initial marketing support • Single point of contact for partners • Easy ordering and billing • Product expansion • You maintain end-user relationship • Sales and marketing • Market-specific packaging • First-line customer support • Local branding • Billing & collection

20. Key Questions: Partnerships • Is this something we can do better, faster, or cheaper with a partner? • Does the solution take us in the right direction? • Is it right for our market? Are clients asking for the service? • Is the technology changing or new? • Do we have staff or infrastructure to manage the solution? • Does it require a large up front investment of time or money? • Will it integrate with our business processes? • Can we make money as we build/protect market share? • Can we afford to wait?

21. Find the Right Partner • Choose a partner whose products advance your strategy • Complements your strengths & augment your weaknesses • Make sure it fits your customer needs • Technically competent • Offers business terms work • Matches your company values

22. Hosted Services Platform Benefits for Your Company • Strengthen customer relationship; improve stickiness • Higher margin products • Local solutions for your market • Add progressive services quickly • Diversify company revenue streams • Increase broadband usage • Lower technology staff costs

23. The Challenge:Which Best Direction? Many technology initiatives compete for attention and funding. • Fiber to Home • Soft Switch • Over the Top • VoIP • Content • Cellular Services or CATV • Cloud-Hosted Solutions

24. Finding the Future • Use your assets, strengths and dreams to define strategic direction for the future of our companies • Meet customer needs and market conditions • Recognize many types of assets • Unique long-term relationship with clients • Local - know your business community needs • True service based companies • History of technology leadership • Drive economic development in the community • To serve the company & customers, partnerships bring solutions & flexibility

25. Leveraging Assets • Assets • You have the customer’s trust • For now, you control the customer…great power • Offer Internet products • Truck rolls • Respected service organization • Brand recognition • Opportunities • Focus on solving customer needs • One solutions doesn’t fit all • Not all technology needs to be self-provisioned • Use outsourcing to achieve quicker time to market and manage technology change

26. Is Cloud Computing Right for Your Company’s Future? Does a Cloud-Hosting partner? • Advance your vision • Serve your customers • Aid your timing to market • Advance community success • Preserve capital for other needy projects?

27. Jump In! • Simple and Easy! • New Revenues • High Margin • Low Risk • No CAPEX • OP EX is per seat (Pay as you Grow) • Competitive Deterrent • Brings Benefit to Your Customers • The Cloud is here…

28. Thank you! susan.deflorio@fibercloud.com