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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

                                     ORGANIC GROWTH /
                                     CLOUD COMPUTING
                                                                ACQUISITION
       REGIONAL                                                   CLOUD
                                                                COMPUTING
          ISP                   WHOLESALE
                                  DIAL
                  TURNKEY
                    VISP


1999     2002        2003     2004     2005   2006      2007    2008   2009


                   RETAIL    WIFI
                  BRANDS
                                              ACQUISITIONS
                                               BROADBAND       WHOLESALE
                               COST                               DSL
                            REDUCTIONS
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.
IKANO and the Cloud Evolution




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
Mary Meeker
Presentation - Google
Atmosphere 20010
Mary Meeker
Presentation - Google
Atmosphere 2010
Mary Meeker
Presentation - Google
Atmosphere 2010
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
IKANO and the Cloud Evolution




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

    Management Services

          Consulting

   Virtual Private Clouds

        Virtualization

        Infrastructure
Cloud Computing Strategy

                                                                 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.

                     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.
Key Partners
IKANO provisions and resells vendor services.
IKANO and the Cloud Evolution




Service
Transformation
IKANO and the Cloud Evolution




Employee
Transformation
IKANO Summary



     Cloud solutions
     Strategic Partnerships
     Future Growth Initiatives

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05-2010 ACG Utah Presentation by George Naspo of IKANO

  • 1. George Naspo – CEO IKANO and the Cloud Evolution May 11, 2010
  • 3. My Story 2005 Visit to IKANO •  No EBITDA •  Fragmented management team
  • 4. 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
  • 5. IKANO Innovation Timeline ORGANIC GROWTH / CLOUD COMPUTING ACQUISITION REGIONAL CLOUD COMPUTING ISP WHOLESALE DIAL TURNKEY VISP 1999 2002 2003 2004 2005 2006 2007 2008 2009 RETAIL WIFI BRANDS ACQUISITIONS BROADBAND WHOLESALE COST DSL REDUCTIONS
  • 6. 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.
  • 7. IKANO and the Cloud Evolution IT Industry Transformation
  • 8. What made the cloud evolution possible?
  • 9. 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
  • 10. Mary Meeker Presentation - Google Atmosphere 2010
  • 11. Mary Meeker Presentation - Google Atmosphere 20010
  • 12. Mary Meeker Presentation - Google Atmosphere 2010
  • 13. Mary Meeker Presentation - Google Atmosphere 2010
  • 14. Mary Meeker Presentation - Google Atmosphere 2010
  • 15. Change #2 The Recession •  Companies wanting to save money •  Companies looking to do more with less •  Companies seeking to focus on revenue related projects
  • 16. IKANO and the Cloud Evolution Company Transformation
  • 17. It all Surrounds the Cloud Cloud Connectivity Cloud Communications Cloud Hosting
  • 18. It all Surrounds the Cloud We deliver services in and around the cloud. IKANO offers the following in wholesale and retail services.
  • 19.
  • 20. Virtacore Services Management Services Consulting Virtual Private Clouds Virtualization Infrastructure
  • 21. Cloud Computing Strategy 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. 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.
  • 22. Key Partners IKANO provisions and resells vendor services.
  • 23. IKANO and the Cloud Evolution Service Transformation
  • 24. IKANO and the Cloud Evolution Employee Transformation
  • 25. IKANO Summary Cloud solutions Strategic Partnerships Future Growth Initiatives