This document provides an overview and agenda for leveraging cloud technology to lower wireless networking costs. It discusses the benefits of cloud-based wireless solutions for managed service providers (MSPs) and small-to-medium sized businesses (SMBs), including reduced upfront costs, remote management capabilities, and recurring revenue opportunities for MSPs. Specific cloud-based wireless products from PowerCloud Systems and Invictus Networks are presented, and financial models are shared showing how MSPs can increase profits by reselling or managing cloud-based wireless networks for multiple customers from a single portal. Customer case studies of deployments in healthcare, hospitality, and education are also briefly mentioned.

1. Leveraging the Cloud to Lower Your Wireless
Networking Costs – “Wireless Control in the
Cloud”
Jim Steinbacher Rick Lindahl
Director of Sales President
PowerCloud Systems Invictus Networks

2. Agenda
o Overview
o Why Cloud?
o What is Available?
o How to Make/Save $$
o Solutions in Action

3. Corporate Overview
o Invictus Networks
• Founded in 1990 by Rick Lindahl
• A leading Northwest expert supplying Wi-Fi for MSPs & SMB verticals
• Broad-based expertise in RF planning and implementation
o PowerCloud Systems
• Developer of CloudCommand
• Global leader providing Networking as a Service (NaaS)
• VC-backed spinout from PARC labs; Qualcomm lead investor
• CloudCommand enables VARs to earn recurring revenue (subscript)

4. What is “The Cloud” ?
It‟s really pretty simple!
• If you use GMail, Yahoo, or any
web email
• If you use a web-based tool
• If you use Amazon or other
online vendors
• If you use online backup from
Mozy, Intronis, Carbonite, etc.
• If you use Dropbox
You already use the cloud!

5. What is “The Cloud” ? (cont.)
“Cloud” is basically a virtualized, distributed,
computing platform
• Public, Private, Hybrid
• Allows for rapid product scaling and deployment
• Reduces costs for both end users and developers

6. Market Overview: Rush to the Cloud
SMB Adoption in 2012
o SMB cloud market grew 25% last year
o SMBs with <20 employees are 3x more likely to choose cloud services
over on-premise services (due to cost, flexibility & management)
o SMBs will increase 100% spending for cloud applications by 2015
Parallels Research 2012
SP / MSP Adoption in 2012
o >70% are “on track” to offer cloud-based managed services in 2012
UBM Channel Research 2012

7. The Traditional Methods of WiFi
Deployment
Controller Based
o Feature rich
o Expensive to deploy, especially for multiple sites
o Often requires expertise beyond the scope of many VARs and MSPs
Standalone (ala‟ a Linksys from Frye‟s)
o Limited features
o A security nightmare
o No remote management
o Low margin on resale

8. Cloud based solutions bridge the
gap
• Low cost for both the end user and the Reseller
• Moves system costs from CapEx to OpEx
• Scales both up and down
• Remote management „from anywhere‟
• Enterprise level security
• Features not available in standalone
• HIPAA and PCI compliance

9. Why VARs and MSPs Should Buy
o $$ - Revenue Opportunity o Firewalled Hotspot & Guest Access
Build business managing Wi-Fi $$, customizable, auto-scheduling & more
o Enhanced Security
o Manage Multiple Customers Patented IDA to add/remove/track per-
1 pane of glass empowers MSPs to device activity
see/control multiple sites
simultaneously o Multiple Location Roaming
Transparent security all locations; great for
o Remote Management branch, multi-store, home
Any browser, anywhere, anytime
o Email & SMS alerts
o Plug „n Connect
Zero config; Drop ship to customer; o Site Survey Rogue Detection
eliminate truck rolls!
o Auto Firmware Updates
o Low Cost to Deploy/Manage

10. Why Customers Should Buy
o Increased Security for Their o Firewalled Hotspot & Guest Access
Network
o Multiple Location Roaming
o Affordable
o Compliance
o Both MSP and Customer Can
Manage the WiFI
o Adding Additional Coverage
for One or Multiple Locations is
Easy

11. How to Boost Profits…
Three Basic Business Models:
o Reseller sells solution to the end user and end
user manages
o MSP sells equipment to end user and manages for
a monthly fee
o MSP „leases‟ equipment to end user and manages
for a monthly fee

12. Real numbers…
End User Hardware Price $ 79.95
MSP/VAR AP Hardware Cost $ 70.00
Traditional VAR Model: End User Initial Cloud Price $ 129.95
MSP/VAR Initial Cloud Cost $ 75.00
End User Renewal Price $ 99.95
MSP/VAR Renewal Cost $ 65.00
Number of Customers
10 20 50 100
Average Number of APs per
Customer
1 $ 998.50 $ 1,997.00 $ 4,992.50 $ 9,985.00
1.5 $ 1,497.75 $ 2,995.50 $ 7,488.75 $ 14,977.50
2 $ 1,997.00 $ 3,994.00 $ 4,992.50 $ 19,970.00
3 $ 2,995.50 $ 5,991.00 $ 14,977.50 $ 29,955.00

13. Real numbers… End User Hardware Price $ 79.95
MSP/VAR AP Hardware Cost $ 70.00
MSP Model One:
End User Initial Cloud Price $ 129.95
MSP/VAR Initial Cloud Cost $ 75.00
End User Renewal Price $ 99.95
MSP/VAR Renewal Cost $ 65.00
Business model A monthly billing charge $ 10.00
Burden Rate (%) 30%
Number of Customers
10 20 50 100
Average Number of APs per Customer
1 $ 2,678.50 $ 5,357.00 $ 13,392.50 $ 26,785.00
1.5 $ 4,017.75 $ 8,035.50 $ 20,088.75 $ 40,177.50
2 $ 5,357.00 $ 10,714.00 $ 26,785.00 $ 53,570.00
3 $ 8,035.50 $ 16,071.00 $ 40,177.50 $ 80,355.00

14. Real numbers… End User Hardware Price $ 79.95
MSP/VAR AP Hardware Cost $ 70.00
MSP Model Two:
End User Initial Cloud Price $ 129.95
MSP/VAR Initial Cloud Cost $ 75.00
End User Renewal Price $ 99.95
MSP/VAR Renewal Cost $ 65.00
Business model A monthly billing charge $ 35.00
Burden Rate (%) 30%
Number of Customers
10 20 50 100
Average Number of APs per Customer
1 $ 3,780.00 $ 7,560.00 $ 18,900.00 $ 37,800.00
1.5 $ 5,670.00 $ 11,340.00 $ 28,350.00 $ 56,700.00
2 $ 7,560.00 $ 15,120.00 $ 37,800.00 $ 75,600.00
3 $ 11,340.00 $ 22,680.00 $ 56,700.00 $ 113,400.00

15. Add Best-in-Class Hardware
Ubiquiti Unifi AP Family
(UAP, LR, Pro, Outdoor)
o 300Mbps speed
o 500ft range
o Preferred product
More platforms soon!

16. How to Sell OPEN
MSPs
95% don‟t have a cost effective Wi-Fi solution for SMB customers
Small Office Medical Vertical
HIPAA compliance is required – OPEN provides it with IDA, event
capture & per-device reporting
Hospitality
OPEN‟s affordability means even Tier 3 hotels can offer guest Wi-Fi that
works (indoors/outdoor) – managing it for a fraction of traditional costs
Come Inside & Expand to Wi-Fi
WISPs in the outdoor market and resellers and others who are
new to wireless sales & support – can immediately expand their
business footprint and build new channels

17. Success in Action
Hospitality Healthcare Education

18. http://open.cloudcommand.com
Questions?
Jim Steinbacher
Director of Sales
PowerCloud Systems
jim@powercloudsystems.com
(971) 563-2164

19. Visit us at the Invictus Booth