Parallels Vision Building Global Technology Company
Serguei Beloussov
Chairman and CEO, Parallels
Our Team & Myself: History – (simplified version)
1971 • Born in St. Petersburg, Russia
– Graduated from Moscow Institute of Physics and Technology (MIPT) : B.Sc (92), M.Sc (95), PhD (07)
1995-1997 • Founder & CEO of Rolsen, Russia (2-3 years)
– Color TV & Consumer Electronics Manufacturing, R&D, Sales & Marketing – Stop being actively involved in 2003, still part-owner – 100s of millions of $ in sales, profitable
1996-1999 • Founder & CEO Solomon Software SEA (4 years)
– Franchising Distributor for US Mid-market ERP (Solomon is now owned by Microsoft) – Singapore, Malaysia, Indonesia, Thailand, Vietnam, Laos, Cambodia, HK, Nepal and so on – ~5 million $, profitable – Software Sales/Marketing/Partnership and Engineering drill
Feb 2000 • Founder & CEO SWsoft – today split into www.Acronis.com and www.Parallels.com
– Acronis, Backup software ~150 million $, profitable, since 2005 owner/board (Boston, Moscow) (5 years) – Parallels over 100 million $, profitable, CEO/Chairman (8+
years)
Other • Experienced lack of Focus, Competitive Advantage, Planning on my own skin (or hair) notes – Most expensive way to learn –time and Most efficient way to waste money – bad business decisions
– Westcom, Falcon, Western C&P , ASPlinux, Infra TeleSystems, Acumatica and more – not all bad though
• Since 2009, part-time as Venture Partner at Almaz Capital Partners
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Agenda
Parallels Cloud Vision
Parallels Today
Building Global Technology Company in Russia
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Definition of Cloud Computing
“Cloud Computing refers to computing resources offered from remote highly consolidated Data Center location … which are typically owned and operated by a third-party provider”
Wikipedia – “Cloud Computing” - changes constantly http://en.wikipedia.org
/
The race is on!
Are you running yet?
Within the next 10-20 years most of 3.5+ trillion IT market will move into a “cloud”
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Parallels Cloud Vision
SMBs and LBs such as
• Small & Medium Businesses (SMB) will not buy on-premise server infrastructure and many of their desktop applications would be hosted • Platform (Über) clouds will not dominate SMB space in any near future due to breadth of SMB apps/services, majority would be in public clouds
• Parallels was founded to create solutions, ecosystem and partner with Service Providers and ISVs to build and operate efficient Public Clouds (primarily for SMBs)
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Confidential
Who is Important in Clouds: Is SMB Market Small?
SMB = Small And Medium Business
Home Use 1+ users
Small Business 1-100 users
Medium Business 100-1000
Medium Enterprise 1000-10,000
Large Enterprise >10,000
Worldwide SMB IT spending (now): ~1.2 trillion $, 50+ million entities, spend-weighted average size: 5-10 employees
2009
• Clouds (~$15+ bln)
– – – – – – – – – – – Shared Hosting Dedicated Hosting Managed Hosting SaaS, etc
2020 Clouds: $1,500 bln.
• IT Market (~$1,000 bln)
Telco Hardware Vendors Networking Vendors Software Vendors VARs/SIs Distributors Retailers
•
Online and Other Services
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What is Used by SMBs from the Cloud?
Compute/ App Platform Apps Online Services
Powered by
today!
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Agenda
Parallels Cloud Vision
Parallels Today
Building Global Technology Company in Russia
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Parallels History
2000-2002 2003-2004 Insert photo 2005-2007 Insert photo 2008-2009
Insert photo
Insert photo
Plesk Panel ships to Rackspace on 23rd Dec'1999
SWsoft founded in Feb’ 2000 in Singapore by Serguei Beloussov with Ilya Zubarev and 4 other founders Ships first working container virtualization solutions - Virtuozzo Ships first out-of-box full 500K$ hosting automation solution - HSPcomplete
Parallels Desktop for Moves 100% of the Mac launched and ships R&D/support to Russia and over 1mln copies business functions to US Reaches 200,000+ Acquires Plesk and Confixx hosted servers 1&1 Launches Plesk (#1 hoster in the world) Launches Plesk7 Kicks off first Parallels Summit in 2006 Acquires ModernBill, Prima, Sphera, Ensim, Psoft, HELM++
Rebrands itself fully to Parallels & reorganizes into single focused entity
Launches APS – the first standard for the cloud
Launches Parallels Server and Parallels Workstation Extreme Named Top 100 by Red Herring
GoDaddy (#1 hoster in 50 mln Launches new$ US) 5 mln $Virtuozzo and generation of Parallels selects Plesk Automation
100 mln $
700+ employees, runs on 300,000+ servers and 2 million desktops
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Confidential
Parallels: 1+1+1 Lines of Business
Provider (Backend)
Business Automation
Business Automation Charge-Back
Traditional Virtualization Company
Multiple Reseller Levels
Customer (Self-Service)
Business Automation
Virtual Automation Self-Service
Traditional Virtualization Company
Operations (& Virtual) Automation Automation Traditional
Virtual
65-70% Operations (& Virtual) Automation
Virtualization Company
Virtualization & Control Panel
Traditional Virtualization Company
Hypervisor Virtualization
Virtualization & Control Panel
Server Virtualization
• Virtualization for Linux: • Live Migration, Clustering • Parallels Server for SMB: • Ready to use “boxed set” for 10 to 300 VM
Container Virtualization
Server Control Panel
SMB cloud provider MUST HAVE single, complete and integrated solution across all service plans
Desktop Virtualization
• Parallels Workstation Extreme: • 16 cores, 32+GB RAM, VT-d • Parallels Desktop for Mac: • 10% of US PC market now
30-25%
5-10%
• Parallels VDI • 2-3x more desktops per server than VMware/Citrix
• High-scale Virtualization • Low Overhead, Checkpointing
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Parallels - Global Leadership with Russian R&D
Strong Foundation
• 100+ Technology partners including Microsoft, Apple, Intel, HP, Quest, Symantec, Dell, IBM, AMD • Worldwide Footprint:
• 2+ mln servers/desktops • 200+ Fortune 500 companies • 10,000+ Service Providers • 125+ countries
#1 Global Enabler for SMB Cloud:
• Parallels Providers are “SMB cloud”
• $15bln+ revenue • 50+ mln customers • 3+ mln servers • 300 mln users • 300,000+ servers • 30+ mln users
• “Powered by Parallels”
• $1.5bln+ in revenue • 5+ mln customers
All of Parallels R&D is in Russia
• ~300 people in Moscow, ~200 people in Novosibirsk • Founded by MIPT graduates, also NSU, MSU, FAPSI and more • Top 100 software company in the world, one of the top 4 global software product companies with Russian R&D (Kaspersky, Acronis, Parallels and ABBYY)
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Engineered in Russia, 80+ Patents: Product Innovations!
Containers Coherence HPC Workstation Virtualization
Industry Firsts
2001
2002
2006
2008
Hypervisor & Containers
2009
Off the shelf Automation
• OS Containers and copy-on-write template file system • First packaged off the shelf complete automation solution for Cloud Service Providers • Coherence - integrating OS’ instead of isolating • Best of both worlds - both OS and BareMetal virtualization • HPC Workstation Virtualization – native graphics performance/capabilities in VM for HPC workloads
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Confidential
Agenda
Parallels Cloud Vision
Parallels Today
Building Global Technology Company in Russia
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Plenty of Ideas. No Companies. Is Idea = Innovation? • Idea ≠ Technology • Technology ≠ Program • Program ≠ Product • Product ≠ Company (?) • Company = Innovation
Program
75%
Company
100%
Product
Technology
5%
25%
Idea
1%
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Global Technology Company with R&D in Russia
Critical
Non-Critical
4. Sales
Expertise Not in Russia
(limited) Product Development 2.Marketing 3. Bizdev Partnerships
7. Operations (HR, IT, ОA) 6. Finance, Legal
Expertise in Russia
(somehow present)
1. R&D
5.Tech Support
Simple Outsourcing Not Competitive Programming and Testing
Advanced Outsourcing Maybe Competitive
10 years
Program Development Really Competitive
15 years
5 years
Project Management Test Management Architecture Management
Program Management
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What is Important For Startup to Plan and be Stubborn!
• Team
– – – – Moral, committed Intellectual, capable Professional, experienced Strong leadership skills are important
• Plan (goal) to generate large cash flow (a lot of if long term)
– Proper business model – choose large enough and profitable enough space
• Plan for calendar time and finance
– Proper resource model – enough time (calendar days) and money to get this done
“Unless you have a lot of passion about this you’re not going to survive… You’re going to give it up … I think that’s half the battle right there” Steve Jobs
• Plan for competition & differentiation
– Direct and indirect – There is always some competition
• Focus and why do you have enough of it
– Outsourcing is deadly as financing model! – Single project – Narrow enough, well defined market
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12 Thoughts for Creators of Global Tech Companies
• Thought #1: Focus & Simplify – 300 spartans
• Thought #2: Organization and Hiring
• Thought #3: Location – less is more, where? • Thought #4: Taxation and Finance – very important
• Thought #5: There are different kinds of Investors
• Thought #6: Personal and Human factors • Thought #7: Build the cashflow, not a technology
• Thought #8: Legal and Lawyers – pay attention
• Thought #9: Product development – first growth engine; costs do not matter that much, efficiency and effectivness does • Thought #10: Marketing done right – second growth engine • Thought #11: Sales and Partnerships – third growth engine • Thought #12: The program is not the product
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Thank You For Your Attention
If you want more, do not hesitate to ask questions:
Serguei Beloussov sb@parallels.com
More details on each of the #12 thoughts would be published in webcast:
www.parallels.com/startup
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