1. George Naspo – CEO
IKANO and the Cloud Evolution
May 11, 2010

2. First a
story

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.

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