Exec Summary

1. Ray Nugent
CEO Smartscale Systems
CONFIDENTIAL AND PROPRIETARY
SMARTSCALE SYSTEMS 2012
Software Defined Datacenter

2. Cloud Computing – The Rise of Shadow IT
Cloud Computing – The Rise of Shadow IT
• 70% of BU developers now using Cloud providers to develop apps
• Organizational responsibility for cloud resources is dynamic or unclear and
company’s cloud use not managed
• Security issues arise as app developers ignore infrastructure security
• Data on how cloud is being used is lost
• Enterprise Back Office (private Cloud) is disconnected from Cloud

3. How Smartscale manages Shadow IT
1. Smartscale creates a virtual or “Software Defined” datacenter.
2. Smooth out differences between Cloud Providers and provides QoS for Cloud
Services across a range of Public and Private Clouds
3. Matrixed governance - Multitenant + Hierarchy + User for Compute, Storage,
Network and Security
4. Provides self service configuration and deployment reducing cost and time to
value creation
5. Intelligent configuration management – Intelligent automation of patch and
config updates streamlines tedious and error prone processes
6. Grouping – ability to manage large groups of assets effortlessly provides
scalability and agility

4. Smartscale Analytics
Acct: 123456789
Instance ID 0987654
M1.Xlarge
Start: 12:01am
Stop: 5:16pm
Bob Jones, Marketing Intern in HotBU at Acme Corp
• Launched 10 M1.Xlarge servers at 12:01am
• 5 DB Cluster, 2 Load Balancers and 3 Webservers
• For the Hot Product Campaign
Cost to date is $461.50
1. Servers: $300:75
2. Bandwidth $100.25
3. Storage: $61.50
DB instances patched with Security patch 7767185
Amazon Web Services Amazon Web Services with Smartscale
HotBU used 4000 servers, 1.2 Terabits of
bandwidth, 20 Terabytes of storage
There are 46 users of the Cloud for HotBU projects
They deploy 40% US, 30% EU, 20% AP, 10% SA
Top user by $ is Sammy Spend
Top Project by $ is Cool_New_Product_Launch
?

5. Virtual Datacenter Stack
Smartscale Software Defined Datacenter
CSPCSPCSP PrivateSDN
Controller
SDN
Controller
CloudVirtualized Network
Physical network

6. BYOD
SDN Controller
Security
App
Governance
App
QoS
App
Metering
App
Tenancy
App
Software Defined Datacenter

7. Cloud is HP Openview of this generation
• Legacy products are not designed for the ephemeral, dynamic nature of
the Cloud
• Last Generation Data Center Management tools are tuned for managing
static, on-premises hardware
• The New Crop of Tools offer Only Point solutions and ignore the cloud’s
lifecycle. Users need to assemble a complete solution themselves
• Software Defined Datacenter is a greenfield opportunity for cloud-based
enterprise startups (much like CRM was a decade ago)
• As clouds get built out, the need for management grows exponentially
• This is a $15 Billion Market Opportunity with 42% CAGR *
* TechNavio - 2011

8. The Smartscale Business Models
CONFIDENTIAL AND PROPRIETARY
SMARTSCALE SYSTEMS 2012
SaaS product
Monthly
Subscription
• SME starter tier - $99/Mo
• Enterprise SaaS managing single CSP - $5499/Mo.
• Enterprise on prem IT Managing Rouge Depts./Users - $49000/Mo
• Add-ons for advanced analytics, back office connectors
On Premise product
Annual Subscription

9. Go to Market Strategy
CONFIDENTIAL AND PROPRIETARY
SMARTSCALE SYSTEMS 2012
Enterprise
Channels
Technology
Partners
Web
• Technology Partners need for ways to penetrate the enterprise cloud market
due to a lack of cloud products. Many vendors have a strong synergy with
Smartscale’s platform in order to deliver a complete solution . Joint marketing
programs, sales personnel education and mutual sales efforts will top the tasks.
• Web sales help jumpstart the engagement with customers that will potentially
lead to longer term deals.
• Channel Partners are in a growing but competitive market. Today, most
vendors offer only rudimentary management interfaces for their customers (i.e.
Amazon). These companies will be forced to raise the “cloud management” bar
if they hope to capture the enterprise market.
• Enterprise Users (Mid Size up to the G100) are now using Public, Private and
hybrid clouds. Companies such as Netflix, Wal-Mart, Zynga have large Public
Cloud deployments with business agility as the primary driver. Today, most
companies are forced to build their own management systems after exceeding the
capabilities of 1st generation management products.

10. Competition
CONFIDENTIAL AND PROPRIETARY
SMARTSCALE SYSTEMS 2012
Feature ScaleXtream Enstratus Rightscale Bracket Smartscale
Hierarchical Management No No No No ✔
Financial
Management
Yes Limited Limited No ✔
API No Yes Limited No ✔
Enterprise Integration No Yes No No ✔
Security Management Yes Yes Yes No Soon
Service Catalog No Limited Yes No ✔
Multi-Tenant No No No No ✔
SaaS and On Prem SaaS Both SaaS SaaS ✔
Mobile Yes No No No ✔

11. Revenue Sources and Projections
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
1 2 3 4 5
Ent
SaaS
OEM

12. Smartscale Team Summary
CONFIDENTIAL AND PROPRIETARY SMARTSCALE SYSTEMS 2011
TeamTractionCompany
20 years systems management
@Cisco
@Tandem
@IBM
BS, Comp Eng. CSU, Chico
Ray Nugent, CEO
20 years large scale financial systems
@IProfs
@CAIW
@ICMG
BS, Comp Sci. Technical University, The
Hague
Ludi Cosman CTO Adrian Cockcroft, Advisor
Financial
Raising $4 million
equity
Intellectual Property
Patent filed in 2008 covers 4
primary claims for Cloud
Computing – Awarded March
8th 2012!
Highly scalable, enterprise cloud
controller written in Java, Ruby and
HTML5. Hierarchical scaling, Multi
level, Multi-tenant, iPad/Android ready
Product & Technology
Technology Partnerships:
• Amazon Eucalyptus
• Rackspace Openstack
• Canonical
Enterprise/Gov
TLA
Enterprise Software Vendors
20 years enterprise architecture
@Netflix
@eBay
@Sun (Distinguished Engineer)
Noted Author and Cloud Architect
BS, Applied Physics and Electronics City
University, London UK

13. www.smartscalesystems.com
CONFIDENTIAL AND PROPRIETARY
SMARTSCALE SYSTEMS 2012

14. Smartscale Software Defined Datacenter
Multi-Cloud Governance
• Eliminate surprises in runaway
cloud costs or user access
• Manage across multiple clouds
• Patch 1000s of servers in
seconds
• Service catalog - Reuse and
share resources
IT Automation
Matrixed Multitenancy
• Separate and Segment users into
Multiple Tenants Across Clouds
CONFIDENTIAL AND PROPRIETARY SMARTSCALE SYSTEMS 2012

15. • Integration with back office API
• Ticketing, LDAP
Eliminate Silos in your datacenter
Smartscale Features Cont.
CONFIDENTIAL AND PROPRIETARY SMARTSCALE SYSTEMS 2012
Cloud Security
• AES 256 encryption
• LDAP Integration
Mobile ready
• iPad and Android ready apps
• No software to install or manage

16. Point Solutions in the Market
Automation Monitoring On Boarding
Governance Multi-tenancy Security