[February 15, 2012]

Parallels Continues to Lead the Hosting and Cloud Services Enablement Industry, with a Sweeping Introduction of New Software and Services, an Expansion of its Partner Ecosystem and the Latest Research on SMB Cloud Buying Behavior

Parallels® (www.parallels.com), the hosting and cloud services enablement leader, today announced an extensive collection of new software, services capabilities, technology partnerships and updated market research, further strengthening its position as the top global provider of complete hosting and cloud delivery software for the actively-growing small and medium business (SMB) cloud market. The series of announcements build upon the company's momentum as it continues to experience broad adoption of its cloud delivery software, with twelve of the top thirty global service providers now using Parallels software, and over 150 service providers launching services using Parallels Virtuozzo Containers in 2011. Parallels has also established or expanded over 300 partnerships across the hosting ecosystem in the past year, including service providers (Comline Clouds Automation, KDDI, KT, LuxCloud, Outsourcery, PacHosting, ReadySpace, Reg.ru, SKB Kontur, TDC Hosting, Telekom Malaysia (News - Alert), Tsukaeru.net, UberGlobal, UPC, Virtual IT), leading resellers, and over 100 Independent Software Vendors (ISVs) through APS certification.

The series of announcements are being made in Orlando this week at Parallels Summit 2012, an event that attracts a global audience comprised over 1,500 attendees, including hosting partners, ISVs, industry analysts and press from around the world. The company shared its future product roadmap and next-generation technology, giving the attendees the opportunity to learn from and network with Parallels experts and knowledge members of the industry.

SMBs: Driving Cloud Adoption - Parallels continues to stress why the company - and service providers - should remain laser-beam focused on meeting the demand for SMB cloud services, the fastest growing cloud adoption segment. Parallels own primary research estimates that the SMB market grew 25% in 2011 to $15.1 billion in the U.S., as SMBs with less than 20 employees are three times more likely to choose cloud services over on-premise servers. And, accelerated SMB cloud adoption is not limited to just North America, as the global SMB cloud services market is expected to expand at a 26% CAGR to $68 billion by 2014.

Parallels released these statistics along with additional in-depth SMB analysis from Parallels SMB Cloud Insights™. The new reports are the latest in its series of 12 papers on the current usage, growth expectations and areas of opportunity to help service providers to deliver cloud services to their SMB customers (see separate release). The new reports include updated SMB cloud purchasing profiles for the U.S. and overall global markets, along with two inaugural reports for Brazil and Mexico.

"The combination of the most advanced hosting and cloud services delivery software, market and operational expertise, plus a broad and growing partner ecosystem, is unique to Parallels and unrivaled in the industry," said Birger Steen, CEO of Parallels. "If service providers expect to be successful, they need to have access to deep knowledge, the latest technology, and a vast partner ecosystem, which builds a foundation for a complete and integrated cloud services portfolio that meets the needs of SMBs."

To help service providers continue to prosper in the SMB cloud market, Parallels announced a series of new products and services this week, with development guided by both Parallels SMB research and the direct input from its partners and customers. These announcements included:

Parallels Automation for Hosted PBX: SMB-Ready Phone Services

Parallels Automation for Hosted PBX is a full-featured virtual PBX enablement solution for hosters of any size to launch PBX services. Service providers can now offer SMBs access to enterprise-grade capabilities, which is suited to meet small business communications needs, whether they are replacing legacy PBX systems or moving to their very first PBX service. Parallels has partnered with best-in-breed providers to add flexibility and capabilities for its Hosted PBX automations solution. Partners can integrate with their own BroadSoft Broadworks solution, or use wholesale services enabled by preferred partners Apptix, Alteva and Sipcom. Parallels Automation partners can also choose to base their hosted PBX services on APS-certified software from Infratel (Infra Cloud Receptionist), 4PSA.com (VoipNow) and Solgari.

Parallels Plesk 11 Preview: The Most Complete Panel Solution for Web Hosting

Designed for next-generation hosting and cloud environments, Parallels Plesk Panel 11 can help take hosters to the next level in their business. Parallels Plesk Panel 11 provides advanced features such as mobile management client for hosters, while optimizing the mobile experience for their customers. Parallels Plesk Panel 11 will help maximize ARPU through built-in business intelligence, active monitoring and upsell paths suggestions for end users. It will integrate Microsoft Web Matrix, business metrics, WebStat and SEO indicators to help SMBs maximize their web presence and social media effectiveness.

Parallels Plesk Automation (PPA) Preview: Hosting Revolution (News - Alert) fr Growing Service Providers

Parallels Plesk Automation is a multi-server automation solution for hosting companies using Parallels Plesk Panel. PPA enables customers to scale their hosting and cloud services business to the next level through centralized management of customers and servers with distributed architecture, and the ability to seamlessly launch a wide range of new services.

Vast Expansion of Parallels ISV Ecosystem

The Application Packaging Standard (APS) has created a valuable new revenue opportunity -- for both hosting industry service providers and ISVs -- by introducing a "pluggable" approach to hosting and cloud applications and services. APS benefits ISVs by providing a sales channel through the over 5,000 Parallels service providers and resellers, who serve more than 12 million small and medium businesses (SMBs). In turn, hosters and other cloud service providers have access to the growing variety of APS-certified applications and services that are easy to deploy and maintain.

ISVs continue to embrace the potential of the APS Standard, including certified applications such as Asigra Cloud Backup™, Attracta SEO, Apptix-as-a-Service™, BackupAgent, BroadSoft® BroadWorks®, CloudFlare®, Ecwid, goMobi® Mobile Website Builder, Google Apps for Business™, Jelastic Java PaaS, Infratel Infra Cloud Receptionist™, ISAO Backup, McAfee Security-as-a-Service, MessageSolution Enterprise Email Archive, Microsoft® Dynamics 2011, Microsoft® Exchange 2010, Microsoft® Hyper-V, Microsoft® Lync® 2010, Microsoft® Office 365, MozyPro®, MXSweep Internet Security and Archiving, OfficeDesktop, OfficeDrive, Open-Xchange, Quest Software Migration Manager for Exchange and vWorkspace, PinnacleCart, R1Soft CDP, Scality RING Organic Storage, SiteLock, Soholaunch Pro Edition Site Builder, Solgari Hosted PBX, SmarterTools' SmarterMail Mail Server and Instant Messaging, SpamExperts, StopTheHacker.com, Symantec (News - Alert).cloud, UNITY Mobile, Vembu StoreGrid, VMware® Zimbra®, VideoMost.com and XandMail Web2.0 Communication Solution (Web2CS). See www.APSstandard.org for list of other certified applications.

In addition, Runa Capital (www.runacap.com), a global technology venture capital fund, and Parallels announced a cooperative investment program to stimulate and support the development of next-generation cloud and other hosted applications and services. The companies have created a go-to-market plan that will co-invest in selected independent software vendors (ISVs) who certify and package their software under the Application Packaging Standard (APS) program for cloud-enabled application and services.

Parallels and Microsoft Health Community Cloud Automation Reference Architecture

Based on the Health Community Cloud Automation (HCCA) partnership announced in 2011 between Parallels and Microsoft (http://www.parallels.com/health), the companies have now issued a new reference architecture for providing cloud services specifically for healthcare institutions. The HCCA reference architecture is based on the Parallels Automation (PA) solution accomplished over Microsoft Hyper-V virtual infrastructure. The solution includes hardware infrastructure, upon which a system integrator can deploy services using Microsoft® Hyper-V; Microsoft® Exchange, Microsoft® SharePoint and Microsoft® Lync, along with the use of Parallels Automation to manage the user experience through control panels. Parallels Automation also provides billing automation and provision of the Microsoft services, while enabling additional ISVs application integration. The architecture also provides a branded Healthcare and Public Sector customer facing storefront/purchasing experience, also delivered by Parallels Automation.

The market continues to take notice of Parallels momentum. Tech industry research firm IDC, in a recently published report, states that "Given Parallels' current base of 5,000 partners/customers in the SMB IT channel (hosting providers, resellers, and integrators) and market penetration of the Parallels' Plesk Panel product (50% market share in the control panel segment), IDC believes that the company is well positioned to establish an up-the-stack presence in the service delivery/enablement platforms of SMB cloud IT supply chain participants."¹

The full IDC report is available for download from Parallels Web site at: http://bit.ly/yt6kg7

¹ IDC, Parallels Private Vendor Watchlist Profile: Helping Service Providers Compete in the Cloud, doc #233149, Feb. 2012

About Parallels

Parallels is a worldwide leader in hosting and cloud service enablement and desktop virtualization. Founded in 1999, Parallels is a fast-growing company with more than 800 employees in North America, Europe, and Asia. For more information, please visit www.parallels.com/spp, follow us on Twitter (News - Alert) at www.twitter.com/ParallelsCloud and Like Us on Facebook at www.facebook.com/ParallelsCloud.

Application Packaging Standard (APS) Partner Quotes - Parallels Summit 2012

"Apptix's partnership with Parallels is one key element in maintaining our position as the premier provider of cloud communication and collaboration solutions. Parallels Automation and the APS standard enable Apptix to rapidly launch best-in-class services to enhance our comprehensive portfolio. This competitive advantage is one of the reasons blue chip channel partners are choosing Apptix to drive their cloud success."

-- Joy Nemitz, Chief Marketing Officer, Apptix

One of BroadSoft's core objectives is to help ease the delivery and management of our communications services for our service provider customers. By partnering with Parallels, service providers have access to a broad-range of automation tools that enable them to get to market quickly, as well as expand their offers to web hosters and alternative channels. Parallels automation suite has been developed and tested against our BroadWorks XSI interfaces.

-- Joe Harsch, Director of Unified Communications (News - Alert) Solutions, BroadSoft

"We've seen good momentum with web hosters interested in bringing Google Apps email and collaboration services into their core offering and we'd like to make this as easy as possible for them. We're excited that our certified APS package for Google Apps will make it easy and convenient to create and manage Google Apps accounts from directly within Parallels' powerful platform."

-- Jeff Ragusa, Google Apps SMB Channel Lead

"Having compatibility for Parallels Application Packaging Standard (APS) provides an opportunity to further deliver benefits to our partners, especially in the SMB market. The McAfee Security-as-a-Service offerings deliver complete email, and web protection through the cloud which helps organizations realize faster time-to-protection to secure their business."

-- Craig Parrish, vice president of SMB Sales, McAfee

"Parallels has established a mature and growing ecosystem and we're delighted to be preparing an APS-certified package for Parallels' partners. As the most trusted provider of data protection and availability, we've been approached by companies anxious to offer Mozy under their own brand or natively through the Parallels platform, and we see this as an increasingly important channel for us."

-- Simon Kingston, Director of Global Partnerships for MozyPro®.

"With Symantec Endpoint Protection.cloud and Symantec Email Security.cloud now APS-enabled for the Parallels platform, service providers can accelerate time-to-revenue with differentiated offerings. We are pleased to extend our partnership with Parallels to ensure that our partners are able to quickly and easily offer a wide range of Symantec solutions and services to meet their SMB customers' needs.

-- Stephen Banbury, Vice President of Worldwide Channel and Alliance Marketing, Symantec

"By integrating VMware® Zimbra® Collaboration Server into APS, VMware and Parallels can enable service providers to easily sell, provision and manage the leading next-generation email and collaboration suite for their customers. This collaboration provides the broad array of Parallels' service providers with access to self-service provisioning and management of Zimbra for their SMB customers. This is a big win for both service providers and their end customers."

-- Andy Pflaum, senior director, VMware Zimbra Strategic Alliances

"We are excited about the Application Packaging Standard and how it enables automated and scalable delivery of Quest solutions to service providers through Parallels Automation. Now, service providers are empowered to offer their customers new solutions, including zero footprint email migration, network management services, and Desktop-as-a-Service, all of which lower customer costs, address today's pain points and create monthly recurring revenue for the service providers."

- Darrin Swan, Director of Global Business Development, Quest

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