Designed to simplify your life. Build secure web applications faster, with lower failure rates.
1) GIT Integration: Achieve continuous delivery and superior version control by deploying with Git.
2) DOCKER Support: Deploy and manage Docker containers locally or on remote nodes.
Spend less time on website and server administration.
3) WordPress Toolkit: Specific tools for managing multiple WordPress installations, themes, plugins and security–at your fingertips
4) Intuitive Server Control Panel: Centralized management to automate multiple client websites effortlessly.
Powerful WebOps & simple PaaS with all the tools you use, and the programming languages you work in.
5) Broadest Set of Website Services: Apache with PHP, Python, Ruby, NGINX, SSL & FreeSSL, Let’s Encrypt Support, CDN Support…for both Linux and Windows servers.
6) Multi Server – Easily distribute webspaces and subscriptions across multiple servers with centralized management and Intelligent Server Maintenance.
7) Node.js support: Deploy, config and manage all your Node.js apps and more
8) DNSSEC support: Full protection for DNS data of hosted domains following the Domain Name System Security Extensions protocol
9) Ruby support: Easily deploy apps in Ruby on Rails or Sinatra frameworks
10) Slack support: Forward server notifications to your Slack channels and stay up to date
11) Plesk Security Advisor: Intelligent and automatic guide on improving the security of your Plesk server on all levels
3. Toronto
Novosibirsk
Zurich
Barcelona Tokio
• Privately owned, growing
• Now a separate Business Unit,
HQ near Zurich/CH
• 180+ employees
• 6 global offices
• 2,500 members in the Plesk
partner program
• Serving >10 million businesses
in 140 countries
• Focused on licensing &
ecosystem – services through
partners
A global company
Munich
4. Dedicated Leadership Team
Nils Hueneke
CEO
14+ years in Plesk/Plesk Sales
Extensive experience managing global teams
Sascha Konzack
CFO & VP Finance
15+ years multi national finance
experience In Plesk/Plesk since 2010
Jan Loeffler
CTO
12+ years with service provider architecture
former 1&1 and Zalando infrastructure lead
Roman Basalyko
VP Support & Customer Success
10+ years in Plesk/Plesk Support
12+ years engineering & service
provider background
Sergey Lystsev
VP Research & Development
In Plesk/Plesk since 2001
10+ Years experience in software
management
Diarmuid Daltún
CSO & VP Sales
3 years in Plesk/Plesk Sales
10+ years in hosting/cloud/service
provider industry
Lukas Hertig
CMO & VP Marketing / Alliance
13+ years in Plesk/Plesk Sales & Mktg
Long term experience in Software/Cloud
Market
5. World’s most widely used control panel and cloud platform for enabling applications, websites
and hosting providers
◦ 50% of world’s top 100 hosters use or sell Plesk
◦ Running on more than 360k servers
◦ Operates ~10M web sites, 18M mail boxes
◦ Available in 32 languages and 140 countries
15 years of agile development
◦ 100+ engineers working from Novosibirsk, Russia
◦ First released in 1999 on Linux, Windows added in 2003
◦ 12 major versions, 250+ updates
◦ Plesk 12 (2014) most widely adopted, stable version yet
◦ 3 issued patents
Flexible, extensible, open & modular platform
◦ Only multi-platform control panel (Linux and Windows)
◦ Runs on physical and virtual servers
◦ Specialized editions and role based access focus on IT Admins, App Developers, WebPros
and Shared Hosters
◦ SDK, CLI and XML API available to integrate third party services and external systems
Responsive
Retina
Mobile Apps
Company overview
6. Simplify server, website administration and application hosting
◦ Including interface for Domain Names, Email Accounts, Web Applications, File
Management, Databases, Infrastructure tasks and much more
Set up complete environment for a site or app -automated:
◦ i.e.: database, programming language(s), various settings, etc.
Mass-manage sites and web apps to save time ( toolkit and other
apps)
Protect server and site from typical Internet threats
Delegate website management to Reseller / Site Owners / Developers
Plesk: the leading web-server management tool Plesk supported technologies &
Operating Systems:
• Operating Systems: Linux and
Windows
• Linux includes all major
distributions (e.g., Redhat,
CentOS, Debian, Ubuntu)
• Feature parity on Linux and
Windows
• Databases: MySQL / MariaDB / MS
SQL / PostgreSQL
• Web servers: Apache / Nginx /
Litespeed / MS IIS
• Programming Languages: PHP /
.Net / Python / Ruby / Java /
JXCore
• Mail servers and vendors: Qmail /
Postfix / Dovecot / Roundcube /
MailEnable / IceWarp /
SmarterMail
• Open SDK, XML API & CLI
8. Contents
p01
p02
p03
p04
Why Platforms like Plesk are crucial for providing public cloud and
hosting services for web professionals.
Your Offerings start with your End Customers – Web Professionals
Key Messages & USPs for your End Customers
Releasing Pain
Agenda
p05 Plesk Onxy Overview
p06 Plesk Multi Server Overview
p07 Appendix: Service Provider Economics
9. Trends
Why Platforms like Plesk are
crucial for providing public
cloud and hosting services for
web professionals
1
15. 14
What Does The Cloud Growth Look Like?
Worldwide Public IT Cloud Service Revenue in
2018 is predicted to be $127B.
Managed Services
is projected to reach $256B by 2018.
Emerging markets are predicted to be 21% of
the Worldwide Public IT Cloud Services market
by 2018.
Source: 1. IDC study commissioned by Microsoft; 2. M2 communications – Markets and Markets 14
16. Spending on cloud IT infrastructure worldwide from 2013 to 2020 (in
billion U.S. dollars)
Global cloud IT infrastructure spending 2013-2020
Note: Worldwide; 2013 to 2016
Source: IDC; July 2016
22.3
26.4
32.8
37.1
59.5
0
10
20
30
40
50
60
70
2013 2014 2015 2016* 2020*
SpendinginbillionU.S.dollars
15
18. 17
Top public clouds for Enterprise and SMB
17Source: Data from Gartner, Rightscale
Public cloud adoption patterns remain different between larger
enterprises and smaller organizations.
AWS remains in first place across both segments, followed by
Azure IaaS and Azure PaaS. The remaining rankings have
significant differences.
In the enterprise, VMware vCloud Air is #4 and IBM SoftLayer is
#5, with SoftLayer moving up 3 positions in the rankings over last
year.
In the SMB segment, Google AppEngine is #4 followed by
DigitalOcean at #5.
In AWS and Azure, there is a significant lack of focus on SMB end
customers (that Plesk can serve through Web Pros)
19. Source: Chart data from Netcraft, July 2016
18
Hosting & cloud companies by web-facing servers – still a growing market
18
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
2010 2011 2012 2013 2014 2015 2016
AWS
Digital Ocean
Alibaba Group
OVH
Hetzner
Linode
Microsoft
Host Europe Group
Endurance Group
21. 20
The way you build, secure and run a website or web
application today vs 10 years ago has fundamentally
changed & expanded!
22. The need for release
speed & agility
Source: 451 DevOps study, Q3 2015
63% want more!
“It can be difficuly to setup an application
in hours, and some see AWS and Azure as
being a complex vendor to manage”
Trends
“With Plesk Onyx you
deliver applications at the
pace of business with
comprehensive WebOps
services”
23. Reasons
• Global Scalability in minutes
• Technology that is 5-10 years ahead of hosting companies
• Economies of Scale in Infrastructure, globally
• 45 Price reductions in short periods of time
= Computing Infrastructure is becoming irrelevant / a utility like water or gas
= Focus is on a level up (platform, developers) or 2 levels up (Software as a Service)
24. Tech invest (public, private) soaring, companies changing the world
Source: Containerization2015
Deployment Management Tools has become ingrained in Developer’s daily lives (many running inside Docker containers)
Public Cloud Adoption
Source: Rightscale 2016
Respondents: 1060
% of Respondents using Cloud-based IaaS today and expected
use in 3-Years (Ranked on expected use) Source: Morgan Stanley 2016
Continuous IntegrationContinuous Deployment Distributed Version ControlContainerization
Respondents: 208
Markets reflect excitement and appetite for Hyperscale Cloud
Fabric
23
25. Developers present a massive opportunity
Source: Containerization2015
Professional Developers*
16M 12M18M29M
Worldwide
29M ICT-
Skilled workers
Estimations from key players in the market
There are an estimated “29 million ICT-skilled workers” in the world.
Role Count
ICT-skilled
workers
Professional developers 11,005,000
ICT operations and management
skilled workers
18,008,900
Total 29,013,900
Software
Developers
Professional developers 11,005,000
Hobbyist developers 7,534,500
Total 18,539,500
11M
Professional
Developers
Plesk Personas
*Source: IDC Worldwide Software Developer and ICT-Skilled Worker Estimates ICT= Information and Communications Technology
Web Professionals – Developers, Designers, IT-admins
Cloud/Hosting resellers, Service Providers
ISVs
System Integrators
Web Agencies
Expect14M
end of 2016
7.5 million hobbyists
3,5M Web Designer
1,8M IT-Admins
24
26. Trends
Developers love Docker
Source: Stackoverflow
With Plesk Onyx we help telcos, hosting service provider, and
ISVs meet the evolving demand of their customers regarding
containerization technology on top of their existing shared
web hosting scenarios.
Taggedquestions/month
27. Web Dev Tools – what web developers need and use
Source: Containerization2015Source: w3techs.com, Rightscale, StackOverflow Survey 2015, 2016, Netcraft
26,6% of all websites
2,7% 2,2%
(high traffic sites)
70% of developers use git as primary
source management solution
Increased usage by web agencies
38% of all online stores worldwide
runs on top of WordPress as plugin
developed by automattic
used by 30% of IT companies
increased from 13% to 30% in 1 year
further 35% plan introduction
311% growth
17.2% usage
26.8% growth
17.9% usage
14.9% growth
16% of all webservers
22% of all active sites
continuously growing, while Apache
is shrinking
26
28. Trends It’s all about Management, Control and Security
Internal private cloud pain points External public cloud pain points
With Plesk we leverage the power of
an IaaS by adding a simple PaaS layer
and saving money by lowering
administration, security and
management overhead.
Plesk secures applications and
websites automatically.
Source: The 451 Group Cloud End User Survey 1H 2015
As you move to an internal private cloud infrastructure
what are the two greatest pain points?
As you move out to the external public cloud, what is or
what do you expect to be the two greatest pain points?
33. ✔
Plesk Onyx: Continuous Delivery Deployment Pipeline for Developers
32
Jenkins runs as Docker
container managed by
Plesk
Plesk Multi Server
Extension installs
three environments
Apps managed
by Plesk via Docker
Recommendation:
- 1 Plesk per SMB end
customer web architecture
- Manage multiple Plesk
through Multi Server
37. 36
Hosters should differentiate using Plesk – by creating
targeted and simplifed managed offerings! And/or
offer managed solutions also with AWS and Azure!
38. Results Higher Value Offerings with Services
Combined
More Sticky Offerings
More Growth & Industry Specialization
More Margins
Enable Agility - and Respond to Market
Changes Quickly
Side Effects :
(Keep Your Customers)
(Sell More Servers – but may be Hyperscale based as well!)
41. Explorer/Hobbyist Developers (web/app) Designers Agencies IT / Webadmins (SMBs)
> These are private users, techies,
geeks.
> They are mostly male, between
18 and 49 years.
> They gain experience as a side
project to seize on future
opportunities.
> They are interested in tech, and
are involved privately or
professionally in IT.
> They build their own apps to
learn and have fun.
> They focus on productivity, not
resource details.
> Motivation is creativity, self
achievement, exciting industry.
> These include “Ich-AGs", part-
time workers and freelancers.
> These companies usually have 1-3
employees, the administrator is
often also the business owner and
decision maker.
> Behind the purchase of a product
is usually a profit-making-purpose.
> They often use a designer as
subcontractor.
> They build and run web & mobile
(micro) applications for SMBs
> They want to minimize efforts and
maximize revenues
> They focus on coding, not about
setting up and operating IaaS.
> These are IT-admins in small, and
medium sized companies.
> These companies are mostly Ltd.
Companies and have between 10
and 100 employees.
> They are usually not the final
contract owner.
> They advise the management for
purchasing IT-solutions and are
partly responsible for their
decisions.
> They want to configure the
platform supporting his or her
code.
> They want configuration control
when they need it.
SegmentsCharacteristicsMotivation
> The legal status of these
companies is ranging from self-
employed, one-person
companies to limited liability
companies to joint stock
companies.
> The primary business focus is the
sale of consulting, therefore they
often use developers & designers
as subcontractors.
> They want to minimize efforts and
maximize revenues.
> They focus on reselling, not about
setting up and operating IaaS or
taking care of security.
> These include small independent
companies, part-time workers and
freelancers.
> They have a company name, often
"single company" "Ltd.". or their
domain.
> They host small and medium sized
online-shops, a web-presence or a
web-portal.
> They often use a developer as
subcontractor.
> They design customer websites
and applications for SMBs.
> They focus on design, not about
setting up and operating IaaS or
taking care of security.
SMB’s need Service Providers, Web Pros and Web Admins to manage their own (cloud or hybrid) web infrastructure
> 20 million7.5 million
Web Professionals (web Pro)
560,000> 5 million
42. Explorers Developers (web/app) Designers Agencies IT / Webadmins
> They value proven platforms to
start small and grow big (scale).
> They want to build applications
in days if possible.
> They rarely desire — and often
lack the skills necessary — to
write infrastructure code, and
control virtual infrastructure,
middleware configuration, and
application deployment and
management.
> They are very price sensitive
> They search for free-trial licenses
or free-tier accounts
> They get their server with Plesk
from CSPs, like 1&1, GoDaddy,
or from large cloud players like
Amazon or Microsoft Azure.
> They want multi server, mean
application portability.
> They want standardization and
version control.
> They want continuous
deployment and testing.
> They are less price sensitive than
explorers.
> Special offers have a high impact
on sales.
> They can’t get their jobs done only
with graphical tools and other
abstractions that impede access
to all of the platform’s “tuning
knobs.”
> They prefer IaaS, and PaaS
products that allow deep
configuration.
> IT-security and a availability are
highly relevant.
> Purchase decisions are often
considered without time pressure
and depends not on price actions.
SegmentsRequirementsPricing
> The product decision is often
solution-oriented or influenced
by an external consultant or by
their customers.
> They have often special
requirements for reselling their
products.
> Product reliability and availability
have a very high priority.
> They are price-sensitive
> To reduce unnecessary initial
investment leasing and rental
solutions are sought.
> They search directly for special
reseller-conditions or discounts.
> They want to auto-install apps
such as WordPress in a standard
model.
> They order often a product in the
last minute, and the product
must be available immediately.
> Security and availability are less
important than for developers.
> They are less price sensitive than
explorers.
> They order often a product in the
last minute, and the product must
be available immediately.
SMB web infrastructure requires standard technologies to start small and grow big (scale)
Web Professionals (web Pro)
43. Explorers Developers (web/app) Designers Agencies IT / Webadmins
> Web PRO Edition
> Wordpress toolkit
> Developer Pack (PgSQL, MYSQL,
Tomcat, ColdFusion)
> ServerShield by CloudFlare
> ModSecurity Rules by Atomicorp
> Softaculous 1.0
> Web App Security, Antivirus
> Usually complete packages
SegmentsSuitableproducts
Desirable
Extensions
> Web HOST Edition
> Web PRO Edition
> They often re(sell) services to
their SMB customers - such as
SEO, SEM, SSO, Monitoring,…
> They want integrated apps, i.e
Fail2ban, ModSecurity Rules to
address the full app lifecycle.
> Plesk Security Advisor
> The need support for a wide
range of language stacks, and
multiple operating systems.
> Web HOST Edition
> Web PRO Edition
> ServerShield by CloudFlare (CDN
and Web App Security)
> Plesk Security Advicsor
> Patchman, VCTR by Datagrid
> Security Core with ModSecurity
Rules by Atomicorp
> Antivirus
> Web HOST Edition
> Web PRO Edition
> ServerShield by CloudFlare
> Security Core with ModSecurity
Rules by Atomicorp
> Plesk Security Advisor
> Antivirus
> Web ADMIN Edition
> ServerShield by CloudFlare
> Plesk Security Advisor
> Security Core with ModSecurity
Rules by Atomicorp
> Antivirus
Web professionals get their server with Plesk from service providers like GoDaddy, 1&1, or cloud players like Amazon or Microsoft
Web Professionals (web Pro)
45. Pain points
Business Pain
> As the cloud has matured over time, these days, buyers expect a fully-
fledged business solution from their SPs, rather than the simpler
Infrastructure-as-a-Service (IaaS) and virtualization offerings of the past.
> HSPs are concerned on more complex security requirements for running
hosting infrastructures as well as servers pre-installed with tools and
platforms like Plesk as it could damage their image and let them lose
even more against the big cloud providers like Amazon or Azure.
> Since over 8 years, a big consolidation is happening in the “classic”
hosting provide market – that creates even more silos especially in
number and diversity of legacy hosting platforms.
> Service providers know that the future market is not sys admins (as most
of this work is automated today) but developers and applications, but
often don’t know how to address it or support it.
> Most of the service providers are running legacy hosting platforms that
do not keep up with the market’s needs and agility – especially around
shared hosting. Often containing 10s of 1000s or even 100s of 1000s of
end customers. As well as that in many cases, the original developers of
these legacy platforms have left the company and/or did not document
the code properly or both.
Challenges Opportunities
> Reducing build times (93%) is the most popular reason cloud developers are
using platforms.
> The PaaS market will grow from $1.7B in 2014 to $68.3B by 2026, attaining a
36% CAGR according to Wikibon Research.
> PaaS is the #1 solution for hosters to improve productivity and reduce costs by
providing cloud-delivered toolkits for application development and
deployment.
> Digital Experience needs a new approach that transforms organization (1&1,
Strato,..) from “silos” of technologies and process to a harmonic ecosystem
for web developers.
> Service providers know that the future market is not sys admins (as most of
this work is automated today) but developers and applications, but often
don’t know how to address it or support it.
> Only telecoms with a modern ecommerce infrastructure will realize the
benefits of this new data-driven economy, which include increased revenue
and market share.
> Plesk plugs into a wide range of Infrastracture providers (Amazon AWS,
Microsoft Azure) and could support HSPs how to reimagine their business
based on their current digital maturity.
Service
Providers
HSP = Hosting service providers
Source: BCSG: research dokument
Plesk Partners
46. Pain points
Business Pain
> SMBs today consume more and more service directly form the cloud,
but need someone to manage the service for them.
> Running multiple instances of websites and applications (dev/test and
production etc.) within an agile process is quite difficult – today, these
tasks take up to 50% of a web professional’s time besides coding and
designing websites and web applications
> Very often, the building, operating and maintaining websites and apps
are not the only services they sell to an SMB in that space.
> Web Professionals usually don’t have a platform to manage the whole
development process including the involved internal and external team
of developers, designers or even project managers.
> They need to constantly decide if they run the infrastructure for their
SMB customers on some local/regional service provider or a global cloud
provider such as Amazon, Azure or even Digital Ocean.
Challenges Opportunities
> Web Professionals need some form of central platform for that.
> Web Professionals need consistent environments from development to
production, standardization and version control, as well application
portability for continuous deployment and testing.
> Web professionals want to re(sell) services that are complementary to
other services they sell. Such as SEO, SEM, Monitoring, SSO and other
integrations into an SMBs CRM and such.
> Web professionals want to provide them a different level of access to the
platform.
> Web professionals want to capitalize on these efforts to be able to sell
more services to their SMB customers to make them more sticky.
> They want to add easily add on projects and solutions as SMBs need
them.
Web PRO Plesk Users (through Service Providers)
47. Pain points
Quantify Business Pain
> SMBs consume more and more service directly form the cloud, and want
centralize access with a single platform – but not necessarily access it.
> SMBs want to use standard technologies that offer a proven platform to
start small and grow big (scale).
> Cloud services that SMBs consume often need to be integrated with
their own IT (hybrid) or at least be accessible through a single pane of
glass with SSO towards some of their internal systems.
> When SMBs asked what they would like improved, the most commonly
cited concern was performance of their hosting service provider.
> 30% of SMBs are considering adopting IT security software in the next 1-
3 years. This represents a growth opportunity of 74%, with particularly
strong growth in data back-up tools.
Challenges Opportunities
> Web professional can manage it for them - especially web related IT such
as websites/applications and collaboration (such as O365)
> SMBs need consistent environments from development to production,
standardization and version control, as well application portability for
continuous deployment and testing.
> Web professionals struggle providing such additional services unless they
want to transform into becoming an MSP that operates on top of any
cloud.
> It is important for HSPs to address this concern because more than half
of SMBs in Germany are willing to move their business elsewhere if it’s
not resolved. (Odin, 2015 SMB Cloud Insights Germany)
> Web Professionals can capitalize from these market dynamics to sell
more services to their SMB customers to make them more sticky.
SMBs
Source: The small business revolution: trends in SMB cloud adoption.
HSP = Hosting service providers
Plesk Users (managed by Web Professionals,
through Service Providers)
49. Plesk Vision
“Plesk is the leading cloud
platform to run, automate and
grow applications, websites and
hosting businesses.”
50. Key Messages
BUILD
RUN
SECURE
Providing a ready-to-code
environment in an intuitive
interface for web professionals,
Plesk helps developers and
designers to focus on their
business: developing web
applications and web sites for
SMBs that scale in the cloud.
Focus on your business, not on
infrastructure management. Save
tremendous time by automating
all server related tasks and
components to run and scale your
web applications and websites.
By our own research among web professionals, 9 of 10 web application
developers only realize the need of securing an application when it’s
too late. Plesk secures your application and website automatically.
Plesk is the leading WebOps platform to run, automate and grow applications,
websites and hosting businesses.Messages
51. Key Messages
Be Productive
A user wants to maintain control
over the platform he’s developing
on.
A user wants to save money by
lowering administration and
management overhead.
A user wants to leverage the
power of Infrastructure by adding
a simple PaaS layer.
Be Agile
A user wants fully integrated
deployment capabilities.
A user wants to deploy code
more frequently, with fewer
failures.
A user wants to move from a
release cycle from every
quarter to deploying changes
on a minute-by-minute basis.
Be Flexible
A user wants to quickly and cost-
effective spin up a multi-server
distributed environment.
A user wants to create distributed
environments, and automatically
provision load balancers and
update them dynamically as apps
are created and updated.
Be Secure
A user wants outage-reduction
and backups to avoid loss of
sales and other outage related
implications.
A user wants to spend more time
thinking about further
improvements or new ways of
working, rather than having to
dedicate time fixing issues.
Secure and Reliable
A user wants improved CMS and
eCommerce workflows to ensure
better development velocity.
A user wants to auto-scale
WordPress across multiple EC2
instances in “minutes”, scale to
millions of users.
Be Fast
Plesk Security Advisor
Plesk Backup Manager
Plesk Recovery tools
State-of-the-art
Control Panel
Ready-to-code
environment (Ruby,
Python, Node,js,
Niginx, Git and Docker
support
Fully fledged
Web development
environment with
Multi server
support
Five Use-Cases to meet the demand with Plesk today
Wordpress Toolkit
54. Plesk USPs
The only platform
that has feature- and
user experience
parity on 14 Linux
Distributions
(including Ubuntu)
and 4 Windows
Server Versions.
1 2 3 4 5 6 7 8
The only platform
that is certified to
run on major
virtualization &
container platforms
as well as the largest
cloud players such as
Amazon or Microsoft
Azure.
The only platform
that offers web
based control panel
components to offer
simplicity for end
users up to flexibility
to developers and
administrators
The only platform
also focusing on web
professionals’ needs,
not just sysadmins
and shared hosting
like others.
Combined with 100s
of web apps
available at your
finger tips
The only platform
that offers specific
tools for scalable
WordPress hosting
and mass-
management
through an advanced
Toolkit (and soon for
other applications)
Broadest levels of
supported server
security – build in
the core and
additionally through
3rd parties (OS,
Network,
Application,
Website)
The largest
ecosystem & 3rd
party marketplace in
the area of web
professionals and
cloud based hosting
Plesk has the most
advanced backup
features on server,
reseller, customer
and site level what
no other such
platform can
provide.
Extensive Certified Flexible Pervasive Specific Secure Reliable Complete
Value Proposition for Hosting Partners & Web ProfessionalsUSPs
55. Snapshots
Short Messaging Snapshot (25 Words or 140 Characters (Twitter friendly)
Plesk is the leading WebOps platform to run, automate and grow applications, websites and hosting businesses.
Medium Messaging Snapshot (50 Words)
Plesk is the leading WebOps platform to run, automate and grow applications, websites and hosting businesses. Available in
more than 32 languages across 140 countries in the world. 50% of the top 100 worldwide service providers are partnering
with Plesk today. Plesk is managing and securing more than 360’000 servers, automating 10M+ websites and at least 15M
mail boxes.
Long Messaging Snapshot (150 Words)
Plesk is the leading WebOps platform to run, automate and grow applications, websites and hosting businesses. Available in
more than 32 languages across 140 countries in the world. 50% of the top 100 worldwide service providers are partnering
with Plesk today. Plesk is managing and securing more than 360’000 servers, automating 10M+ websites and at least 15M
mail boxes. Besides simplifying complexity and saving time through automation for developers and sysadmins, Plesk
increases the efforts to enable its clients and partners to extend and customize Plesk as an open platform. The rich and open
ecosystem over 50 Plesk extensions does not only provide access to even more relevant features targeted at specific
audiences, but also enables service providers of any size to generate unique upsell opportunities.
Plesk is the leading WebOps platform to run, automate and grow applications,
websites and hosting businesses.Snapshots
Above can be used by Hosting Providers as Messaging!
56. Knowledge
9 of 10 web application developers and web professionals only realize they need proper automated and up2date server security when their app or
service gets hacked and/or black listed?
• per all major research companies:
a. The generic shared hosting market is growing less than 5% Year over Year (YoY)? How is your business growing? What can we do together to bring
it back on track?
b. Web application hosting and specifically WordPress hosting are growing over 50% YoY and WordPress is powering 75 million websites worldwide?
c. Every 2nd new website is created with WordPress
d. Amazon and other cloud players are growing 80-100% YoY. Shouldn’t you consider managed Amazon Services, at least side by side with your
existing hosting offerings – for example with Plesk?
Did you know that…
According to our own research among all our partners, you can attract many more server customers with a WebOps platform and control panel,
especially developer newbies and sys admin newbies.
64% of Small & Medium Businesses (SMBs) are already using cloud-based apps, with average adoption being 3 apps. 78% of businesses indicate
that they are considering purchasing new solutions in the next 2-3 years creating the potential to move the average number of applications used
to 7, with 88% consuming at least one service.
30% of SMBs not currently using IT security are considering adopting it in the next 1-3 years. This represents a growth opportunity of 74%, with
particularly strong growth in Anti-virus and data back-up tools.
Source: The small business revolution: trends in SMB cloud adoption.
KB
Knowledge Base
58. Plesk Editions stay the same with Plesk Onyx!Editions
- Web App Edition is removed as focus shifted to Web Pro Edition to target Web Professionals and Developers
- An automatic and smooth upgrade from Plesk 12.x to Onyx is available
61. Docker support feature Key Points
• Functions
• Local and Remote Docker management
• An ability to run a container from images available on Docker Hub
• An ability to upload own image
• Build an own image
• Stop/Start/Recreate container
• Manage container settings (ports and volumes mapping, environment variables)
• Scenarios
• Get on server with Plesk some “satelite” services (samples are: Varnish, REDIS, etc)
• Some service exposed over http/https on a domain
• Run any available service inside of Docker container
• IMPORTANT NOTE:
• Docker is for Admin only (it’s because of Docker has weak containers isolation, and it’s easy to get a root
access to host system from a container)
71. Git support feature Key Points
• Functions
• Use Remote Git through GitHub or Bitbucket
• Deploy from Git
• Bare Git repository
• Automatic deploy after push to repository
• Do additional actions after commit/push to Git repo.
• For example: rebuild static html pages.
• Scenarios
• Deploy application to web hosting under Plesk from external repo like GitHub, Bitbucket
• Deploy application via push directly from developer’s laptop to web site under Plesk
• Don’t publish repo to vhost, just use a central Git repository for collaboration, actually Git hosting.
72. GitHub or Bitbucket Repo
Master
Plesk
branch
App Dev Sergey
App Dev Andrey
Web Site w/ Git
enabled
Deploy from remote Git hosting
82. System updates
• Functions
• All Updates settings in one place (panel, 3rd party, system packages)
• Block updating of some particular packages in Panel
• Update packages manually selected in Panel
• Automatic update of panel, system packages
• Predictable updates/upgrades for packages (packages updates exactly from repos,
where its were installed from)
• Scenarios
• Turn system Updates tool off (managed hosting)
• Lock updates of some packages (for example: MySQL)
• Configure auto-updates of system packages
88. How it works
Web space “serge-domain.tld”
System user: sergeftp
CPU limit: 100%
Disk IO limit: 50Mb/sec
RAM limit: 1Gb
Web space “andrey-domain.tld”
System user: ftp222
CPU limit: 200%
Disk IO limit: 100Mb/sec
RAM limit: 2Gb
CPU: 4 Disks RAM: 16Gb
Virtual or Hardware Server
Web space “kate-domain.tld”
System user: kathy
CPU limit: 300%
Disk IO limit:
RAM limit: 4Gb
cgroup cgroup cgroup
89. Current Implementation
Supported Oses:
• Debain 8
• CentOS 7
• Ubuntu 16 (is not supported yet)
bash# plesk sbin resctrl –help
Usage: /usr/local/psa/admin/sbin/resctrl [OPTIONS]...
--enable - enable Plesk Resource Controller
--disable - disable Plesk Resource Controller
--status - get Plesk Resource Controller status
--register-service=service_name - register service in Plesk Resource
Controller (for services that calls setuid(2))
--unregister-service=service_name - unregister service from Plesk Resource
Controller
--show-services - show registered services
--set-limits - set limit to system user. This command requires the following
parameters:
--user-id=<user_id> - system user id for witch will be applied
limits.
--cpu-quota=<cpu_quota_in_percents> - CPU quota in percents
--memory-limit=<memory_limit_in_bytes> - memory limit in bytes
--blk-io-read="device bandwidth" - read bandwidth in bytes per
seconds for device (like /dev/sda)
--blk-io-write="device bandwidth" - write bandwidth in bytes per
seconds for device (like /dev/sda)
--help - print this help
91. Aspects covered in scope of the improvements
1. Management of SSL certificate for Mail services (POP3s, IMAPs, SMTPs)
• One SSL certificate for all mail services
2. Securing with Let’s Encrypt
• SSL cert for Plesk Panel
• SSL cert for every created domain
3. Webmail over https with valid SSL certificate
4. Management of SSL / TLS protocols and ciphers
93. Key Features Overview
Functions
1. DNS zone Sign, Re-sign, Unsign
2. Verification of authentication chain for signed domain
3. Automatic renew expired keys for a domain and re-sign DNS zone
• If KSK keys are renewed than user is notified to update parent DNS zone
4. Server-wide management of DNSSec
1. Turn On/Off for whole server
2. Algorithms for keys generation management
3. Key length management
5. Automatic update of parent domain zone in case it hosted on the same Plesk instance
99. SDK Improvement Overview
New Features and abilities for extensions:
1. Add limits and permission to Service Plan /
Subscription.
2. Do privileged and unprivileged command
line executions.
3. Add scheduled tasks (Linux cronjob or
Windows scheduler)
4. Backward compatibility with old
extensions.
Features Shipped as Extension:
1. Docker support
2. Git support
3. Wordpress Toolkit
4. DNSSec
105. Key Features Overview
Functions
1. Environment for Ruby apps
• Bring Ruby engine with different versions
• Define all required environment variables
2. Apps management
• An ability to scan and detect Ruby on Rails app installed into domain (web site)
• Install a new Ruby on Rails app
• Restart Ruby app from Panel
3. nginx+passenger support (apache has passenger module since Plesk 12.5)
4. Service plan:
• Default setting: Ruby support - activate/disable Ruby support
• Default setting: Ruby version - default Python version
• Permission: User can manage Ruby support - user can activate/disable Ruby support
• Permission: User can switch Ruby version
110. Nginx Hosting Only
1. Default settings for serving of HTTP/HTTPS on Service Plan level
• Serve by Nginx only
• Serve by Nginx + Apache
• Serve by Apache only
2. An ability to change the setting #1 per each domain (web site)
3. An ability to manage custom Nginx directives separately for HTTP and HTTPS
111. Virtuozzo 7 support
1. Virtuozzo 7 support
1. Virtuzzo team will do fixes to support the latest available Docker engine since it’s required by
Plesk Onyx
2. ReadyKernel
1. By June, 2016 it will be available in VZ as a result will work for all VZ containers
2. By Autumn, 2016 it will be released as standalone product and can be used with any of linux
distros
3. Plesk will develop extension, which will expose UI for ReadyKernel
3. VZ Linux
1. Built by VZ linux OS distribution, will be shipped in scope of VZ7 and will be automatically
available inside of VZ containers
2. VZ linux will be also shipped as standalone product / OS distribution, which can be installed to
any VPS
112. Windows 2016 support
Already supported
1. IIS 10
2. Wildcard subdomains
3. HTTP/2 (enabled by deafult out of the box)
Will be supported
1. Containers (native MS implementation)
2. Docker (it has specialties related to Windows platform, so it should be covered in
scope of Docker feature)
116. Plesk Multi Server v1.0 Limitations
• Linux only
• All Servers have the same OS, Plesk and set of components.
• No resellers.
• No central mail server (it means that the first release of Multi Server will not have dedicated mail server)
• No existing Plesk instance assimilation.
• Multi-server is supported in Plesk Onyx and higher.
• It’s not possible to use Management Node (i.e. central Plesk instance for hosting, only as a central panel for
accounts management).
• No administrative balancing (means moving of an existing web space(subscription) between service nodes).
117. Plesk Multi Server v1.0 Features (1/2)
• Plesk standalone experience scaled to multi-server environment.
• Customers with one subscription have absolutely same experience as in Plesk single server.
• Customers with more than one subscriptions have transparent navigation between their subscriptions
located on different servers.
• Admin has multi-server capabilities on top of Plesk with centralized management.
• Centralized customers’ accounts and subscriptions management.
• Provisioning balancing for Shared Hosting (Round-Robin)
• An ability to replace a balancing algorithm with a custom implementation.
• Service Plans w/o exact IP address specification, just type Shared/Exclusive.
• Manual selection of target Service Node on provisioning for Site Studios/Web Agencies.
118. Plesk Multi Server v1.0 Features (2/2)
• Centralized management of Tools & Settings for all Service Nodes at once.
• Centralized DNS (still TBD)
• WHMCS integration out of the box
• Centralized mail management experience (NOTE: it’s not about dedicated mail server)
• The UX is a side effect of centralized subscriptions management.
• There is centralized mail server settings management (outgoing mail IP, outgoing mail limits control, anti-spam
settings).
• Migration to Multi Server (it’s possible that this will be delivered with a lag after Multi Server release).
119. Migration to Plesk Multi-server v1.0
• Per a account migration will be supported
• Bunch of accounts migration will be supported
• No existing Plesk instance assimilation supported
122. What are Service Provider costs and revenues?
What metrics can you use to measure Service Provider efficiency?
What are common benchmarks for these Service Provider metrics?
What are typical revenues and cost ranges for Service Providers?
Understanding Service Provider Economics
Revenues – Costs = Profits
123. Understanding Service Provider Economics
The 3 keys to economic success in hosted Cloud
services:
1.Acquiring Customers
2.Retaining Customers (reduce churn, increase
stickiness)
3.Monetizing Customers (sell, up/cross sell)
124. Cost Bucket Includes: Drivers
Infrastructure • Target market
• Service approach
• Business model
Support • Target market
• Service approach
Marketing • Target market
G&A
Service Providers’ structure drive costs across 4 major categories
Servers
Operating
Systems
Software
Licenses
Data center ownership
and maintenance
Energy
System administrators Support staff
All general and administrative expenses
All direct and indirect selling expenses
125. Key hosting economics metrics are also driven by service offered and service approach
Metric Definition Importance
ARPU (also ARPA or ACV) and ARR/MRR Average Revenue per User (typically per month,
unless stated otherwise). Sometimes calculated as per
Account (end customer company) – ARPA. Also
sometimes defined as Average Revenue per Unit. ACV
(annual customer value) is calculated on a yearly base.
The total of all your ACVs is the ARR (Annual Recurring
Revenue) – or MRR (Monthly Recurring Revenue)
Service providers seek to maximize ARPU and ARPA (in B2B hosting & cloud) for
a profitable business. In hosting, the ARPU is sometimes calculated per website
or per domain. Whereby the ARPA has more importance in specialist/niche
businesses that are more like a SaaS (Software as a Service) business. The more
you offer a high touch enterprise sales model, the better you use the annual
customer value (ACV) metric.
Churn (or also Churn Ratio in %) The number of subscribers who discontinue their use
of a service over a certain time (typically a month)
Churn provides insight into the growth or decline of the subscriber base as well
as the average length of participation in the service.
Customer acquisition costs (CAC)
Also known as “Cost per Acquisition” (CPA)
Cost associated with convincing a consumer to buy a
product or service, including research, marketing, and
advertising costs.
It is important both to minimize customer acquisition costs and to maximize a
service provider’s return on investment (ROI) of the acquisition.
Customers per Support FTE The number of customers covered by each support
full-time employee (FTE)
Maximizing this number lowers costs, but many Service Providers focus on
maintaining a lower ratio for better customer service.
Customers per Server
Also known as “Density”
The number of customers per server is one way to
measure a company’s hosting or cloud offerings
efficiency
Maximizing this number lowers costs.
Customer Life Time Value (CLTV) The number of months a customer will stay with your
services, including all recurring and non-recurring
revenues
Maximizing this number helps forecasting and help to pay commission to your
sales team more realistically
126. Examples of key metrics across various cloud and hosting services
Metric Generic Shared Web (per unit) Unmanaged IaaS (per unit) Managed WordPress
(per customer account)
Managed VIP WordPress
(per customer account)
ARPU / ARPA $0 -- $20
• Basic offering typically free
• Additional options like e-commerce
account can add $30-40/month
• VPS, public cloud: $5 -- $50
• Physical Server: $30 -- $500
$29 -- $300
• Additional options like managed
services can add 100 – 500$ / month
$300 -- $5000+
• Additional options like managed
services can add 1000 – 5000$ /
month
Churn 2-5% per month
• Single service, very cheap, likely to
have higher churn (3-4% per month)
• Unmanaged offerings: 2-5%
• Managed offerings:
0.2-0.5%
• Managed offerings:
0.2-0.5%
Customer acquisition
costs
12-20 x ARPU
• Depending on competitiveness of the
market (e.g., Germany likely to be
20-22 x ARPU)
• Unmanaged offerings:
6-18 x ARPU
• Managed offerings:
6-12 x ARPU
• Managed offerings:
6-12 x ARPU
Customers per
Support FTE
Completely dependent on support model (“Fanatical support” vs. almost no support) Some service providers differentiate themselves based on top-of-the-line
support or localized support modules. Therefore they would have much higher costs than a service provider competing primarily on price but also more opportunity to grow!
Customers per
Physical or virtual
Server
• Shared 500-1,000
1 VM or Container per end
customer web architecture
o 10-150 on Linux containers
o 10-50 on Linux hypervisors
1 VM or Container per end
customer web architecture
o 5-20 on Linux containers
o 5-10 on Linux hypervisors
1 VM or Container per end
customer web architecture
o Potentially: micro services
architecture for scalability
Customer Lifetime
Value (CLTV)
• 24-30 months o 24-30 months o 30-75+ months o 30-75+ months
127. Key Guidelines for your Business Metrics
CLTV CAC
> 3x
Months to recover CAC
< 12 months
Your customer live time value should ideally be greater than 3x the customer acquisition costs
The number of months (ARPA) to recover your customer acquisition costs should be ideally less than 12 months
128. Operating
margin
(Profit)
Service Provider Profit and Loss Statement example
G&A
Marketing
Support /
Services
Infrastructure
Net revenues
20%+
25-50%
15%
20-25%
100%
10%
Service Provider cost and revenue structure
Highly efficient
players see
up to 60%
operating
margins
Editor's Notes
* Web is primary focus of Plesk, though there are some other applications
** 290k = active and commercial servers.Trials, pirated licenses and shutdown servers are not included
Morgan Stanley predicts Microsoft cloud products will be 30% of revenue by 2018.
In 2015, Amazon Web Services (AWS) generated $7.88B in revenue with Q4 2015, up 69% over last year.
Worldwide spending on public cloud services will grow at a 19.4% CAGR from $70B in 2015 to $141B in 2019.
AWS ist #1 im Enterprise Segment, gefolgt von Azure.
Bei SMB haben Google (#4) und DO (#5) eine größere Relevanz
Details im Wettbewerbsvergleich
Does your company struggle with increased demands for shorter release cycles, with business managers expecting weekly, daily or even hourly releases and updates?
Anzahl Applikationen und Workloads bei AWS nimmt stetig zu.
Stärkeres Wachstum für Azure in den nächsten 3 Jahren bei IaaS, PaaS prognostiziert
Steigende Nachfrage nach Deployment Management Tools insb. (Configuration management, Continuous integration services, distributed version control, continuous deployment, Automation, Containerization)
Rightscale: 57 percent of respondents currently running applications in this cloud. The percentage of respondents running applications in AWS was flat this year although, per reports from Amazon, the number of workloads in AWS (and hence the revenue) is increasing. Azure IaaS and PaaS both showed increased adoption, narrowing the gap with AWS.
Respondents: 1060
Morgan Stanley: Microsoft’s Azure will edge out Amazon Web Services by 2019 for both Infrastructure as a Service (IaaS) and Platform as a Service (PaaS) use among 100 executives surveyed. Roughly 31 percent of the CIOs will be using Azure for IaaS, versus roughly 30 percent using AWS. Today, about 21 percent are using AWS and 12 percent are using Azure. While nearly 55 percent of the surveyed CIOs said they’re using no public-cloud IaaS today, that number will drop to less than 10 percent by the end of 2019.
Respondents: 208
Docker = Open-source project that automates the deployment of Linux applications inside software containers (Containerization)
Kubernetes = Open source container cluster manager originally designed by Google and donated to the Cloud Native Computing Foundation
Deployment Management Tools
Puppet = Puppet is one of the long standing tools in the full-fledged configuration management space. Puppet is based in Ruby
Chef = Open-source tool for configuration management, focused on the developer side for its user base. It’s based in Ruby.
Ansible = Open-source tool used to deploy applications to remote nodes and provision servers in a repeatable way.
Fabric = Python-based tool for streamlining SSH in application deployments.
Vagrant = Software that creates and configures virtual development environments
GitHub = Web-based Git repository hosting service. It offers all of the distributed version control and source code management (SCM) functionality of Git as well as adding its own features.
Travis = Hosted, distributed continuous integration service used to build and test software projects hosted at GitHub
Bitbucket = Web-based hosting service for projects that use either the Mercurial (since launch) or Git (since October 2011[2]) revision control systems
Jenkins = Open-source continuous integration tool written in Java. It is a server-based system running in a servlet container such as Apache Tomcat. It supports SCM tools including CVS, Subversion, Git, and can execute Apache Ant and Apache Maven based projects as well as arbitrary shell scripts and Windows batch commands.
Make sure to clarify difference between Docker and K8s
By “sites“ Netcraft mean unique hostname (a name which can be resolved, using a name server, into an IP Address). The primary difference between the two graphs is that one is measuring the number of distinct active websites using each web server, and the other is counting the number of servers (machines or virtual machines) running each web server. Often large sites are hosted on multiple servers (or server instances), so even if a web server is hosting fewer active websites, it could still be running on more servers if the sites it's hosting are larger (or simply split their traffic over a larger number of servers).
hostname is the name given to the end-point (the machine in question) and will be used to identify it over DNS if that is configured
domain is the name given to the 'network' it will be required to reach the network from an external point (like the Internet
Of cloud-using orgs
Take any piece of hardware – virtualized, cloud or bare metal – install Plesk and sell WordPress Hosting. And now think about what your USP is and why a Web Pro should buy from you. Use the Plesk ecosystem of Add-Ons to upsell directly during your checkout process and make more money.
Or define a developer hosting product based on Plesk, with SSH access, Python support, Docker & git.
Q: “Approximately how often do you deploy software applications to production?”
Audience: People influential in cloud-services development
Stackoverflow: 25 million developers worldwide.
GitHub: A source code repository of 38 million projects which is used by 15 million developers worldwide. Over half of GitHub's new signups come from people who are learning software development, rather than fully-fledged developers already, according to their own figures.
Docker: consistent environments from development to production
Take any piece of hardware – virtualized, cloud or bare metal – install Plesk and sell WordPress Hosting. And now think about what your USP is and why a Web Pro should buy from you. Use the Plesk ecosystem of Add-Ons to upsell directly during your checkout process and make more money.
Or define a developer hosting product based on Plesk, with SSH access, Python support, Docker & git.
Now we are going to take a closer look at the basic economics of service providers. At the most fundamental level, we can simplify all business economics revenues minus costs equal profits. To understand the success of a service provider –that is its profits – we need to understand what economics determined their revenues and their costs.
In this section, we will cover these questions:
What are SP costs and revenues?
What metrics can we use to measure SP efficiency?
What are common benchmarks by which to measure SP efficiency in these metrics?
Any what is the typical breakdown of costs and revenues for SPs of various sizes?
Let’s find out!
Now we are going to take a closer look at the basic economics of service providers. At the most fundamental level, we can simplify all business economics revenues minus costs equal profits. To understand the success of a service provider –that is its profits – we need to understand what economics determined their revenues and their costs.
In this section, we will cover these questions:
What are SP costs and revenues?
What metrics can we use to measure SP efficiency?
What are common benchmarks by which to measure SP efficiency in these metrics?
Any what is the typical breakdown of costs and revenues for SPs of various sizes?
Let’s find out!
Let’s start by looking more in-depth at SP costs . SP revenues simply come from the direct or indirect sale of Cloud services, so we do not need to look at it separately.
We’ve divided SP costs into 4 major buckets infrastructure, support, marketing, and G&A. each of these costs is driven based on the structural decisions we discussed in the previous section.
Infrastructure includes data center costs (cost of ownership of datacenter, maintenance, bandwidth costs, software licenses (including software like Plesk and operating systems), equipment (mainly servers, networking equipment) and energy.
The target market, service approach and business model, all impact which of these costs a service provider will have in the infrastructure category. For instance, a reseller of shared server space won’t have datacenter costs, but they will have costs of renting the equipment – in this case servers – and the software costs. For a SP targeting large enterprise using a managed hosting approach, they will typically be required to have their own datacenter as well as likely complex back up and data recovery systems.
Support includes labor costs associated with system administrators and support staff. Target market and service approach impact these costs, as a SP again catering to large enterprise with a managed hosting approach will typically have many more support staff than a mass market SP.
Our marketing bucket includes all direct and indirect costs associated with selling a Cloud service. The target market is the largest driver of this cost, as different markets will need to be approached via different channels. Large enterprise will need a sales team whereas individuals might just need online advertising.
Finally, G&A is an abbreviation for General and Administrative costs. These are all other costs of running a business including but not limited to executive salaries and other labor.
Now that we understand where SP costs come from, let’s look at how we can measure how efficient they are at controlling their costs and maximizing their revenues.
The first metric is a revenue side measure of SP efficiency. ARPU – or average revenue per user – is simply the measure of how much money a user spends on a Cloud service. A company purchasing hosted mailboxes for 10 users at $100 a month, would have an ARPU of $10 per month. Service providers need to maximize ARPU in order to be profitable by upselling their customers with additional services or value-added tools.
Churn is the number of subscribers who discontinue using a service over a given period of time. Churn adds significant costs to service providers because they must continue to attract new customer for the ones they’ve lost. Therefore churn rate can give us insight into the how healthy a service provider is.
Customer acquisition costs are the money spent convincing a consumer to buy a product or service. Service providers need to keep customer acquisition costs low and increase how much money a new customer spends in order to maintain a healthy return on investment and stay profitable
Customers per support FTE is the number of customers that each support employee must cover. For instance, if a company has 1000 customers and 10 support employees, the customers per support FTE is 100. The larger this number, the lower the cost of support, but also the lower the level of customer support. Some service providers compete on their reputation of excellent support and therefore keep lower ratios of customers to support employees. Service providers specializing in large enterprise might also have contractually obligated numbers of support employees dedicated to a single customer.
Customers per physical server is a measure of service provider efficiency of shared hosting or VPS offerings. Virtualizing a server allows more than one customer to be hosted from a single physical server, and the more customers or VPS instances, the lower the service provider’s infrastructure costs.
Here are some examples of typical benchmarks for some Cloud services categories. We do not show SaaS and other online applications because these metrics completely depend on what the application is. For example, the ARPU of a CRM or accounting can easily be $100+ while some backup services and be only $5-10 (or even free).
Take a quick look at these numbers. You will also be able to find a PDF version of this document in the Tools and Resources link from the Hosting School home page, if you’d like to study this document in more detail
Here are some examples of typical benchmarks for some Cloud services categories. We do not show SaaS and other online applications because these metrics completely depend on what the application is. For example, the ARPU of a CRM or accounting can easily be $100+ while some backup services and be only $5-10 (or even free).
Take a quick look at these numbers. You will also be able to find a PDF version of this document in the Tools and Resources link from the Hosting School home page, if you’d like to study this document in more detail
Now we can look at an example of a large service provider. This service provider is a mass market hoster with its own datacenter. As you will recall from the previous section, making these structural choices impacts service provider cost structure. A managed hosting SP would have much more cost in support, whereas a SP without its own datacenter who resells server space, is likely to have less infrastructure costs.
Compared to the small hoster, the larger service providers infrastructure costs are much larger as a proportion of revenues. Support and G&A are also higher, because paid labor is absolutely necessary in a large company.
However, because revenues are much higher as well, the remaining 20-30% operating margin represents a healthy profit for these companies. As we will discuss next, following Service provider best practices can both increase revenue and decrease costs, resulting in a more profitable business.