The Talkin' Cloud™ 50

The Talkin’ Cloud™ 50: 2011 Edition

Meet the top VARs and MSPs working in cloud computing

Research Contact: Joe Panettieri, Editorial Director, Nine Lives Media Inc. 631-423-3536 or joe [at] ninelivesmediainc [dot] com

Sales Contact: Amy Katz, CEO, Nine Lives Media Inc. 978-468-0092 or amy [at] ninelivesmediainc [dot] com

Table of Contents

About Nine Lives Media Inc. and Talkin’ Cloud...... 3

Executive Summary/Survey Methodology...... 4

Top Nine Trends Worth Noting…...... 5

The Talkin’ Cloud 50 • Ranked 1-50...... 7 • Alphabetized company profiles, links and more...... 9

Talkin’ Cloud 50 Project Conclusions………………………………………... 20

Research Schedule and Project Overviews…………………………………. 20 • MSPmentor 100 • MSPmentor 250 • Talkin’ Cloud 50 • Talkin’ Cloud Stock Index • The VAR Guy’s Channel Finance 25

Contact Information...... 20

Talkin’ Cloud, MSPmentor, MSPtweet, The VAR Guy, VARtweet, and brand extensions are trademarks and service 2 marks of Nine Lives Media Inc. The Talkin’ Cloud 50 and this report are copyright © 2011 Nine Lives Media Inc.

About Talkin’ Cloud

Talkin’ Cloud (www.talkincloud.com), owned by Nine Lives Media Inc. (www.NineLivesMediaInc.com), covers the convergence of cloud computing and the channel. The site combines a video blog, daily news analysis, timely insights and forum chatter (beta) for VARs and MSPs navigating cloud computing.

The Talkin’ Cloud brand includes: • TalkinCloud.com: The first video blog and news analysis site for cloud computing and the channel • Talkin’ Cloud 50, identifying the world’s top 100 VARs and MSPs working in the cloud • Talkin’ Cloud 200, updated each Friday, tracks channel leaders who are defining cloud opportunities for VARs and MSPs • Talkin’ Cloud Stock Index, updated each Friday, tracks 20 publicly held cloud computing companies

About Nine Lives Media Inc. Nine Lives Media Inc. defines emerging IT media markets and disrupts established IT media markets. Founded in 2008, Nine Lives Media Inc. has generated profitable, debt-free growth since its inception. The company’s market leading blogs and online destinations include: • Talkin’ Cloud (www.TalkinCloud.com): The first video blog and forum destination for VARs and MSPs navigating the cloud. • MSPmentor (www.MSPmentor.net): The ultimate guide and world’s top managed services blog. • MSPtweet (www.MSPtweet.com): The loudest tweets in the managed services industry. • The VAR Guy (www.TheVARguy.com): Tracking what’s next in the IT channel. The top-ranked blog serving VARs and channel partners. • VARtweet (www.VARtweet.com): The loudest tweets in the IT channel.

Talkin’ Cloud, MSPmentor, MSPtweet, The VAR Guy, VARtweet, and brand extensions are trademarks and service 3 marks of Nine Lives Media Inc. The Talkin’ Cloud 50 and this report are copyright © 2011 Nine Lives Media Inc.

Executive Summary/Survey Methodology

The Talkin’ Cloud 50 is an annual research report from TalkinCloud.com and its owner, Nine Lives Media Inc. (www.NineLivesMediaInc.com). Instead of launching a popularity contest, the Talkin’ Cloud 50 ranks VARs and MSPs by such variables as:

• Total cloud-related revenues (in U.S. dollars, 2010) • Cloud-related revenues 2010 vs. 2009 (dollar growth) • Cloud-related revenues 2010 vs. 2009 (percentage growth) • Number of end-customer users leveraging cloud services • Note: All financial information for international VARs and MSPs was converted to U.S. dollars

Call for Submissions: The survey was promoted on Talkin’ Cloud, The VAR Guy, MSPmentor and Nine Lives Media’s social media destinations (FaceBook, LinkedIn and Twitter).

Survey Timing: The survey ran from January through March 31, 2011. The results were published May 31, 2011 on TalkinCloud.com.

Confidentiality This report includes much – but not all – of the survey data. In order to gather reliable financial data, Nine Lives Media Inc. agreed not to disclose specific annual revenue information (i.e., revenue dollars). We reserved the right, however, to publish company growth rates based on the private revenue information.

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Top Nine Talkin’ Cloud Channel Trends

1. Annual Cloud Revenues: The Talkin’ Cloud 50 companies generated $321 million in annual cloud revenues for 2010, up 47 percent from $218 million in 2009. The average company in our survey now generates $6 million annually in cloud revenues.

2. Breaking Down the List: • Nine companies generated at least $10 million in cloud-related revenues • 15 generated at least $5 million in annual recurring revenues • 43 companies generated at least $1.0 million in annual recurring revenues

3. Cloud Services vs. Managed Services: Roughly a dozen companies from the Talkin’ Cloud 50 have also appeared on our sister report, the MSPmentor 100. We don’t pretend there’s a hard line between cloud services and managed services. There certainly is overlap between the two markets. For instance, many MSPs include hosted Exchange – a cloud service -- as part of their monthly managed services contracts.

4. Cloud Services Offered: • Infrastructure as a Service (IaaS), 68% • Platform as a Service (PaaS), 42% • Software as a Service (SaaS), 74%

5. Specific Areas of Specialization: • Hosted/SaaS Email, 70% • Virtual Servers in the Cloud, 64% • Storage as a Service, 60% • Hosted/SaaS SharePoint, 52% • Website Hosting, 50% • Security as a Service, 48% • Virtual Desktop Infrastructure, 48% • Hosted/SaaS CRM, 36% • Hosted VoIP, 34% • Hosted Unified Communications, 34%

6. Whose Infrastructure?: VARs and MSPs are pursuing multiple paths to the cloud. Roughly 50.6% of survey participants offered cloud services in their own data centers, 48.3% leverage third-party public clouds, 64% leverage co-location centers, and 31.5% are building private clouds in customers’ data centers. (The total exceeds 100 percent because multiple answers were permitted.)

7. SMB Dominates: The Talkin’ Cloud readership focuses mostly on the SMB market opportunity. Nearly 70% of survey participants target customers with 21 to 50 employees. Other targets include: • Customers with 1 to 20 employees, 48.3% • Customers with 21 to 50 employees, 69.0% • Customers with 51 to 100 employees, 61.8% • Customers with 101 to 500 employees, 55.1% • Customers with 501 to 1000 employees, 32.6% • Customers with 1000 or more employees, 19.1%

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8. Going Vertical: Of the Talkin’ Cloud 50 survey participants, 74% have a vertical market focus and 26% do not. The most popular target markets include: • Healthcare, 48% • Technology, 42% • Banking/financial services, 40% • Legal, 36% • Manufacturing, 35%

9. Most Popular Cloud Partners: Of the Talkin’ Cloud 50 survey participants, the most popular cloud partners included: • VMware, 47.2% • Microsoft BPOS, 28.1% • Google Apps, 24.7% • Zenith Infotech, 18% • Amazon Simple Storage Service (S3), 16.9% • Microsoft Windows Azure, 15.7% • Salesforce.com, 14.6% • Mozy, 14.6% • Amazon Elastic Compute Cloud (EC2), 13.5% • Rackspace, 13.5% • Intermedia (Hosted Exchange), 11.2% • NetApp, 11.2% • Ingram Micro Seismic, 10.1%

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The Talkin’ Cloud 50: Ranked 1 Through 50

Overview: The Talkin’ Cloud 50 overall ranking is based on (A) annual cloud revenues for 2010, (B) dollar growth 2010 vs. 2009, (C) percentage growth 2010 vs. 2009 and total number of customer users running cloud applications.

Rank Company Website City State Country 1 OpSource www.opsource.net Santa Clara CA USA 2 Apptix, Inc. www.apptix.com Herndon VA USA mindSHIFT Technologies, 3 Inc. www.mindSHIFT.com Waltham MA USA 4 iland Internet Solutions www.iland.com Houston TX USA 5 Alliance Technology Group www.Alliance-IT.com Hanover MD USA 6 Anittel Group Limited www.anittel.com.au North Sydney NSW Australia 7 HEIT www.goheit.com Fort Collins CO USA 8 NetBoundary www.netboundary.com Carrollton TX US 9 MySecureCloud www.mysecurecloud.com King of Prussia PA USA 10 Excel Micro, Inc. www.excelmicro.com Folsom PA USA 11 Data Intensity www.dataintensity.com Bedford MA USA 12 Corporate Technologies LLC www.gocorptech.com Eden Prairie MN USA 13 Cloud Sherpas www.cloudsherpas.com Atlanta GA USA 14 Virtacore Systems, Inc. www.virtacore.com Sterling VA USA 15 SADA Systems, Inc. www.sadasystems.com N. Hollywood CA USA 16 Netgain Technology, Inc www.NetgainHosting.com St. Cloud MN USA 17 Tsukaeru.net KK www.tsukaeru.net Nagano - Japan 18 iConvergence www.iconvergence.com Lafayette LA USA 19 Claris Networks, LLC www.clarisnetworks.com/ Knoxville TN USA 20 SheepDogInc.ca www.SheepDogInc.ca Halifax NS Canada 21 Ntirety, Inc www.ntirety.com Dedham MA USA 22 iomart Group plc www.iomart.com Glasgow - UK 23 Netarx, LLC www.netarx.com Auburn Hills MI USA 24 TekLinks www.teklinks.com Birmingham AL USA 25 Quantix www.quantix-uk.com Nottingham - UK

(Companies 26-50 on next page)

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The Talkin’ Cloud 50: Ranked 26 Through 50

26 Long View Systems www.longviewsystems.com Calgary AB Canada 27 BioPharm Systems www.biopharm.com San Mateo CA USA CHIPS Technology Group 28 LLC www.chipstechnologygroup.com Syosset NY USA 29 The Utility Company www.theutilitycompany.com Ottawa ON Canada 30 All Covered www.allcovered.com Redwood City CA USA 31 StrataScale, Inc. www.stratascale.com Sacramento CA USA 32 CMIT Solutions, Inc. www.cmitsolutions.com Austin TX USA 33 Champion Cloud Services www.championcloudservices.com Boca Raton FL USA Stockton-on- 34 Onyx Group www.onyx.net Tees - UK 35 Dataprise www.dataprise.com Rockville MD USA 36 Infosystems Ltd www.infosystems.co.uk Ashby Magna - UK American Technology 37 Services www.networkATS.com Fairfax VA USA 38 RESULTS Technology www.resultstechnology.com Lenexa KS USA West Palm 39 SLPowers www.SLPowers.com Beach FL USA 40 Calsoft Labs (CSWL Inc) www.calsoftit.com Fremont CA USA 41 ZSL (Zylog Systems Ltd) www.zslinc.com Edison NJ USA 42 ThinDesk www.thindesk.com Markham ON Canada Cloud Technology Solutions 43 Ltd. www.cloudsolutions.co.uk Manchester - UK 44 Integral Networks, Inc www.inetinc.net Rocklin CA USA 45 Xilocore www.xilocore.com Las Vegas NV USA 46 e-ternity www.e-ternity.ca Mississauga ONT Canada 47 Newmind Group, Inc. www.newmindgroup.com KALAMAZOO MI USA 48 Advanced Network Solutions www.ansolutions.com Nashville TN USA 49 SkyNet www.skynetmts.com Columbus OH USA Network Data Security 50 Experts www.NDSE.net Richmond VA USA

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Talkin’ Cloud 50: Companies Sorted A to Z

Overview: This section features an extended look at each company, including executive leadership, a company overview and relevant social media links (if available).

A-A-A

Advanced Network Solutions, www.ansolutions.com Rank: 48 Address: 820 Palmer Place, Nashville, TN, 37203, USA Twitter: www.twitter.com/ansolutions Facebook: http://www.facebook.com/ansolutions Top Exec: Sonny Clark, president Fast Facts: Best-known as an MSP, Advanced Network Solutions has been introducing cloud services for the banking and health care verticals.

All Covered, www.allcovered.com Rank: 30 Address: 101 Redwood Shores Parkway, Suite 110 Redwood City, CA, 94065, USA Twitter: www.twitter.com/allcovered Facebook: http://www.facebook.com/allcovered Top Exec: Todd Croteau, President Fast Facts: All Covered is best known as a national managed services provider but the company grew its cloud-related revenues by more than 25 percent in 2010 vs. 2009. Konica Minolta acquired All Covered in early 2010.

Alliance Technology Group, www.Alliance-IT.com Rank: 5 Address: 7240 Parkway Drive, First Floor, Hanover, MD, 21076, USA Top Exec: Hope Hayes, CEO Fast Facts: Alliance Technology’s cloud-related revenues surged nearly 40 percent in 2010 vs. 2009. The company has built private clouds that manage more than 100,000 end-users.

American Technology Services, Inc., www.networkATS.com Rank: 37 Address: 2730 Prosperity Ave., Suite 250, Fairfax, VA, 22031, USA Twitter: www.twitter.com/networkATS Facebook: http://www.facebook.com/#!/pages/American-Technology- Services/146421555388082 Blog: http://blog.networkats.com/ Top Exec: Jeff Chandler, president Fast Facts: American Technology Services lifted its cloud-related revenues 30 percent in 2010, and more than 3,000 end-users now depend on the company’s cloud solutions. American Technology Services used hosted solutions and virtualized servers to push into the cloud market.

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A-A-A (Continued)

Anittel Group Limited, www.anittel.com.au Rank: 6 Address: 132 Arthur Street, Level 10, North Sydney, NSW, 2060, Australia Twitter: www.twitter.com/anittel Facebook: www.facebook.com/pages/anittel/200414546107 Blog: www.anittel.com.au/blog Top Exec: Peter Kazacos, managing director Fast Facts: Best-known as a leading MSP in Australia, Anittel has grown through a series of mergers and acquisitions. The company’s cloud-related revenues have also growing swiftly, rising 140 percent in 2010 vs. 2009. Anittel has roughly 22,000 end- users in the cloud.

Apptix, Inc., www.apptix.com Rank: 2 Address: 13461 Sunrise Valley Drive, Suite 300, Herndon, VA, 20171, USA Twitter: http://twitter.com/#!/apptix Facebook: http://www.facebook.com/pages/Apptix/127172630657741 Blog: http://blog.apptix.com Top Exec: David Ehrhardt, CEO Fast Facts: Apptix is one of the best-known providers of hosted Exchange to specific vertical markets – including the legal vertical. More than 300,000 end-users leverage hosted Exchange and other cloud services from Apptix.

B-B-B

BioPharm Systems, www.biopharm.com Rank: 27 Address: 2000 Alameda de las Pulgas, Suite 154, San Mateo, CA, 94403, USA Twitter: http://www.twitter.com/#!/biopharmsystems Facebook: http://www.facebook.com/BioPharmSystems Top Exec: Alex Sefanov, president and CEO Fast Facts: As its name suggests, BioPharm Systems focuses on the clinical trial vertical, promoting Oracle applications and safety applications to its customer base. So far the strategy seems to be working. BioPharm’s cloud-related revenues grew nearly 70 percent in 2010 vs. 2009.

C-C-C

Calsoft Labs (CSWL Inc), www.calsoftit.com Rank: 40 Address: 39465 Paseo Padre Parkway, Fremont, CA, 94538, USA Top Exec: Sam Santhosh, CEO Fast Facts: Calsoft’s data center services include email hosting, server management, database administration, backup, storage management and virtualization.

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C-C-C (Continued)

Champion Cloud Services, www.championcloudservices.com Rank: 33 Address: 791 Park of Commerce Blvd., Boca Raton, FL, 33487, USA Top Exec: Chris Pyle, CEO and president Fast Facts: Champion offers cloud continuity services, IBM cloud, Microsoft Online Services, Microsoft Dynamics CRM, online backup and platform on demand services.

CHIPS Technology Group LLC, http://www.chipstechnologygroup.com Rank: 28 Address: 5 Aerial Way, Suite 400, Syosset, NY, 11791, USA Top Exec: Evan Leonard, president Fast Facts: The company’s cloud-related revenues surged more than 233 percent in 2010. CHIPS now manages more than 1250 end-users in the cloud.

Claris Networks, LLC, http://clarisnetworks.com/ Rank: 19 Address: 608 Mabry Hood Rd., Suite 100, Knoxville, TN, 37932, USA Twitter: http://twitter.com/clarisntwrks Facebook: https://www.facebook.com/clarisnetworks Blog: http://clarisnetworks.com/blog Top Exec: Larry Bodie, CEO Fast Facts: Another familiar name from the managed services market, Claris saw its cloud-related revenues roughly double from 2009 to 2010. The 40-person company now manages nearly 4,000 end users in the cloud.

Cloud Sherpas, www.cloudsherpas.com Rank: 13 Address: 3525 Piedmont Road NE, Building 8, Suite 710, Atlanta, GA, 30305, USA Twitter: http://www.twitter.com/cloudsherpas Top Exec: Jon Hallett, CEO Fast Facts: A well-known Google Apps reseller and consulting firm, Cloud Sherpas has the right name and the right strategy at the right time. Cloud-related revenues skyrocketed more than 500 percent in 2010 vs. 2009. The 50-person company has moved more than 70,000 end-users into the cloud.

Cloud Technology Solutions Ltd., www.cloudsolutions.co.uk Rank: 43 Address: 217 The Triangle Exchange Square, Manchester, M4 3TR, UK Twitter: http://www.twitter.com/cloudsols Top Exec: Steven Kaye, CEO Fast Facts: The 15-person company has emerged as one of Google’s top channel partners in Europe.

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C-C-C (Continued)

CMIT Solutions, Inc., www.cmitsolutions.com Rank: 32 Address: 500 N Capital of TX Hwy, Bldg 6, Ste 200, Austin, TX, 78746, USA Twitter: http://www.twitter.com/cmitsolutions Facebook: http://www.facebook.com/cmitsolutions Blog: http://www.cmitsolutions.com/blog Top Exec: Jeff Connally, CEO Fast Facts: Best known as a managed services franchisee, CMIT Solutions has also been building out cloud services for its partner network. As a result, cloud-related revenues jumped nearly 70 percent in 2010 vs. 2009.

Corporate Technologies LLC, www.gocorptech.com Rank: 12 Address: 6210 Bury Drive, Eden Prairie, MN, 55346, USA Twitter: http://www.twitter.com/gocorptech Blog: http://www.gocorptech.com/blog/ Top Exec: Jim Griffith, CEO Fast Facts: Cloud-related revenues jumped 44 percent in 2010 vs. 2009 and the company now manages more than 11,000 end-users in the cloud. On the managed services front, Corporate Technologies was a Level Platforms partner of the year.

D-D-D

Data Intensity, www.dataintensity.com Rank: 11 Address: 22 Crosby Drive, Suite 100, Bedford, MA, 01730, USA Twitter: www.twitter.com/dataintensity Blog: http://info.dataintensity.com/blog Top Exec: Kevin Kennefick, president and CEO Fast Facts: A big cloud strategy has delivered big cloud returns so far. The company manages more than 12,000 end users in the cloud, lifting cloud revenues more than 210 percent in 2010 vs. 2009. Data Intensity has successfully pushed beyond the traditional enterprise hosting market.

Dataprise, www.dataprise.com Rank: 35 Address: 12250 Rockville Pike, Suite 230, Rockville, MD, 20852, USA Twitter: http://twitter.com/dataprise Facebook: http://www.facebook.com/#!/pages/Dataprise/120525611328434 Blog: http://blog.dataprise.com/ Top Exec: David Eisner, president and CEO Fast Facts: The 130-person company, working closely with Cisco and Microsoft, manages roughly 14,000 end users in the cloud.

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E-E-E e-ternity Business Continuity Consultants Inc., www.e-ternity.ca Rank: 46 Address: 2100 Matheson Boulevard East, Suite 202, Mississauga, Ontario, L4W 5E1, Canada Top Exec: Greg Onoprijenko, president Fast Facts: e-ternity generated a healthy 23 percent gain in its cloud business for 2010 vs. 2009. The 10-person company works closely with Asigra to promote backup, restore and cloud business continuity services.

Excel Micro, Inc., www.excelmicro.com Rank: 10 Address: 505 Kedron Ave., Folsom, PA, 19033, USA Twitter: www.twitter.com/ExcelMicro Top Exec: Joseph Vaccone, president & CEO Fast Facts: Excel Micro is one of Google’s top distribution partners for Google Apps and e-mail security solutions. The 24-person company saw its cloud-related revenues grow 33 percent in 2010. And Excel Micro now has roughly 750,000 end users plugged into various cloud services.

H-H-H

HEIT, www.goheit.com Rank: 7 Address: 3003 E. Harmony Dr., 5th Floor, Fort Collins, CO, 80528, USA Twitter: http://twitter.com/#!/goheit Facebook: http://www.facebook.com/pages/HEIT/142896907251?v=wall Top Exec: Dan Holt, CEO Fast Facts: HEIT is a well-known MSP serving the financial services vertical market. But thanks to a recent acquisition (Simpler-Webb) and a strong focus on new business development, cloud-related revenues surged 71 percent in 2010 vs. 2009 at the 91- person company.

I-I-I iConvergence, www.iconvergence.com Rank: 18 Address: 221 Rue Dejean Ste. 129, Lafayette, LA, 70508, USA Top Exec: Barry Meche, CEO Fast Facts: iConvgence specializes in unified communications and virtualization solutions. More and more of those deployments involve cloud computing components. iland Internet Solutions, www.iland.com Rank: 4 Address: 1235 North Loop West, Suite 205, Houston, Texas, 77008, USA Twitter: http://www.twitter.com/ilandcloud Top Exec: Scott Sparvero, CEO Fast Facts: The 30-person company promotes cloud infrastructure, desktops in the cloud and disaster recovery via the cloud. Talkin’ Cloud, MSPmentor, MSPtweet, The VAR Guy, VARtweet, and brand extensions are trademarks and service 13 marks of Nine Lives Media Inc. The Talkin’ Cloud 50 and this report are copyright © 2011 Nine Lives Media Inc.

I-I-I

Infosystems Ltd, http://www.infosystems.co.uk Rank: 36 Address: Bridge Farm, Holt Lane, Ashby Magna, Leicestershire, LE17 5NJ, UK Top Exec: David Evans, CEO Fast Facts: Cloud-related revenues jumped 73 percent at the 30-person company, which now manages 2000 end-users in the cloud.

Integral Networks Inc., www.inetinc.net Rank: 44 Address: 4960 Rocklin Rd., Suite 100, Rocklin, CA, 95677, USA Top Exec: Bryan Badger, president Fast Facts: Proving that you don’t need to be a giant company to profit from cloud computing, this five-person company promotes desktops in the cloud, disaster recovery and managed co-location services to end-customers. iomart Group plc, www.iomart.com Rank: 22 Address: Lister Pavilion, Kelvin Campus, Glasgow, G20 0SP, UK Twitter: www.twitter.com/iomarthosting Facebook: http://facebook.com/iomarthosting Blog: http://rackpack.iomarthosting.com Top Exec: Angus MacSween, CEO Fast Facts: Cloud-related revenues surged 600 percent in 2010 vs. 2009 at this 180- person company. iomart Group is an MSP that positions itself as the UK’s leading provider of hosted and cloud services.

J-K-L

Long View Systems, www.longviewsystems.com Rank: 26 Address: 3100 255 5 Ave. SW, Calgary, AB, T2P 3G6, Canada Top Exec: Don Bialik, CEO Fast Facts: One of the world’s best-known MSPs, Long View has successful pushed into the cloud market – managing more than 15,000 end users in the cloud.

M-M-M mindSHIFT Technologies, Inc., www.mindSHIFT.com Rank: 3 Address: 309 Waverley Oaks Rd., Suite 301, Waltham, MA, 02452, USA Twitter: http://twitter.com/mindSHIFT_Tech Facebook: http://www.facebook.com/pages/mindSHIFT-Technologies-Inc/69241183995 Top Exec: Mona Abutaleb, president Fast Facts: mindSHIFT is well-known in the managed services market. But cloud- related initiatives – involving hosted Exchange and virtual desktops – have also bolstered the company.

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M-M-M (Continued)

MySecureCloud, www.mysecurecloud.com Rank: 9 Address: 376 Crooked Lane, King of Prussia, PA, 19406, USA Twitter: www.twitter.com/mysecurecloud Top Exec: Rich Wein, CEO Fast Facts: Cloud revenues jumped 28 percent in 2010 vs. 2009. The 58-person company manages more than 4,500 end-users in the cloud – working closely with VARs and MSPs.

N-N-N

Netarx, LLC, www.netarx.com Rank: 23 Address: 3252 University Drive, Suite 200, Auburn Hills, MI, 48326, USA Top Exec: Duane Tursi, principal Fast Facts: The 220-person company lifted cloud revenues nearly 70 percent in 2010, managing more than 4500 end users in the cloud. Netarx pushed beyond managed services to offer infrastructure as a service.

NetBoundary, www.netboundary.com Rank: 8 Address: 1525 N I-35E, Suite 225, Carrollton, Texas, 75006, US Twitter: http://twitter.com/NetBoundary Facebook: http://www.facebook.com/NetBoundary Top Exec: O'Grady Milner, CEO Fast Facts: The 30-person company doubled cloud revenues from 2009 to 2010. The big area of focus: Promoting managed security services, using a cloud architecture.

Netgain Technology, Inc, www.NetgainHosting.com Rank: 16 Address: 720 West Saint Germain Street, St. Cloud, MN, 56301, USA Twitter: http://www.twitter.com/NetgainHosting Top Exec: Scott Warzecha, president Fast Facts: The 50-person company focuses on application hosting and desktop hosting. So far so good: More than 5,500 end users leverage Netgain’s cloud services.

Network Data Security Experts, Inc., www.NDSE.net Rank: 50 Address: 3600 Douglasdale Road, Richmond, VA, 23221, USA Twitter: http://www.twitter.com/GoNDSE Blog: http://www.ndse.net/blog/ Top Exec: Frank Ernesto IV, CEO Fast Facts: The seven-person company doubled its cloud revenues in 2010 vs. 2009, pushing beyond managed services to promote cloud security and additional services to the health care vertical.

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N-N-N (Continued)

Newmind Group, Inc., http://www.newmindgroup.com Rank: 47 Address: P.O. Box 19246, Kalamazoo, MI, 49019, USA Twitter: http://www.twitter.com/newmindgroup Facebook: https://www.facebook.com/pages/Newmind-Group/75144071536 Top Exec: Daniel Jefferies, founder Fast Facts: Newmind was the first Google Apps Authorized Reseller in the Michigan area, lifting cloud revenues 131 percent in 2010 vs. 2009. Jefferies scouted the Google I/O conference in May 2011 to track additional opportunities for his company.

Ntirety, Inc., www.ntirety.com Rank: 21 Address: 980 Washington Street, STE 124, Dedham, MA, 02026, USA Twitter: http://twitter.com/#!/ntirety Facebook: http://www.facebook.com/group.php?gid=49365264333 Blog: http://michaelcorey.ntirety.com/ Top Exec: Michael Corey, CEO Fast Facts: The 30 person-company trademarked the term database as a service – assisting customers with managed database services and cloud databases worldwide. Part of the strategy involves leveraging N-able’s remote monitoring and management software for remote database monitoring.

O-O-O

Onyx Group, www.onyx.net Rank: 34 Address: Onyx House, 9 Cheltenham Road, Portrack Interchange Business Park, Stockton-on-Tees, TS18 2AD , UK Twitter: http://twitter.com/onyxgroupuk# Facebook: http://www.facebook.com/group.php?gid=340797731531&ref=ts Top Exec: Neil Stephenson, CEO Fast Facts: The 130-person company lifted cloud revenues 87 percent in 2010 vs. 2009, managing more than 2,000 end users in the cloud. Launched in 1994, Onyx focuses heavily on business continuity services.

OpSource, www.opsource.net Rank: 1 Address: 5201 Great America Parkway, Santa Clara, CA, 95054, USA Twitter: http://www.twitter.com/opsource Facebook: http://www.facebook.com/group.php?gid=5911612935 Blog: http://www.opsource.net/blog Top Exec: Treb Ryan, CEO Fast Facts: The 175-person company generated more cloud revenue than any other Talkin’ Cloud 50 survey participant. OpSource’s cloud solutions include pay-as-you-go cloud hosting, managed hosting, application operations and business operations.

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P-P-Q-Q Quantix, www.quantix-uk.com Rank: 25 Address: Quantix House, Chetwynd Business Park, Nottingham, Notts, NG9 6RZ, UK Top Exec: Richard Salmon, Managing Director Fast Facts: The 52-peson company generated 270 percent growth in its cloud business for 2010 vs. 2009. The big area of focus involved Oracle support and managed application services.

R-R-R

RESULTS Technology, www.resultstechnology.com Rank: 38 Address: 7939 Flint Ave., Lenexa, KS, 66214, USA Top Exec: John French, president Fast Fact: The 25-person company lifted its cloud revenues 50 percent in 2010 vs. 2009. Focused on the SMB market, RESULTS connects the dots between data protection, managed services, help desk and cloud services.

S-S-S

SADA Systems, Inc., www.sadasystems.com Rank: 15 Address: 5250 Vineland Ave., North Hollywood, CA, 91601, USA Twitter: http://www.twitter.com/sadasystems.com Facebook: http://www.facebook.com/pages/SADA-Systems/57415772352 Blog: http://blog.sadasystems.com Top Exec: Tony Safoian, CEO Fast Facts: Another major Google Apps partner, SADA’s cloud revenues jumped 284 percent from 2009 to 2010. SADA also assists customers with migrations to Microsoft BPOS (soon to be replaced by Office 365).

SheepDogInc.ca, www.SheepDogInc.ca Rank: 20 Address: 110 Horseshoe Lk Dr., Halifax, NS, B3S 0B9, Canada Twitter: http://www.twitter.com/sheepdoginc Facebook: http://www.facebook.com/pages/SheepDogIncca/116770788364385 Blog: http://www.sheepdoginc.ca/content/our_blog Top Exec: Julia Rivard, president Fast Facts: Cloud-related revenues jumped 100 percent from 2009 to 2010, and the company now manages more than 32,000 end-users in the cloud. SheepDogInc. has emerged as one of the top Google Apps partners in Canada.

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S-S-S (Continued)

SkyNet Managed Technology Services, www.skynetmts.com Rank: 49 Address: 1 E Campus View Blvd, Columbus, OH, 43235, USA Top Exec: Chip Bell, president Fast Facts: The eight-person company lifted its cloud revenues roughly 150 percent from 2009 to 2010. Key areas of focus include online backup, Google Apps and Citrix solutions.

SLPowers, www.SLPowers.com Rank: 39 Address: 1254 Okeechobee Rd., West Palm Beach, FL, 33401, USA Twitter: http://www.twitter.com/SLPowers Top Exec: Rory Sanchez, CEO Fast Facts: The 36-person company lifted cloud revenues nearly 400 percent from 2009 to 2010. Pushing beyond managed services, SLPowers has launched Technology on Demand (ToD), which supports datacenter-based computing.

StrataScale, Inc., www.stratascale.com Rank: 31 Address: 1214A North Market Boulevard, Sacramento, CA, 95834, USA Twitter: www.twitter.com/stratascale Top Exec: Yatish Mishra, president and CEO Fast Facts: By focusing on server hosting and cloud hosting, the 40-person company doubled its cloud revenues from 2009 to 2010.

T-T-T

TekLinks, www.teklinks.com Rank: 24 Address: 201 Summit Parkway, Birmingham, AL, 35216, USA Twitter: http://www.twitter.com/teklinks Facebook: http://www.facebook.com/pages/TekLinks/97237531839?ref=ts Top Exec: Stuart Raburn, president Fast Facts: The 130-person company doubled its cloud revenues in 2010 vs. 2009. TekLinks recently opened its third data center, leveraging Cisco, EMC and VMware for its cloud infrastructure.

The Utility Company, www.theutilitycompany.com Rank: 29 Address: One Hines Rd, Suite 101, Ottawa, ON, K2K 3C7, Canada Top Exec: Mark Scott, president Fast Facts: The Utility Company is perhaps best known as a master MSP and franchising company that assists VARs and aspiring MSPs. The 30-person company lifted cloud-related revenues 55 percent in 2010 vs. 2009, and more than 3,000 people now leverage The Utility Company’s cloud offerings.

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T-T-T (Continued)

ThinDesk, www.thindesk.com Rank: 42 Address: 80F Centurian Drive, Unit 10, Markham, ON, L3R 8C1, Canada Top Exec: Ryan Penn, president Fast Facts: The virtual desktop specialist offers a complete hosted desktop service in its primary data center, while a backup data center offers business continuity and data protection. The virtual desktop solution includes all desktop productivity applications plus hosted email and collaboration services.

Tsukaeru.net KK, http://www.tsukaeru.net Rank: 17 Address: 1082 Minamiagatamachi, Nagano, 380-0836, Japan Top Exec: Jason Frisch, CEO Fast Facts: The 28-person company lifted its cloud-related revenues by 50 percent in 2010, turning heads in Japan and capturing our attention.

U-U-V-V

Virtacore Systems Inc., www.virtacore.com Rank: 14 Address: 22375 Broderick Road, Suite 155, Sterling, VA, 20166, USA Twitter: http://twitter.com/virtacore Facebook: http://www.facebook.com/virtacore Blog: http://blog.virtacore.com Top Exec: George Naspo, CEO Fast Facts: The 45-person company developed vCloud Express, powered by VMware. The pay-as-you-go solution is a public cloud offering that promotes virtual servers from a shared resource pool. Virtacore also is a Google Apps Authorized Reseller.

W-X-Y-Z

Xilocore, www.xilocore.com Rank: 45 Address: 2595 Fremont St., Las Vegas, Nevada, 89104, USA Top Exec: Lester Keizer, CEO Fast Facts: The 15-person company lifted its cloud revenues 50 percent in 2010 vs. 2009. Xilocore develops rapid business recovery solutions for SMBs.

ZSL (Zylog Systems Ltd), www.zslinc.com Rank: 41 Address: 85 Lincoln Highway, Edison, NJ, 08820, USA Twitter: http://twitter.com/ZSL_Inc Facebook: http://www.facebook.com/pages/ZSLs-Software-Solutions- Services/271245240095 Blog: http://zslinc.blogspot.com/ Top Exec: Shiv Kumar, Executive VP Fast Facts: ZSL grew cloud revenues 100 percent in 2010 vs. 2009. The company launched a legacy-to-cloud enablement program and platform in April 2011. Talkin’ Cloud, MSPmentor, MSPtweet, The VAR Guy, VARtweet, and brand extensions are trademarks and service 19 marks of Nine Lives Media Inc. The Talkin’ Cloud 50 and this report are copyright © 2011 Nine Lives Media Inc.

Conclusions

We are hopeful the Talkin’ Cloud 50 results and company profiles will convince skeptics that cloud computing is more than hype. In fact, the results prove that cloud computing has arrived in the IT channel. First-mover VARs and MSPs are already profiting from the cloud, and cloud revenues for the Talkin’ Cloud 50 companies rose nearly 50 percent in 2010 vs. 2009. Instead of fearing vendor-promoted SaaS services like Google Apps and Microsoft BPOS, first-mover VARs and MSPs are using those services to frame conversations and initial proposals with SMB customers.

Research Schedule and Project Overviews

Nine Lives Media Inc., owner of MSPmentor, produces multiple research reports each year. Here’s a sampling:

• Talkin’ Cloud 50: Celebrating the top 50 VARs and MSPs working within cloud computing. Our second survey will run Q1 2012 with results in Q2 2012. Details: http://www.talkincloud.com/biz-talk/talkin-cloud-50 • MSPmentor 100: Tracking the world’s top 100 managed services providers. Annual global survey runs October through December, with results published each February. Details: http://www.mspmentor.net/top-100-msps • MSPmentor 250: Identifying the world’s top managed services executives, entrepreneurs and experts. Annual global survey runs February through June, with results published each August. Details: http://www.mspmentor.net/top-250- people • Talkin’ Cloud Stock Index: Updated each Friday after U.S. markets close. The stock index tracks 20 publicly held cloud computing companies, providing a reality check on the cloud market. Details: http://www.talkincloud.com/biz- talk/talkin-cloud-stock-index • The VAR Guy’s Channel Finance 25: Identifying financial pipelines, lenders, leasing experts and other funding sources that can potentially assist VARs, MSPs and solutions providers. Initial survey ran Q4 2010 with results in Q2 2011. Details: http://www.thevarguy.com/channel-finance-25/

Contact Information

For additional editorial, sales or business development assistance please contact:

Editorial Contact: Joe Panettieri, Executive VP, Editorial Director, Nine Lives Media Inc. Phone: 631-423-3536 Email: joe [at] ninelivesmediainc.com

Sales and Business Development Amy Katz, CEO, Nine Lives Media Inc. Phone: 978-468-0092 Email: amy [at] ninelivesmediainc.com

Talkin’ Cloud, MSPmentor, MSPtweet, The VAR Guy, VARtweet, and brand extensions are trademarks and service 20 marks of Nine Lives Media Inc. The Talkin’ Cloud 50 and this report are copyright © 2011 Nine Lives Media Inc.