Carasent

Earnings Release • May 6, 2015

© 2015 Apptix | All Rights Reserved | Proprietary & Confidential

Agenda

• Company Overview
• Market Overview
• Why Apptix

About Apptix

Managed and hosting services provider

• Cloud Pioneer Founded in 1997
• ~100 employees
• HQ: Herndon, VA
• Datacenters: Austin, TX & Ashburn, VA
• Publicly-traded on Oslo Børs (OSE: APP)

Strong performance

• ~\$40 million revenue
• ~500,000 users under contract
• 16 consecutive quarters of positive net income*
• 30% of revenue generated from managed services solutions

© 2015 Apptix | All Rights Reserved | Proprietary & Confidential 3

*Excludes FY14 once-time charges

Our Strategy – Transition the Business Model

Reduce dependency on Hosted Exchange (HEX)

• Highly competitive market conditions impacting ARPU
• Market pricing/margin pressure anticipated to continue
• Stand alone mailbox business is not viable

Focus on expanding market driven Managed Services

• Security & Compliance offerings
• Cloud and Hybrid Infrastructure solutions
• Full IT outsourcing

Leverage insight of key customers & partners (top 1,000)

• 50% of users use private or hybrid business model
• These customers will drive significant non-recurring revenue
• Broader range of service needs

Established Foundation – Transition to Full MSP

Early 2015 Strategic Accomplishments

• \$9.63M in Q1-15 revenues, flat Q/Q; down Y/Y
• Net Income of \$0.2M, down Q/Q (due to FY15 restart of payroll taxes); up Y/Y
• Booked Significant Non-Recurring Revenue From Largest Customers
• Q1 2015 NRR Bookings: \$471K vs. \$58K in Q1 2014
• Recruited new Chief Revenue Officer, Tom Tighe in February
• 13 Year industry veteran who helped build a leading MSP to a successful exit in 2012
• Responsible for Sales, Marketing & Product
• Building new Enterprise & Inside Sales Team with Cloud experience
• Emphasis on new pipeline visibility
• Transforming Account Management from support focused to more strategic (MSP) relationships with largest customers
• Met with 20 of the top 100 customers & identified new MSP business opportunities
• Launched four new Products in 2015
• Disaster Recovery / Business Continuity
• Enterprise File Storage
• Virtual Servers and Desktops (Desktop as a Service)
• Office 365
• Restructured Company's Current Banking/Credit Facilities
• Reorganized Customer Care Structure

Apptix Product and Service Portfolio

Our Customers

Professional Services

CMMS

IT

• Financial Services
• Heathcare & Pharma
• Consumer
• Hospitality, Restaurants & Entertainment Real Estate

Other

Customer Strategy: Acquire, Retain & Grow

ACQUIRE

• Sales Team
• Enterprise Sales Exec
  • Largest customers
• Inside Sales Rep
  • Small & Midsized
• Tele Sales / Cold Callers
  • Lead Generation
• Professional Services
• Partner / Channel Sales

RETAIN

• Customer Care
• Resolving IT issues
• Tier 1
• Tier2
• Network Operations
• Proactive network management
• Escalation of IT issues
• Tier 3 & Tier 4

GROW

• Account Managers
• Assigned top 300 accounts
• Contract renewals
• Sell new products
• Escalation path for issues
• Virtual CIO
• Strategic consulting
• Trusted advisor
• Sell projects: NRR
• Help AMs sell new MRR

Agenda

• Company Overview
• Market Overview
• Why Apptix

The Cloud Service Transformation

75%

of businesses allow personal mobile devices for business use

56%

of Office workers said they are expected to be able to get work done no matter where they are

50%

of enterprise customers are making the transition to cloud

What's happening in the market?

70% of companies will change their technology and sourcing relationships in the next 2-3 years for a variety of reasons:

46% need to work with new categories of partners, such as cloud…

What our customers tell us…

Top IT Problems Apptix Solved

• Management of IT Svcs
• End User Support
• Minimize Downtime

"I had no need to deploy/maintain IT for email service for my employees, so my time could be spent on customer projects."* CEO, Computer Services Company

Agenda

• Company Overview
• Market Overview
• Why Apptix

Why Apptix?

• Proven Experience
• Security and Compliance Capabilities
• High Availability Infrastructure
• Robust Solution Portfolio
• Industry-Leading Customer Care
• Technical Expertise

Proven Experience

Cloud Pioneers

• Almost 20 years providing leadingedge hosting services
• One of the largest Hosted Exchange providers
• Managing nearly 500,000 end users

Recognized Industry Leader

• Microsoft Gold Partner since 2001
• 2-time Microsoft Partner of the Year
• Top industry honors and awards recipient

Security & Compliance

Secure Datacenters

• Secure, Top Tier, SSAE 16 Type II data centers
• Flexibility to support multiple deployment platforms

Compliance

• Security Services
• Private Cloud Environment
• Aid Customers to meet Requirements

Robust Solution Portfolio

Growing Portfolio (Public, Private, Hybrid)

Professional Services	Productivity	Security/ Compliance	Infrastructure
Data Migration	O365	Encryption	P Pod – Semi Dedicated Hybrid
Data Integration	Office	Archiving	Custom Apptix Infrastructure – NetApp & VMWare
Cloud Technology Assessment	Lync	Mobile Device Management	Disaster Recovery
SharePoint Design	SharePoint	Active Directory Management	Virtual Desktop
Training	VoIP	Secure Messaging	Server on Demand
Network Assessment	Apptix HEX	Web Security	Storage as a Service
	File Sync and Share	Patch Management	Azure
		Vulnerability Monitoring	Network/Server/Desktop Management
		Managed Firewall

Industry Leading Customer Care

Proactive dedicated Account Manager - owns customer relationship (larger customers)

Works closely with:

• U.S.- based Customer Care team (no offshoring)
• Care team consists of full time Apptix employees (no outsourcing)
• 24/7/365 live support team (even for non-critical issues)
• VIP Priority Care
• Microsoft certified technicians
• Self-help Portal (including ticket submission and updates)

Strong Technical Expertise

Consulting and Professional Services

• In-house Microsoft Certified Architect (Microsoft Ranger)
• Organization, process, and service selection guidance
• Integration
• ERP, HR solutions, etc.
• Lab system for advanced testing
• World class Migration team
• Over 300,000 migrations performed to date
• One of the largest migrations on record: completed ahead of schedule
• Project Managers assigned for larger migrations

© 2015 Apptix | All Rights Reserved | Proprietary & Confidential