Manish Dalal, Verisign Keynote Presentation - ResellerClub Hosting Summit 2013

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Published on November 14, 2013

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Manish Dalal, Verisign Keynote Presentation - ResellerClub Hosting Summit 2013

Opportunity for Domain Resellers & Hosting Companies in India Manish Dalal Thursday, October 17, 2013

India has one of the largest SMB base in the world Countries With Largest SMB Bases 50+ Mn ~47 Mn ~14 Mn ~8 Mn India (Rank 2) China (Rank 1) ~26 Mn USA (Rank 3) Brazil (Rank 4) Russia (Rank 5) Micro Enterprises Small Enterprises Others 23% Prof. Services 5% Education 4% Healthcare 2% Medium Enterprises Retail 41% Manufacturing 25% ~ 1.3 Mn ~ 16.0 Mn ~ 29.7 Mn 100 - 1,000 Employees 11 - 99 Employees 1 - 10 Employees Vertical Split Horizontal Split (~47 Mn SMBs) (~47 Mn SMBs) Source: Zinnov SMB Study Verisign Restricted 2

SMBs contribute significantly towards the economy 99% Of Total Indian Firms 17% Of Total Indian GDP 40% Of Total Indian Workforce SMB Contribution To The Indian Economy 45% Of Total Mfg. Output 40% Of Total Exports From India 25% Of Total Domestic IT Spending Total PC Penetrated Units 57% (~5.6 Mn) of all addressable SMB units in India have a PC today Micro 2.9 Mn Small 2.4 Mn Medium 0.3 Mn Source: Zinnov SMB Study Verisign Restricted 3

Opportunity for domains and websites in the SMB segment is still tremendous Current Base Of SMBs With Domain Names Websites ~ 1.1 Mn ~ 520 K Current Addressable Opportunity1 ~4.5 Mn SMBs with PC Access ~2.6 Mn SMBs with PC Internet access ~1.4 Mn SMBs with e-mail Access ~1.3 Mn SMBs online through aggregators Note: 1 All figures exclude ~1.1 Mn SMBs with domain names Source: Zinnov SMB Study Verisign Restricted 4

However, a variety of factors are still impeding SMBs to establish an online presence through a website 1 2 3 4 SMBs Satisfied with Alternate Sales Channels High Cost • Most of the SMBs are satisfied with aggregator websites • Satisfied with other sales channels such as telecalling, SMS/Email marketing and word of mouth • A large number of SMBs do not budget for web presence; for those who do, the budget is usually less than INR 5,000 Lack of Internal IT Staff • Most of the SMBs are struggling with lack of internal skills to manage and run a website and manage website content Lack of Awareness • SMBs are not aware of the key benefits of having their own website due to lack of knowledge and being less tech savvy Verisign Restricted 5

Still, the majority of SMBs in India want to invest in a website and a branded email Future Investment in a Website • Close to 50% of SMBs in India say that they want to invest in a website • More than 90% of SMBs in India also say that getting a branded email on their own domain is important and lends credibility to their business Source: Verisign Research on benefits and barriers of bringing a small business online Verisign Restricted 6

Indian domain and hosting market is fragmented and provides tremendous opportunity going forward Current Market 3.5 Mn Domains >1,000 active hosting companies >100K active resellers Top Registrars focused on the Reseller Model 3 Domains Market Opportunity By 2016 per 100 Internet users 16 Mn Domains Huge Growth Opportunity USA and UK have 27 domains/ 100 Internet users currently 6.4 Mn Hosting Packages ~USD 500 Mn Annual Sales 7 Domains per 100 Internet users Source: Zinnov Analysis Verisign Restricted 7

A number of trends are emerging in the Indian hosting and domains market Increasing Focus Of Global Competitors Value Added Services Increasing Evangelizing Activities Verisign Restricted 8

Top global hosting companies are now targeting the India market aggressively • > 150,000 customers supported currently • Customer care facility recently inaugurated in Hyderabad, India. The centre operates in local languages to increase customer satisfaction • 60% of GoDaddy India SMB customers are from tier 2 and 3 cities • Hostgator established its Indian office in Mangalore, Karnataka . Servers are located across Mumbai, Hyderabad and Mangalore • Dedicated support provided through partner in India from Mangalore • Payments accepted in INR and cash payment facility now provided to gain traction Source: Company Websites, Zinnov Analysis Verisign Restricted 9

Increasing competition has led to rapid introduction of value-added services Website Building Assistance • Build your own website models introduced • Local website developer search platforms created • SMS to website product launched (e.g. build a website with 4 SMS’s at Nowfloats) Mobile Websites • Verisign offers its product MobileView to registrars for free. The benefits are in turn passed on to the end customers • Startups like Mobstac offer mobile and tablet-optimized websites and applications Source: Company Websites Verisign Restricted 10

Evangelizing activities are on the rise to stimulate the ecosystem further  Educating SMB clusters on online identity benefits through various roundtables and education seminars across Gujarat, Bangalore etc.  Go Daddy partnered with Google in an offline campaign to promote .com website adoption amongst SMBs in Delhi, Mumbai and Hyderabad using a bus / canter  Google’s GIBO (Get India Business Online) program offers free .in domain name and website for 1 year DELL BigRock Verisign Restricted  Dell teamed up with BigRock to bring web products and services to Dell customers at discounted rates to increase adoption 11

Hosting companies are well poised to tap the opportunity in India Hosters have an advantage to tap the SMB opportunity Customer Proximity What Do the Hosters Need To Do? Invest In Marketing Create Relevant Offerings Customer Needs Partnerships Offline Payments Verisign Restricted Give Unforgettable Customer Service  Give customers choice  Display and explain offerings in detail  Product/Service localization is of great importance  Increase value rather than decreasing cost  Partner with innovative firms to gain customer access and differentiation  Partner with established players looking to evangelize the market to gain mindshare  Gain customer stickiness and trust  Customers willing to shell out money for quality of service 12

Thank You © 2012 VeriSign, Inc. All rights reserved. VERISIGN and other trademarks, service marks, and designs are registered or unregistered trademarks of VeriSign, Inc. and its subsidiaries in the United States and in foreign countries. All other trademarks are property of their respective owners.

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