CloudSpeed Capital Adequacy Survey 2018 Question Title * 1. Where would you say you are currently at, in terms of adapting your overall business model for success in the Cloud (check only one)? We do not see any need to adapt our business model at all We have just begun to adjust our business model for the Cloud We are roughly in the middle of our Cloud business model transition We believe we have nearly completed the needed business model transition We believe we have fully adapted our business model for long-term success in the Cloud OK Question Title * 2. Financially, how has the Cloud impacted your profitability so far (check only one)? No impact on our operating profitability Some impact on our operating profitability Moderate impact on our operating profitability Significant impact on our operating profitability Extreme impact on our operating profitability OK Question Title * 3. Financially, how has the Cloud impacted your cash flow so far (check only one)? No impact on our cash flow Some impact on our cash flow Moderate impact on our cash flow Significant impact on our cash flow Extreme impact on our cash flow OK Question Title * 4. Regarding your Cloud business model transition, how will you or did you fund it (check only one)? We see / saw no funding needed We believe we can fund / have funded our Cloud transition with internally generated profits We will probably need funding in excess of what we can generate internally We will absolutely need funding in excess of what we can generate internally We have already raised external funding OK Question Title * 5. If you require / required external funding to complete your business model transition, what amount would you need / have you raised (check only one)? $500k or less $500k - $1m $1m - $5m $5m - $10m $10m - $50m over $50m OK Question Title * 6. If you identified a required funding amount in question 5 above, how did you determine the amount (check only one)? based on gut feel alone we did some preliminary analysis of our funding requirement, but nothing more we looked at industry benchmarks, but not done any financial modeling we developed financial models internally that determined the funding requirement we used external financial models provided by Microsoft we developed a full Cloud business plan, which included pro-forma financials OK Question Title * 7. If you anticipate raising funding or have already raised funding, what type would you most likely use / have used (check only one)? owner injection of needed funding "friends and family" injection of needed funding bank loan or line of credit alternate debt funding venture capital private equity we see no funding needed Other (please specify) OK Question Title * 8. If you raised the funding above, what would be / was its primary use be (check only one)? acquire another partner / consolidate market position develop our own IP develop other new Cloud offerings bolster marketing capabilities bolster sales capabilities aggressively acquire new customers we have no external funding needs Other (please specify) OK Question Title * 9. If you raised equity funding above, how much equity in your company would you be willing to give up in exchange for that funding (check only one)? <5% 5-10% 10-25% 25-49% >50% OK Question Title * 10. If you anticipate raising new funding, what is your anticipated timing (check only one)? immediately within the next 12 months within the next 24 months within the next 36 months we do not anticipate raising any funding OK Question Title * 11. Which overall business model best describes your business today (check only one)? Dynamics VAR Managed Services Provider Systems Integrator Hoster Independent Software Vendor Other (please specify) OK Question Title * 12. With specific regard to new deals, how often do you compete with other Partners offering the same product at the core of their solution (check only one)? 10% of the time or less 10-25% of the time 25-50% of the time more than 50% of the time OK Question Title * 13. In these deals, how much do you typically have to discount your services to win (check only one)? less than 10% discounts generally win us the deal 10-25% discounts are needed 25-50% discounts are needed more than 50% discounts are needed OK Question Title * 14. What primary market do you serve today (check only one)? North America South America Western Europe Central & Eastern Europe Middle East Africa Asia OK Question Title * 15. What is your approximate total annual revenue today (check only one)? <$1m $1m to $5m $5m to $15m $15m to $50m >$50m OK Question Title * 16. Please feel free to comment on any aspect of this survey, in your own words OK Question Title * 17. If you would like to receive a copy of the survey results, please provide your email address OK DONE