Bill Beckett Founder & CEO bill@saisei.com 408.797.8125 from Japanese - ‘A new life’, ‘Regeneration’ and also ‘Playback’, ‘Record’

Why software appliance ? Building a Hardware Based Network Appliance Six months searching for investors before beginning product Initial investment typically $10-50M Hardware development about 40-70% of initial costs Producing beta product costs between $10M and $100M, depending on complexity. Raise another B round of $15-50M to “Go to Market” and produce next version Building a SW based Network Appliance Initial investments of $500K brings prototype in first 3-6 months Additional $600k to $1M funds for development and shipment of beta $5M Series A funds - “Go to Market” and 2nd, 3rd releases of product Less than $6M invested prior to getting initial product revenues Savings are shared equally with the software provider and the customers using the software appliances.

A New World of Networking Amazingly talented and experienced people + A few great ideas A little funding (comparatively) = World Class Network Solutions company

Other drivers for SW Hardware challenges Software challenges Out of memory on FPGA for new features ASIC spins cost $1M and 6-12 months ECOs cost 100,000’s to Millions of $$ How many protoype$ and trial unit$ to order? How many size$ of product to develop and scale? How many unit$ to forecast to contract manufacturer? End of life of component$ Software challenges Features cost clock cycles and DRAM Right sizing purely decision on servers (tiny to gigantic) Next generation platforms funded by Intel / AMD $0 costs to deliver trials No forecasts / inventory risks to take on

Pricing Models HW Pricing Model Software Pricing Model Restricted to number of units Some flexibility to charge on SW features Determined ultimately on COGS based on manufacturing costs High Risks to purchasers means long sales cycle Software Pricing Model Completely flexible based on any parameters Users Bandwidth CPU’s Monthly/Yearly License Customized ? Low risks to purchasers means shorter sales cycles

What customers are saying ? ARPU decreasing faster than cost of building/operating traditional networks Need to have better visibility into what applications are on the network, who is using them, how they are performing. Better tool kits for dealing with congestion proactively in real-time Want to shift to COTS solutions but only with better visibility and control over their network flows

Traditional Market Answers Point solutions… DPI Traffic Management Network Visibility Policy Management Most often based on expensive, proprietary, function specific hardware Old world hardware solutions trying to solve new world software and virtualization issues

What’s Needed A fresh look at what a network appliance should do and what functions they should perform - think outside of the box Ability to efficiently provision virtual networks such that users get the services, applications and quality of service they need Monitoring of new virtual networks to ensure services/applications are performing with good health indications Software-based architecture that drives lower cost and more agile creation of services/applications

Visions for the Future Ideally every single network appliance will be flow based, not packet based, with very few exceptions Flows tell us a lot more information than they carry themselves, far beyond traditional 5 tuples (IP) or 12 tuples (Openflow) Saisei calls the information in flows SuperTuples 12 Tuples plus User Information, Application information and metadata, GeoLocations, Application Health , BGP AS numbers, Custom fields added by end uers SuperTuples are part of FIB (Forwarding information Base) and policies can be enforced on ANY SuperTuple field

Information centric appliances Granular Visibility Granular Control

Contact Saisei if… Your looking for COTS based network appliances on fixed or mobile networks for flow based Policy Enforcement You desire Increased Network Visibility You desire Increased Network Control of subscribers, applications, geographic locations and network health You want to eliminate congestion symptoms in your networks

Bill Beckett Founder & CEO bill@saisei.com Thank You!!! Bill Beckett Founder & CEO bill@saisei.com 408.797.8125