SIP Trunking: Considerations at the Enterprise Edge October 2010 Vince Connors Product Line Director Bud Walder Enterprise Marketing Director

© Copyright 2010 Dialogic Corporation. All rights reserved. SLIDE 2  Session Border Controllers (SBCs) and SIP Trunking: –Infonetics - Market background & trends  Enabling Secure SIP Services –Dialogic - Enterprise Network Edge Considerations  Enterprise Network Edge Element Focus –Dialogic® BorderNet™ 500 Gateways Product Line Introduction  Resources & Q&A Content

© Copyright 2010 Dialogic Corporation. All rights reserved. SLIDE 3 What is SIP trunking? Dedicated voice circuits/trunk lines (T1s, PRIs) High reliability, port-based Session Initiation Protocol: VoIP protocol supported by most service providers and equipment vendors SIP trunk: logical voice circuit Broadband connections, data networks THE OLD MODEL THE NEW MODEL Switch IP PBX CPE IP Phones Switch IP PBX CPE IP Phones CO Lines WAN link Enterprise NetworkService Provider Network WAN link Media Gateway Internet PSTN Source: Infonetics Research, Inc.

© Copyright 2010 Dialogic Corporation. All rights reserved. SLIDE 4 How SIP trunks are delivered Bundled offering Single provider for SIP trunk and physical network connectivity Option for end-to-end QoS for SIP traffic Clear demarcation of SIP trunk at CPE Over-the-top Separate SIP trunk and data providers “Bring your own bandwidth” Shop around for the best offering SIP traffic is at the mercy of data provider SIP trunk and Data Provider Customer premise SIP Trunk Provider Data Provider Customer premise Source: Infonetics Research, Inc.

© Copyright 2010 Dialogic Corporation. All rights reserved. SLIDE 5 SIP trunking services are catching on Source: Infonetics Research, SIP Trunking Deployment Strategies: North American Enterprise Survey, July %20%40%60%80% ISDN BRI VoIP trunk—non-SIP Standard analog/digital phone lines ISDN PRI VoIP trunk—SIP T1 lines PBX Trunking Services Percent of Respondents 2012 Now

© Copyright 2010 Dialogic Corporation. All rights reserved. SLIDE 6 IP trunks in service are growing fast Source: Infonetics Research, VoIP and Unified Communication Services and Subscribers, May 2010 IP Trunking Forecast CY07CY08CY09CY10CY11CY12CY13CY14 IP trunks in Service (Millions)

© Copyright 2010 Dialogic Corporation. All rights reserved. SLIDE 7 SIP trunk adoption drivers Source: Infonetics Research, SIP Trunking Deployment Strategies: North American Enterprise Survey, July %20%40%60%80% Existing service contract up for renewal Centralized reporting/billing Centralize trunking Simplicity Speed of deployment/service changes Lower communication services costs Flexibility Easier management Multimedia communications Upgrading infrastructure Centralize applications Percent of Respondents Rating “Definitely a driver”

© Copyright 2010 Dialogic Corporation. All rights reserved. SLIDE 8 Why SIP trunking now? 75%+ of PBXs sold today are IP-capable IP extensions will outnumber TDM extensions next year TDM as an intermediary adds cost and restricts new features Source: Infonetics Research, Unified Communication, VoIP, and TDM Equipment, August PBX System Shipments IP PBX TDM PBX IP vs TDM Extension on PBX Systems 0% 20% 40% 60% 80% 100% CY02CY03 CY04 CY05 CY06 CY07 CY08 CY09 CY10 CY11CY12 CY13CY14 IP TDM

© Copyright 2010 Dialogic Corporation. All rights reserved. SLIDE 9 NAT (network address translation) Firewall traversal SIP Interoperability SIP Security Legacy Infrastructure (non-SIP) Service Demarcation Fax Support Networking issues stand in the way of SIP trunking

© Copyright 2010 Dialogic Corporation. All rights reserved. SLIDE 10 Security InteroperabilityControl SIP trunking doesn’t require session border controllers But SBCs increasingly are used because they solve networking challenges Service Provider Premise Systems Fax Systems Network Topology Intrusion Malicious Attacks Firewall Traversal Quality of Service Premise Device Source: Infonetics Research, Inc.

Copyright © 2010 Infonetics Research, Inc. Session Border Controllers (SBCs) and SIP Trunking: Infonetics - Market background & trends Enabling Secure SIP Services Dialogic - Enterprise Network Edge Considerations Enterprise Network Edge Element Focus Dialogic® BorderNet™ 500 Gateways Product Line Introduction Resources & Q&A Content

© Copyright 2010 Dialogic Corporation. All rights reserved. SLIDE 12 The SIP Interoperability Challenge  The SIP standard leaves substantial room for interpretation and implementation choices. This leads to variance between the entities that create SIP solutions, both equipment vendors and service providers. SIP interoperability is only assured through compliance testing.  Resolving SIP Interoperability –Compliance Testing and Configuration Templates Testing selected services and systems Profile configurations in management interfaces –Edge Device Interoperability Toolkits SIP header manipulation Advanced routing SIP B2BUA – ‘back to back user agent’

© Copyright 2010 Dialogic Corporation. All rights reserved. SLIDE 13  Standard Firewall Design –Allow Premise Users to Make Public Network Requests HTTP - Browse the Web –Block Unsolicited Requests from the Internet Inbound ‘SIP Phone Calls’ –Hide Network Topology Mask Internal IP Addresses  Live SIP Communication Requires: –Secure Method to Traverse the Firewall SIP Application Layer Gateway (ALG) SIP Aware Firewall Session Border Controller –Maintain NAT and Port Security –Remote Firewall and NAT Traversal ‘Pinholes’ in the Firewall –Less enterprise control and security Secure Firewall and NAT Traversal FIREWALL CUSTOMER PREMISE REQUESTS PUBLIC NETWORK REQUESTS HTTP SIP

© Copyright 2010 Dialogic Corporation. All rights reserved. SLIDE 14 SIP Security Issues  Primary Security Issues –Denial of Service Attacks Continued requests to the network to disrupt services by overloading network resources –SPIT (Spam over Internet Telephony) Unwanted automatically dialed calls from malicious persons or telemarketers –Toll Fraud Theft of service through unauthorized access  Addressing SIP Security –SIP Intrusion Detection and Prevention –Dynamic Port Allocation per Call –Dynamic SIP URI Encryption –sRTP, TLS and HTTPS

© Copyright 2010 Dialogic Corporation. All rights reserved. SLIDE 15 SIP & Legacy Infrastructure Issue  Existing TDM PBXs and many Hybrid PBXs do not have SIP protocol support –In some cases, SIP upgrades are not available –When available, SIP upgrades can be very expensive  Enabling SIP service connectivity with legacy infrastructure : –VoIP to TDM Conversion – translate and transcode packet VoIP streams to traditional TDM circuit switched voice channels –SIP to TDM Protocol Conversion – translate SIP signaling into any Primary Rate ISDN signaling (T1 or E1) and CAS –Emulate PSTN Trunk Service – provide physical connections to legacy PSTN trunk ports on the PBX or Contact Center System –Dial Plan Modification - append or strip digits as needed to normalize routing between disparate devices TDM SIP

© Copyright 2010 Dialogic Corporation. All rights reserved. SLIDE 16  Traditional PSTN Fax Transmission Protocol is T.30 –Unreliable over an IP network –Not designed to navigate Jitter, Latency and Packet loss –Pass-Through Techniques are only about 80% reliable page by page!  Reliable FoIP Transmission Protocol is T.38 –ITU Fax Relay Protocol for IP Networks –Designed to deal with Jitter, Latency and Packet Loss –Gateway and ATA devices convert T.30 to T.38 –Uses up to 80% less bandwidth than Fax Pass-Through techniques –Reliability rivals traditional T.30 fax over PSTN / TDM networks Fax over IP Support / FoIP

© Copyright 2010 Dialogic Corporation. All rights reserved. SLIDE 17 SIP Service Demarcation  Defining Service Demarcation –Physical trunk service termination point –Located on customer premise –Defines QOS location ownership / responsibility Service provider Enterprise telecom or IT department (or outsourced to a PBX vendor) –Typically not well defined for SIP Trunking services ‘Over the top’ service on broadband data pipe  Establishing SIP Service Demarcation –Enterprise SBC acts as a demarcation point –QOS Monitoring and Reporting Functions Enables troubleshooting Reduces ‘fingerpointing’ –Robust Diagnostic Tools Aids Service Issue Resolution DEMARC CUSTOMER PREMISE PUBLIC NETWORK

© Copyright 2010 Dialogic Corporation. All rights reserved. SLIDE 18  Session Border Controllers (SBCs) and SIP Trunking: –Infonetics - Market background & trends  Enabling Secure SIP Services –Dialogic - Enterprise Network Edge Considerations  Enterprise Network Edge Element Focus –Dialogic® BorderNet™ 500 Gateways Product Line Introduction  Resources & Q&A Content

© Copyright 2010 Dialogic Corporation. All rights reserved. SLIDE 19 Graphic Source: Infonetics Research, Inc. SBC Equipment Options

© Copyright 2010 Dialogic Corporation. All rights reserved. SLIDE 20 Dialogic ® BorderNet™ 500 Gateways Integrated Enterprise SBC + Media Gateway  January 2010: Dialogic Press Release: –‘Providing “any-to-any” PBX connectivity for SIP trunking, Dialogic Corporation, ……….. will incorporate the award-winning SIP Trunking software module from Ingate Systems into a new enterprise border element designed to connect virtually any SIP trunk with virtually any PBX’ += NAT traversal SIP security ITSP interoperability IP-PBX interoperability SIP Service Demarcation SIP interoperability SIP security PBX connectivity PSTN connectivity / failover FoIP gateway support Any to Any Connectivity for SIP Services Enterprise Session Border Controller T1/ E1 / BRI to SIP Media Gateway Dialogic ® BorderNet™ 500 Gateways

© Copyright 2010 Dialogic Corporation. All rights reserved. SLIDE 21 Dialogic ® BorderNet™ 500 Gateways: Preliminary Specifications –Broad Product Line and Scalability 25 session SIP to SIP 4 port, 8 channel - BRI to SIP 24/30 channel - T1/E1 to SIP 96/120 channels - Quad T1/E1 to SIP All SKUs scale to 150 SIP sessions –Complete Support for SIP Trunking Services SIP Proxy, SIP Registrar SIP Interoperability SIP Connection set up (SIP + RTP) –Complete PBX, PSTN, IP and Fax Protocol Support PRI, BRI, ISDN, CAS, Q.SIG protocols SIP (RFC32XX), Microsoft® SIP (TCP Transport), Microsoft® Secure SIP: TLS T.30 (PSTN) Fax to T.38 (FoIP) –Exclusive V.34 Fax / FoIP speed –Value Added Software Options Remote SIP Connectivity (Far-end NAT-passering incl STUN-server ) QoS (bandwidth limitation and prioritization Enhanced Security (IDS/IPS for SIP, SRTP and TLS) VoIP Survival (VoIP redundance if Internet connection fails) SIP Registrar (SIParator software is used as the primary SIP registrar) –Flexible, Cost Effective Support for Analog Devices Support for ATAs & FXS Gateways from Grandstream & Cisco Interface for any number of Analog Devices The right mix of features and densities for success with SIP Services

© Copyright 2010 Dialogic Corporation. All rights reserved. SLIDE 22 Dialogic® BorderNet™ 500 Gateways Enabling Secure and Interoperable SIP Services for the Enterprise* SIP Applications IP PBX Unified Communications IVR Contact Center Unified Messaging Conference Server FoIP Server IP-Phone IP Soft-Phone ATA / FXS Gateway Fax Machine POTs Phone ITSP ISP PSTN TDM Applications IVR Contact Center Messaging Conference Server Fax Server Legacy PBX (non-SIP) POTs Phone Fax Machine Digital Phone SIP Trunk Service Broadband Internet Service BorderNet 500 Gateway Optional PBX / PSTN Gateway Connectivity Support SIP Interop SIP QoS Demarcation SIP Security TDM / PSTN Gateway Firewall / NAT Traversal Fax / FoIP Gateway * - Please refer to ‘USE CASE(S)’ portion of the Legal Notice on the last slide

© Copyright 2010 Dialogic Corporation. All rights reserved. SLIDE 23  SIP Trunking: Considerations at the Enterprise Edge –SIP Trunk Penetration Approaches 65% by 2012 in North America Drivers –Centralize Applications, Multimedia Communications, Cost reduction, etc –SIP Trunking doesn’t require Session Border Control…but there are considerations Firewall & NAT Traversal, Interoperability, Security, QoS Demarcation Control –Enterprise Session Boarder Controllers Interface to Legacy Infrastructure, PSTN connections and FoIP –Integrated Media Gateways –Dialogic® BorderNet™ 500 Gateways Enable Secure, Interoperable, and Flexible SIP Service Deployment Summary

© Copyright 2010 Dialogic Corporation. All rights reserved. SLIDE 24  Web-Based Resources at –SIP Trunking Solution PageSIP Trunking Solution Page Enabling Secure and Interoperable SIP Services for the Enterprise –Dialogic® BorderNet™ 500 Gateways Product PageDialogic® BorderNet™ 500 Gateways Product Page 9/14/2010 Product Launch Press Release –FoIP Solution PageFoIP Solution Page Recorded webinars, whitepapers, case studies  Contact Us! Resources and Q&A Thank You for Attending!

© Copyright 2010 Dialogic Corporation. All rights reserved. SLIDE 25 Dialogic, Dialogic Pro, Brooktrout, Diva, Diva ISDN, Making Innovation Thrive, Video is the New Voice, Diastar, Cantata, TruFax, SwitchKit, SnowShore, Eicon, Eicon Networks, NMS Communications, NMS (stylized), Eiconcard, SIPcontrol, TrustedVideo, Exnet, EXS, Connecting to Growth, Fusion, Vision, PacketMedia, NaturalAccess, NaturalCallControl, NaturalConference, NaturalFax, Shiva and BorderNet among others as well as related logos, are either registered trademarks or trademarks of Dialogic Corporation or its subsidiaries (“Dialogic”). Microsoft and Lync are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries. Other names of actual companies and products mentioned herein are the trademarks of their respective owners. Dialogic encourages all users of its products to procure all necessary intellectual property licenses required to implement their concepts or applications, which licenses may vary from country to country. Dialogic may make changes to specifications, product descriptions, and plans at any time, without notice. USE CASE(S) Any use case(s) shown and/or described herein represent one or more examples of the various ways, scenarios or environments in which Dialogic products can be used. Such use case(s) are non-limiting and do not represent recommendations of Dialogic as to whether or how to use Dialogic products. 09/10