Alan Percy Director of Business Development AudioCodes

Who is AudioCodes? Leading OEM Manufacturer of Enabling VoIP equipment o Gateways o Media Servers o Boards, Chips and Modules Key IPR holder for G th Year in Business $82.8M Revenue for FY04 NASDAQ: AUDC Over 440 Employees Worldwide Company: o Headquarters in Israel o US offices in San Jose, Boston, Chicago, Dallas, RTP, and Somerset NJ o Offices in Mexico, France, UK, China, and Japan

Why are you here? “I want to learn more about…”

Learning learn·ing (lûr n ng) n. The act, process, or experience of gaining knowledge or skill.

How do we learn?

Some Observations

VoIP has gone Mainstream

VoIP is enabling the Best of Breed In the past, one vendor controlled all the technology o “You can have any color phone you want, as long as it’s black” Going forward o Softswitches, IP-PBX, Messaging, IVR… o Standard protocols and hardware platforms o VARs and Systems Integrator are choosing the best hardware and software for their application o Creating value and products that fit needs

What is the difference? ?=?= This one has enhanced services

Increasing Density Moore’s law will continue to increase density (more functionality for less money) o CISC o DSP o Packet Processors Shifting the role of dedicated hardware

Emergence of New Blade Form Factors ATCA o Advanced Telecom Computing Architecture o 140 sq. inches o 200 W of power/blade AMC o ATCA Mezzanine Card PCIExpress o Desktop and Enterprise

New Form Factors “Blade” Servers IBM, Intel, Dell, Compaq, etc. Very high computational density Ideal platform for hosting applications Proprietary, but “Open” form factor Standard peripheral form factor o Usually PCI IBM BladeCenter

Death of the PCI Driver PCI Driver Replaced by on-board protocols

On-board Protocols On-board protocols are becoming the preferred control mechanism Using a standard or proprietary protocol to control a board or stand-alone device o SIP, VoiceXML, MSCML, MGCP Displacing the traditional API/Driver model No more PCI drivers! Eliminates O/S dependence Bonus: Better test tools (Ethereal)

On-board Protocols Application API Device Driver T1 Interface Hardware API Device Driver Resource Hardware Legacy CTI Architecture PSTN H.100 Proprietary

On-board Protocols Application SIP Protocol Stack Gateway Blade Media Processing Blade SIP Architecture LAN SIP PSTN

Adoption of Blades vs. Boxes Software developers love distributed architecture using standard protocols Product Managers and Integrators have different challenges: o Cost Targets o Offering communications “solutions” o Branding issues o Fewer boxes Result: o PM & Integrators many times prefer blades

One Code Base Today, many application developers are supporting two separate code bases: o One for TDM implementations o Second for VoIP interfaces Challenges o Maintenance o Testing o Surrounding Management Software o Expertise on Boards and APIs

One Code Base Mass movement to supporting only VoIP o SIP, H.323, MGCP… Using gateways to connect into TDM applications Why? o Only maintaining one code base o Saves engineering resources o Focus on the application, not the plumbing o Eliminates management of TDM interfaces o No drivers o No O/S dependencies

Need for Transcoding Wireline and wireless carrier depend on different voice compression formats o Different needs and limitations o G.729a favorite with wireline carriers o AMR or EVRC for wireless How to interconnect? o Transcoding Resources o High Density o Low Latency o Excellent voice quality Transcoding

Focus on Security Cable systems are the early adopters (multi-drop nature of cable systems) Call control Encryption o IPSec and BTNS Voice Path Encryption o SRTP Management Interfaces o HTTPS Customers will demand that equipment vendors will support new security standards

Focus on Security Session Border Controller Protecting your network / IP-PBX from intruders o Network Isolation / Protection o Encryption / Privacy o Protect against Denial of Service Attacks o Stand-alone devices (for now) What’s next: o Built-in to IP-PBX at the Enterprise

The Last Mile Carriers are depending on the existing broadband facility to the Enterprise/Consumer

Voice Quality Greater dependence on existing IP infrastructure (Cable, DSL, T1, Wireless) Requires that equipment that can operate in “suspect” network performance. Dependence on low bit rate coders by carriers is increasing o More through the same pipe o Less congestion = less lost packets o Better voice quality More on this in a separate session

What to worry about Taxation o With the shift to VoIP, taxation model will have to change. o Governments will need revenue o We need to guide their decisions E911 o The solution is understood o Can carriers react quick enough? o What other similar “legacy” issues await? o Is there a better way? Will wireline phones really matter?

Moving Forward “An investment in knowledge always pays the best interest.” Benjamin Franklin

Let’s talk! Stop by Booth #405