Proprietary and Confidential to Oversi Engines for The New Internet Caching – Bucking the Trend

Proprietary and Confidential to Oversi 2 Agenda About Oversi Market Trends Bandwidth Challenge Caching Solution Summary & Questions

Proprietary and Confidential to Oversi 3 About Oversi Solution provider for ISPs Technology leader in caching solutions for Internet Video, P2P & other media applications Field operation since employees Investors Carmel Ventures, Cisco® : Global deployments & channels base EMEA, Americas, LATAM Global distribution partners

Proprietary and Confidential to Oversi 4 Agenda About Oversi Market Trends Bandwidth Challenge Caching Solution Summary & Questions

Proprietary and Confidential to Oversi 5 Impact of Financial Downturn – Operators 12/08

Proprietary and Confidential to Oversi 6 Stay-at-Home Economy With less money to spend, consumers will undoubtedly be spending more time at home Nielsen 2009 Industry Outlook

Proprietary and Confidential to Oversi 7 Just the Beginning…. Traffic (PB/month) Source: Cisco Web Internet video - Web, , data - Internet Video & P2P to PC / TV In 3 years, users will source most of their video content from the Internet and in HD ,000 20,000 Today 100

Proprietary and Confidential to Oversi 8 Impact of Financial Downturn Telecom can't escape the fallout of the credit crunch… there is growing evidence that the financial crisis is going to depress the debt- heavy telecom industry Spencer E. Ante, telecomasia.net – October 2008 "It will even create the first real opportunity to either gain or lose significant market share that we've had in tech in the last 20 years," Surviving a Tech Market Nuclear Winter: A Planner's Handbook to Tech Success in Today's Challenging Financial Times, Industry Analyst and Consultant Tom Nolle, President of CIMI Corporation, November 2008

Proprietary and Confidential to Oversi 9 QoE Becomes a Major Target for ISPs P2P with no limits

Proprietary and Confidential to Oversi 10 Agenda About Oversi Market Trends Bandwidth Challenge Caching Solution Summary & Questions

Proprietary and Confidential to Oversi 11 Operators' broadband infrastructure Internet OTT Video Challenge Hulu - Watch your favorites anytime, for free ABC - full seasons online, selected shows in HD Network Bottleneck

Proprietary and Confidential to Oversi 12 Gridlock on ISPs Networks Service Providers will need to expand network capacity x 1000 to support the Internet video explosion 1000

Proprietary and Confidential to Oversi 13 New Solutions Required

Proprietary and Confidential to Oversi 14 The Need 1.Reduce costs & defer investments Defer Opex & Capex investments Squeezing more from existing infrastructure 2.Build brand equity and improve customer experience, indirectly reducing acquisition and retention costs THE PARADOX – How to achieve cost reduction without compromising QoE?

Proprietary and Confidential to Oversi 15 Agenda About Oversi Market Trends Bandwidth Challenge Caching Solution Summary & Questions

Proprietary and Confidential to Oversi 16 Operators Dilemma Improve QoE Vs. Reduce Capex/Opex Interments

Proprietary and Confidential to Oversi Operators Re-discover Caching Reduce bandwidth costs Deliver MORE bandwidth over EXISTING infrastructure Improve Users QoE Reduce Access network pressure Because Caching: Net Neutrality clear

Proprietary and Confidential to Oversi 18 The Network Limitation

Proprietary and Confidential to Oversi 19 The Solution: Generating the Bandwidth from Internal Sources

Proprietary and Confidential to Oversi 20 The Solution: Network Caching

Proprietary and Confidential to Oversi 21 The Solution: Network Caching Cache CNTRL Users QoE Network status

Proprietary and Confidential to Oversi 22 Growth in Caching Market In the current financial downturn, caching forecast to be one of the hottest segments in networking in 2009 Expected growth - from more than $100 million in 2008 to $1.5 billion in 2012 Source: 3 rd party market analysis

Proprietary and Confidential to Oversi 23 Relieves Network Load / Improves QoE Cache delivers more bandwidth to end-users over existing network resources Cache guarantees QoE Benefits: Saves on international/interconnect bandwidth Clears network congestion Increases user satisfaction Reduces call center support calls Reduces churn, increases user base OTT/P2P Other OTT/P2P Other VoIP Cache OTT redirection Cache delivers requested files Increase in demand for OTT/P2P is met from Cache Users demand better QoE Out of band technology

Proprietary and Confidential to Oversi 24 Relates users experience to their broadband package Migration of packages enabled by cache acceleration Can match cache service to special premium services (FiOS, DOCSIS3) Supports OTT HD (not possible without cache) Benefits: Small % of migration to higher BB packages= $$$ Service provider can offer different bundles e.g. assured QoE for HD Better QoE = Increased ARPU Gold - HD Silver - SD Bronze Service Level ARPU $$$ $$ $ OTT Other OverCache Net Neutrality clear

Proprietary and Confidential to Oversi 25 The ARPU Business Case of Caching BB PackagePrice% of users BB PackagePrice% of users 2Mbps $ 2545%2Mbps $ 2520% 5Mbps $ 4550%5Mbps $ 4560% 15Mbps $ 655%15Mbps $ 6520% ARPU = $ 37ARPU = $ 45 Customer Value: Operator Value: $ 8 per user per month Value for 1 million users $ 96,000,000 per year No cache With cache

Proprietary and Confidential to Oversi 26 Agenda About Oversi Market Trends Bandwidth Challenge Caching Solution Summary & Questions

Proprietary and Confidential to Oversi 27 Summary 1.Reduces Costs & Defers Capex/Opex investments 2.Improves end-users QoE, driving brand & market share 3.Increases operators ARPU Caching is the operators choice for the downturn economy

Proprietary and Confidential to Oversi 28 Questions ?

Proprietary and Confidential to Oversi 29 Eitan Efron, VP BD Thank you for listening Energize Your Network