The Current State of Open Source Wednesday 1/23/08 11:00 AM Bill Miller VP, Prod Mgt & Marketing Digium, Inc.

January 23-25, 2008 Miami Beach Convention Center Miami, Florida USA 3 The Questions What is the status of business-class open source? Who is using open source today? Where does it fit if the enterprise already has a primary proprietary vendor? What capabilities are best suited for open source? Are there any ground rules for using, modifying, and creating your own open source software?

January 23-25, 2008 Miami Beach Convention Center Miami, Florida USA 4 Stand-alone open source market will reach $5.8B by 2010/2011 (26% CAGR)1 IP PBX market will reach $7.9B by 2010 (21% CAGR)2 The Market: Open Source Telephony Projections

January 23-25, 2008 Miami Beach Convention Center Miami, Florida USA 5 What is Business-Class Open Source? Open source is now a fundamental element of software and has proven to be business-ready Keys to business adoption include affordability, high quality code, flexibility to innovate and customize, and eliminate vendor lock-in Proven business models for delivering commercially licensed and fully supported versions of open source software which provide the business with: –Indemnification –Direct vendor support

January 23-25, 2008 Miami Beach Convention Center Miami, Florida USA 6 Leader: Linux –These are the foundation for new applications –Operating System – led 1 st generation –Web Services – leading now 2 nd generation Application examples riding on proof points: –Zimbra Collaboration (acquired by Yahoo) –JBoss Middleware (acquired by Red Hat) –MySQL database (acquired by Sun) –SugarCRM sales force automation –Asterisk VoIP/IP telephony –Many, many, more! What is Business-Class Open Source?

January 23-25, 2008 Miami Beach Convention Center Miami, Florida USA 7 Open Source Applications Gaim/Pidgin; ThunderbirdIM; Client ZimbraMessaging & Collaboration VyattaRouter Hyperic; JasperSoftSystems Mgt; Bus Intelligence Ubuntu; FirefoxDesktop; Browser OpenOffice, ZmandaOffice Suite, Backup Asterisk®Telephony/PBX JBoss for Java, PHP on Apache; SugarCRM Application Server; language; CRM MySQL; OpenbravoDatabase Layer; ERP ApacheWeb Server LinuxOS Open Source SolutionFunctional Application

January 23-25, 2008 Miami Beach Convention Center Miami, Florida USA 8 Examples of Open Source in Business Search Eng – Apache Digg Process Mgt Apps - OpenFlow Enterp Svc Buses – Open ESB, Mule Integration Svcs – openadaptor Embryonic Virtualization SW - Xen Portals - Jetspeed, Zope Enterp Apps – SugarCRM, Compiere Databases - MySQL, Ingres Emerging Directory Svcs - OpenLDAP Content Mgt – Alfresco, OpenCms Collaboration – Zope, Drupal Growing Security SW – Snort, Nessus App Servers – JBoss, Geronimo Maturing Server OS – Linux, FreeBSD Dev Tools – Eclipse, Hibernate, Struts Most Mature Source - Gartner; Network World , pg 38; Digium 2007 Asterisk Telephony

January 23-25, 2008 Miami Beach Convention Center Miami, Florida USA 9 Open Source Ruled in 2007 More than 6 billion minutes of calls were made over Asterisk systems 1 More than 890,000 1 new users were connected over Asterisk IP telephony connected phones More than 1.1 million people downloaded Digium’s Asterisk/AsteriskNOW™/Switchvox free open source software More than 10,000,000 1 people downloaded some version of open source software Two events for Asterisk: Digium|Asterisk World (Asterisk for business; 3 events on 2008) and Astricon, now in its 5 th year (the premier Asterisk user conference)

January 23-25, 2008 Miami Beach Convention Center Miami, Florida USA 10 What Does Open Source IP PBX Mean Today for Business?  Major drivers are:  Ability to innovate freely  Ability to customize easily  Ability to personalize  To lower the cost of ownership:  To acquire  To learn  To trial  To implement  To grow  Flexibility  Investment protection (open source = source code)  No vendor lock-in  Open standards

January 23-25, 2008 Miami Beach Convention Center Miami, Florida USA 11 Open Source Asterisk Choices Turnkey Business Solutions for Voice Complete Systems - Asterisk Appliance - Switchvox SOHO/SMB - 3Com Asterisk Appliance (through partnership) Asterisk Toolkits For Building IP Telephony Applics Genuine Asterisk Code AsteriskNOW Asterisk Business Edition Platforms Hardware: - - X86 Servers - - Gateway Boards - - Appliances

January 23-25, 2008 Miami Beach Convention Center Miami, Florida USA 12 Open Source IP Telephony Today Asterisk is everywhere and in a variety of unified communications applications including: call centers, PBX, voice mail, conferencing and VoIP services The ecosystem: global partners, from 3Com on the infrastructure side, to applications developers who have all developed solutions based on Asterisk. Enables integrators, resellers, and users to build what they need without giving up functionality Free software distributions –Digium alone averages 3000 downloads per day –Others have delivered over 2 million additional downloaded Asterisk servers via distributions that we hear about –There are dozens of distributions today of Asterisk; largest are AsteriskNOW and trixbox; others include Astlinux and Red Hat –Focus on ease of use and simplicity plus give users choices Capabilities and ease of use are surpassing traditional choices using web 2.0 mashups and easy top use admin and user tools –Integrate various web sites such as Google Maps and Salesforce, Facebook, or any other URL into presence-based Switchboard™

January 23-25, 2008 Miami Beach Convention Center Miami, Florida USA 13 Digium Overview (See us in booth 532) Founded:1999 Creator of Asterisk, the #1 open source telephony software Vision:A world based on open communications Mission:Transform the way business acquire and operate their communications systems through the application of open source software Markets:SMB, SME - The New Voice of Business The Asterisk Community of developers, innovators, integrators Products:Asterisk open source software Gateway cards for servers and appliances Asterisk business-class software and toolkits Switchvox SMB turnkey systems, powered by Asterisk Employees:120 Headquarters:Huntsville, AL Investors:Matrix Partners, ADTRAN Profitable Growth since 2002 for 24 straight quarters

January 23-25, 2008 Miami Beach Convention Center Miami, Florida USA 14 The “ParaDigium” Shift In 1949 Popular Mechanics suggested that “Computers of the future may…perhaps only weigh 1.5 tons.” In 1977 Kenneth Olsen, president and founder of Digital Equipment Corporation, stated: “There is no reason for any individual to have a computer in their home.” Decades ago, railroads were busy planning expansion of routes, adding streamlined trains, never watching for alternate solutions. The managers felt air travel was too costly and too risky. Today, how many railroads are there vs. airplanes? Fast forward to open source paradigm shift: In 2007, Avaya/Cisco/Nortel/Microsoft said open source telephony was about 5 years out – if ever. As we look at rising market shares for Asterisk …and adopters like 3Com, NTT, and others, change is here.

January 23-25, 2008 Miami Beach Convention Center Miami, Florida USA 15 What Happens If You Don’t Consider Open Source? Didn’t Embrace Digium|Asterisk VoIP

January 23-25, 2008 Miami Beach Convention Center Miami, Florida USA 16 Best-Fit Open Source For Asterisk IP Telephony?

January 23-25, 2008 Miami Beach Convention Center Miami, Florida USA 17 Where Asterisk Fits

January 23-25, 2008 Miami Beach Convention Center Miami, Florida USA 18 The Big Picture Unified Communications

January 23-25, 2008 Miami Beach Convention Center Miami, Florida USA 19 Ground Rules for Modifying and Redistributing? and for free download; you will find GPL licensing rules and obligations as well as Digium’s process outlined on the siteswww.asterisk.orgwww.asterisknow.org For open source distribution: –GPL licensed software is freely distributed with source code, including derivative works –Asterisk open source changes can be licensed back to – Digium for maintaining going forward under the GPLv2 –Asterisk can be commercially licensed from Digium for binary-only distribution (Asterisk Business Edition) –Other open source companies may use different licenses that have different rules (e.g., BSD, GPL3, etc.) Dual license model: means license commercially and under the open source license

Thank you. Bill Miller, VP Product Management and Marketing (256) Open Source Distribution: Open Source for Developers: Developer and User Conference: All things Asterisk for Business: