October 10-13, 2006 San Diego Convention Center, San Diego California Unified Communications and Beyond Tony Rybczynski Nortel Director of Strategic Enterprise Technologies

3 Technology has to take you where you want to go

4 Agenda > Introduction > 3 Industry Inflection Points > State of Unified Communications and Beyond > Some Take Aways

5 3 Industry Inflection Points Rich Personal Communications Virtualization IT Convergence The Network >Anytime anywhere user connectivity >Disassociation of service & application delivery from location >Secure communications across trust domain >Enriched collaboration >Identity independent of device >Personalization >Network intelligence >Software-centric UC systems >SOA >Environmentally- aware applications and processes

6 Why It’s Important To You These inflection points are business transformational by >Increasing business agility >Improving customer engagement >Speeding decision making and improving productivity >Lowering the cost of doing business “An organization's ability to learn, and translate that learning into action rapidly, is the ultimate competitive business advantage.” Jack Welch, General Electric Almost three-quarters of the top IT executives surveyed in CIO Insight's July03 research on the real-time enterprise say speed to market is critical in their industry.

7 Agenda > Introduction > 3 Industry Inflection Points > State of Unified Communications and Beyond > Some Take Aways

8 Evolution Strategy for Enterprise Today Evolve to Unified Communications with Investment Protection IP Enable Unified Comm TDM Integrate Desktop Unified Messaging Contact Center Self Service IP PBX

9 A GLOBAL MANUFACTURING COMPANY DEPLOYS MULTIMEDIA SIP CLIENTS (65%) of employees using SIP multimedia clients Complemented by 195 IP- enabled PBXs and 17 IP Centrex switches 206 IP VPN Gateways for secure Internet access from home, hotels and WLAN hotspots and for secure enterprise WLAN access from 1000 APs Application-aware network running secure routing and optical for highest QoE Positive business case Current investments leveraged Enhanced mobility & productivity Faster decision making across virtual enterprise

PERSON INVESTMENT BANK FIRST TO DEPLOY UC ACROSS THE COMPANY At a Desk Managed Office Whatever you’re doing In the Air On the Road Vmail Collaboration Telephony In Town PC Cellular Blackberry Wherever you are Whatever you’re using At Home >Presence and personalization including session routing >Centralized unified messaging with voic notification to Blackberries >Call logs (received/dialed/missed) and >Converged desktop and PC integration >Desktop video conferencing >In-house conferencing on demand >Secure access and Business Continuity 30 minute closure to client calls with <1 year payback

11 Converged Solution: IP PBX & Microsoft LCS 2005 Unified Communications: Business Grade Telephony with Microsoft real-time applications -Live Communication Server 2005 Active Directory LCS 2005 IP PBX Communicator Client A Communicator Client B PSTN Integrated Applications One petroleum company is targeting a 100,000 seat deployment

12 Nortel’s Converged Office Features: State of the Art Federated IM and Presence Click to Call via VoIP Audio/Video/Data Office and App Integration Microsoft’s Office Communicator and Live Communications Server 2005: Click to Call Telephony Presence Nortel Business Telephony PBX Integration / CTI Nortel Application Center Open Application Interface Nortel’s Business Grade Telephony and Applications:

13 IP PBX-Microsoft Options Alternative Middleware Solutions -Complex and expensive middleware components required for the solution -Functionality limited to remote telephony control -No network voice calls to or from Office Communicator -No mobility solution (no soft-client) -No converged desktop -No integration: PC-PC or phone to phone calls only -Limited CTI feature set -No availability for new Nortel CTI enhancements (on old interfaces) -No Call detail recording +Nortel/Microsoft Converged Office Solution +Simple direct connect solution +Extends Nortel redundancy +Integrated Voice Communications +Converged desktop +Soft-client supports mobility +Full client flexibility and interoperability +Extends CS1000 features to OC Client +SIP CTI interface for custom application development +Detailed call recording +One-stop shop for integrating Voice and IT infrastructures More Complexity Less Functionality More Functionality Less Complexity

14 Agenda > Introduction > 3 Industry Inflection Points > State of Unified Communications and Beyond > Some Take Aways

15 “This announcement is not (just) about interoperability. This is really about having an aligned offer in the market; that is, our people in front of customers every day can demonstrate, communicate, and talk about a common solution set, based on our unified communications platform, extending up to advanced applications and solutions, with great system integration capability, provided by Nortel ” Steve Ballmer CEO of Microsoft July “This is a gutsy play for Nortel—accelerating the move of our industry-leading voice technology into software and working with the world’s software leader as part of our broader business strategy to transform the company into in a software and services leader” Mike Zafirovski CEO of Nortel July

16 What If? >…you could eliminate human delays in business processes >…you could integrate unified communications with document and project management applications >…you could transform your contact center into a knowledge resource center with access to experts anytime, anywhere >…you could establish a common software platform for unified communications including business telephony and contact centers >…you could federate with partners and suppliers and collaborate in real-time

17 Advanced UC Solution Exchange 12 Multimedia Conference OCS2007 PSTN GW Active Directory Attributes Advanced UC functionality for employees, partners, agents and customers Software-only solution built on a highly resilient infrastructure SIP as the interoperability standard for clients Published APIs for communications-enabled business processes Application-aware reliable and secure networking Convergence Integration Service for end-to-end solution Contact Center Business-grade Network Business Comm Solutions Business Apps & Processes APIs S I P Vertical Business Solutions

18 Value Propositions For Enterprises Realize the flexibility and cost benefits of Advanced UC –retain telephony quality of experience and legacy devices, applications Meet needs of distributed work force –rich campus and WAN mobility solutions Increase productivity and reduce time to decision –helping users quickly find people and communicate and collaborate –delivering better customer service Communications-enabled business processes increase customer engagement, agility and operational efficiency IT improves service to clients while optimizing TCO –common platforms, autonomic networking and data center centralization It’s all about Reducing Time to X

19 Agenda > Introduction > 3 Industry Inflection Points > State of Unified Communications and Beyond > Some Take Aways

20 Take Aways 1.Unified Communications is here >Personal & Intuitive >Convenient & Integrated >Flexible & Trustworthy >Evolution of IP Telephony 2.IT convergence is changing the industry >IP Telephony and Unified Communications become software applications >SOA is the application interoperability standard 3.The end game is now >Rich personal communications and collaboration >Communications-enabled business processes

October 10-13, 2006 San Diego Convention Center, San Diego California Thank You