2. SIP’s Role In Open Source Al Brisard, Vice President, Marketing Pingtel

3. SIP is IT  De-facto standard for IP Communications going forward at every juncture  Markets  Service Providers  Applications  Hardware  Software  Endpoints  Unification Method  Foundation for ongoing value and intelligence

4. Open Source? First things first What’s open source’s role in telephony?

5. Open Source Is A Credentialed IT Model Databases App Servers Operating Systems Acquires SUSE Linux for $210 million, Nov. ‘03 $4.04 B Market Cap 31.6x Fiscal ’04 revenue IDS Web Servers

6. Applying the Linux/Red Hat Model to Enterprise Telecom  Markets distributions of open source software on a recurring subscription basis to enterprises, carriers and OEMs  Offers professional services to support enterprises, partners and OEMs: installation, integration, and field support  Grows value of open source with new applications, and customization for specific customers & platforms Open Source Code  Testing/certification  VoIP hardware & applications certification  Binary packaging  Documentation  Training  TAC support Packaged Subscription Distributor Value Add

7. Enterprise SIP - All The Ingredients For Successful Open Source Market Conditions for Successful Open Source Enterprise VoIP  High growth  High value to customers  Well-established functionality  Established standards  Many players with a stake in successful open source

8. Open Source…It’s the Economics Open source development empowers the telephony market with PC-like economic$ Lower prices = faster adoption

9. What Does SIP Bring to the Table SIP enables wide interoperability That gives customers choice Which leads to lower prices That makes VoIP more palatable to a wider potential market

10. It’s the Combination of SIP and Open Source = Empowerment  A fully complete, enterprise-class open source SIP product set will:  Remove barriers to rapid, pervasive deployment of production systems  Accelerate delivery of new functions by leveraging a large, interested developer base  Trigger development of new applications based on SIP  Shatter technology incompatibilities between vendors, and eliminates technology lock-ins  Prevent strategic mistakes in making choice of VoIP vendor or architecture

11. Combining SIP and Open Source to Create Value  Drive and support commoditized, open source, SIP-based VoIP solutions that serve as the ubiquitous platform for enterprise communications  Deny legacy PBX vendors ownership of proprietary call control  Reduce barrier to entry for new vendors of SIP-based applications  Reallocate market share to a new ecosystem of vendors who provide interoperable components  Enable seamless integration of voice as an element of the Internet user experience  SIPfoundry  Broad community support (Vovida, reSIProcate, Pingtel)  500+ active participants and growing  Key projects leveraged in commercial applications (sipX, reSIProcate)

12. Who Benefits???  Developers  Accelerates innovation by opening VoIP to broad-based development and providing an industry standard platform  Equipment Vendors  Levels playing field for market entry, lower prices  Resellers and System Integrators  Enables ecosystem that delivers new value to customers  End Users  SIP becomes embedded and ubiquitous, customer get more value

13. Market Impact of Soup in a Can  Transformation of enterprise voice into an IT application  Provides compelling customer and ecosystem value  Significant reduction of total cost of ownership of between 30% and 50% initially  Choice of vendor that eliminates vendor dependency & lock-in  Increased flexibility and simpler, more resilient backup & recovery  Accelerated innovation based on standards that leads to new applications  A new, fully transparent and mobile user experience for voice that is seamlessly integrated into the Internet  Combining standard, SIP-BASED technology with the well-established OPEN SOURCE business model challenges and breaks incumbent vendor model  Changes the basis of competition from hardware and distribution to software and services

14.  Leading edge customers and partners work directly with open source community and software  Most customers prefer stable distributions of open source that has been tested & packaged and for which they can obtain support  Well established business model  Linux  Databases  Java application servers Making Open Source SIP Viable for Customers and the Ecosystem

15. Open Source SIP Software Transforms Voice Into a Commoditized IT Application $25 $20 $15 $10 $5 $0 2004 $ billions PBX Hardware Proprietary PBX Software Proprietary Phones Proprietary Messaging HW Proprietary Messaging SW Annual Maintenance Linux Servers, Commodity IT & Gateways Commodity Phones Linux Server & SAN UM App on Linux Maintenance SIP PBX & Call Control On Linux Open Source SIP PBX & Call Control 40%+ CAPX, 25%+ OPX reductions Software functions like Linux; customer gains control, destroys telephony value model & pricing power Specialized components replaced by commodity IT Software value increases Open Source PBX & Call Control

16. Why Incumbents Don’t Like It  SIP + Open Source unwraps vendor lock-in model by:  Disenfranchising channel partners  Highlighting weakness in proprietary solution sets  Empowering customers with true choice (i.e. what’s best for them, not the vendor!)

17. SIP + Open Source – Just Getting Started Unified Messaging SIP SIP + Open Source creates substantial opportunities along three commercial vectors Datacenter Voice Hosted Voice Telephony Mobile Security Video Gaming VOD Conferencing Wireless & 3G Presence & IM

18. Soup is good for Everyone  SIP + Open Source creates value for the entire ecosystem by:  Lowering prices  Speeding innovation  Enabling interoperability  Providing customer choice  SIP + Open Source delivers on the original promise of VoIP