2. BUSINESS MADE SIMPLE Providing Alternative Work Environments George Stuart North Carolina Digital Government Summit 2 September 2009

3. 3 Nortel: A Pioneer in Teleworking Original goals: Add real estate capacity Reduce costs Provide flexible work environment Nortel began home- based worker program in 1994 2006 & 2007 Alfred P. Sloan Award for Business Excellence in Workplace Flexibility 2x recipient of Fortune 1000 “Excellence in Telework” award from the International Telework Association

4. 4 Teleworking at Nortel It’s Not Just Home-Based 70% have laptops 84% work remotely* 72% work full day(s) at home* 10% are home-based * For employees without laptops, IT offers software to secure home computers. IT enables mobility –VPN –VoIP & UC –Cell phone & PDA Heads-down work done anywhere –Much of it at home > 50% seats vacant Every month at Nortel Seats required < # of employees

5. 5 Benefits Alternative Work Environments Cost of traditional workspace –$9k/employee/year at Nortel –Job function change  relocation costs ($0.5-$50k) The way people work –Ad hoc meetings & collaboration –Face time with customers –Heads-down work at home Business continuity –2009 H1N1 flu outbreak –2003 Northeast blackout Work-life balance –Reduced absenteeism –Workday extension –Global time zone adaptability Employers no longer need to pay you to drive to a building to sit and type…. The need to actually show up at an office…is just going to fade away. It’s too expensive, and it’s too slow. — Seth Godin, “The Last Days of Cubicle Life”, Time (25 May 2009)

6. 6 Workers Are More Mobile Traditional Fixed Address Free Address Options AT HOMEON THE ROADIN THE OFFICE

7. 7 Home-Based Requirements Wide range of job functions Reliable voice & data networking –High-performance ISP –Reliable telephony –Network security Collaboration tools –Presence & secure IM –Web collaboration Work environment –Ergonomically correct furniture –Training Key is reliable, cost-effective voice service

8. 8 Home-Based Voice Service Corporate intranet Internet IP Phone BSR 222 VPN Router PC / Workstation with VPN Client Application BSR 222 establishes “always on” VPN tunnel for voice only Data VPN tunnel established from user’s workstation BSR 222 Bandwidth Manager protects voice from bursty data traffic ChallengesSolutionResults Provide enterprise-grade VoIP for 1,400 home-based employees to reduce costs Ensure that voice quality isn’t affected by file transfers or PC problems Nortel Business Secure Router 222 Nortel IP Phone 1140E or 1230 Preconfigured to plug-and-play $1.7 million annual savings “Office phone” at home, always on High-quality, secure voice service Economical enterprise-grade voice service at home CS 1000 +

9. 9 Home-Based Network Security Intranet Internet Employee laptop VPN Tunnel Guard verifies remote PCs before allowing connection: OS patches Antivirus software Software firewall Choice of SSL or IPSec tunnel IPSec SSL ChallengesSolutionResults Expand VPN access from IPSec only to include SSL Prevent unprotect endpoints from introducing malware to corporate intranet Existing Nortel VPN Routers Added Nortel VPN Gateways with SSL NetDirect Enabled VPN Tunnel Guard feature (included in both products) First 9 months: 7x increase in virus threats detected 28% reduction in virus infections VPN Tunnel Guard agent Improved network security with minimal user involvement Nortel VPN Router Screening Router Nortel VPN Gateway Nortel Application Policing

10. Home-Based Unified Communications Improved team collaboration –Rich, secure presence & IM –Full integration with CS1K Reduced operating costs –Meet-me conferencing –Desktop video Strengthened communications with partners, customers, and suppliers –Reachability options –Wireless client 10

11. 11 Mobile Worker Traditional Fixed Address Free Address Options AT HOMEON THE ROADIN THE OFFICE

12. 12 Mobile Worker Requirements Customer-facing roles like Sales and Field Service Similar to home-based requirements, but… …able to work anywhere –Wireless services Cell phone / PDA Laptop –VoIP/UC soft client USB or Bluetooth headset No phone set Key is managing service costs

13. Mobile Worker MCA for Better VoIP 13 Intranet VoIP / UC soft client with USB headset Email client Dynamic bandwidth allocation protects VoIP from other apps MCA improves app performance, esp. over wireless links: Data compression Application proxies Transport optimization ChallengeSolutionResults Protect VoIP traffic from other apps, esp. email Improve performance over 3G wireless service Nortel Mobile Client Accelerator (MCA) VoIP / UC soft client Dramatically improves VoIP quality Improves app responsiveness Viable alternative to cell phone High-quality VoIP with soft client and USB headset Mobile Client Accelerator (MCA) MCA Server CS 1000 Email server

14. 14 Mobile Worker Traditional Fixed Address Free Address Options AT HOMEON THE ROADIN THE OFFICE

15. 15 Free Address Office Requirements Wide range of job functions –Some require physical presence –E.g., R&D, IT Flexible seating –One seat to many employees –Move every few hours, days or months Flexible IT –100% self-moves –Minimal cabling –Temporary phone set assignments Key is an instantly adjustable, self-service model

16. Free Address Office WLAN 16 Ethernet Routing Switch 5520 Communication Server 1000 Laptop IP Phone 1140E Laptop Ethernet Routing Switch 8600 Communication Server 1000 Laptop IP Phone 1140E Laptop Ethernet Routing Switch 8600 WLAN 2332 Access Point Wired LAN TopologyWLAN Topology Ethernet Routing Switch 5520 WLAN 2382 Security Switch WLAN simplifies with reduced cabling & added flexibility Headset Phone

17. 17 Free Address Office Other Considerations Naturally “fixed” jobs –Admin assistant, workstation user, etc. Special phone requirements –Red phones for guests & emergencies –Conference rooms –Fax & modem WLAN requirements –Workstations & desktop PCs –Printers & servers –Guest access Employee communication –Major cultural change –IT-real estate-HR partnership

18. 18 Workers Are More Mobile Traditional Fixed Address Free Address Options AT HOMEON THE ROADIN THE OFFICE

19. To learn more about mobile working, visit www.nortel.com/nortelonnortel www.nortel.com/nortelonnortel Videos Teleworking Benefits Integrated Work Environment Case Studies A Stronger WLAN Business Case Enterprise IP Phone at Home Improving Remote Access Security with VPN Tunnel Guard Integrated Work Environment Remote VPN Access Teleworking and its Positive Benefits Upgrading WLAN security to 802.11i WLAN Guest Access Made Easy Best Practices Remote Endpoint Security Compliance Using VPN Tunnel Guard The role of business continuity at Nortel Implementation STEPS Deploying Remote Endpoint Security with VPN Tunnel Guard Providing enterprise IP phones for home-based workers Teleworking that wins awards Upgrading WLAN security to 802.11i IT Tools (freeware!) 19