1. Industry Perspective

2. www.dynamicsoft.com VON 3.20. 01 The Current Environment Its Tough Out There! Free has become a dirty word Internet communications has focused on free Instant Messaging and presence – all existing services Voice over IP Free PC to Phone – dialpad.com Free PC to PC Unified Messaging Onebox.com iConnectHere.com Electronic fax

3. www.dynamicsoft.com VON 3.20. 01 The Current Environment Why is it hard? Customers become accustomed to free services Teaches them that it has no value Free services have become commoditized Commodity services provide no differentiation Small number of big players generally win Without differentiation, there is no customer retention Cost is the only factor You will ultimately lose to the big players

4. www.dynamicsoft.com VON 3.20. 01 The Current Environment What is the answer? Dont provide applications, provide comprehensive services Communications spans mediums IM Presence Voice Video Communications spans devices Phones PDAs PC Laptop Communications spans applications Conferencing Messaging Pre-paid

5. www.dynamicsoft.com VON 3.20. 01 The Current Environment Value Proposition Value is in the integration of the applications Microsoft Office Yahoo! AOL A complete service Integrated, converged applications Customer support, self-provisioning Flexible billing Consistent look-and-feel Single identity and preferences Where does the value come from Its hard to do The space is large enough to provide differentiation Integration results in stickiness Converged Applications are compelling

6. www.dynamicsoft.com VON 3.20. 01 The Current Environment Traffic Jam Alerts Uses Geographic Locale as Presence Component Mobile phone site location GPS Service Definition Turn on mobile phone in car As you drive, application server monitors location As you approach traffic, service will call you Voice response system reads out alternate route NOTIFY INVITE REGISTER Application Server Presence Server

7. www.dynamicsoft.com VON 3.20. 01 The Current Environment Auto Conference Problem: Tough to Get Busy People Into a Conference Call Solution: Use Presence to Create the Call When Everyone is Available! Procedure Enter email addresses into a web form (1) Application subscribes to users (2) When all online, application calls each participant, calls a conference bridge, connects them together Presence HTTP SIP Calls Application Server Conference Server Presence Server

8. www.dynamicsoft.com VON 3.20. 01 The Current Environment What is the future for Comm-ASPs Comm ASP is also a dirty word Single application provider Too focused for retail The answer: Relentless Specialization Service providers focus on integration and customer retention ASPs focus on providing applications to service providers Customers never see the comm-ASP, they see a single branded integrated service Customer ASP Customer ASP Provider

9. www.dynamicsoft.com VON 3.20. 01 The Current Environment Changes In Web Business Models Best-in-class companies have emerged at every layer of the business model Applications Transport AOL CompuServe Prodigy ASPs Applications & Hosting Backbone ISP Yahoo UUNET Hosting Companies Portals Application Developers Application Platforms BEA WebLogic IBM WebSphere Yahoo! Accenture Exodus Backbone ISP UUNET ASPs Amazon.com Exodus Hosting Companies Backbone ISP UUNET Vertical Monolith Relentless Specialization

10. www.dynamicsoft.com VON 3.20. 01 The Current Environment Changes In Telco Business Models Applications Transport AT&T Communications ASPs Applications & Hosting Converged Carriers Dialpad Webley Level (3) Genuity Vertical Monolith Relentless Specialization Communications ASPs Hosting Companies Converged Carriers Level (3) Genuity Hosting Companies Retail Service Providers Application Component Providers Application Platforms Converged Carriers Level (3) Genuity What were once Voice Services are now split between converged applications and converged networks

11. www.dynamicsoft.com VON 3.20. 01 The Current Environment The New Model is all about Choices The open aspect of the model gives Service Providers the capability to mix and match their capabilities with those of third parties to offer the optimal set of revenue generating services Different Colors reflect different Service Providers The open, interoperable nature of SIP makes the integration seamless. The Session Control aspects of SIP make the Subscriber Service Management Possible Network Infrastructure Hosting Application Platforms Converged Carrier Hosting Application Platforms Hosting Application Development Application Platforms Retail Services Application Development Application Development Network Infrastructure

12. www.dynamicsoft.com VON 3.20. 01 The Current Environment The Virtuous Cycle Service Delivery Architecture Third Party Applications Customers

13. www.dynamicsoft.com VON 3.20. 01 The Current Environment How to deliver it? A converged protocol A converged network A converged platform for third party applications

14. www.dynamicsoft.com VON 3.20. 01 The Current Environment The Protocol: Session Initiation Protocol (SIP) No big surprise SIP enables converged real-time communications services General purpose tool for initiation of communication sessions Voice Video Games Provides presence Provides instant messaging Single set of network elements can deliver these services SIP networks provide rendezvous and features independent of communications medium Flexibility to build a wide array of architectures

15. www.dynamicsoft.com VON 3.20. 01 The Current Environment The Network: Service Delivery Architecture ROUTING ACCOUNTING SECURITY Third Party Services Access Provider Traditional Telephony Peer Media Server Access Proxy Access Proxy Application Server Firewall Control Proxy Edge Proxy Core Proxy Edge Proxy Firewall Control Proxy Service Management Platform Firewall Wireless Radio Access Network Access Provider Location Server Carrier Services Access Service Management Network Firewall Presence Server Media Server Access Proxy Application Server Service Creation

16. www.dynamicsoft.com VON 3.20. 01 The Current Environment The Platform: App Components Architecture Define highly reusable, standalone components Conferencing Server Dialog Server Presence Server Gateways All application specific code in the AS AS supports third party application development Reuse and coarse granularity leads to Rapid time to market Large development communities Web Server Dialog Server Conference Server Presence Server DB HTTP SIP LDAP/ SQL AS

17. Information Resource Jonathan Rosenberg +1.973.952.5000 jdrosen@dynamicsoft.com