2. AudioCodes – A VoIP Leader  13 Years of Operation Focusing on VoIP Media Gateway & Media Server Technology  Field proven technology: Over 12 Million Channels shipped to over 100 Countries  Enabling the VoIP leading OEM’s and TEM’s  Key originator of ITU G.723.1 standard for VoIP  Leader in Innovation and Density of VoIP Solutions  Financially strong and stable

3. Background  Listening  Reading  Observation:  Two approaches on carrier VoIP  Improve your business strategy

4. A Tale of Two Engineers Doug and Hank

5. Hank – An Introduction  Career  Home life  Personal win

6. Who’s Hank working for?

7. What’s Hank working on?  New applications.  Both Wireline and Wireless  Adding pictures, music, video

8. What’s Hank working on?  Fixed Mobile Convergence  Leveraging existing carrier’s network  Leveraging VoIP  Standards based (mostly)  IP Multimedia Subsystem

9. IMS Architecture

11. Business Model  Create greater value  Up-sell customer  SMS  Photo-mail  Video-mail  Create new customers  Family plan  Prepaid  Create “stick”  Avoid commoditization

12. Challenges  Staying compatible  “Five-Nines” Reliability  Financial limitations of existing carriers  Can’t build all of it “like we used to do”  Standard hardware platforms (cPCI and ATCA)  Development time – “IMS is a five year project”  Regulation hurdles  E911  CALEA

13. Doug – An Introduction  Career  Home life  Personal win

14. Who’s Doug working for?

15. What’s Doug working on?  Peer to Peer converged communications  Desktop based client  Integrates  eMail  Instant Messaging  Presence  Voice and video  Collaboration

16. What’s Doug working on?  Applications leverage COTS equipment  Supports external dedicated devices (new!)  Standards based (mostly)  Open source tools and components

17. Business Model  Build a community of users  Parasitic network application  Charge for “off network communications”  Calls to PSTN  IM  Optional Advanced Applications  Messaging, IVR, Conferencing  Spam, Spim and Do-not-call protection  Advertising?  Business Edition

18. Challenges  Operating on a network you don’t control  NAT, Firewalls, Packet filters  Building a brand name  Turning “cool” into “cash”  Fickle user base  Desktop crowding  Support  Regulation?

19. Conflict Can these two very different approaches co-exist? Yes

20. They need to co-exist  Neither will fit every customer  Each will find their “purpose”  Consumers will drive adoption  Standards (like SIP) will allow interoperability

21. What are we doing?  Working “both sides”  Products for both markets  HA Systems equipment  PCI-based equipment  CPE equipment  Best of Breed  Based on common software base

22. Our biggest challenge? Being agile enough to address both: Large NEPs and OEMs and Smaller more agile ISVs and.com software companies

23. What can you do?  Standards are everything  Put an end to the “download my client to talk” thinking  Be responsive to market needs  What ever happened to KISS approach?  Don’t make client/devices so complicated they’re useless  Is IMS KISS?  Participate in developing the regulation strategy Proprietary

24. Thanks Graphics by Brian Gocher Alan Percy Director of Business Development AudioCodes, Inc. Alan.percy@audiocodes.com Booth #822