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The leader in session border control

for trusted, first class interactive communications

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SIP trunking Overcoming the obstacles and enjoying the benefits

Michael Leo Director, Enterprise & Contact Center

Solutions Marketing

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FutureNet APKT SIP Trunking May 2010

How Do Your Children Communicate?

Email

IM / VideoCellular

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FutureNet APKT SIP Trunking May 2010 4

Agenda

What is SIP trunking

Challenges facing SIP trunking deployment

Benefits of deploying SIP trunking

Why you need a Session Border Controller when deploying SIPtrunking

SIP trunking example

Case studies

Net-Net

About Acme Packet

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What is SIP trunking?

Direct IP peering between SIP-

enabled IP PBXs and ServiceProvider SIP-enabled networksConverts TDM trunks on-site toSIP-based media streams to thecarrier networkBased on mature SIP standards

Based on reference architecture

defined by SIPConnect ForumReplacement of TDM-basedtrunking (PRI and CAS trunks)Logical SIP trunk overlayingIP network

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Positive outlook for SIP trunking

Still in early stages CY08, $130M in revenue,

208.5K SIP trunksNorth America drivingSIP trunking 74% total trunk shipments

in CY08

Infonetics: June 2009

$0

$1

$1

$2

$2

$3

$3

$4

CY08 CY09 CY10 CY11 CY12 CY13

R e v

e n u

e ( U S $ B )

0

1

2

3

4

5

6

T r u n k s ( M )

Revenue Trunks

SIP Trunking2008-2013 CAGR of 91%

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Challenges facing SIP trunking

Adoption Under 3% of current trunk installations,but growth is rapid (300%+/year)

Availability Limited pool of providers, but expanding rapidly

Standards Service Providers offers diverge greatly

Interoperability Legacy TDM platform must be converted to SIP

through voice enabled router

SIP signaling implementations can hamper

performance/security Some vendors only implement specificSIP signaling mechanisms

Security IP communications and UC networks require

security, just like data network

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Benefits of SIP trunking

Lower telecom costs by 30-70%

Improve stability by moving alltechnology into centralized data centers

Business continuity/disaster recovery

Answer all calls all the time no matterwhich number a customer calls on (localor toll free)

Improve productivity by furtherintegrating communication with people,process, and information

100% call recording for industrycompliance, quality monitoring, andspeech analytics

Foundation for UC deployments(audio/video conferencing, presence,chat)

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9/20FutureNet APKT SIP Trunking May 2010

SIP trunking driving rapid adoption for UC applications

Irwin Lazar, Nemertes Research VoiceCon SF, 11/4/09

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10/20FutureNet APKT SIP Trunking May 2010 11

Industry observations

SIP trunking services have been commercially available since 2005, but

only now are enterprises grasping the business case, which can be verycompelling within certain enterprise segments

Brian Partridge, Yankee Group analyst

SIP trunking revenues will be about twice as large a revenue stream ashosted PBX services by 2012, possibly representing about $10 billion

worth of annual revenue.Frost & Sullivan

There are some technical hurdles to overcome when deploying SIP trunks,but most of them were related to the fact that most firewalls and othertraditional security cannot handle the bidirectional nature of voice andother communications most of which can be overcome through the

use of a session border controller .Zeus Kerravala, The Yankee Group

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Session real-time, interactive

communications voice, video &multimedia using SIP, H.323,MGCP/NCS, H.248, RTSP

Border IP-IP network borders1. Interconnect/peering:

between service providers

2. Subscriber access:enterprise, residentialor mobile services

3. Data center:retail or wholesale services

4. Enterprise: intra- &extra-enterprise

Control 1. Security2. Service reach

maximization3. SLA assurance4. Revenue & cost optimization5. Regulatory compliance

What is a session border controller?

Largeenterprise Mobileservices

PSTN

PSTN origination& termination

Directory servicesIP transit

PSTNtermination

IP contact center

Residential& business

services

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VoIP & UC securitySIP trunking

SIP & H.323 interoperability

Data center disaster recovery

Remote site survivability

Contact center virtualization

Remote site & worker connectivity

via the InternetRegulatory compliance

recording & privacy

SBC solution controls four IP network borders

Datacenters

Contact center,audio/video conferencing,

IP Centrex, etc.PSTN

Serviceproviders

SIP

IPsubscribers

Internet

Tele-worker

Nomadic/mobile user

H.323

Regionalsite

SIP

Remotesite

Private network

1. SIP trunking border 4. Hosted services border

2. Private network border 3. Internet border

HQ/campus

Remotesite

IP PBX UC

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Example case study

Fortune 1,000 healthcare organization

5,000 employees

500 agent call center

Challenge reduce costs byconsolidating trunking into acentralized data center

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Current trunk costs

15

Trunk Type Access Trunks Usage Usage Features Sub Total

T1/PRI Inter-State Intra-State BasicToll Free 33 750 4250000 750000 750Default $300 0 0.02 0.05 $50

Sub Total $9,783 $0 $85,000 $37,500 $37,500 $169,783Long Distance 22 500 3750000 1250000 500Default $300 0 0.02 0.05 $3

Sub Total $6,522 $0 $75,000 $62,500 $1,500 $145,522Local 43 1000 0 2500000 1000Default $300 $35 0 0.01 $5

Sub Total $13,043 $35,000 $0 $25,000 $5,000 $78,043Support 2.5 people $20,000Taxes 10% $39,335Monthly Total $452,683Yearly Total $5,432,196

T D M

t r u n

k s

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New SIP trunk costs

16

Trunk Type Access Trunks Usage Usage Features Sub Total

T1/PRI Inter-State Intra-State BasicToll Free 33 750 4250000 750000 750Default $300 0 0.02 0.05 $50

Sub Total $9,783 $0 $85,000 $37,500 $37,500 $169,783Long Distance 22 500 3750000 1250000 500Default $300 0 0.02 0.05 $3

Sub Total $6,522 $0 $75,000 $62,500 $1,500 $145,522Local 43 1000 0 2500000 1000Default $300 $35 0 0.01 $5

Sub Total $13,043 $35,000 $0 $25,000 $5,000 $78,043Support 2.5 people $20,000Taxes 10% $39,335Monthly Total 2,250 $160,000 $44,000 $452,683Yearly Total $5,432,196

Trunk Type Access Trunks Usage Usage Features Sub TotalEthernet Inter-State Intra-State Basic

SIP Trunks 4 1500 0 0 0Default $5,000 $25 0 0 $5Sub Total $20,000 $37,500 $0 $0 $7,500 $65,000Support 1.25 people $10,000Taxes 5% $3,750Monthly Total $78,750

Yearly Total $945,000

T D M

t r u n

k s

S I P t r u n

k s

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Savings using SIP trunks

Reduction of telecom costs of$4.4 million dollars a year

Savings summary Access - 4 Ethernet/MPLS vs.

98 T1/PRIs Trunk aggregation - From

2,250 voice trunks to 1,500 SIPtrunks Flat rate usage - $25/month per

trunk including 1,000 minutesLD

Tariff/Rate Reductions - Lessadvanced feature costs liketransfers, no intrastate or localusage charges

17

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SIP trunking case study - TruGreen

Application SIP trunking (VzB) for IP- PBXs to reduce

PSTN costs Net-Net SBC at trusted access and

interconnect borders supportapproximately 225 locations

Problems overcome High costs and inefficient PRIs and FX lines

for 225 individual TruGreen locations Protect data center from attacks Call routing & load balancing Need for high VoIP call quality Centralized routing table admin

Acme Packet advantage Interoperability with service

provider Acme Packet SBCs Net-SAFE security features Policy-based routing and load balancing Strong recommendations from other large

enterprises Better than Cisco!

Solution overview Acme Packet Net-Net 2600-SD

Datacenters

PSTN

Regionalsite

SIP

Remotesite

SIP trunking border

Private network border

HQ/campus

IP PBX CC

Private network

SIPSIP
http://images.google.com/imgres?imgurl=http://www.merrymaids.co.uk/cm_sitedata/page_images/673811227540723_trugreen-logo.gif&imgrefurl=http://www.merrymaids.co.uk/family-of-brands/&usg=__f-U1HlTDUbAn2jp0w7Yi3IS_dSQ=&h=100&w=210&sz=4&hl=en&start=3&sig2=AAjDCnneyQrRwgdcPAUUPg&um=1&tbnid=QD_ykeU57lW4wM:&tbnh=50&tbnw=106&prev=/images?q=trugreen+logo&hl=en&rls=com.microsoft:en-us&um=1&ei=qZLoSouxE4viNZWD2fEH

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Net-Net

TDM-to-IP transition well underway Reduce costs, improve communications efficiency Mobility, collaboration, presence and

video drive IP transition and complexity Compliance call recording, emergency services,

domain separation IP PBX extensively deployed but exist as islands

Unified Communications (UC) is the new focus Migrate mission critical applications onto IP network Integrate chat, voice and video into contact center

and business applications Introduce presence and mobility into application delivery process Transition call centers to multimedia customer care centers

SIP trunking can reduce voice trunking cost for an organization by50% of more Most implementations have a positive ROI in less than one year

SIP Trunking is not an all or nothing endeavor Start with moving outbound voice traffic to SIP trunks to get a quick

ROI with little risk and keep the existing PSTN trunks as a backup

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Acme Packet at a glance

Session Border Control (SBC) category creatorand leader with 50-60% market share

980 customers in 104 countries,many with multiple applications/projects

Over 790 service providers Wireline, wireless & cable 183 tier 1 service providers 90 of top 100 13 of top 15 North American MSOs

Over 185 enterprise & contact centers 11 of Fortune 25

Premier distribution & integration partners- 100+ worldwide

Experienced, long-standing leadership team

450 employees in 31 countries,Burlington, MA headquarters

Public company (NASDAQ: APKT)with strong financials

Founding team

$116$142

$184

2008 2009 2010

$0.27

$0.35

$0.46

2008 2009 2010

Revenue ($M) EPS (non-GAAP)

guidance guidance

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Q&A

Visit www.acmepacket.com for more information Follow us on Twitter @ Acme_Packet

or at www.sip-enterprise.com

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