Hospitality Primer

RUCKUS WIRELESS PROPRIETARY AND CONFIDENTIAL

Hospitality PrimerTed WatsonDirector, Global Hospitality & Gaming Solutions

Fast and Fierce

INTRO TO RUCKUS WIRELESS2

30%

70%

Formed 2004, Sunnyvale, CA

Status Publicly held (NYSE: RKUS)Market Cap ~$1+Billion

Founders Bill Kish and Victor ShtromCEO Selina Lo

Innovation Carrier Class” Smart Wi-Fi”R&D Centers US, China, Taiwan, India, Israel

2013 Revenue $215M / 56% CAGR (2009-2013)4Q13 revenue/net

income$64 million / $5 million

Customers 33,000+Partners 9,000+

Employees 800+ in 34 countriesPatents 60 granted

Selina Lo

Bill Kish

Victor Shtrom

Company founded

A History of Proven SuccessJu

ne 2

004

Sept

embe

r, 20

05

FCS first wireless IPTV CPE

KDDI builds world’s largest mobile data offload network with Ruckus

July

, 201

1

Janu

ary

2008 Enters

enterprise and carrier WLAN markets

Janu

ary

2011

Tikona deploys 45,000th Ruckus Mesh AP in world’s largest Wi-Fi broadband network

June

201

0

5,000th Ruckus customer Q

4 20

10

2004 2014

Selected by Chongqing Telecom for citywide Wi-Fi service

Ruckus selected for major Wi-FiPublic network upgrade

Nov

embe

r, 20

11

Time Warner Cable selects Ruckus fornationwidedeployments

Apr

il, 2

012

33000 Ruckus customers

Q4

2013

INTRO TO RUCKUS WIRELESS3

Ruckus makes initial public offering

Nov

. 201

2

RuckusWins CRNs annual ARC survey in SMB Networking category

Aug

. 201

3

2010 2016

694M

2.8B

874M 1.1BEthernet devices

Wi-Fi devices

Source: iSuppli

A WORLD GOING WI-FIAnnual Unit Shipments

An Undeniable Global Trend

Tablets

Ultrabooks

o Mobile data plans drive user demand for Wi-Fio No spectrum fees for Wi-Fi service providerso Delivers over 775MHz of free spectrum o Low cost/bit in wireless data capacity

WHY WI-FI?

INTRO TO RUCKUS WIRELESS4

LightingEnvironmentalSystems

Projectors

Wi-Fi Powers the Post-PC Era

5 RUCKUS PROPRIETARY AND CONFIDENTIAL

Our Commitment to Hospitality & Gaming

Over 10,000 properties deployed

Deploying over 40 hotels DAILY

Connecting millions of rooms

Preferred/Approved by ALL major brands

Hospitality

Ruckus Enterprise Business by Verticals

2009

2010

2011

2012

2013

HSP Revenue Growth

2009

2010

2011

2012

2013

HSP as % Ruckus Enterprise Business

Purpose-built hospitality program

Purpose-built hospitality products

Dedicated HSP PLMs, Engineering, Phone and Field Support

VERY Active in Hospitality Vertical

The hospitality business model…BRAND

Define Global Standards Product Integrators

Don’t’ Purchase

OWNERS Decision Makers Make Purchases Own Various Properties

PROPERTY Influencers Look to Brand & Owners

HSP Providers

??

8 RUCKUS PROPRIETARY AND CONFIDENTIAL

Consistent Pricing -> Global Pricing Expectations Consistent Products -> Dual-band (7982/7372/7055) Consistent Service -> Brand Standards (-65Ghz

dual) Consistent Costs -> Monthly / room charges

Hospitality Best Practices vary by brand but very similar!!

Hotel Expectations – Global Brands

GLOBAL CONSISTENCY

Marriott

Hilton

Starwood

IHG

Wyndham

Carlson

Delta

Carlson

Kempinski

Leading Hospitality brand approval listRepresenting >30,000 properties globally.

o Mandarin Orientalo Four Seasonso FRHIo Mondriano Montageo Peninsulao Shangri-lao Loewso Kimpton

o Accoro Scandico Rioo Best Westerno La Quintao ESAo Omnio Hyatt

10 RUCKUS PROPRIETARY AND CONFIDENTIAL

The Initial Opportunity…

BroadbandInternetAccess

…FOR MOST

HSIA Product Sales

Internet Broadband Access

Monthly MSP fees

Conference Access Event MSP fees

FTG / VOD – Content Free to Guest or / VOD

IP Network Access

11 RUCKUS PROPRIETARY AND CONFIDENTIAL

Additional Opportunities

POE from IDF

In-Room Services

Back-Office SvcsHS2.0 – Loyalty (3GO)

Location Based Svcs

Increased Guest Satisfaction

Increased Revenue

Decreased Costs

Targeted Promotion

Loyalty & Subscriber Svcs

12

Diverse Products for Hospitality

RUCKUS PROPRIETARY AND CONFIDENTIAL

Hotspot 2.0 automates secure sign-on

SPOTLBS analytics, mapping, apps

High Density conference coverage

Smart Meshing where cabling not feasible

ZD and SCG-for-Hotelson-prem or in-cloud WLAN controllers

Ruckus 7055award-winning Wi-Fi Wall Switch

13 RUCKUS PROPRIETARY AND CONFIDENTIAL

The Fundamental Ruckus Difference

Typical Wi-Fi compliants:1. Unstable connectivity2. Inconsistent

performance3. Dead spots4. Poor throughput,

low client density2.4 GHz 1–11

Adaptive Antennas

Smart Channel Management5 GHz 36–64 and 100–165

BEAMFLEX

CHANNELFLY

Beamflex antennas can form 100s-1000s unique combinations

Self-learning Beamflex software selects best performing combination per-packet, per-client

ChannelFly software selects best performing channel with a predictive measurement algorithm

Uniquely effective for mitigating interference in urban hotspots/hotzones

Higher throughput, ubiquitous high-quality coverage, reliable, easier to install and maintain

14 RUCKUS PROPRIETARY AND CONFIDENTIAL

BeamFlex Adaptive Polarization Diversity

Device orientation accounts for up to 5x performance differential

5x

Better reception for weak and hard to “hear” devices

Better transmission to mobile devices

Dual-Polarized BeamFlex Antennas

15 RUCKUS PROPRIETARY AND CONFIDENTIAL

Hotspot 2.0 Automates Network Discovery & SelectionHome Authentication

(HLR, HSS, SMS)

RADIUS Proxy

HS2.0 capable

AP

HS2.0 capable device

Association and authentication

2

1USingle SSID

3

SCG

16 RUCKUS PROPRIETARY AND CONFIDENTIAL

Integrating Advanced Services (HS2.0 & LBS)

Convention footfall

heat-map

Analytics

Real-time tracking, housekeeping

Property maps and directions

Guest/VIP recognition, keyless entry

Automatic check-in, room automation

Targeted promotion

17 RUCKUS PROPRIETARY AND CONFIDENTIAL

Global Brand HSP Approvals

Complete Solution Guest Technical Support Access Products (WiFi, Wired, Gateway, etc…) Network Access (Internet Connectivity)

Hospitality Best Practices (per brand) Designing the right network with the right products Always Dual-Band Access Points -65GHz on both 2.4Ghz & 5GHz

Obstacles

18 RUCKUS PROPRIETARY AND CONFIDENTIAL

Diverse Product Portfolio for HSP & Gaming• In-room, indoor, outdoor & Cloud solutions

Vertical Specialization Products, People, Process

Brand Approvals & Certifications

Service Enhancement • 3G/4G Offload• Loyalty Support• Guest Satisfaction Improvements• Back-office efficiencies• Stale Inventory Turnover

Partnering with Ruckus in Hospitality & Gaming

Service

Provider

Hotel

19 RUCKUS PROPRIETARY AND CONFIDENTIAL

Don’t just connect your guests…Connect WITH your Guests!

THANK YOU!!!!