Open Networking Summit Hassan Ahmed, Chairman and CEO

Affirmed Networks

Meeting an Industry Challenge – Affirmed Value Proposition

2

Rapid Data

Growth Requires

New Economics

Limited Participation

And Control with

OTT Revenues

Network Asset

Congestion,

Utilization & Efficiency

All-IP Network

Real-Time Services

VoLTE, Video

Network Capex Under Extreme Pressure

3

0

2000

4000

6000

8000

10000

12000

14000

16000

2009 2010 2011 2012 20132014

20152016

20172018

Mo

bile

Dat

a (P

B/m

o)

Source: Cisco VNI

Network Architecture Needs Major Overhaul • Increased Capex in a

declining ARPU environment is a non-starter

• Carriers looking to lower ARPU services (e.g. M2M) for continued growth in a saturated consumer market

Internet

Typical Existing Mobile Architecture Complex, Costly Silo Architecture, Slow Service Creation

4

PDSN/SGSN

MME

HLR

Radius

AAA

OCS

PCRF OFCS

1. Highly complex & costly silo architecture

2. New Internet app/phone => serial connected Gi box

3. Service routing tightly coupled to APN names

4. Network reconfigurations needed to add new services

5. Probes on each N/W segment to passively analyze traffic

6. Traffic Analytics are fragmented

7. Charging/Billing is coupled to APN

8. Cost, Latency & Ops Complexity HIGH, QoE is LOW

GGSN/HA

SAE GW

WAP GW

Content

Filtering

Parental

Control

MMSC

Proxy

DPI Content

Caching

Video Optim.

&

Adaptation

Content

Optim.

Anti-virus

Anti-Spam HTTP Proxy

NAT

FW

1. Fully Integrated & cost effective mobile core

2. Highly efficient service orchestration via Workflow

3. APN & routing flexibility

4. Active Integrated SPI, DPI, Heuristics for Gn/Gi facing Sv

5. Well coordinated Traffic Analytics for core & services

6. Flexible Charging/Billing per Svc flow for subs & provider

7. Cost, Latency & Operational Complexity is LOW

8. Quality of User Experience (QoE) is HIGH

NFV: A Disruptive Force in Networking 1. Hardware agnostic (IBM, HP, etc.) 2. NFV is disruptive, not evolutionary

Affirmed’s Value Proposition 1. Collapse complex Packet & Services Core 2. Fully virtualized HW/SW solution 3. Powerful services orchestration solution

Legacy Networks are Inflexible

Serving Gateway (SGSN)

HTTP Proxy Web/Video

Caching

Content Filter

UPLINK Firewall

Charging Services Gateway

Load Balancers

3G GGSN

Domain Name Server

Serv

ice

Ro

uti

ng

Ru

les

Fire

wal

l R

ule

s

AP

N

Serv

ice

R

ule

s

Load

D

istr

ibu

tio

n R

ule

s

Co

nte

nt

R

ule

s

Ch

argi

ng

& B

illin

g

Ru

les

Sub

scri

ber

Ru

les

Service Routing Rules

Engineering

Policy Enforcement

IT Department

Service Policy Rules

5

Affirmed Services Orchestration Workflow Reduce TTM & OPEX, Create New Revenue Streams – Overhaul Business Model

6

Creates personalized services thru easy-GUI

Enable differentiated M2M & Enterprise services

Implement services at internet speed

Service segmentation per customer / vertical

Differentiated billing options

A CENTRAL PREMISE OF NFV

HTTP Proxy Caching DPI GGSN QoS Content Adapt.

Charging Content Optim.

DPI GGSN Charging Content Filtering

Browsing Messaging

Gaming

Video Browsing

Messaging Gaming

Video

Internet

Browsing Messaging

Gaming

Video Browsing

Messaging Gaming

Video

Browsing Messaging

Gaming

Video Browsing

Messaging Gaming

Video

DPI GGSN Charging HTTP Proxy Content Optim.

AN3000

Gold User Unlimited data with best QoE

Normal User 3G of content optimized data

Young User 20M of data limited to Youtube, Tweeter, Facebook, Skype

Real Network ROI is more than just NFV

Jan-19-2012 7

Beware the Legacy Proof of Concept Need a fresh approach – parallel software architecture

Commodity HW Pooling Effect

Sub Awareness NW Resiliency NW effect

CAPEX OPEX

NW Op and Mgmt Simplicity, Energy, RE

People NW Effy w Dynamic Policy

Rapid Service Creation

REVENUE

Service Creation Dynamic Policy

New Business Models Flexibility

Segmentation

Where Are We – NFV is Happening at Affirmed

8

• The First NFV Solution Deployed in Tier 1 Networks ‒ 12+ Deployments – Europe, Asia and North America

‒ ATT Announcement at MWC last week

‒ 30+ Trials

‒ Wide Variety of Services/Solutions

• Continuing Technology Disruption ‒ Network Functions Virtualization (NFV)

‒ Cloud Ecosystem/Partnerships

‒ Unique Service Orchestration

‒ Well funded to drive disruption ($103M raised to date)

• Advanced Capabilities/Features ‒ Virtualized EPC & Gi Applications

‒ Machine-to-Machine Solution

‒ MVNO/Wholesale Solution

‒ Content/Video Optimization

‒ Open Workflow Third Party Integration

AT&T: Domain 2.0

9

Summary

10

Mobile Data Growing Rapidly

Network Virtualization/Cloud

Mobile Content Services Growth

Significant Operator Traction