RADCOM Ltd (RDCM) Corporate Overview Annual... · defined architecture to meet the growing demands...
Transcript of RADCOM Ltd (RDCM) Corporate Overview Annual... · defined architecture to meet the growing demands...
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RADCOMLtd(RDCM)CorporateOverviewFounded:1991,PubliclyTradedSince:1997
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SAFEHARBORPROVISIONCertain statements herein contain "forward-looking statements" within the meaning of the Private Securities LitigationReform Act of 1995, Section 27A of the Securities Act and Section 21E of the Exchange Act. These forward-lookingstatements include, but are not limited to, those statements regarding expected revenues, being well positioned tocapitalize on industry tailwinds and our NFV win, the market potential for NFV, expanding our direct presence in NorthAmerica, Europe and Asia, investing in direct sales, our capital position, growth objectives and statements concerningassumptions made or expectations as to any future events, conditions, performance or other matters. In some cases,forward-looking statements are identified by terminology such as "may," "will," "could," "should," "expects," "plans,""anticipates," "believes," "intends," "estimates," "predicts," "potential," "opportunity" or "continue" or the negative of theseterms or other comparable terminology. Such forward-looking statements involve known and unknown risks, uncertaintiesand other factors that may cause actual results or performance to differ materially from those projected. These statementsare only current predictions and are subject to known and unknown risks, uncertainties, and other factors that may causeour or our industry's actual results, levels of activity, performance or achievements to be materially different from thoseanticipated by the forward-looking statements. The forward-looking statements contained herein are subject to risks anduncertainties, including those described herein under "Risk Factors" and in our most recent Annual Report on Form 20-F,under Item 3.D. - "Risk Factors" and in our other filings with the SEC. You are cautioned not to place undue reliance on theseforward looking statements, which speak only as of the date on which that statement is made. We cannot guarantee futureresults, levels of activity, performance, achievements or that any of the events anticipated by the forward-lookingstatements will occur or, if any of them do, what impact they will have on our results of operations and financial condition.Except as otherwise required by law, we are under no obligation to (and expressly disclaim any such obligation to) update orrevise any of the forward-looking statements, whether as a result of new information, future events or otherwise, after thedate hereof.
RADCOM does not undertake to update forward-looking statements
This presentation and any and all content or material contained herein, are either exclusively owned by RADCOM Ltd., itssubsidiaries and/or affiliates ("RADCOM") or are subject to rights of use granted to RADCOM, are protected by nationaland/or international copyright laws and may be used by the recipient solely for its own internal review. Any other use,including the reproduction, incorporation, modification, distribution, transmission, republication, creation of a derivativework or display of this document and/or the content or material contained herein, is strictly prohibited without the expressprior written authorization of RADCOM.
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FINDTHEDIFFERENCE…
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2017
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ATRANSFORMATIONISTAKINGPLACEINTHETELECOMINDUSTRY
• Rapidincreaseinmobiledataleadingtoconstantcapacitysurges
• Growing operationalcosts• ContinualTechnologyAdvancement
LTE,VoLTE,5G,IoT,M2M,and5G• ARPUdeclines fromincreasingcompetition
fromwithinandoutsidetheindustry• Surgingproprietaryhardwarecosts• Increasingchurncausedbysubscriber
flexibilityinmovingbetweenoperators
Challenges
• Flexiblecapacitymanagement tosupportincreasingdatatraffic
• Increase scalability and loweroperatingcoststhroughNFVautomation
• Acceleratetimetomarketfornewservices• Agility tolaunchnewhighvaluerevenue
services• Reduce CAPEX byreplacingproprietary
hardwarewithsoftwaresolutions• Automation forinnovativeandresponsive
services
Solution
LTE
3G
5G
NetworkFunctionsVirtualization(NFV)
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CSPSNEEDSOFTWARE-BASEDASSURANCETOTRANSITIONTONFVRADCOMhasbeenafirstmoverinofferingsoftware-basedandNFVsolutionsforserviceassurance
NFVandHybridNetworksTraditionalNetwork
DPI
Router
ProbeProbe
Probe
Probe
Firewall
BRAS
SGSN/GGSN
SBC
Fragmented,purpose-builthardwareapplianceswithhardwareand/orsoftware-basedprobes
Virtualizedsoftwareappliances
Highvolumestandardservers,storageandswitches
Legacytraditionalnetwork(Hybrid)
VirtualProbes
VirtualFunctions
VirtualFunctions
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CSPSNEEDSOFTWARE-BASEDASSURANCETOTRANSITIONTONFVRADCOMhasbeenafirstmoverinofferingsoftware-basedandNFVsolutionsforserviceassurance
NFVenablesCSPsto
Lower ongoingOPEX andCAPEXbytransitioningtosoftwarecontrollednetwork
Increase timetomarketfornewservices
Flexiblecapacitymanagementtosupportincreasingtrafficdata
Large CSPsfirsttodeployNFVandmanywilloperatehybridnetworks
Legacyprobesolutionsdonotsupport NFVandhybridnetworks
DespitetheclearbenefitsNFVcreatesnewcomplexityforserviceassurance
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NetworkIntelligence
DELIVERINGASSURANCETOENABLETHENFVTRANSFORMATION
BigDataAnalytics
Probes
Real-TimeProcessing
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MaveriQ Suite
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AssuringCustomerExperienceintheNFV Transformation
Real-Time Analytics§ Improvesubscriberqualityofexperience§ Pro-activelyidentifyandresolvenetworkissues§ AcceleratemigrationtoNFV§ Increaseoperationalefficiencyandlowercosts
RADCOMProbeAdvantages
• Softwareonlymodel(1sttoMarket)
• Patentpendingtechnology
• HardenedDomain2.0solutionatAT&T
• Supportsphysical,hybridandvirtualnetworks
• Supportsmultipletechnologies(3G,4G,M2M,IoT,VoIP)
DELIVERINGASSURANCETOENABLETHENFVTRANSFORMATION
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USECASE
NetworkCongestion
NFVOrchestration
VoLTEVoIPvIMSvEPC
RADCOM:ACSPseyesintothenetwork
LTE
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DISRUPTINGTRADITIONALSERVICEASSURANCEMODELSWithanAutomatedSoftwareOnlySolutionforUnlimitedNetworkCapacity
SusanA.Johnson,SeniorVicePresident,GlobalSupplyChain
“RADCOMisadisruptorintheserviceassurancearea...Wewereseekinganinnovativesolutiontovirtualizetheprobingfunctionfromasoftware-centriccompany.Webelievethatvirtualizationofserviceassurancecanprovidedistinctadvantages...”
“WeselectedRADCOMbecauseofitsfunctionalstrengths,especiallyinvirtualization,scalability,performanceandefficiency.WewilluseitsMaveriQ softwaretodeployvProbes asvirtualnetworkfunctionsrunningontheAT&TIntegratedCloud (AIC).”Source:AT&TNewsroom,August2016
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AT&TSELECTEDRADCOMFORITSNFVSOLUTION
• Recognitionbyoneoftheindustry'sleadingCSPspositionsRADCOMastheleader forNFVprobe-basedmonitoringsolutions
• StrongconfirmationofRADCOM'smulti-yearstrategyforitstransformationtosoftware-basedsolutions
• Additionalfollow-onordersduring2016
• AT&TnewsannouncementinAugust2016ofourinnovativesolution
• RADCOMannouncedtheselectionofitsMaveriQ solutionfordeploymentbyaAT&T inJanuary2016
• The$18millioninitialorderwaswithintheframeworkofamulti-yearsalesagreement
• Resultof9monthsofintensivetrialsduringwhichRADCOM’svirtualprobesolution wasselectedovercompetitors'offeringsbyreceiving100%testscore
RADCOM’stransformationalwinwithAT&T
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“By2020,weplantovirtualizeandcontrolover75%ofournetworkusingthisnewsoftware-definedarchitecturetomeetthegrowingdemandsofdataandvideo-hungryusers.”
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GLOBALNFVANDSDNMARKET($inbillions)
$0.3
$1.7$2.3
$3.3
$5.2
$6.9
$8.3
2013 2014 2015 2016P 2017P 2018P 2019P
Source:SoftwareDefinedNetworkingandNetworkFunctionVirtualizationmarket,Gartner(March2016).
LargeCSPs Evaluating/DeployingNFV
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>$1BILLIONMARKETOPPORTUNITYFORPROBESOLUTIONSDeliveringNetworkandServiceVisibility
• Networkandcustomeranalyticsusecaseswillexpandtheuseofprobesystemsbeyondthenetworkperformancemonitoring.
• NewservicessuchasVoLTE andvideooverLTE(ViLTE)willrequireincreasedmonitoringandnetworkdatacorrelationtoassureQoS.
Source:Serviceassurancesystems:worldwideforecast2015-2020,Analysys Mason,Sept2016
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OURTRANSFORMATIONSINCETRANSITIONINGTOSOFTWARE
<2014 2014 20172015 2016
ProprietyHardware
Advancingfromproprietaryhardwaretosoftware-basedsolutions
2015December
LaunchedMaveriQOurSoftware-BasedSolution
LaunchedNFVSolution
SelectionByAT&TofourNFVSolution
9monthtrial–scored100%
FirstNFVtransformation
Wonagainstincumbentvendor
Engagedwith9toptiercarriers
Boostedseniormanagementforcompanygrowth
R&D&engineeringrampup
PublicOffering
Strongbalancesheet
Targetadditionaltop-tierwin
CaptureNFVtransformations
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GO-TO-MARKETSTRATEGYRADCOMplanstoexpanditsdirectpresenceinNorthAmerica,Europe,andAsia
DevelopingandExpandingStrategicPartnerships
RADCOMhaspartneredwithsolutionintegrators,suchasAmdocsandHP,aswellastechnologypartners,suchasIntel,tounlockfurther
opportunitiesinthesaleschannelNetworkCloudEcosystem OpenNFVProgram NetworkBuildersProgram
§ Expansion tothedevelopedmarketsandgalaxies,whilecontinuefocusingindevelopingmarkets
§ SpecificallyfocusonNorthAmericaandEurope NFVcarriers
§ Targetlegacy accounts
§ Investindirectsalesforceandtechnicalsupporttodrivefuturelargewinsandscaledeployments
§ RampupR&Dresources toleveragetechnologyadvantage
TargetlegacyaccountswithHWsolutionsAggressivelytargetNFVcarriers
Offices:Asia,EMEA,LATAM,NorthAmericaHeadquarters:TelAviv
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WithanExperiencedLeadershipTeam
YaronRavkaie|CEO• 25+yearsindustryexperience• PriorleadershiprolesatAmdocsandRRMedia•MBA,UniversityofBeersheba
RanVered|CFO• 10+yearsindustryexperience• PriorfinancerolesatAmdocs&KPMG•MBA,TelAvivUniversity• BB,CollegeofManagement• CertifiedinIsraelasaCPA
EyalHarari|COO&HeadofNorthAmerica• 15+yearsexperienceatRADCOM•MBA,TelAvivUniversity• LLM,BarIlanUniversity
HarelGivon|CBO• 15+yearsindustryexperience• PriorsalesandleadershiprolesatAmdocs•MBA,TelAvivUniversity
• PreviouslyservedasPresidentoftheAT&TdivisionatAmdocs,witha$1BP&L
• LedthetransitiontoMaveriQ,RADCOM’ssoftware-basedplatform
• Previously,HeadofFinanceforAmdocs’$500millionEMEADivision,from2011-2016
• PreviouslyatAmdocsledsignificantbusinessexpansionwithinEMEAandspecificallywithintheVodafoneaccounts
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FINANCIALHIGHLIGHTS
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2015- $18.7M 2016-$28-$29.5M
StrongBalanceSheetSept30,2016
$43.2Mincash,Zerodebt
Revenue
2.7
6.57.2 7.7
0.0
2.0
4.0
6.0
8.0
10.0
Q4-15 Q1-16 Q2-16 Q3-16
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SUMMARY
RADCOMhasattractivegrowthopportunities
>$1BillionMarketOpportunityDrivenbyLTE,VoLTE,IoTandNFV
HighlyScalableandDifferentiated Software-BasedSolution
Groundbreaking NFVWinwithAT&T
FirstMoverAdvantage inSoftware-BasedandNFVProbeSolutions
ProductAdvantagetoIncreaseviaDeploymentHardening
CompellingGrowthEngines
StrongRevenueGrowthandHighlyScalableOperatingModel
ExperiencedLeadershipTeamwithExtensiveDomainKnowledge
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THANKYOU