A Presentation for OARNET

1. A Presentation for OARNET

2. Agenda Who is Virtela Why Virtela QOS and MPLS Q & A

3. Who Is Virtela A Global Network Solutions Company Founded on a vision that has proven revolutionary… Converge the capabilities and services of a business consultant, network aggregator, and network integrator into one, and support it through a one-of-a-kind, secure delivery infrastructure available anywhere in the world.

4. Our Company Managed Global Solutions Headquartered In Denver, CO • 12th fastest growing technology company in the U.S. • NOC/SOCs: Denver, U.S., Mumbai, India & Manila, Philippines • Business Network Consulting • Managed Network Services • Managed Security Services World-Class Partnerships • Over 200 network provider & 30 technology vendor relationships in place around the world • Service availability in 190+ countries • Only provider with managed business-class DSL VPN available in 100+ countries

5. Enterprise VPN Services MPLS Private VPN IP VPN Remote Access Services Dial, Broadband, WiFi, Fixed Wireless, Satellite SSL and IPSec Convergence Services Desktop to Boardroom Video IP Telephony Security Services Email Defense Intrusion Prevention Firewall Virus Scanning URL Filtering Vulnerability Scanning RMM Services RMM for WANs RMM for LANs (wired & wireless) RMM for Servers RMM for IP Telephony RMM for Security Managed Services Portfolio Focus, Depth, Best-of-Breed

6. Virtela: A “Super-Integrator” Model Vendor Aggregation Technology Aggregation Network Aggregation Cisco MPLS/IP VPN CheckPoint DSL/Cable KPN Golden Telecom NetScreen/ Neoteris/Juniper Telia Bell Canada C&W Teleglobe Song/Telnor SSL/IPSec LGN Telus Linx COLT Verizon NTT Equant FranceTelecom BT AT&T 360 Networks Level 3 ChinaTel KDDI DT/T-Systems Interoute WatchGuard MCI Cogent Covad Metro Ethernet SBC CNC NTT SingTel KVH Telecom Italia New Edge Sprint Qwest DYX PCCW PoweredCom VSNL Globe Telecom Reach Nortel New WorldNetwork Reduno Frame Relay Bharti LOXINFO HCL Suburban CANTV Reliance/Flag TippingPoint Impsat IFX Intemet Solutions Telstra Embratel Optus/SingTel Telkom S. Africa F5 Telefonica PowerTel Macquarie *Not a comprehensive list.

7. Delivering Global Solutions For Global Companies

8. Section 2 Why Virtela

9. Networking Regional Trends • An Increase in Country to Country Interconnectivity the Last 5 Years—More Fiber in Place • Peering between providers can still be an issue impacting performance • Per Mbps cost decreasing, but still significantly higher than Europe & U.S. • Availability and Enterprise Use of Alternative Access Technologies Such as DSL and Ethernet • VPN Technology Maturity and Cost Savings Resulting In Augmentation/Replacement of Frame and Private Line • Bottom Line: Globalization of the Enterprise is Driving Significant Increases in Bandwidth to/from Asia Pacific • This drives ongoing infrastructure investment and enhancement

10. “Do It Yourself” Pitfalls • Failure to Execute On Contract Specifics with Regards to Terms and Conditions Across All Providers • Best-of-Breed Infrastructures are Local/Regional—Not Global • Broadband Attractive But Availability and Performance Questionable • Unaware of Country-Specific Idiosyncrasies

11. 1. Negotiating Specific Terms And Conditions • Multiple Vendors Will Mean Divergent Terms • The only guarantee of uniformity is a single source • Negotiate for Favorable Contract Terms • Try to negotiate single/preferred currency for all sites—not always possible • Specifically request to be billed monthly via an invoice • Many providers will push wire transfers (1 yrs payment upfront) or credit card • Be aware of auto-renewal policies and keep track (will vary by circuit turn-up and provider) • Document Service Delivery Parameters • Confirm procurement responsibilities for all necessary devices • May consider purchasing locally—note that interface types will vary by country • Provider installation techs typically very specific in their roles (i.e., one tech for Internet access turn-up and another for VPN installation) • Consider contracting with a field service vendor with required footprint—define a Method of Procedure • Request a project manager. If you have no local staff, also have someone from your team available 24x7 to manage/speak with your vendors

12. 1. Negotiating Specific Terms And Conditions • Minimize Multi-Vendor Management Challenges • Request that trouble ticketing and escalation procedures (names & contact info) be clearly defined within every contract • Consider contracting with a language line service to deal with communication barriers—contract on a per usage basis • Negotiate SLAs & Credits • SLAs from local ISPs can be very hard to come by • Do the math—and negotiate towards suitable credits particularly for critical outages • Bottom Line: Don’t Leave Contracts to the Lawyers—I.T. Department Needs to be Intimately Involved

13. 2. Local To Global Performance • There is No “Silver Bullet” Global Infrastructure Singly Owned • Provider ‘A’ may be “best-of-breed” in Thailand but not necessarily in India or China—for true best-of-breed you will have to stitch it together yourself • Considering performance, price and service availability • Even the best networks will have issues—guaranteed. For critical offices explore your disaster recovery alternatives (diverse alternative access methods, etc.) • End-to-End SLA’s Are Difficult, If Not Impossible as a “DIY” • You will not get end-to-end SLAs between sites served by different providers • Regional providers will guarantee in region, but no help from Asia Pacific to Europe or U.S. • Critical to Know How Providers Interconnect and Route Traffic • Peering between many local Asia Pacific ISPs still happens in the U.S. • Potential for severe latency and packet loss issues • It is critical to know your application thresholds or breaking points—in particular, packet loss • There are now often multiple provider options in a country—look beyond the incumbent

14. 3. “Business” Grade Broadband • Seriously Consider Broadband—But Do Your Homework • Providers often have many products differentiated by their contention ratios (over-subscription: 50:1, 10:1, 1:1)—watch what you buy • If VPN being used you want a static IP—many providers do not offer • Identify who will provide the DSL router—you may need to procure your own • Confirm that there is 24x7 support—this is not always true • In-Country Providers Unlikely to Guarantee Performance • Some will guarantee bandwidth, but cannot guarantee performance site-to-site • Again, peering points critical—do not want to go through U.S. to go from Thailand to China • You also do not want to depend on a single congested peering point between two providers/countries • Can cause wide, unpredictable swings in DSL performance • Look for “optimized” and diverse in-region routing capabilities • Shortest path not always best path either

15. 4. Country-Specific Idiosyncrasies • Become Familiar with Local Infrastructures • Government Firewalls (e.g., China) • When you buy an IP connection in this scenario it may work and then it may not • In many cases, can direct connect to an alternative provider private network and backhaul to a point outside of the country (requires a POP). • China example: Backhaul from mainland to Hong Kong and then out—significantly improved performance • Government Gateways (e.g., Saudia Arabia) • In this scenario there are limited outbound connections to only certain government approved providers—they determine how traffic is routed/handed off • You therefore have no performance predictability not having the same provider on each side • Your only improvement option is the ability to best-path route your specific traffic • Compression On Traffic Leaving the Country (e.g., India) • Bandwidth cost within country very different than leaving the country—same with performance • You can buy cheaper bandwidth compressed 4:1, etc.—typically not an issue in-country, but severe performance impacts on congested links living the country

16. Summary • Details Matter When You are Operating Half-Way Around the World • There are Alternatives to Incumbents and the Status Quo • Broadband is a Legitimate Alternative • Virtela’s Business is Taking On these Pitfalls—Benefiting Virtela Customers • Virtela’s proprietary IP Service Fabric (IPSFsm) multi-connects its customers to the best regional and global infrastructures around the world • Our power is in the ability to quickly and seamlessly move traffic from one of these underlying backbones to another

17. Section 3 QOS and MPLS

18. Role Of QoS – What Should You Demand? • “Performance” is Important • We have customers running IP video and VoIP with QoS and others without • Have customers running VoIP over broadband internationally • Business Drivers are Always Present • Cost, delivery timeframes, technology availability, etc. • Some Realities… • We Connect to Backbones Around the World…They’re Overbuilt & Under Utilized (IP, MPLS, etc.) • Regardless of MPLS it’s Still About How the Carrier Operates the Network • We see MPLS networks that don’t perform to the levels of IP networks in the same region • Last Mile is Still the Key • What About Broadband (DSL & Cable)?

19. So MPLS Is The Way To Go • You’re Tied to One Provider • No flexibility to choose technology & provider by location • MPLS CoS does not transfer between carriers • Who is the Best Provider?…What Defines Best? • Is it price? • Is it single source…one throat to choke? • Is it best performing network infrastructure by city, by country? • Provider ‘A’ may be “best-of-breed” in Thailand but not necessarily in U.S. or China

20. Summary • Always a Healthy Dose of Reality Incorporating Business Requirements • There are business, availability, and interoperability constraints to consider re: MPLS everywhere • Then again, DSL is not a T-1 • It’s About Performance for Your Environment • Not MPLS or COS, etc. • What are the requirements versus assuming…why overbuild & overpay • What’s the Provider’s Role in QoS? • It’s critical & it’s end-to-end (LAN through WAN…the application)

21. Managed Enterprise VPN Services Portfolio Virtela MPLS Virtela Private VPN Virtela IP VPN • Optimized Public Internet • Broadband DSL • Offnet T-1/E-1 • Encryption Required • Industry’s First Global Multi-Carrier MPLS Service • End-to-End CoS-Based Solution w/ SLA Backed QoS • Encryption Optional • Multi-Carrier Private IP Backbone Solution • No CoS, but SLA Backed • Encryption Required

22. End-to-End 190 + Countries Broadband VPNs 100+ Countries 5,000 + Access Points 200+ Network Providers 35 Regional Policy Centers Unmatched Reach & Performance Around the World Virtela Facts Virtela

23. Virtela’s Global Service FabricSM Intelligent Multi-Carrier RoutingMPLS, Private VPN, IP VPN Proprietary Policy Infrastructure Overlay Private IP Network #1 Regional Policy Center Regional Policy Center TDM/ Frame Dial Private IP Network #2 Broadband MPLS MPLS Network #1 Wireless Ethernet MPLS Network #2 • Probe & Database Infrastructure Monitoring & Mapping Across Networks • Proprietary Algorithms for Automatic Fail-Over and Best Path Routing • Regional Policy Centers Around the World • Multi-Carrier Network Aggregation & Integration • Any Access – Anywhere Last Mile

24. Carrier C MPLS Network Carrier E MPLS Network Carrier B MPLSNetwork Carrier D MPLS Network Carrier D MPLS Network Carrier A MPLS Network The MPLS SFSMIntelligent Best Path Routing & Automatic Carrier Failover London Site x Singapore Site

25. Hong Kong Virtela Partner – China United Kingdom United States Flag United States SEA-ME-WE-3 US-China Beijing C2C NTT Shanghai Reach ANC APCN-2 Singtel SEA-ME-WE-3 Singapore

26. Key MPLS SFSM Benefits for the Enterprise: Virtela’s MPLS Service FabricSM • Industry’s FIRST Global Multi-Carrier MPLS Service • The highest performing global MPLS infrastructure available • Superior Flexibility & Performance — Site by site carrier selection provides ultimate flexibility—eliminates the requirement to tie all locations to one MPLS carrier. Superior in-region & global performance through best-of breed MPLS network aggregation with end-to-end CoS and optimal network path routing • Inherent Automatic Failover — Unique multi-carrier approach with optimal path routing enables automatic re-routing in case of degradation or failure on primary path • Most Extensive Reach — The most extensive MPLS geographic reach through multiple MPLS carrier aggregation • The Best Pricing — Significant savings as a result of the Virtela multi-carrier methodology

27. MPLS SFSM: Class Of Service Through Remarking 5. Virtela remarks DSCP as necessary to coordinate network to network CoS similarities 6. Virtela forwards remarked packets as a “CE’ to next provider PE for labeling into appropriate MPLS CoS 3. Exit MPLS edge router removes label 1. DSCP field indicates packet priority to Provider Edge (PE) router VRF1 PE CE Virtela Regional Policy Center 4. Virtela receives unlabeled packet, identifies original DSCP marking Proprietary CoS Database 2. Entry MPLS PE router receives & labels packets Virtela collocates in carrier-neutral facilities around the world End-to-End CoS DSCP: Differentiated Service Code Point. A standard 6-bit IP field. VRF: VPN Routing and Forwarding. A per customer virtual router instance.

28. MPLS SFSM: Class Of Service Database 5. Virtela remarks DSCP as necessary to coordinate network to network CoS similarities Virtela Platinum VRF1 Virtela Gold Virtela Silver • A CoS/QoS characteristics database of all interconnected MPLS carrier networks • Mapping between disparate CoS provider offerings centrally maintained & applied by Virtela • Best path routing intelligence across multiple networks Virtela Regional Policy Center Proprietary CoS Database

29. MPLS SFSM: Real Time Path Analysis Proprietary Probes Func (Jitter, Latency, P/L, Time, SLA) -Route A < 200 ms -Route B < 320ms -Route C < 260ms • Appliances running Virtela proprietary software • Test packets measuring latency, jitter, and packet loss sent across all paths & CoS • Path statistics are constantly compared for optimal routes • Best path information combined with CoS mappings supplied to infrastructure for traffic direction Virtela’s Proprietary Probes

30. MPLS SFSM: Virtualization • VRF (VPN Routing and Forwarding): A per customer virtual router instance • A Virtela VRF looks like a CE device to each carrier MPLS network

31. Virtela IP VPN Optimizing Broadband DSL Based VPNs

32. Enterprise Benefits SuperiorFlexibility & Performance Automatic Network Failover • Proprietary: Best Path Routing Based On Many Rather than Just One • Flexibility to Choose Provider by Location • Best-Of-Breed MPLS Carriers End-to-End • Denser in-region infrastructure coverage from local provider aggregation results in better performance than single source global providers • End-to-end CoS SLAs honored consistently from more enterprise locations • Network Resiliency Based On Many – Not Just One • Multi-network routing provides for automatic fail-over between networks for 100% up time • Intelligent multi-carrier proprietary routing also provides for congestion avoidance to utilize best path available • Bottom Line: Built-In Multi-Supplier Environment with Single a Single Company

33. Enterprise Benefits Global Multi-Network Reach Lower Price • Sum of the Network Parts Greater than the Whole • Virtela combines under one roof the footprints of the best local, regional, and global MPLS infrastructures – 190+ countries • Results in MPLS availability across more enterprise locations than single carrier solutions • 200+ Network Carrier Relationships • Universal coexistence with customer’s current and future network selections • Significant Cost Savings Over Single Provider Solutions • Virtela buys locally from in-country carriers with denser infrastructures • Virtela does not carry the cost burden of the MPLS core infrastructure • Virtela leverages the buying power across its customer base which is a single source revenue stream to the various MPLS carriers • Additional Cost Savings – Cohesive Single Source Vendor Environment • One contract, one bill, one phone call around the world

34. Virtela MPLS The MPLS Service FabricSM • MPLS Multi-CoS • Provides 4 end-to-end Classes of Service (more expensive…more complex) • Each CoS has associated QoS…SLA commitments • Must define bandwidth % breakdown between classes • MPLS Single CoS • Single provides one Class of Service…can be upgraded to Multi • Many enterprises want a ‘private’ MPLS network, but not ready to prioritize applications • Virtela MPLS is an End-to-End Managed Solution…Always Includes Managed CPE • Access Methods • TDM/Frame, Ethernet • Virtela Private VPN and Virtela IP VPN – Hybrid Networks

35. Virtela MPLS

36. Virtela Private VPN The IP Service FabricSM Standard SLAs • Multi-Carrier Private IP Backbone VPNSolution • Not Class of Service based • “Private IP” may be a familiar term • End-to-End Managed Solution…Always Includes Managed CPE with Encryption • Access Methods • TDM/Frame, Ethernet • Virtela IP VPN • Inherent Automatic Multi-Network Failover • Network resiliency of many private IP carrier networks versus just one • Proprietary Performance-Based Routing Algorithms • Dynamic best path routing for optimal traffic flow across multiple IP backbones

37. Virtela IP VPN Optimized IP VPN • Off-Net T-1/E-1 and Above and Managed Broadband DSL VPN via the Internet • Managed Broadband DSL VPN • 100+ countries for DSL VPN • 98% coverage U.S. • Single invoice for all providers • Single NOC support number for all providers • Optimized VPN routing globally over DSL • Proactive monitoring and management • Backed by SLAs to ALL Countries! • Availability • MTTR • 15 Minute Outage Notification • Chronic Outage Guarantee

38. Virtela IP VPN Broadband DSL VPN T1/E1 And Above

39. Section 4 Q & A

40. Great companies know that customer service and satisfaction are the only metrics that matter. Larry Morgan, CEO, Virtela Communications Thank You Ryan Mallory – Sales Engineer Ph: +1.720.475.4262 Rmallory@virtela.net www.virtela.net +1.720.475.4445