Right Place : Right Time OSS Telephony Adoption Trends

1. Right Place : Right Time OSS Telephony Adoption Trends

2. Worldwide markets still reeling from global economic crisis IT markets predicted to decline in 2009 Enterprise spending down 30% yoy Carrier spending down 20% yoy Public sector spending down 15% yoy Economic Upheaval 1 1. Thomas Wiesel Creative Innovation – Customer Satisfaction – Continual Quality Improvement

3. Buyers currently undergoing a ‘reset-tion’ Once spending begins to return, buyer behavior will change Buyers much more cautious Buyers looking for value ROI terms shortened Lower cost alternatives get more airplay Economic Upheaval Creative Innovation – Customer Satisfaction – Continual Quality Improvement

4. Markets contract as a result of lower cost alternatives gaining share Open Source-based alternatives gaining momentum and acceptance as a result of the economic turmoil and changes in buyer behavior Economic Upheaval Creative Innovation – Customer Satisfaction – Continual Quality Improvement

5. Open Source Software Adoption Trends

6. Creative Innovation – Customer Satisfaction – Continual Quality Improvement

7. Open Source Trends Source: Savatar Creative Innovation – Customer Satisfaction – Continual Quality Improvement

8. Stand Alone Open Source Market will reach $5.8B by 2010/2011 (26% CAGR)1 Tens of millions of new downloads of some version of open source software in 2009 The Market for Open Source 1. IDC Creative Innovation – Customer Satisfaction – Continual Quality Improvement

9. Voice over IP Adoption Trends

10. VoIP as a technology category will fair well in comparison to other technologies VoIP enables … Communications expenditure cost reductions Non-centralized work force structure Lower commute costs Lower facilities cost Mobile work force productivity VoIP – an upheaval survivor Creative Innovation – Customer Satisfaction – Continual Quality Improvement

11. Total IP PBX Market Forecast Source: Frost and Sullivan 2008

12. IP Telephony Adoption IP PBX market will reach $7.9B by 2010 (21% CAGR)2 2010 IP PBX penetration will still be less than 50% This year, IP line shipments will pass TDM shipments3 Growth in IP Telephony (IPT) systems dominates PBX market segment3 19% CAGR 2. Gartner Group 3. TEQConsult Group

13. Open Source VoIP Adoption Trends

14. Open Source IP PBX Downloads • 2008 total worldwide downloads of Open Source PBX software • Total - 1,750,000 • Asterisk - 1,540,000 • Non-Asterisk - 210,000 • 2008 total North America downloads of Open Source PBX software • 490,000 • North America is 28 percent of total downloads Source: Eastern Management Group Creative Innovation – Customer Satisfaction – Continual Quality Improvement

15. Open Source IP PBX Metrics • Total 2008 North American Open Source PBX Business Telephone Systems • 86,872 • Total 2008 North American Open Source Business Telephone System end points • 2,854,749 • Average 2008 Open Source PBX Business Telephone System end points: • 32.8 end points Source: Eastern Management Group Creative Innovation – Customer Satisfaction – Continual Quality Improvement

16. Source: Eastern Management Group Creative Innovation – Customer Satisfaction – Continual Quality Improvement

17. 2008 New PBX End Points Source: Eastern Management Group Creative Innovation – Customer Satisfaction – Continual Quality Improvement

18. 2008 Business Communications Systems Market Share Source: Eastern Management Group Creative Innovation – Customer Satisfaction – Continual Quality Improvement

19. Asterisk Share of OSS IP PBX MarketBased on most recent implementation Source: Eastern Management Group Creative Innovation – Customer Satisfaction – Continual Quality Improvement

20. 2008 New PBX End Points Source: Eastern Management Group Creative Innovation – Customer Satisfaction – Continual Quality Improvement

21. OSS IP PBX Vendor Market Share Source: Eastern Management Group Creative Innovation – Customer Satisfaction – Continual Quality Improvement

22. How does Open Source Telephony get adopted by end-users? Creative Innovation – Customer Satisfaction – Continual Quality Improvement

23. How end users benefit from OSS Tool Kit Components

24. Market Needs vs. End User Technical Skill

25. Market Needs vs. Size of Business

26. The OSS IP Telephony ‘Long Tail’ Turn-key OSS-based products Demand / Revenue STD IP PBX Custom-built OSS-based solutions Creative Innovation – Customer Satisfaction – Continual Quality Improvement

27. Digium Product Relationships Asterisk Development

28. OSS Enables Customizable Solutions • The holy grail for communications solutions • Tightly integrate communications with existing business processes • Reduce cost • Improve productivity • Enabled through • Software-based communications engines • APIs and/or custom development Creative Innovation – Customer Satisfaction – Continual Quality Improvement

29. Summary • Next 12-24 months will be challenging • VoIP is an investment that pays a tangible ROI - today • Open Source solutions are gaining popularity • Lower cost • No vendor lock-in • Easily customizable • OSS + VoIP = Right Place, Right Time Creative Innovation – Customer Satisfaction – Continual Quality Improvement

30. Questions & Discussion Digium - The Answer is Open Creative Innovation – Customer Satisfaction – Continual Quality Improvement