Presents Fall Forum 2002

1. Presents Fall Forum 2002

2. Making Video Collaboration Work in Your Enterprise Presented by Gerald J. Burnett, CEO Avistar Communications Corporation

3. Overview • Obstacles to video adoption • Desktop video is different • Technology essentials • vBusiness: video integrated in the daily workflow IMTC Fall Forum – November 2002 – New York, NY, USA

4. Obstacles To Video Adoption • Complicated/Requires technical support • Lacks intuitive integration of basic video applications • Low “Presence”/Quality • Poor call reliability • Expensive • Not integrated into normal workflow Result: Low daily usage => Not adopted IMTC Fall Forum – November 2002 – New York, NY, USA

5. Desktops are different: applications One-to-one Calling Multi-party Calling Recording / Video on Demand Data Collaboration Broadcasting Publishing- Email/Web IMTC Fall Forum – November 2002 – New York, NY, USA

6. Desktop Video: Applications • Interactive Video Calling • Research, Sales & Trading • Access to experts • Broadcast Video • Live television feeds • Morning meetings • Content Creation & Publishing • Research analyst comments • Investor conferences • Engineering assessment of manufacturing problems • Video On Demand • Daily economic updates • Product training sessions Video applications mirror real-world collaboration patterns IMTC Fall Forum – November 2002 – New York, NY, USA

7. Requires a Video Operating System Graphical User Interfaces GUI Layer • Video Operating System Characteristics • Supports all four types of video applications • Video-enables complex enterprise applications • Extensible • Transport-independent • Scalable • Manages quality and reliability • Manages total cost-of-ownership Video-Enabled Enterprise Applications Application Layer Interactive Video Calling Broadcast Video Content Creation & Publishing Video On Demand Session Management Enterprise Video Management Directories/Presence AvistarIQ™: Quality Reliability & TCO Video Operating System Layer Shared Application Infrastructure Transport Management Video Networks H.323 H.320 QuickTime Other… NTSC MPEG WMF PAL H.263 G2 IMTC Fall Forum – November 2002 – New York, NY, USA

8. Desktop Video: benefits • Resources at hand • Immersion / presence • A more flexible way to meet • Leverage corporate knowledge on the fly • Four video applications mirror the way you work • Choose the best meeting, content delivery approach • Integrated into business processes => Speeds Business IMTC Fall Forum – November 2002 – New York, NY, USA

9. Requirements for Video Adoption • Realities of IP video • Essentials to end-user adoption • Quality at scale • Reliability • Cost of ownership IMTC Fall Forum – November 2002 – New York, NY, USA

10. IP Video Challenge High bit-rate, real-time data on “best efforts” IP networks • Latency • Jitter • Bandwidth • Quality of Service • Firewalls • Ready in the WAN IMTC Fall Forum – November 2002 – New York, NY, USA

11. Sweet Spot of Video Collaboration High Quality at Scale High Reliability Low Cost Of Ownership Sweet Spot = Transformational video collaboration IMTC Fall Forum – November 2002 – New York, NY, USA

12. Essentials: quality at scale Quality at Scale Reliability Cost Of Ownership • TV-quality video is essential for natural interaction • 30 frames/sec • Low latency • Synchrony of audio/video IMTC Fall Forum – November 2002 – New York, NY, USA

13. Video scales at a global bank Netherlands Sweden Finland UK Germany Ireland Switzerland Austria US Spain Japan HK Italy France Singapore Australia Users Cities Departments Phase I 197 4 4 Phase II 358 5 6 Phase III 438 8 10 Phase IV 1438 17 10 To Date 2922 49 10 New Zealand IMTC Fall Forum – November 2002 – New York, NY, USA

14. Essentials: reliability Telephone 99.999% Data networks 99.99% Ethernet 100 Quality at Scale Desktop Video*** 99.5% (IP Network ) Reliability Cost Of Ownership 95 Cell Phone* 95.9% Desktop Video*** 94.3% (ISDN network) % Reliability 90 Room Video Conferencing** 65 - 85% 85 *UK Office of Telecom-munications study of 4 major carriers **Anecdotal data *** Analysis of 990,802 calls 80 10 20 30 40 50 100 Years since inception IMTC Fall Forum – November 2002 – New York, NY, USA

15. Email ($60) Cost of Ownership Dropping Quality at Scale Reliability Cost Of Ownership IMTC Fall Forum – November 2002 – New York, NY, USA

16. Equation for Enterprise Video Adoption Communications System Essentials vBusiness Video Application Suite Powered By Video Operating System IMTC Fall Forum – November 2002 – New York, NY, USA

17. vBusiness = Video-Enabled Business Video has to be where people are working today, right now • Integrated with existing business processes • eMail, CRM, voice platforms, etc. • Always-on, at your fingertips, in a familiar context • A natural part of the daily workflow IMTC Fall Forum – November 2002 – New York, NY, USA

18. CELL PHONE PAGER vBusiness: Changing The Collaborative Landscape vBusiness Relationships In-person Desktop Video conference 1:1 MEETINGS Video email vBusiness Suite vCRM GROUP MEETINGS Effectiveness WEB CONFERENCING PHONE CRM IM eMail email Data Transactions Efficiency Low High IMTC Fall Forum – November 2002 – New York, NY, USA

19. vBusiness Market Has Significant Potential “Video is THE killer app of the future for PC’s” - Tim Bajarin, Creative Strategies vBusiness Applications, Software, Hardware Market Size $ Traditional Videoconferencing Time IMTC Fall Forum – November 2002 – New York, NY, USA

20. Jerry Burnett - CEO Avistar Communications Corporation 555 Twin Dolphin Drive Redwood Shores, CA 94065 650-610-2900 www.avistar.com Working at the Speed of Sight™ IMTC Fall Forum – November 2002 – New York, NY, USA