Alan Percy Director of Business Development AudioCodes

1. Alan PercyDirector of Business DevelopmentAudioCodes

2. Who is AudioCodes? • Leading OEM Manufacturer of Enabling VoIP equipment • Gateways • Media Servers • Boards, Chips and Modules • Key IPR holder for G.723.1 • 11th Year in Business • $82.8M Revenue for FY04 • NASDAQ: AUDC • Over 440 Employees • Worldwide Company: • Headquarters in Israel • US offices in San Jose, Boston, Chicago, Dallas, RTP, and Somerset NJ • Offices in Mexico, France, UK, China, and Japan

3. Why are you here? “I want to learn more about…”

4. Learning learn·ing   (lûr n ng) n. The act, process, or experience of gaining knowledge or skill.

5. How do we learn?

6. How do we learn?

7. How do we learn?

8. How do we learn?

9. Some Observations

10. VoIP has gone Mainstream

11. VoIP is enabling the Best of Breed • In the past, one vendor controlled all the technology • “You can have any color phone you want, as long as it’s black” • Going forward • Softswitches, IP-PBX, Messaging, IVR… • Standard protocols and hardware platforms • VARs and Systems Integrator are choosingthe best hardware and software for their application • Creating value and products that fit needs

12. What is the difference? This one has enhanced services ? =

13. Increasing Density • Moore’s law will continue to increase density (more functionality for less money) • CISC • DSP • Packet Processors • Shifting the role of dedicated hardware

14. Emergence of New Blade Form Factors • ATCA • Advanced Telecom Computing Architecture • 140 sq. inches • 200 W of power/blade • AMC • ATCA Mezzanine Card • PCIExpress • Desktop and Enterprise

15. New Form Factors • “Blade” Servers • IBM, Intel, Dell, Compaq, etc. • Very high computational density • Ideal platform for hosting applications • Proprietary, but “Open” form factor • Standard peripheral form factor • Usually PCI IBM BladeCenter

16. Death of the PCI Driver • Replaced by on-board protocols PCI Driver

17. On-board Protocols • On-board protocols are becoming the preferred control mechanism • Using a standard or proprietary protocol to control a board or stand-alone device • SIP, VoiceXML, MSCML, MGCP • Displacing the traditional API/Driver model • No more PCI drivers! • Eliminates O/S dependence • Bonus: Better test tools (Ethereal)

18. On-board Protocols Application API API Proprietary Device Driver Device Driver H.100 T1 Interface Hardware Resource Hardware PSTN Legacy CTI Architecture

19. On-board Protocols Application SIP SIP Protocol Stack LAN Gateway Blade MediaProcessing Blade PSTN SIP Architecture

20. Adoption of Blades vs. Boxes • Software developers love distributed architecture using standard protocols • Product Managers and Integrators have different challenges: • Cost Targets • Offering communications “solutions” • Branding issues • Fewer boxes • Result: • PM & Integrators many times prefer blades

21. One Code Base • Today, many application developers are supporting two separate code bases: • One for TDM implementations • Second for VoIP interfaces • Challenges • Maintenance • Testing • Surrounding Management Software • Expertise on Boards and APIs

22. One Code Base • Mass movement to supporting only VoIP • SIP, H.323, MGCP… • Using gateways to connect into TDM applications • Why? • Only maintaining one code base • Saves engineering resources • Focus on the application, not the plumbing • Eliminates management of TDM interfaces • No drivers • No O/S dependencies

23. Need for Transcoding • Wireline and wireless carrier depend on different voice compression formats • Different needs and limitations • G.729a favorite with wireline carriers • AMR or EVRC for wireless • How to interconnect? • Transcoding Resources • High Density • Low Latency • Excellent voice quality Transcoding

24. Focus on Security Cable systems are the early adopters(multi-drop nature of cable systems) • Call control Encryption • IPSec and BTNS • Voice Path Encryption • SRTP • Management Interfaces • HTTPS • Customers will demand that equipment vendors will support new security standards

25. Focus on Security • Session Border Controller • Protecting your network / IP-PBX from intruders • Network Isolation / Protection • Encryption / Privacy • Protect against Denial of Service Attacks • Stand-alone devices (for now) • What’s next: • Built-in to IP-PBX at theEnterprise

26. The Last Mile Carriers are depending on the existing broadband facility to the Enterprise/Consumer

27. Voice Quality • Greater dependence on existing IP infrastructure (Cable, DSL, T1, Wireless) • Requires that equipment that can operate in “suspect” network performance. • Dependence on low bit rate coders by carriers is increasing • More through the same pipe • Less congestion = less lost packets • Better voice quality • More on this in a separate session

28. What to worry about • Taxation • With the shift to VoIP, taxation model will have to change. • Governments will need revenue • We need to guide their decisions • E911 • The solution is understood • Can carriers react quick enough? • What other similar “legacy” issues await? • Is there a better way? • Will wireline phones really matter?

29. Moving Forward “An investment in knowledge always pays the best interest.” Benjamin Franklin

30. Let’s talk! Stop by Booth #405