Multimedia Communication Server 5100 (MCS 5100)

1. Multimedia Communication Server 5100 (MCS 5100) MCS 5100 Release 3 Customer Presentation September 2004 Chris Heywood EMEA IP Telephony Product Marketing

2. Agenda • Enterprise Collaboration – Market Trends • MCS 5100 Multimedia services • Product Positioning • Why MCS 5100? – • ‘Sweet Spots’ - Key Applications & Benefits • New Features on Release 3! • Lead Customers & Analyst quotes

3. Market Trends • Location Independent Communications are moving mainstream • Multimodal Communications offer much needed flexibility Sessions— Media Agnostic Business Continuity Removes Barriers to Access SIP OPEN Any Device Any Time Anywhere Real-time Communications Application and Network Aware

4. Market Trends 3. Collaboration is expected to be actively deployed in most Enterprises within the next two years Nemertes Research, Getting a Grip on Collaboration

5. Gives user control of their communications Changes wait-time…to productive time Easy-to-use and cost effective user mobility Applications Commercial Server Platforms Nortel Networks Introduces … MCS 5100 New Multimedia Communications and Collaborative Services for the Enterprise Multimedia Engaged Business Applications Nortel Networks heritage brings ultimate reliability (MCS 5200) ….Communications convergence with dynamic services

6. Business Communications Manager Communication Server 2100 • Optimised for 100 to 1,000 IP Users • Optimised for up to 15,000 IP Users Communication Server 1000S Communication Server 1000E Communication Server 1000M • Scalable to up to 15,000 IP users Multimedia Communication Server (MCS) 5100 • Real-time communications • Productivity, Collaboration and Mobility • Scales from 50 seats to 10’s of thousands Multimedia Communication Portfolio Positioning

7. Meridian1 3rd Party CS1000x MCS 5100 delivers solutions in aMulti-vendor environment • End to end VoIP VPN capabilities • Network based routing provides ability to ring two phones at once • One phone native to PBX • Other device native to MCS 5100 • Hybrid desktop provides Multimedia collaboration • PC and Web clients redefine mobility, productivity SL-100 BCM

8. CS 1000x MCS 5100 Deployment Model A single* MCS 5100 is Designed to provide centralised collaboration services to an entire enterprise. • Presence • Conferencing • Video • Instant Messaging • Peer to Peer File Xfer • Web-Push with AutoWeb • Web Client • Personal Agent Enterprise Sites Mobile PRI to SIP Gateway Enterprise Data Network Meridian 1 or 3rd Party PBX VPN Tunnel H.323 – CS1000 3.x, BCM 3.5 SIP – CS1000 4.x, BCM 4.x BCM

9. Industry/OEM Gateways, Apps, & Servers SIP Phones & PDA MCS 5100 Industry Standard SIP Interface Multimedia Services Convergence CS 1000M Meridian 1 IVR MPS 100/500/1000 CS 1000/E Unified Messaging CallPilot CS 2000/2100 BCM Recognized Standard For Business Communications Real-Time Multimedia Communications

10. Convergence Benefits • What are the key benefits of convergence? • Reduced operating costs • Simplified administration • Improved customer service • Increased employee productivity Competitive Edge Efficiency Agility Productivity Agility Enterprise Momentum

11. Why MCS 5100? • Increase Productivity • Collaboration Tools & ease of use • Improve Mobility • Soft / Web / mobile clients • Speed Up Decision making! • See who’s available - Presence • Connect with confidence – IM / Personal Agent • Shrink your travel costs & time wasted • Virtual meetings from desk

12. Application Building Blocks Multimedia Personalisation Mobility • Desktop Video Conferencing • Instant Messaging / Chat • Multimedia Conferencing • Web Application Collaboration • Presence Management • Personal Agent • Directory • Click to Call • Call Logs • Call Screening • IM screening and routing • Picture Caller ID • Find-me, Guide-me • Simultaneous Ringing • Sequential Ringing “On the Phone” Services Anywhere, Anytime Personal Control of the Communications Experience Enriching the Communications Experience

13. Distributed Workforce and Mobility+ Converged User Desktop Conferencing Meet-Me and ad-hoc conferencing Voice, video, data (R3 *) Collaboration Instant Messaging Instant Messaging chat White boarding File sharing & Web page push/pull Web Collaboration (R3 *) Custom Applications Multimedia PC Client Current Phone Personal Agent Flexible Access Programmability tools, interfaces & inter-op labs MCS 5100 Target Applications

14. Intuitive, Productive Communication • Real-time reporting of Presence • Connected / Offline • Active / Inactive • On the Phone • Away from desk, Out to lunch etc. • Check status & availability before contacting others • Identify best people to contact • Choose best media to use • Communicate while ‘busy’ • Urgent multi-tasking

15. Collaboration Tools Enriches conversation and improves productivity with integrated communication and collaboration tools Presence Enabled Friends list Instant File Transfer Whiteboard (and Web Collaboration *) Instant Messaging (including IM Chat, IM Broadcast) Web Push & Co-Browsing Voice /Conferencing Video (/Conferencing *)

16. Challenges to Connecting Employees • Cost control • High travel expenses • High mobile telephone cost • Cost of second voice only lines for remote employees • Difficulty to access key employees • Lack of unified access to • Instant messaging • File sharing • Presence • Conferencing • Collaborative services

17. VOICE FAX EMAIL Connect Employees Solution Unified Messaging Personalized Multimedia And Collaboration Mobilty Meet-Me Media Conferencing Single Interface to collaborative applications Mobile employees communicate just like being in the office Easy access to key employees Native reservation-less conferencing MCS 5100 Telecommuter Blue Ribbon Award http://www.nwfusion.com/reviews/2003/1208rev.html

18. Mobility – Personal Agent • Personalised Call Routing • Simultaneous / Sequential calling of multiple devices • Web-based • Networked Address Book • Networked “Friends” List • Persistent Call Screening • CLID • Address book nickname • Time of Day • Screen Until "x" time • Call blocking or route to voicemail for anonymous calls • IM screening and routing • ‘Click to Call’ • “Multimedia Personal Call Assistant”

19. Log-in from any PC using the SIP Multimedia Web Client Mobility – Web clientAnywhere, Anytime Access your communications network from any Internet “hot spot” or dial-Up All The Services You Have In the Office! Visiting Other Offices Work At Home At Customer’s Sites From Hotels From Airports MCS 5100 wins "Best of Show" at INTERNET TELEPHONY Conference & EXPO Miami 2004

20. Soft Savings: Time to decision-making Flexible work environment Time management = productivity Personalisation and streamlined communications = reduced voice mail clutter and repetitive tasks Mobility Savings • Hard Savings: • No separate home office Line • Reduce Calling Card costs • Reduce Cell phone costs • Reduce hardware expense • Touch-down locations share IP Telephones • Reduce relocation costs

21. Creating the Inter-Human Web People to people Converged IP Communications: Data, Telephony, Multimedia Mobile / Wireline Service Provider Enterprise Value Chain (Supplier, Partner, Channel) People are names; calls are URLs Services available anytime, anywhere Much simplified user interfaces

22. Meet-Me Media ConferencingScaleable Reservation-less Conferencing Conference Bridge Dial In: +353 91 733333 Access Code 5703334 Monday, March 24, 2004 • Personal conferencing with personal dial in number or SIP address • Secure conference password, per conference password and Chairperson PIN code • Visual notification via Instant Message of conference events • Participant waiting in queue, • Entering or leaving the conference, • Transfers to another number • Instant Message Chat “built in” • Soft DSP technology reduces cost and footprint versus TDM in-house Meet me media services Instant Messaging Also, Premium audio conferencing option - Designed to provide improved audio quality in networks where Digital Subscriber Line (DSL) and cable modem services are prevalent.

23. Collaboration – Video Calling • Increase employee productivity • Reduce travel costs • Improve customer care … Affordable Desktop Video calling

24. Video Conferencing * • New application running on same Media Application Server as existing Ad Hoc or Meet Me Audio Conferencing • “Video enable” the existing conference servers … Affordable Desktop Video Conferencing *Fast Feature – trials end ‘04

25. Web Collaboration * • Web Publishing of information … • Powerpoint, Word or Excel as JPEG files • Application Sharing … • True sharing of any application from desktop • Between multiple users, building on a meet me audio / video conference call • Chairperson updated as each person joins • IM Chat also possible on the conference • Control can be passed between users • Non MCS users can access multimedia via URL, audio via meet me bridge on phone • One same access code for both media sessions *Fast Feature – trials end ‘04

26. Hard Savings: Operation savings of up to 86% versus outsourced conferencing VERY easy to take monthly outsourced conferencing bill from customer and build a business case … Soft Saving: Accelerate team collaboration Reduce travel expenses Control monthly expenses Deliver media services, and visual conferencing tools Time to decision-making Flexible work environment Time management = productivity Personalisation and streamlined communications Collaboration and Conferencing Savings

27. Calls coordinated with PC Client Current Phone handles voice, PC Client handles Multimedia Events on one device causestatus updates on the other BayStack 460 MCS 5100 H.323 Gatekeeper Signaling Server SIP/PRI Gateway to ANY PBX Multimedia PC Client Converged Desktop Phase I MCS 5100 Rel2 (Succession 1000/1000M) Current Phone Existing PBX

28. Phone handles voice, PC Client handles Multimedia Events on one device cause status updates on the other, including Presence CallPilot on PBX => MWI to MCS users BayStack 460 Multimedia PC Client Converged Desktop Phase II Network Redirection Server (NRS) MCS 5100 (Rel3) SIP signalling Current Phone Call Server 1000x R4

29. Transforming The Communication Experience CS 1000 R3.0, MCS 5100 R1.1 & 2.0 • Peered system • PRI & H.323 Trunking interface • Synchronised screen pops CS 1000 R4.0, MCS 5100 R3.0 • Tightly Integrated solution => SIP !! • Single user, single experience • Business Telephony & Multimedia SIP services • Investment Protection • Audio on PBX device, multimedia (presence, IM, video, collaboration) on MCS PC Client • Converged Desktop Phase II • Coordinated telephony/multimedia • Existing telephony & full multimedia features Converged Multi-Media Desktop Solution

30. Converged Desktop Users benefit from new productivity and mobility enhancing tools without loosing existing phone features Users continue using services with familiar handset, no costly retraining Retain investment in Telephony infrastructure and evolve users overtime Hard Saving: Multimedia communications at a low entry cost No LAN upgrade Evolution of existing Telephony infrastructure Mobility savings for users Soft Saving: Retain & augment voice services IP without the Risk “Evolution, not revolution” No “rip n’ replace” User mobility, flexible working Time management = productivity Communications control & Personalisation MCS 5100 Converged Desktop Benefits

31. PC Client (C++ Version)* • Re-architecture of the PC Client (C++) to optimise memory size and utilisation, to improve performance and end user experience • Some features on new client only: • Distinctive ringing on per user basis • Separate paths for tones and audio (as per i2050) • Support of newer Nortel USB headset with call control buttons • And also • Client Application Programming Interface • Theme Developer Kit • H.263 Video *Fast Feature – trials end ‘04

32. Theme Developer Kit * • Allows service providers to create a unique theme / view of the PC client for their own customers • Images • Size and location of controls (can hide controls; cannot add NEW controls in initial offering) • Colours, fonts, text strings • Sounds (change from defaults) • Requires R3.0 MM PC Client to be installed on machine, reuses components of same *Fast Feature – trials end ‘04

33. PC Client APIs * • Purpose of PC Client APIs is to allow 1st party type interaction between MCS 5100 SIP PC Client and other applications • The PC Client API is a portable, object oriented API for C / C++ based computer telephony and multimedia applications • Not limited to Microsoft / Windows applications … • The Client APIs will enable a third party application to invoke MCS client services such as • Basic calls • Instant Messaging • Presence *Fast Feature – trials end ‘04

34. PDA Client i2004 IP Phone 3rd Party Sets Interop-Lab i2002 IP Phone MCS 5100 - Clients • Multimedia PC Client • Enterprise desktop interface to MCS 5100 client services • Web Multimedia Client • Browser based interface for increased Mobility • PDA Client • Supports small footprint devices (PDA interface) • i2004/2 IP Phone • Support for Nortel i2004 and i2002 Internet Phone • Support for 3rd party SIP devices planned via Nortel interop labs Multimedia PC Client Web Client

35. Real-Time Multimedia CommunicationsMultimedia Communication Server (MCS) 5100Delivering real value to the enterprise • Productivity & Personalisation • Mobility • Collaboration • Simplicity Personal Agent – Flexible Access Conferencing, Instant Messaging, Application Sharing Converged Desktop Current Phone Multimedia PC Client

36. What the Analysts say “The key sales driver in the enterprise communications market today remains infrastructure competence. But customer expectations are evolving, and it will almost certainly be applications competence that wins business in future years. Leading-edge systems like Nortel Networks MCS 5100 are becoming critical differentiators.” “Presence-aware, multimedia collaboration systems like MCS 5100 take full advantage of the unique capabilities of packet-based communications. And Nortel Networks early efforts to deliver a standards-based solution with short-term ROI should get the attention of forward-thinking customers.” —Jerry Caron, Senior Analyst, Current Analysis

37. Nemertes Research 2003 “As companies increasingly assess their network-convergence projects, they seek vendors who support open standards and provide for a hybrid migration strategy. Nortel Networks is well-positioned to meet those demands, giving companies the option to gradually migrate traditional voice and video traffic to a single IP network to leverage SIP multimedia applications.” —Robin Gareiss, Principal Research Officer, Nemertes Research • Integration is critical for collaboration tools to be more than just another application within an enterprise, and instead become a workplace-changing technology. • We believe that the desktop of tomorrow will be focused around instant messaging, audio, video and Web conferencing, and online workspaces, but only if the technologies all work together.

38. Most recent EMEA customer wins Customer quote: "Nomura International plc will be piloting the collaborative tools and assessing their potential to assist its business globalisation as well as its remote working capabilities. The features being reviewed closely include Soft Phone, Presence, Multi-media Conferencing and Personal Call routing." National Oilwell will use the MCS5100 to offer mobility, the ability to work from your office anywhere, to their workforce. Users will have the status of the members of their virtual work teams by use of presence and IM National Oilwell is based in two main sites and many small sites in Norway and Houston, USA

39. FedEx / University of Michigan FedEx Institute of Technology, Nortel Networks to facilitate 'Workplace of the Future' with MCS 5100 – 6th May 2004 “Our work with Nortel Networks will enable us to further our goals of creating the ‘Workplace of the Future,’ where we will showcase ways our students and faculty can collaborate to a much greater degree—not only among themselves but with our external research partners as well.” —James M. Phillips, Chairman, FedEx Institute of Technology Nortel Networks and the FedEx Institute of Technology at the University of Memphis are working together to facilitate the "Workplace of the Future," where advanced collaborative capabilities are expected to make it possible for tomorrow's leaders to reach out virtually 'anytime, anywhere' to tap the resources and expertise they need to succeed.

40. Erlanger - Healthcare “Convergence is taking us leaps and bounds above what other hospitals are doing. Our strategy has been to test these exciting new technologies with technology-literate users to help us determine the best applications and usage among all our users. The innovative features and functionality of the MCS 5100 mean we can provide new tools for lots of people.” —John Haltom, Network Director, Erlanger Health System

41. Global Lead Customer Monster.com http://www.nwfusion.com/news/2004/0126infmonster.html SIP is hip at Monster.com “We recognize that the communications landscape is rapidly changing and that we have to offer the latest technology to our employees that can dramatically improve the way they interact. Nortel Networks Multimedia Communication Server (MCS) 5100 provides the most innovative set of applications to deliver truly consolidated, multimedia capabilities in a well-designed comprehensive solution.” —Brian Farrey, President, Monster Worldwide Technologies “MCS 5100 has been used by the technical teams in the U.S. and has worked great. We are deploying in the Prague office. We see SIP as a driver for increased user mobility and collaboration.” “We can expand our footprint and service coverage without today’s limitations or costs due to travel.”

42. Nortel Networks Value Proposition Deliver personalized, easy to use multimedia services that provide individuals with the freedom to communicate naturally, without the restrictions of location, access type, or media. Seamless Integration of Telephony with Video, Collaboration, and Presence to Deliver Next-Generation Communication Services

44. Backup / Substitute

45. Try before Buy60 Day Test Drive • End customers offered 60 day free trial of MCS 5100 hosted off Nortel Networks system • 4 x PC clients for end customer, 4 x PC clients for NN and channel SE and Sales Managers • Formal process based on sales opportunity • Published firewall and NAT policy requirements

46. Communications are Changing From: To:

47. Target Markets • Target verticals • Finance • Healthcare • Manufacturing • Professional Services eg Law • Education • Ideal customer profile • Multiple sites • Mobile workers • Home workers • Culture that supports flexible working • Requirement to collaborate across dispersed teams • Heavy usage of external conference bureau services

48. Positioning MCS 5100 in the Collaboration Market • Many niche solutions on the market from specialist vendors of instant messaging, collaboration, video etc • None offering the same integration with business telephony or full suite of services • Rival vendors announced SIP capabilities • None can deliver full suite of MCS services • Many are stories of future capability, MCS 5100 delivers today

49. MCS 5100 – The Competition • MCS 5100 will compete against new competitors who’s software base products have evolved with specific functions targeted to a specific audience. • MCS 5100 is a total integrated solution providing central management and control while being able to deliver advanced forms of communications. • No other single software or hardware vendor today is able to deliver the same level of capability and scalability as MCS 5100.

50. MCS 5100 Competitive– An entirely new landscape! Telephony Vendors – The Traditional Players • Siemens OpenScape – A Instant Messaging and Collaborative software application leveraging Microsoft Real-Time-Communications server. Much less scalability than MCS (<2000 in latest release), multi-server deployment, NO centralised management and does not support UNIX or Linux customers. Must install most of Microsoft’s server technology to implement. Much less functionality - video only just released Q3 ‘04. Advantage Nortel Networks! MCS 5100 offers customers an advanced solution from a single source supplier with no implementation mandates or requirements. • Avaya, Cisco, NEC, Alcatel and Mitel have all announced support for SIP but only in a proxy fashion with no announced support for Instant Messaging or other Collaborative Applications. Advantage Nortel Networks! MCS 5100 offers a complete suite of advanced solutions.