Zeev Aviv, VP Sales Operation Corporate Presentation Alex Levin, VP Sales East Europe/Africa May 12, 2011 Always Team Work… Mission Statement Innovative Leading Supplier of Converged VoIP & Data Solutions for Service Providers and Enterprises Worldwide. AudioCodes: A Brief Intro • • Market leader in VoIP Technology and Products Deployed in over 100 countries in service providers broadband, mobile & enterprise networks • • Strong brand for quality & performance Global partner to leading telecom players including Alcatel-Lucent, Avaya, Broadsoft, Microsoft, NSN • • Global distribution network 18 years of operations, Public since 1999 Strong Global Presence Main Worldwide Offices: • Headquarters: Israel • North America: NJ, TX, NC • APAC: Singapore, Korea, China, India, Australia • EMEA: UK, France, Germany, Russia • LATAM: Miami, Brazil, Mexico, Argentina, Colombia 620 Employees • R&D (255), Sales & Marketing (225), Operations (90), G&A (50) • Israel (410), US (140), Europe (35), APAC (25), LATAM (10) AudioCodes Performance Snapshot • Ranked #1 in VoIP chips (1997-2000) • Ranked #1 in VoIP communications blades (1998-2006) • Ranked #1 in VoIP Medium Density and Low Density media gateways (2008-2010) • Focused now on Converged voice & data networking 200000 Yearly Historical Revenues (KUSD) 180000 160000 140000 120000 100000 80000 60000 40000 Technology 20000 Networking 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 AudioCodes Revenues History & plan for 2011 (plan) 200000 180000 160000 140000 120000 100000 80000 60000 40000 20000 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Focus on 3 Market Segments Broadband • • • VoBB Trunking / Peering Hosted VoIP Mobility/Wireless • • • SP Mobile VoIP Enterprise Mobility Fixed Wireless • IP Telephony and UC network elements Contact Center Enterprise • Go To Market Strategy • Offer leading global channel partners broad solutions from a single vendor • Partner with leading OEMs to provide reliable and cost effective products • Provide Solution Partners best of breed, interoperable products • Supply Service Providers and Enterprises with a comprehensive set of flexible, feature rich solutions Enterprise DoD Channel Service Providers Solution Partners OEM Our Partners and Channels What AudioCodes Does… The Communications World: • Applications Communications world is shifting towards an all IP infrastructure • Growth driven by desire for unified communications, cloud computing and mobility • Incumbent vendors struggle to adapt to demands of newly emerging software applications Mobile UCC Mediant Gateways Residential Gateways MSBG Cloud SBC IP Phones AudioCodes All IP World TDM All IP 2030 AudioCodes innovative, interoperable and diverse portfolio of solutions are uniquely positioned to enable this transition Our Vision of the emerging network IP Phones Enterprises Multi Media Servers Mediant 1000 Intelligent CPE The Cloud MP-252 Residential Intelligent IAD/App Enterprise & Service Provider Solutions Residential Services • VoIP Calls and Broadband SMB/SME Services • Access • • • (SIP Trunk) Domestic and intl. Calling • VoIP over Mobile BroadBand Business VoIP Service Enterprise and Public Sector IP-Centrex and Hosted (SIP Trunk) • Services • • • Business VoIP Service Managed Enterprise IP telephony Open Source IP Telephony • Unified Communications Unified Communications • Contact Centers Mobility applications AudioCodes’ products help Service Providers: • • • Fight churn through innovation Increase ARPU by service diversification Reduce TCO while evolving to all IP NGN “One Stop Shop” for VoIP Residential Services SMB/SME Services • • • Enterprise and Public Sector All Your Network Needs, Small and Large In front of the customer, or in the servers room At the premise or in back-office Our Solution Partners Building successful, innovative, low TCO, NGN requires openness and interoperability Our Service Provider Customers “Never Alone” Global Customer Support Interoperability, certification and lab support Regional Customer Support Call Center: Tier1 & Tier 2 AMERICA Training infrastructure 24x7 “Follow the Sun” Technical support Regional Customer Support Call Center: Tier1 & Tier 2 EUROPE Corporate Customer Support Tier 3 & Tier 4 Worldwide Regional Customer Support Call Center: Tier1 & Tier 2 ASIA-PACIFIC Growth Opportunities • • • • High Definition VoIP Enterprise Unified Communications and Collaboration • Enterprise SBC • Mobility • Microsoft Lync Mobile VoIP Residential Multimedia Home Gateway High Definition VoIP • Extends bandwidth range • From 200 Hz – 3.4 kHz • To 50 Hz – 7.1 kHz • Substantially higher voice quality • Superior Clarity, Intelligibility and Richer Sound AudioCodes HDVoIP Products HD VoIP Products IPMedia™ 3000 Media Server IP Phones Mediant™ 3000 Enterprise and Carrier-grade Media Gateway Soft Clients PC/Mobile Mediant™ 1000 MSBG Multi-service business gateway MP-252™ Residential Multi-Media Gateway Voice Over Packet Processors & Modules Enterprise SBC, UCC & Contact Center September 2010 Enterprise Session Border Controllers (E-SBC) • Enterprise Session Border Controllers are used to securely and transparently connect Enterprises to SIP Trunks, Hosted Services and Remote Workers • The E-SBC market will grow in next 4 years from 2010 to 2013 to $742 million (Infonetics Research,2009 ) • SIP Trunking adoption and E-SBC demand is primary in North America - 68% of total E-SBC deployments. SIP trunking penetration worldwide will drive further growth. Soft Switch IP-PBX IP IP Phones SIP Trunk SP WAN Enterprise SBC Source: Infonetics Research (8 July 2010) AudioCodes E-SBC Line AudioCodes Advantages: • • Strong PSTN capabilities enable Integrated PSTN/IP Solution Comprehensive DSP capabilities Mediant 800 MSBG Mediant 1000 MSBG Mediant 3000 Border Gateway E-SBC E-SBC E-SBC SMBs SMBs and SMEs Large Enterprises Up to 24 sessions Up to 150 sessions Up to 1000 sessions Multi Service Business Gateway Multi Service Business Gateway Hybrid SBC and PSTN Microsoft Unified Communications • Unified communication market to top $1 billion by 2013; Microsoft, Cisco, AT&T top vendors (Infonetics, 2010) • “Unified communications offers the ability to improve how individuals, groups and companies interact and perform tasks..” • Microsoft is the leader in the Unified communications world market (Gartner Magic Quadrant) • AudioCodes is a leading partner of Microsoft in providing products which enable enterprises to connect their legacy telephony system with Microsoft Unified Communications networks. AudioCodes products/Solutions for Microsoft UC PSTN Networks SP PSTN Secured SIP Trunking SP IP WAN TDM Trunks …. Media Gateway …. CS recording solution SIP Trunks Enterprise SBC Legacy TDM PBX Media Gateway SmartTAP Call Recorder E1/T1/BRI/FXO PBX Fixed Mobile Convergence Microsoft Unified Communications Non certified IP PBX Media Gateway IP-PBX Enterprise SBC SIP SIP 3rd party Analog and SIP based Phone Support MGW & Enterprise SBC Legacy Fax & other Analog devices Media Gateway IP Phones Hosted Contact Center Peripherals Reference Design MxK as E-SBC for SIP Trunking MxK Media Server for transcoding and Media VAS MxK GW as PBX aggregation MxK as GW for TDM Trunking Contact Center Application M8C, M1K GW On-Prem PBX Connectivity M8C, M1K E-SBC On-Prem IP-PBX Connectivity M8C, M1K MSBG On-Prem Branch Survivability MxK E-SBC for Remote Worker Bonding MP11x GW On-Prem Analog Phone Aggregation Mobile VoIP Mobile VoIP: The Future of Mobile Communications • Increased sales of smartphones and apps • Explosion in mobile data drives build-out of Wi-Fi and 3G HSPA • Skype and Google Voice drive voice services prices down • 30 25 20 15 10 Economics drives consolidation of 5 data & voice services over same 0 infrastructure (pre-LTE) • Global Mobile VoIP Revenues, in USD Billions 35 Improved quality of service 2008 2009 2010 2011 2012 2013 2014 2015 Frost & Sullivan: Impact of Mobile VoIP on Next Gen Cellular Networks Mobility for UCC in SMB/SME Smartphones & Tablets with Mobility Client Mobility Gateway All-in-one solution •Application Server •E-SBC •MGW 3G/LTE IP-Voice, Instant Messaging, Presence, IP-Video, Collaboration “Business Mobile VoIP Gateway Revenues to Soar Past $6 Billion in 2015 – In-Stat January 2011” Initially Focused on Microsoft Lync Mobile VoIP: AudioCodes VMAS Value Proposition With AudioCodes VMAS, Service Providers can enjoy the benefits of Mobile VoIP prior to deploying LTE • Comprehensive end to end solution: From mobile/Web/PC clients to gateways and Client management system • Leading Quality of Service solutions and network resiliency schemes tested and implemented • Feature rich and robust solutions that are interoperable with all leading mobile operating systems * Substantial increase in deployments in 2010 Residential Multimedia Home Gateway IAD market • Old market: Separated devices, sold via retail: • Modem (ADSL / Cable / XttH) • Router / Firewall • VoIP ATA • New market: Integrated, all-in-one residential device, sold via Service Providers, integrating: 2x2 MIMO Wi-Fi 802.11n, Gigabit LAN, IPv6, HD VoIP, DECT, home PBX, router, access, security. • The residential IAD market is expected to reach $1.1B in 2010 and expected to grow by 35%-40% by 2013 (Source: MIC, Aug 2010) MP-252 All in one multimedia Home Gateway AudioCodes HDVoIP Products For All Your VoIP Needs • Superior Voice Quality • Rich Portfolio • Interoperability • Uniform Technology • Innovative AudioCodes DNA Inspiration Devotion Execution Orientation Achievement Creation Dedication Success Understanding Organization Thank You!