How-to-Sell Data Center

[January 2010]

Agenda
Why You Should Care Business Trends Value proposition What to sell Selling Tips Competitive Snapshot

Resources to Help You Succeed

2010 Avaya, Inc. All rights reserved.

Why You Should Care

Data Centers are key to organizations as it hosts their critical data and applications Avayas switches are depended on in fortune 500 Avaya switches provide deterministic sub-second network failover from server to network core for maximum resiliency Controlling the Data Center will improve selling to campus and branch offices The combined offering of data and voice can provide customers a total solution from one vendor that can enhance the relationship and keep competitors away
2010 Avaya, Inc. All rights reserved. 3

Ethernet Switch Market Size*

Fixed 10GbE switches will represent the majority of port shipments in the Data Center

FCoE has a huge potential growth in the coming years

Data Center port shipments represent ~25% of overall total Ethernet market According to Gartner, virtualization is #1 in IT trends in 2009

* Source = DellOro, WW 5yr Ethernet Forecast July 2009

Data Center Market Will be The Growth Engine for 10GbE Switches
2010 Avaya, Inc. All rights reserved. 4

More facts

One large data center can consume enough juice to power a small city of 30,000 to 40,000 people.
- A major financial newspaper, June 2006

IDC predicts cost to cool and power servers globally will increase from $26Billions to $44Billions in 2010 Most servers run at 10-15% utilization !

A server costs $300 to $600 each year in direct energy costs, and another $300 to $600 a year in cooling costs

Power company in Boston will write check for $4M if you break ground and move Data Center outside city ! In London, Mumbai, Tokyo and New York City, data center Network operators can't get more power to their sites IT typically represents 30 to 40% of a companys energy consumption ICT contributes to ~2% of Global CO2 emissions which is roughly equivalent to the Aviation Industry and if left unchecked its growth is unsustainable
5

12-15% and growing

Loss

HVAC

Servers & Storage Lighting

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CIO & Data Center Manager Challenges

Strategic & Tactical Pain Points
(Physical / Environmental / I/F) Effective (Server) Resource Utilization Managing Growing Circuit Costs Power & Cooling Costs Today: Hosting; 09/10: Large DC (adapting to Business Changes) Operational Simplification (including Process Automation) Flexible with Business Growth Virtual Office (Mobility) (ability to Deliver Value) Disaster Recovery / Business Continuity Meeting Security & Compliance Needs
(Adherence to HIPPA, PCI, COBIT)

DC CAPEX/OPEX

(Expensive Aging DC) WAN Bandwidth Utilization By 2010, 50% of DCs need refresh

DC OPEX

CIO Chief Information Officer

Data Center Managers & Operations

Disparate Networks; Maxed-Out Facilities

REDUCE TCO Total Cost of Ownership to 1:2 Power & Cooling up from 1:0.5
Application Consolidation Imperative Implementation Issues Multi-faceted (Managing non-existent Perimeter) Proliferation of different Devices & Users (without ubiquitous security enforcement)

Agile Data Center

Secure B2B / e-Business

at a granular ALIGN Resources TO BUSINESS RaiseNeed for controlneeded for B2B Ops Productivity level Ease in Access to Single Sign-On Need Dynamic Mgmt & Orchestration (integrating Silos of Solutions) Complex Day2Day Management Dynamically Adapt to Growth & Contraction of Business

Business Enablement

Operational Complexity

DELIVER TTS In min/hrs Not weeks/months Extranet B2B / eBusiness Connectivity

Globalization; Cross Border Businesses

Network, Server, Storage 3 Silos Infrastructure not Application/Biz Focused

2010 Avaya, Inc. All rights reserved. 6

Avaya Data Center Switches Value Proposition

Uninterrupted business services that meet the increasing demand of consolidated and virtualized Data Centers to reduce operational costs, improved time to service & drive revenue
Supported by advanced carrier-like reliability, performance, scalability and

network simplicity resulting in maximizing network & application uptime

Unified Communication Management for all devices

Platforms:
Ethernet Routing Switch 8300 for server access layer Ethernet Routing Switch 8600 for medium core Virtual Services Platform 9000(1H10) for large to very large core Ethernet Routing Switch 5500/5600 for server access layer

ERS 8300

ERS 8600

VSP 9000

ERS 5500

ERS 5600

Your Dependable Platform for the Consolidated and Virtualized Datareserved. 7 Center 2010 Avaya, Inc. All rights

Unified Communications Management

Unifying Application Components

2010 Avaya, Inc. All rights reserved.

ERS8300/8600

ERS5600

ERS5500

VSP9000

ERS2500

CS1k/2k

SR4134

Avaya Data Center Switches Key Benefits

REDUCE TCO Total Cost of Ownership ALIGN TO BUSINESS Raise Productivity DELIVER TTS In min/hrs Not weeks/months Reliable Infrastructure Five 9s reliability Simplified Network Easy to mange and deploy
2010 Avaya, Inc. All rights reserved. 9

What Questions Should I Ask?

Data Center
What are your plans for consolidating and virtualizing Data Center...? Are you looking at combating infrastructure complexity to minimize IT management cost? Are you experiencing performance or availability issues with your business critical applications? Is real estate and power consumption a concern? Do you want to fully utilize switching capacity of HA systems to maximize your investment? Are you experiencing high operational cost? How prepared is your network for the bandwidth & quality demands of modern applications..?

2010 Avaya, Inc. All rights reserved.

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Who Needs It?

Data Center Switches Enterprise and Hosting Data Centers that:

Are consolidating and virtualizing Are growing and require scalability Are suffering from poor application availability and/or

performance Need best-of-class resilient solution to extend server virtualization (VMware/Hyper-V) to the network Need to simplify managing the network infrastructure Need to support multiple customer environments (hosting)

2010 Avaya, Inc. All rights reserved.

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SWOT Analysis:
Avaya Strengths

ERS 8300 vs. Cisco C4500

Competitive Weaknesses > 8300 has better pricing > 8300 has better QoS C4500 only supports 4 Queues, and performance is very low (6Gbps per Slot) meaning high over-subscription > 8300 has more consistent Chassis & Module capabilities C4500 has too many options for both, making planning and investment protection difficult > C4500 relies on Spanning Tree Competitive Threats > Brand, Brand, and Brand > Entry-level (low-performance) Supervisor Engine pricing, giving a false impression of good pricing > Superficially high levels of software functionality; but Customers should not by wowed by the fact that premium features are configurable; C4500 leverages IOS, so many features are available but few are required.
2010 Avaya, Inc. All rights reserved. 12

> Versatile product: deployable in the Core or in the Access > Core Switch Clustering technology for high-availability network solution > Superior Convergence features: PoE, QoS with 8 queues, and Standardsbased auto-discovery (802.1AB) > High performance switching architecture with in-built system redundancy > Innovative Access Control security Avaya Opportunities > 8300 has strong performance, port diversity, & feature-set capabilities > 8300 is outstanding as the Enterpriseclass Access Switch in the large network > 8300 is gaining strength as the Core Switch, & ideal for the medium-sized Enterprise > 8300 provides a compelling solution providing consistent hardware & software in both Core & Access

SWOT Analysis:
Avaya Strengths

ERS 8600 vs. Cisco C6500

Competitive Weaknesses > 8600 has better pricing > 8600 provides sub-second network failover without price premium > 8600 has lower TCO > 6500 has complex and expensive virtualization options > 6500 lacks investment protection as limited interoperability exists between Sup Engines, daughter cards & linecards Competitive Threats > Brand, Brand, and Brand > C6500 is a little denser but too expensive > Entry-level (low-performance) Supervisor Engine pricing, giving a false impression of good pricing > C6500 offers a wide range of specialty modules > Leverage installed base of more than 50,000 chassis. > Core Switch Clustering technology for high-availability network solution > Simple and cost effective IP VPN solution > A mix of high density and diversity port module options > Flexible 10G RSP network processor for future SW upgrade without network forklift Avaya Opportunities > Huge market opportunity (~$6.5B/yr) for modular switches to pursue and leverage our installed base > 8600 supports up to 96 10GbE ports for the high growing 10G market > 8600 offers advanced features & modules that enable us to go after new applications

2010 Avaya, Inc. All rights reserved.

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SWOT Analysis:
Avaya Strengths

VSP 9000 vs. Cisco Nexus 7000

Competitive Weaknesses > VSP 9000 has much higher architecture capacity 27Tbps vs. Nexus 15Tbps > VSP 9000 has better pricing > VSP 9000 has more consistent Chassis foot print as ERS portfolio > VSP 9000 provides 3 Chassis / rack (720 ports 10GE) or 40% more 10GE ports > VSP has 2x performance -970Mpps IPv4 > Leverage installed base of 60,000 ERS 8600 > Similar to ERS 8600 CLI that will minimize operational costs for customers. > Terabit Performance and advanced feature sets including virtualization and integrated services

Avaya Opportunities > Market forecast is healthy (~ $7B/yr). Projected revenue $1.2B (2H10-12) > Leverage Gigabit migration to the desktop with ultra high density 10 Gigabit uplinks. > Go after Greenfield opportunities (Data Center & Campus LAN) with an advanced platform. > Leverage virtualization market strength

Competitive Threats > Brand, Brand, and Brand > Nexus 7000 has already been shipping since 2008. VSP 9000 wont ship till end of Q2 2010. > Customers may migrate to new platforms before this product ships. > VSP 9000 wont have the virtualization features in first release
2010 Avaya, Inc. All rights reserved. 14

Did you know?

Avaya data is the ONLY vendor that can provide deterministic sub-second network resiliency for server access to core network without price premium Why should you care?
Ensure business continuity and reduce revenue loss Lower operational costs Enhance user, customer & partner experience for all Improve customer satisfaction for all

Proof points
http://www.tolly.com/DocDetail.aspx?DocNumber=208275
2010 Avaya, Inc. All rights reserved. 15

Did you know?

Avaya data is the ONLY vendor that provides CAPEX protection for ALL Data Center switches in high-availability configuration Why should you care?
Higher return on investment Higher performance that enhances voice and data traffic

2010 Avaya, Inc. All rights reserved.

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Did you know?

Avaya data is the ONLY vendor that provides a simplified and cost effective IP Virtual Private Network solution across the entire campus and Data Center Why should you care?
Lower operational cost as management, training and

troubleshooting is minimal equipment is required

Lower capital equipment expenditure as no additional

2010 Avaya, Inc. All rights reserved.

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Did you know?

Avaya data is the ONLY vendor that provides no single point of failure (link or unit) and leading stacking performance for Data Center Top-of-Rack deployments Why should you care?
Ensure voice and data traffic continuity Improve network and business uptime Ease of network scaling as business grows

Proof points
http://www.tolly.com/DocDetail.aspx?DocNumber=205137 http://www.tolly.com/DocDetail.aspx?DocNumber=206106
2010 Avaya, Inc. All rights reserved. 18

Did you know?

Avaya data provides up to 40% less power consumption than leading competitor. In addition, new power savings technique that provide additional power savings Why should you care?
Reduce energy bill and invest the savings into IT Reduce carbon emissions

Proof points
http://www.tolly.com/DocDetail.aspx?DocNumber=208298

2010 Avaya, Inc. All rights reserved.

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Did you know?

Avaya data provides Best-in-Class connectivity to VMware ESX servers & iSCSI storage ensuring always-on operation for mission critical applications
Why should you care?
Lower operational costs Reduce planned and unplanned maintenance Flexible configuration options for great investment protection Efficient network design requires less power and cooling

Proof points
http://www.equallogic.com/partnerships/default.aspx?id=8293 http://www.vmware.com/a/partnercatalog/catalog/ViewProduct.php?pubpr

oductid=a0450000008Ze3AAAS

2010 Avaya, Inc. All rights reserved.

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