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Optical Transceivers
                  EDGE Technologies, Ltd – Feb, 2013




www.edgetech.lv
AGENDA


                  EDGE Technologies introduction
                  How CAPEX costs are reduced
                  3rd party transceiver myth




www.edgetech.lv
EDGE Technologies Introduction




www.edgetech.lv
EDGE Technologies
       We are working to
       «Accelerate Your success»


                  Exclusive distributor of #4 TOP Telecom vendor – ZTE Corporation
                  Established in 2010
                  During 3 years of operation more than 30+ contracts
                  Sucessfuly implemented Datacom, GPON, Transmission projects
                  Launched ZTE Smartphone product line in Latvia, Lithuania
                  Delivering Optical Transceivers to major operators in Europe




www.edgetech.lv
EDGE Optical Transceivers - High Quality 3rd Party Optics
     Available




www.edgetech.lv
Technical Support
                  Customer Service Portal   Technical Support FAQ:


                                               How to register problem?
                                                            R & D China
                                               -    www.edgetech.lv/support
                                               -    support@edgetech.lv
                                               -    Hotline: +371 27746349
                                              Where to access documentation/software?
                                                  Belorussia / Uzbekistan GTAC
                                              -   www.edgetech.lv/support
                                               How long will take warranty replacement?
                                               - 1-2 working days
                                                Local Technicans – 3 Local / 2 Chinese
                                              How long will take resolution of problem?
                                              - Minor – Up to 5 CD
                                              - Average – Up to 1 CD
                                              - Critical – 3h




www.edgetech.lv
EDGE Technologies
     Our Customers




www.edgetech.lv
Product Compatibility




           We deliver to our customers multi-vendor compatible optical transceivers, that means, by making
           order customer can choose optical transceiver compatibility by selecting vendor and model name.




www.edgetech.lv
Full Transceiver Product Portfolio




           We have wide product portfolio starting from simple 100M FE transceivers ending with 10G and 40G
           models avaliable as: Single fiber, Double fiber, CWDM and DWDM types. For more details please have
           a look at our website-> Optical Transceivers section.



www.edgetech.lv
How CAPEX costs are reduced




www.edgetech.lv
How CAPEX costs are reduced?

                                   Cisco original  EDGE Technologies
                         Product     price EUR        price EUR          Savings
                  1.25G-SFP-T               154,00              21,00    7 times
                  1.25G-SFP-10D             231,00              13,00   17 times
                  SFP-10G-LR              1 540,00              99,00   15 times
                  XFP-10GB-LR             1 540,00             120,00   13 times
                  X2-10GB-LR              1 540,00             250,00    6 times




       In table above it’s possible to see that by using EDGE Technologies optical
        transceivers it’s possible to have a huge savings in equipment CAPEX area.


www.edgetech.lv
Example – How CAPEX costs are reduced?

                                                          Cisco 3750E-24TD
                                                          24xGE RJ-45 + 2*10GE (X2)



                                                    Price with original        Price with EDGE
                               Description
                                                    Transceivers EUR           Transceivers EUR

                  Cisco 3750E-24TD switch price                 5 193,65                   5 193,65
                  2pcs X2-10GB-LR                               3 080,00                     500,00
                  Total cost                                    8 273,65                   5 693,65
                  Total TCO savings in EUR                                                 2 580,00
                  Total TCO savings in percentage                                                 31%




www.edgetech.lv
Myths about 3rd party Transceivers




www.edgetech.lv
Myth1 - It is not legal to use 3rd party transceivers


          It is opposite!
          Customer could sue vendor if he is mislead and manipulated to buy overpriced
          product from vendor.
          In legal terms, this type of ploy is referred as a "tie-in sales provision." Such
          provisions are illegal. This is specifically prohibited by Europe Directive on Consumer
          Rights and in US by Magnuson-Moss Warranty act.




www.edgetech.lv
Myth2 - I will lose equipment warranty
     For example – Cisco
     Warranty says like this:
     Warning: When Cisco determines that a fault or defect can be traced to
     the use of third-party transceivers installed by a customer or reseller,
     then, at Cisco’s discretion, Cisco may withhold support under warranty or
     a Cisco support program. In the course of providing support for a Cisco
     networking product Cisco may require that the end user install Cisco
     transceivers if Cisco determines that removing third-party parts will assist
     Cisco in diagnosing the cause of a support issue.
     Explanation:
     This means that vendor can ask to replace third-party part if it is
     determined that part is faulty (same what would happen in case of original
     part), but part MUST BE FAULTY and vendor must prove it. If there is a
     working 3rd party optical module in the port, service level on any part of
     the chassis or OS can’t be reduced.




www.edgetech.lv
Myth3 - Price difference is huge, there must be
     quality issue
       Explanation:
       For optical transceiver manufacturing cost - it is almost the same for all the vendors, either it’s
       Cisco, ZTE, HP or EDGE Technologies. None of these vendors manufacture optical transceivers
       on their own. Our manufacturing lines mirror vendor manufacturing lines - our products are
       manufactured in same factories.

       Each Optical transceiver product consist of 2 parts:
       1) Hardware part - this has been standartized by MSA (Multi Source Agreement) and all
       transceivers avaliable are according to this standard
       2) Software part - some vendors use standard software suggested by MSA, others use special
       self design coding and put extreme profit margins on top of the product.
       During several years of experience we have developed our own coding database and our highly
       skilled engineers are able to develop unique, independent vendor compatible code, to match
       any vendor software requirements

       This article explains Cisco transceiver business details and why there is such price difference:
       http://www.lightreading.com/document.asp?doc_id=102950#msgs

www.edgetech.lv
Myth4 - Serial numbers will repeat

     Explanation:
     EDGE Technologies enginers during delivery process make sure that each
     delivered product has unique one of a kind serial number.




www.edgetech.lv
Myth5 – After software update product will fail

          Explanation:
          As EDGE Technologies delivered transceiver software is programmed according to
          specific vendor as requested during delivery process. If new protection mechanisms
          are introduced after software update, then as well original vendor existing delivered
          transceivers will fail.




www.edgetech.lv
Zero risk – Our Experience

          Here are some of the biggest operators with whom we cooperate and
          deliver our optical transceiver solutions:




www.edgetech.lv
www.edgetech.lv

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Edge optical transceivers

  • 1. Optical Transceivers EDGE Technologies, Ltd – Feb, 2013 www.edgetech.lv
  • 2. AGENDA EDGE Technologies introduction How CAPEX costs are reduced 3rd party transceiver myth www.edgetech.lv
  • 4. EDGE Technologies We are working to «Accelerate Your success» Exclusive distributor of #4 TOP Telecom vendor – ZTE Corporation Established in 2010 During 3 years of operation more than 30+ contracts Sucessfuly implemented Datacom, GPON, Transmission projects Launched ZTE Smartphone product line in Latvia, Lithuania Delivering Optical Transceivers to major operators in Europe www.edgetech.lv
  • 5. EDGE Optical Transceivers - High Quality 3rd Party Optics Available www.edgetech.lv
  • 6. Technical Support Customer Service Portal Technical Support FAQ: How to register problem? R & D China - www.edgetech.lv/support - support@edgetech.lv - Hotline: +371 27746349 Where to access documentation/software? Belorussia / Uzbekistan GTAC - www.edgetech.lv/support How long will take warranty replacement? - 1-2 working days Local Technicans – 3 Local / 2 Chinese How long will take resolution of problem? - Minor – Up to 5 CD - Average – Up to 1 CD - Critical – 3h www.edgetech.lv
  • 7. EDGE Technologies Our Customers www.edgetech.lv
  • 8. Product Compatibility We deliver to our customers multi-vendor compatible optical transceivers, that means, by making order customer can choose optical transceiver compatibility by selecting vendor and model name. www.edgetech.lv
  • 9. Full Transceiver Product Portfolio We have wide product portfolio starting from simple 100M FE transceivers ending with 10G and 40G models avaliable as: Single fiber, Double fiber, CWDM and DWDM types. For more details please have a look at our website-> Optical Transceivers section. www.edgetech.lv
  • 10. How CAPEX costs are reduced www.edgetech.lv
  • 11. How CAPEX costs are reduced? Cisco original EDGE Technologies Product price EUR price EUR Savings 1.25G-SFP-T 154,00 21,00 7 times 1.25G-SFP-10D 231,00 13,00 17 times SFP-10G-LR 1 540,00 99,00 15 times XFP-10GB-LR 1 540,00 120,00 13 times X2-10GB-LR 1 540,00 250,00 6 times In table above it’s possible to see that by using EDGE Technologies optical transceivers it’s possible to have a huge savings in equipment CAPEX area. www.edgetech.lv
  • 12. Example – How CAPEX costs are reduced? Cisco 3750E-24TD 24xGE RJ-45 + 2*10GE (X2) Price with original Price with EDGE Description Transceivers EUR Transceivers EUR Cisco 3750E-24TD switch price 5 193,65 5 193,65 2pcs X2-10GB-LR 3 080,00 500,00 Total cost 8 273,65 5 693,65 Total TCO savings in EUR 2 580,00 Total TCO savings in percentage 31% www.edgetech.lv
  • 13. Myths about 3rd party Transceivers www.edgetech.lv
  • 14. Myth1 - It is not legal to use 3rd party transceivers It is opposite! Customer could sue vendor if he is mislead and manipulated to buy overpriced product from vendor. In legal terms, this type of ploy is referred as a "tie-in sales provision." Such provisions are illegal. This is specifically prohibited by Europe Directive on Consumer Rights and in US by Magnuson-Moss Warranty act. www.edgetech.lv
  • 15. Myth2 - I will lose equipment warranty For example – Cisco Warranty says like this: Warning: When Cisco determines that a fault or defect can be traced to the use of third-party transceivers installed by a customer or reseller, then, at Cisco’s discretion, Cisco may withhold support under warranty or a Cisco support program. In the course of providing support for a Cisco networking product Cisco may require that the end user install Cisco transceivers if Cisco determines that removing third-party parts will assist Cisco in diagnosing the cause of a support issue. Explanation: This means that vendor can ask to replace third-party part if it is determined that part is faulty (same what would happen in case of original part), but part MUST BE FAULTY and vendor must prove it. If there is a working 3rd party optical module in the port, service level on any part of the chassis or OS can’t be reduced. www.edgetech.lv
  • 16. Myth3 - Price difference is huge, there must be quality issue Explanation: For optical transceiver manufacturing cost - it is almost the same for all the vendors, either it’s Cisco, ZTE, HP or EDGE Technologies. None of these vendors manufacture optical transceivers on their own. Our manufacturing lines mirror vendor manufacturing lines - our products are manufactured in same factories. Each Optical transceiver product consist of 2 parts: 1) Hardware part - this has been standartized by MSA (Multi Source Agreement) and all transceivers avaliable are according to this standard 2) Software part - some vendors use standard software suggested by MSA, others use special self design coding and put extreme profit margins on top of the product. During several years of experience we have developed our own coding database and our highly skilled engineers are able to develop unique, independent vendor compatible code, to match any vendor software requirements This article explains Cisco transceiver business details and why there is such price difference: http://www.lightreading.com/document.asp?doc_id=102950#msgs www.edgetech.lv
  • 17. Myth4 - Serial numbers will repeat Explanation: EDGE Technologies enginers during delivery process make sure that each delivered product has unique one of a kind serial number. www.edgetech.lv
  • 18. Myth5 – After software update product will fail Explanation: As EDGE Technologies delivered transceiver software is programmed according to specific vendor as requested during delivery process. If new protection mechanisms are introduced after software update, then as well original vendor existing delivered transceivers will fail. www.edgetech.lv
  • 19. Zero risk – Our Experience Here are some of the biggest operators with whom we cooperate and deliver our optical transceiver solutions: www.edgetech.lv