This document summarizes information presented by AudioCodes about migrating to SIP trunking. It discusses: 1) How AudioCodes solutions like media gateways and session border controllers enable businesses to migrate phone systems to SIP trunking gradually, starting with a trial that reduces reliance on PSTN lines. 2) The cost savings that SIP trunking can provide compared to traditional phone lines, often 25-50% lower recurring charges through elimination of dual infrastructure and competitive SIP trunking markets. 3) A promotional offer from AudioCodes for VARs, which provides discounted hardware and support, as well as SIP training and certification, to help customers evaluate SIP trunking.

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2. Welcome

3. Migrating to SIP Trunking with AudioCodesNancy PattersonManager, NA Channel MarketingNancy.patterson@audiocodes.com

4. Complete your entry cardOne chance per break-out session and one additional chance for visiting the boothDrawing will be announced at the end of both sessionsYour Chance to Win an iPad2!

5. Overview:Manufacturer of Media Gateways, Enterprise Session Border Controllers, Media Servers, IP Phones, Mobility Technologies17 years of Operations, Public (NasdaqGS since 1999)Deployed in over 100 countries in broadband, mobile & enterpriseStrong brand for quality & performance Worldwide offices:Headquarters: IsraelNorth America: NJ, TX, NCAPAC: Singapore, Korea, China, India, AustraliaEMEA: UK, France, Germany, RussiaLATAM: Miami, Mexico, Brazil, Argentina, Columbia625 EmployeesR&D (250), Sales & Marketing (210), Operations (90), G&A (5)Israel (395), US (140), Europe (30), APAC (25), LATAM (10)AudioCodes: A Brief Introduction

6. What AudioCodes Does…ApplicationsCloudMobileUCCommunications - world is shifting towards an all IP infrastructure

7. Growth driven by desire for unified communications, cloud computing and mobility

8. Incumbent vendors struggle to adapt to demands of newly emerging software applicationsThe Communications World:Residential GatewaysAudioCodesMediant GatewaysIP PhonesSBCAudioCodes innovative, interoperable and diverse portfolio of solutions are uniquely positioned to enable this transitionMSBGTDMAll IPAll IP World2030

9. What is SIP Trunking?SIP trunking is a Voice over Internet Protocol (VoIP) service based on the Session Initiation Protocol (SIP) by which Internet telephony service providers (ITSPs) deliver telephone services and unified communication to customers ...

10. Service Provider Certifications

11. How Businesses Connect Voice TodaySource: Infonetics Research, SIP Trunking Deployment Strategies: North American Enterprise Survey, April 2011

12. The Case for SIP$46SIP Trunking- one of the fastestgrowing servicesto Enterprises SIP Trunking brings cost savings and operational efficienciesNorth America leads adoption$35$3Revenue (US $B)4Trunks (M)$23$22$11$1$00CY09CY10CY11CY12CY13CY08RevenueSource: Infonetics Research, Inc. Trunks

13. “SIP Trunking returns an average savings of 25% vs. a traditional separate voice and data infrastructure”Global Crossings, 2011“Fortune 1000-size organizations can save anywhere from 25-60% on their telecom expenses.”Sorell Slaymaker, Unified IT SystemsHow SIP Trunking Achieves Cost Savings“SIP Trunking can deliver savings of 30-50% for branch environments in mid-size and large enterprises”Gartner, Inc., 2009 “SIP Trunking Infrastructure cost reductions will allow Triton to realize ROI in as little as 3 months”Cameron Symonds, Director IT/TS, Triton TechnologiesEliminates dual last mile facilitiesMixed voice, video, data on same infrastructureMore competitive marketGreater geographic reachImproved flexibility

14. SIP Trunking Looks Good; Upgrading PBX environment …“Not So Good”Continuing pressure to reduce operational costs

15. Postponing/avoiding major capital expenditures

16. Legacy (TDM, IP-PBX) infrastructures still work

17. Effort to upgrade is slow and a distraction

18. Carrying over certain existing functionality may not be supportedWhere are the costs and inefficiencies?Lack of IntegrationCost of two facilitiesFirewallRouterStep 1 – Assess the SituationPC UsersMaintenance CostsInternetTrunking,Local andLong Dist.PSTNMoves, adds and changesLANSIP orDigital PhonesT1/E1 or Analog TrunksFaxCosts from Conferencing ServicesAnalog PhonesPBXIPTDM

19. Upgrade PBX?Replace PBX?Expansion?Consolidation?Eliminate PSTNWhen and at what cost?Step 2: PlanningSIP Trunking TrialEliminate PSTNTrunkingImplement IP-PBXOr Unified CommunicationsWith SIP TrunkingGoal

20. Step 3: SIP Trunking TrialFirewallRouterPC UsersInternetGateway MakesCall RoutingDecisionsSIP TrunksPSTNLANSIP orDigital PhonesSIP Trunk T1/E1 or Analog TrunksFaxGateway“Drop and Insert” ArchitectureEliminates PBX expansion/changes

21. Makes IP-PBX/UC Upgrade easierAnalog PhonesPBXIPTDM

22. Command/Control/Config.TDM InterfaceDSPs(Codecs)SIP StackTDM T1/E1/J1/BRI/AnalogPRI/CAS/MFC R2Loop Start/Ground StartDID/DTMF…SIP EthernetHow does a Media Gateway Work?

23. Step 4: Reducing/Disconnecting the PSTNFirewallRouterPC UsersInternetChange RoutingRules to movemore trafficto SIP TrunksSIP TrunksPSTNLANSIP orDigital PhonesT1/E1 or Analog TrunksFaxGatewayAnalog PhonesPBXIPTDM

24. Leading provider of Business Process andInformation Technology OutsourcingHeadquartered in Los Angeles, CA with offices in 14 locations around the globeNew client required 1,000 new agents in new officesWanted to utilize existing Avaya Predictive Dialer (TDM) with SIP Trunks to reduce costsSelected Intelepeer CloudWorx™ for SIP TrunkingIntegrated with an AudioCodes Mediant 3000 Media GatewayCurrently active, making thousands of calls a dayCase Study: VXI with Intelepeer

25. PSTNFirewallRouterAnalog PhonesT1/E1 or Analog TrunksFaxIPTDMStep 5: Migrating to Unified CommunicationUpgrade toEnterprise Session Border Controller(E-SBC)SIP TrunksUnifiedCommunicationsClientsInternetLANSIPPhones

26. SIP to SIP Connectivity?Enterprise Session Border Controller(E-SBC)IP Phones?SIP TrunksIP-PBX SIPSIPSIP Variant 1

27. SIP InteroperabilityThis is supposed to work!SIPRFC 3261SIP interworking and normalizationSignaling mediationMedia mediationTranscoding

28. PSTNSecurityInternetSIP TrunksSBCSIPCall Admission Control (CAC)Encryption & AuthenticationTopology hidingProtection against DOS attackSurvivabilityBadStuffE-SBCEnterprise LAN

29. How Does an E-SBC Work?Command/Control/Config.Security Policy ManagementSIPStackDSPs(Codecs)SIPStackSignaling (SIP)Media (RTP)SIP Ethernet LANSIP EthernetWAN

30. Case Study: Georgia Military CollegeLiberal Arts Junior CollegeMain campus in Milledgeville, GA6 campuses across Georgia500 Full-time employees5000 Students1800 computersCentrex from National SP

31. ChallengesCostsLike many public institutions, college is very sensitive to operating costsCentrex costs were very unpredictableMoves, adds and changes were $Need for CollaborationStaff spread across six different campusesDelays/costs incurred while commuting between campusesRetention of Existing Telephone NumbersLocal presence is importantReliabilityCampus Autonomy - no outage should effect other campuses

32. Solution ArchitectureValdosta, GAMediant 1000 E-SBCSIP TrunkingMediant 800 E-SBCMediant 800 E-SBCMediant 800 E-SBCMediant 800 E-SBCMediant 800 E-SBCMain CampusMileldgeville, GAWarner Robins, GAColumbus, GAAtlanta, GAAugusta, GA

33. ResultsAll six campuses are now on Microsoft LyncVastly improved collaboration environmentCampuses are functionally autonomousOne Minute Provisioning – “hand them a phone”Retained local DID numbersNetwork security is maintained30% reduction in travel costs Realized an 80% savings in monthly reoccurring charges“By migrating to UnifiedCommunications with MicrosoftLync, AudioCodes and Broadvox,Georgia Military College was ableto reduce monthly reoccurring costsby 80%, allowing the college toinvest in other important studenteducation programs”, said DragoTotev, Associate Vice President -Telecommunications & Networking,Georgia Military College.

34. Benefits of Working With AudioCodesInteroperability and CompatibilityLeveraging the investment in our experience and interoperability labArchitecture Flexibility and ScalingRange of solutions that fit your particular implementationMigration StrategyStart today, upgrade laterSecurityJTIC-validated device and network securitySuperior Voice QualityFirst vendor to pass all 12 ETSI Speech Quality TestsQuick Time-to-Savings (ROI)

35. The Financials for VARs are More than GoodConsider:The volume of customers unlikely to upgrade the PBX; yet still want SIPTypical gross margins Gold VARs earn for products, sold at MSRP, are 28-34%The customer who today needs a gateway and wants to migrate gradually. ***A gateway today with E-SBC licenses installed for future plans is a smart investment - and only AudioCodes has it!***

36. Upgrade Rate vs. Attrition Rate

37. The Win for AudioCodes VARs Arms Salespeople with an “Either\Or” Proposition

38. Doesn’t force them to leave the majority of their sales calls empty handed