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Company Presentation
NetIX: Moving Traffic to the Expressway
www.netix.net
Why NetIX?
NetIX’s next-generation network accelerates the Internet,
connecting content creators with users faster, cheaper, and
more directly than ever.
2
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
Enhanced user
experience
The User Experience Lags Expectations
 Web-users expect a site to load in two seconds or less.
 Slower response time directly affects the end-user’s seamless experience.
 Few countries clear this threshold on average.
 One reason for the problem is the roundabouts of current network architecture.
Avg. page load time in selected countries
Source: Akamai State of the Internet Report, QIV 2014
“With 65% of today’s 18-24 year
olds expecting a site to load in 2
seconds or less we can predict
that people will expect a 1-
second loading time in the near
future” [Nokia].
milliseconds
3
Moving Traffic to the Expressway
NetIX Architecture – The Ethernet ExpresswayCurrent Architecture - Crosstown Traffic
 NetIX provides a solution: an Ethernet expressway that bypasses circuitous routes
in the “crosstown traffic” of the global Internet.
 NetIX is a Carrier Class Ethernet platform that interconnects members globally
without intermediary networks.
 User tests show that NetIX shortens the route of traffic passing through the
platform by up to 39%.
Internet
Exchange Point
4
Every Millisecond Matters
32% shorter routing 90% of websites respond faster
Comparison of NetIX to three Tier 1 Internet Providers with popular sites shows:
Page-load time in 54 of Alexa Top 100 web sites
“Every millisecond matters.” ( Arvind Jain, Google engineer)
Operator1
Operator2
Operator3
NetIX
0
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
4 500
milliseconds
Median
(54 Websites)
- 374 ms / -15%
- 424 ms / -16%
- 1 085 ms / -33%
- 430 ms / -11%
Operator1
Operator2
Operator3
NetIX
Average for the 3 Operators
5
As at 20.07.2015, 09.50 a.m GMT
€ 0,00
€ 0,50
€ 1,00
Operator 1 Operator 2 Operator 3
NetIX Slashes Bandwidth Costs
Results of actual use cases for NetIX member ISPs:
 Price per Mbps decreased 24-27%.
 International IP transit decreased ~50%.
 Total IP bandwidth use (peering + International IP transit) increased.
Average Price per Mbps (IP Transit & Peering), 3 NetIX Global Internet Exchange (GIX) Clients
-27%
Price per Mbps
-24%
-27%
BeforeNetIX
AfterNetIX
6
Market Validated Business Case
NetIX Members NetIX Traffic (Gbps)
 NetIX officially started in January 2013 with 6 members. Currently it has over 70.
 NetIX attracted blue-chip companies such as Google, Akamai, Telefonica, Turk
Telecom, and Mail.Ru.
 Traffic in the platform has grown from zero to 240 Gbps in less than 3 years.
 NetIX ranks among the top 25 global platforms for exchange of IP Traffic [Wiki].
 NetIX GIX provides direct routes to 85% of the Internet.
7
Peering: Skype for ISPs
 ISPs buy all local and
international connectivity
from high-cost Tier 1
providers
 ISPs buy all international
connectivity (“IP Transit”)
from Tier 1
 ISPs peer local traffic via
Internet exchange points
(IXPs) at much lower cost
 NetIX globalizes peering
by interconnecting IXPs
 ISPs peer locally and
internationally through
NetIX’s GIX service
 Tier 1 needed only for
residual connectivity
Yesterday Coming SoonToday
Internet Peering: the business relationship whereby two companies reciprocally
provide access to each other’s customers [Dr. Peering]
Tier 1
8
Peering Outpaces IP Transit
 Peering will come to dominate global IP traffic at the expense of transit.
[TeleGeography]
 Many regions that currently rely on IP transit will gain wider access to peering.
Transit vs. Peering Volume Growth 2013-2020
0%
10%
20%
30%
40%
50%
60%
70%
80%
Global Asia Europe Latin America Middle East Oceania US & Canada Africa
IPTransit
Peering
CAGR
9
Faster, Cheaper, More Direct
Priority
Customers
Industry Verticals Benefits
ISPs
• Internet Service
Providers
• Telecommunication
companies
• Faster: 90% of websites respond faster
• Cheaper: 26% average reduction of
connectivity costs
• More direct: 32% shorter connection paths
Content
owners and
distributors
• TV Channels
• Radio stations
• IPTV providers
• Online media
• Low fixed cost
• Secure distribution of content
• Bidirectional connection could enable
capturing usage behavior
• More reliable and geographically dispersed
distribution than alternative channels
10
Core Service: Direct Connectivity
 B2B, subscription–based, recurring revenue
business model.
 Core service: direct connectivity over
carrier-class Ethernet network.
 Value-added services: IP traffic
exchange, A/V distribution, virtual
LANs, remote access to major IXPs.
 Distribution via direct sales and selected
channel partners: IXPs and Tier 2 ISPs.
11
Service Portfolio Evolution
 DDOS attack protection.
 Self-provisioning of network.
 Network function virtualization.
 Marketplace for members
 Enhancing network value for members, interconnecting:
• 13 new IXPs ̶ 3 interconnections in H2 2015
• 47 new content generators ̶ Cloudflare joined in QIII 2015
over the next 12 months.
12
Network Expansion
 Madrid, Milan, and Moscow PoPs to open in 2016.
 Coverage to expand to 26 markets in 5 years, leveraging already strong European
presence.
13 Note: Shaded countries have currently active PoPs
Ken Lefkowitz, CEO
• 20 years leadership
experience in C-level and
board roles
• Extensive track record in
international sales/bus. dev.
• Accomplished deal-maker
• B.A., Economics, Wesleyan University,
Connecticut, USA
Neven Dilkov, Founder and Chairman
• 20+ years TMT experience
• Visionary serial
entrepreneur
• Founded Neterra in 1996
• Shaped the Bulgarian ISP/CATV ecosystem
• Pioneered Bulgaria’s first alternative
international interconnections
• B.S. summa cum laude, Computer Science
from West Virginia Wesleyan College, USA.
90+ Years Combined TMT Experience
Dean Belev, Product Manager (10+ yrs TMT experience)
• Co-creator of the NetIX idea; Leading product management and development
• Certified on Cisco , NSA, CNSS, & ITIL programs; B.S. in Business Informatics and
MSc in Distributed Systems & Mobile Technologies.
Yordan Kritski, CTO (10+ yrs TMT experience)
• Vast experience in IP/Ethernet Support Services, network planning, network
architecture design and implementation.
• MSc in Telecommunications.
Dan Ellenbogen, VP for Sales (30+ yrs of TMT experience)
• 30+ years experience in general management, business development, sales &
Marketing in communication and satellite service providers, such as Novero,
Satlynx and Spaceline.
14
Mariyan Rangelov, CFO
• 9+ years of experience in treasury operations, financial risk management,
portfolio management, investment banking and financial analysis.
• Holds the Chartered Financial Analyst designation
• MBA in Finance from the University of Sheffield and a master’s in Finance and
Banking from Sofia University
Zsolt Papdi, Sales Manager
• 20+ years of experience in telecoms & technology sales
• Telco experience spans both wholesale and retail, notably at AT&T
• MBA in International Business from Case Western Reserve University
• MsC, Electrical Engineering, Budapest University of Technology and Economics
Contacts
For more information please contact:
Ken Lefkowitz, CEO
+359 (88) 863-7053
klefkowitz@netix.net
Dan Ellenbogen, VP for Sales
+49 (177) 967-7580
dellenbogen@netix.net
www.netix.net
15

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NetIX Moving Traffic to the Expressway 2016

  • 1. Company Presentation NetIX: Moving Traffic to the Expressway www.netix.net
  • 2. Why NetIX? NetIX’s next-generation network accelerates the Internet, connecting content creators with users faster, cheaper, and more directly than ever. 2
  • 3. 0 1 000 2 000 3 000 4 000 5 000 6 000 7 000 Enhanced user experience The User Experience Lags Expectations  Web-users expect a site to load in two seconds or less.  Slower response time directly affects the end-user’s seamless experience.  Few countries clear this threshold on average.  One reason for the problem is the roundabouts of current network architecture. Avg. page load time in selected countries Source: Akamai State of the Internet Report, QIV 2014 “With 65% of today’s 18-24 year olds expecting a site to load in 2 seconds or less we can predict that people will expect a 1- second loading time in the near future” [Nokia]. milliseconds 3
  • 4. Moving Traffic to the Expressway NetIX Architecture – The Ethernet ExpresswayCurrent Architecture - Crosstown Traffic  NetIX provides a solution: an Ethernet expressway that bypasses circuitous routes in the “crosstown traffic” of the global Internet.  NetIX is a Carrier Class Ethernet platform that interconnects members globally without intermediary networks.  User tests show that NetIX shortens the route of traffic passing through the platform by up to 39%. Internet Exchange Point 4
  • 5. Every Millisecond Matters 32% shorter routing 90% of websites respond faster Comparison of NetIX to three Tier 1 Internet Providers with popular sites shows: Page-load time in 54 of Alexa Top 100 web sites “Every millisecond matters.” ( Arvind Jain, Google engineer) Operator1 Operator2 Operator3 NetIX 0 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 4 500 milliseconds Median (54 Websites) - 374 ms / -15% - 424 ms / -16% - 1 085 ms / -33% - 430 ms / -11% Operator1 Operator2 Operator3 NetIX Average for the 3 Operators 5 As at 20.07.2015, 09.50 a.m GMT
  • 6. € 0,00 € 0,50 € 1,00 Operator 1 Operator 2 Operator 3 NetIX Slashes Bandwidth Costs Results of actual use cases for NetIX member ISPs:  Price per Mbps decreased 24-27%.  International IP transit decreased ~50%.  Total IP bandwidth use (peering + International IP transit) increased. Average Price per Mbps (IP Transit & Peering), 3 NetIX Global Internet Exchange (GIX) Clients -27% Price per Mbps -24% -27% BeforeNetIX AfterNetIX 6
  • 7. Market Validated Business Case NetIX Members NetIX Traffic (Gbps)  NetIX officially started in January 2013 with 6 members. Currently it has over 70.  NetIX attracted blue-chip companies such as Google, Akamai, Telefonica, Turk Telecom, and Mail.Ru.  Traffic in the platform has grown from zero to 240 Gbps in less than 3 years.  NetIX ranks among the top 25 global platforms for exchange of IP Traffic [Wiki].  NetIX GIX provides direct routes to 85% of the Internet. 7
  • 8. Peering: Skype for ISPs  ISPs buy all local and international connectivity from high-cost Tier 1 providers  ISPs buy all international connectivity (“IP Transit”) from Tier 1  ISPs peer local traffic via Internet exchange points (IXPs) at much lower cost  NetIX globalizes peering by interconnecting IXPs  ISPs peer locally and internationally through NetIX’s GIX service  Tier 1 needed only for residual connectivity Yesterday Coming SoonToday Internet Peering: the business relationship whereby two companies reciprocally provide access to each other’s customers [Dr. Peering] Tier 1 8
  • 9. Peering Outpaces IP Transit  Peering will come to dominate global IP traffic at the expense of transit. [TeleGeography]  Many regions that currently rely on IP transit will gain wider access to peering. Transit vs. Peering Volume Growth 2013-2020 0% 10% 20% 30% 40% 50% 60% 70% 80% Global Asia Europe Latin America Middle East Oceania US & Canada Africa IPTransit Peering CAGR 9
  • 10. Faster, Cheaper, More Direct Priority Customers Industry Verticals Benefits ISPs • Internet Service Providers • Telecommunication companies • Faster: 90% of websites respond faster • Cheaper: 26% average reduction of connectivity costs • More direct: 32% shorter connection paths Content owners and distributors • TV Channels • Radio stations • IPTV providers • Online media • Low fixed cost • Secure distribution of content • Bidirectional connection could enable capturing usage behavior • More reliable and geographically dispersed distribution than alternative channels 10
  • 11. Core Service: Direct Connectivity  B2B, subscription–based, recurring revenue business model.  Core service: direct connectivity over carrier-class Ethernet network.  Value-added services: IP traffic exchange, A/V distribution, virtual LANs, remote access to major IXPs.  Distribution via direct sales and selected channel partners: IXPs and Tier 2 ISPs. 11
  • 12. Service Portfolio Evolution  DDOS attack protection.  Self-provisioning of network.  Network function virtualization.  Marketplace for members  Enhancing network value for members, interconnecting: • 13 new IXPs ̶ 3 interconnections in H2 2015 • 47 new content generators ̶ Cloudflare joined in QIII 2015 over the next 12 months. 12
  • 13. Network Expansion  Madrid, Milan, and Moscow PoPs to open in 2016.  Coverage to expand to 26 markets in 5 years, leveraging already strong European presence. 13 Note: Shaded countries have currently active PoPs
  • 14. Ken Lefkowitz, CEO • 20 years leadership experience in C-level and board roles • Extensive track record in international sales/bus. dev. • Accomplished deal-maker • B.A., Economics, Wesleyan University, Connecticut, USA Neven Dilkov, Founder and Chairman • 20+ years TMT experience • Visionary serial entrepreneur • Founded Neterra in 1996 • Shaped the Bulgarian ISP/CATV ecosystem • Pioneered Bulgaria’s first alternative international interconnections • B.S. summa cum laude, Computer Science from West Virginia Wesleyan College, USA. 90+ Years Combined TMT Experience Dean Belev, Product Manager (10+ yrs TMT experience) • Co-creator of the NetIX idea; Leading product management and development • Certified on Cisco , NSA, CNSS, & ITIL programs; B.S. in Business Informatics and MSc in Distributed Systems & Mobile Technologies. Yordan Kritski, CTO (10+ yrs TMT experience) • Vast experience in IP/Ethernet Support Services, network planning, network architecture design and implementation. • MSc in Telecommunications. Dan Ellenbogen, VP for Sales (30+ yrs of TMT experience) • 30+ years experience in general management, business development, sales & Marketing in communication and satellite service providers, such as Novero, Satlynx and Spaceline. 14 Mariyan Rangelov, CFO • 9+ years of experience in treasury operations, financial risk management, portfolio management, investment banking and financial analysis. • Holds the Chartered Financial Analyst designation • MBA in Finance from the University of Sheffield and a master’s in Finance and Banking from Sofia University Zsolt Papdi, Sales Manager • 20+ years of experience in telecoms & technology sales • Telco experience spans both wholesale and retail, notably at AT&T • MBA in International Business from Case Western Reserve University • MsC, Electrical Engineering, Budapest University of Technology and Economics
  • 15. Contacts For more information please contact: Ken Lefkowitz, CEO +359 (88) 863-7053 klefkowitz@netix.net Dan Ellenbogen, VP for Sales +49 (177) 967-7580 dellenbogen@netix.net www.netix.net 15