© 2011 Windstream Communications, Inc. Cloud Market Trends & Windstream And Avaya’s Approach November 13th, 2013 Provided by: Dunstan Speeth, Practice Leader

 A recent Gartner survey of 2000 CIOs placed cloud computing as their number-one technology priority.* 2 *Gartner - Jan. 2011, CIO’s representing over $160B in corporate and public-sector spending,

3 Cloud Computing Projected Growth

Cloud - Key Business Drivers/Enablers  Easier, faster scalability enabling organizations to grow without time-intensive and resource- intensive IT build-outs.  Greater flexibility in adding, subtracting, or changing services in response to seasonal dynamics or business expansions or contractions.  A more agile IT infrastructure that enables organizations to rapidly transform ideas into marketable products and services.  Access to services across different geographies.  Cost effective due to the transformation of capital-intensive investments to pay-as-you-go pricing. 4

WIN Leading Provider of Cloud IaaS  Cloud: Infrastructure-as-a-Service (IaaS)   (Compute/Storage) – WIN’s Current Offering  Global revenue is expected to grow from $4.2B in 2011 to $24.4B in 2016  With a projected CAGR of 41.7%* *Gartner Report – Forecast: Public Cloud Services, Worldwide, , 2Q12 Update (ID:G )  * 5

WIN Hosted – 10 Years Experience – 1000 Customers 6 Synopsis Overview Customers Parent Leading provider of Infrastructure as a Service (IaaS) Cloud Computing | Dedicated Hardware | Colocation  Fortune 500 Company  14,000 Employees  6 Billion in Yearly Revenue  Over 10 years experience  (23) Enterprise Class – SSAE16 facilities  Nearly 1000 customers

Business Justification – Market is Demanding Hosted IPT 7

On-Demand - Right amount of resource at the right time! 8 Source: Cloudonomics -The Business Value of Cloud Computing, Joe Weinman

“Private Hosted” and “Shared/Multi-Tenant” options Multi-tenant solutions expected to show faster growth than single tenant % 22.4% 31.7% 27.6% Hosted IPT (IP Centrex, multi-tenant) Hosted IPT (Dedicated) CY CY CY CY CY CAGR CY % 25.0% Source: Avaya Analysis based on various industry analyst reports, including those from Ovum Research $B United States Hosted IP Telephony Markets

Value Proposition for Customers Better Economics People Centric Collaboration Flexible Platform Flexible Deployment Business Enabler Rich User Experience The Avaya Windstream Difference for Enterprises  Flexible deployment with Private or Hybrid option on the proven, industry leading Avaya Aura UC platform  Utility subscription model helps business scale with usage and demand (Opex model)  Hybrid cloud deployments help migration to cloud at customer’s own pace and deploying new applications at a low cost and low risk while leveraging existing investments  Consistent and seamless user experience across on-premises and cloud, across mobile devices supporting enterprise BYOD  Industry leading full PBX functionality and comprehensive set of UC and CC applications with rich APIs enabling custom application development and integration  Enterprise system management and control through Control manager interface exposed to end-customer  Session based all SIP architecture helps simplify, migrate, centralize and consolidate disparate, legacy infrastructure  Inherent security and application privacy with virtualized applications

HOSTED PRIVATE BENEFITS Ideal for Greenfield opportunities requiring a high degree of customization and for Hybrid Hosted integrated with CPE. Typically targeting the Enterprise market. May not require ACCCM or may require fewer administrator licenses (End customers can manage their environments via traditional Avaya tools. ACCCM may provide some benefit to Service Providers for single point of entry management). Human error impacts fewer end customers (Administrative errors that cause application outages or security breaches). Greater end customer security. System Manager, Presence Services, 1xCES, ACE all sync to only one directory source. This becomes more of a non-issue with Hosted Private. Other adjuncts that don’t support Tenant Partitioning, like Modular Messaging, don’t become an issue. All translations are propagated out to Survivable Branch and Core. Not an issue with Hosted Private. May create security concerns with Hosted Public since a customer with Survivable Branch would have not only their image but the image for all other CM tenants in their physical control. Can be used to ease transition of installed Avaya Red and Blue base to more cost effectively enable BYOD and Video applications from the Service Provider Cloud. Highly customizable for Hosted Private opportunities.

Private Per Client Instance 12

Ideal for Greenfield opportunities not requiring a lot of customization. Typically, targeting the mid-market and below. Simplified RTU administration and billing from Avaya to Service Provider (very large systems versus many smaller systems). Smaller Data Center footprint for non-virtualized applications. Can leverage Tenant Partitioning features of AACM and CMS. End customer usage of Avaya Concurrent Licensing is less impactful due to greater scale and customer diversity (For example – Shift overlap of CC Agents, softphones, video, etc. would potentially create a lower high water mark of RTU (and hence billing from Avaya) versus Hosted Private). Can be used to target installed Avaya Red and Blue base to more cost effectively enable BYOD and Video applications from the Service Provider Cloud. Would likely be more of a generic offer which would have a lower price point than Hosted Private. HOSTED PUBLIC BENEFITS

 UC Deployment Models 14

License Foundati on Suite (Offered) Mobility Suite (Offered) Collaboratio n Suite (Roadmap) Avaya Aura CM, System Manager Avaya Aura IM/Presence Avaya Aura Session Manager Survivability (LSP, Survivable Core) Communication Manager Messaging (basic VM) one-X Communicator one-X Mobile with Client Enablement Services Extension to Cellular Desktop Video Flare PC / one-X Communicator Mac Microsoft Lync Desktop Integration w/ACA Flare iPad Avaya Aura Messaging SBCE & Remote Access Avaya Aura Conferencing Scopia Desktop & Mobile NA Avaya Aura ® Suite Licensing Comparison to Roadmap of Cloud Enablement for UC Same Cloud Enablement for UC Same Same Same MM – Basic, AAM - Basic Same one-X Mobile iOS and Lite Only Same Same Same Same Same MM – Advanced, AAM - Advanced Same Same Same

UC HOSTED PRIVATE DEPLOYMENTS VoIP-Ready WAN Hosted Cloud Centralized Managemen t Many “small” instances of Avaya Aura Applications each dedicated to a customer instance (example: Separate instance of CM and other UC apps for Customer A. Separate instance for Customer B, etc.) Customer C UC Endpoints Gateway TDM Endpoints UC Endpoints Gateway TDM Endpoints UC Endpoints Gateway TDM Endpoints Customer B Customer A Avaya Aura UC Applications running in a VMware environment OS CM OS SM OS etc OS CM OS SM OS etc OS CM OS SM OS etc VMware vSphere™ A B C Customer C small office non-virtualized Applications

UC HOSTED PUBLIC DEPLOYMENTS VoIP-Ready WAN Hosted Cloud Centralized Managemen t Few “large” instances of Avaya Aura Applications shared with multiple customer instances (example: One instance of CM and other UC apps shared by Customer A, B, and C) Customer C UC Endpoints Gateway TDM Endpoints UC Endpoints Gateway TDM Endpoints UC Endpoints Gateway TDM Endpoints Customer B Customer A Avaya Aura UC Applications running in a VMware environment OS etc VMware vSphere™ A B C OS CM OS US OS PS OS AES OS SM non-virtualized Applications

 CC Deployment Models 18

CC SOLUTION FOR HOSTED (PUBLIC or PRIVATE) DEPLOYMENTS VoIP-Ready WAN Hosted Cloud Customer C Gateway TDM Endpoints Gateway TDM Endpoints Gateway TDM Endpoints Customer B Customer A non-virtualized Applications Each instance of CC Hosted Public could support between 4,000 and 10,000 Agents depending on design requirements. Agents Avaya Aura CC Applications running in a VMware environment OS etc VMware vSphere™ A B C OS WFO OS EPM OS EP OS AES OS ACCCM

Business Drivers – Hosted IPT 20