3. Discussion Topics Defining Hybrid Industry Trends Unified Communications (UC) Journey Hybrid Models Hybrid Comparisons Case Study 3 © 2014 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.

4. Defining Hybrid Mix of premise, hosted dedicated and shared multi-tenant solutions Models Premise & Shared Multi-Tenant Premise & Partner Managed Premise, Partner Managed & Shared Multi-Tenant Benefits Balance Cost vs. Features Capex vs. Opex © 2014 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners. 4

5. Growth increasingly outside US Businesses expanding globally to capture non-US opportunities Workforce efficiency Business process efficiency IT efficiency … increase efficiency to decrease costs Hybrid IT environments Flexible investment options – Capex & Opex Mobilized workforces Flexibility for rapid changes, provisioning speed … explore new business & IT models Spending under scrutiny Must rationalize investments Growth & innovation New revenue opportunities IT cost savings Legacy equipment expensive Economic Recovery Pressure to do more with less Global Expansion Multiple site, vendors, platforms Integration challenges Accelerated end-point growth, 32% CAGR … manage complexity Macro TrendsEnterprise Challenges Forces Shaping the Enterprise 5 © 2014 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.

6. UC Decision Makers growing preference for UCaaS As-a-service (third-party, shared) We use a provider to deliver it with its shared infrastructure, which we pay for in a pay-as-you-go model Base: 547 North American and European Enterprise and SMB UC Decision Makers who work at firms that are piloting, implementing, or expanding UC Source: Forrsights Networks And Telecommunications Survey, Q1 2011, NOTE: Percentages may not total 100 percent due to rounding Technology delivery preference Managed services (on-premise) We use a provider to manage it, but we own it, and it’s operated at our site Hosted (third-party, dedicated) We use a provider to manage it; we own or lease any equipment, and it’s operated in a dedicated environment at the provider’s site Outsourced We use an outsourced provider that manages the entire capability Self-maintained We manage it ourselves (including software licenses, servers, etc.) Today ViewFuture View 5% 12% 6% 2% 75% 27% +22% 31% +19% 22% +16% 10% +8% 66% -9% 6 © 2014 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.

7. 20072015 Journey to UC Lync features deployment timeline IM, PresencePeer to Peer Audio Conferencing Enterprise Voice PBX Replacement 7 © 2014 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.

8. Deployment Options Customers have a range of consumption models Cloud-Based Hybrid A flexible combination of all consumption models with services to support integration and management Dedicated Customized, On-premises Hosted (Dedicated) Customer-owned, customer or partner- maintained on premises Customer owns or leases equipment, and it’s operated in a dedicated Partner DC hosted environment Cloud-Based As-a-Service (Multi-tenant) Partner owns and delivers a shared infrastructure, which consumers pay for per seat, per month UC 8 © 2014 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.

9. Cost Pay as you go model Benefits Lync ® as a Cloud-based / As-a-Solution Solution Partner owned multi-tenant environment Less robust feature set Limited customization Less flexibility to support impromptu changes Deployment teams Scalability Security Challenges 9 © 2014 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.

10. Full featured Supports customization Operational /administrative flexibility Addresses remote site requirements Implementation Fully managed Scalability Security Benefits Hosted Lync (Dedicated environment) Partner’s data center (owned & managed) Cost Pricing model Challenges 10 © 2014 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.

11. Full Featured Supports customization Operational /administrative flexibility Address remote site requirements Benefits Hybrid: Lync On-Premise + Exchange Multi- tenant Customer owned + partner multi-tenant Cost Implementation challenges Management overhead of expanded features (Voice & Conferencing) Hybrid interoperability with Office365 (Exchange & SharePoint) Challenges 11 © 2014 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.

12. Hybrid: Lync Dedicated Hosted + Exchange multi- tenant Partner owned + partner multi-tenant Full Featured Supports customization Operational /administrative flexibility Address remote site requirements Implementation Management support Blended cost efficiencies of Shared Multi-tenant with Flexibility and full featured capabilities of dedicated Lync solution Customization (Contact Center, PBX Integration/Replacement, Enterprise Voice. Benefits Hybrid interoperability with Office365 (Exchange & SharePoint) Hybrid interoperability with Hosting Partner (Lync) Challenges 12 © 2014 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.

13. Feature Lync Online (Shared)* (Microsoft multi-tenant) Lync Online Dedicated* (Microsoft data center) Lync Server (On-Premises or Partner Hosted Dedicated) VoIP & PSTN calling * (US and UK only today) * (NA and Europe DC only) * IP Phone, PC, Mac, Mobile phone, and Tablet support *** Hold, Transfer, Forward, Delegate, Team call *** Emergency dialing *** Common Area phones ** PBX Interoperability ** Private Line & Unassigned Number ** Audio & Video QoS ** Analog devices (e.g., FAX) * Enhanced 911 * Response Groups and Call park * Local voice resiliency * Call Admission Control * Contact Center Integration (e.g., Genesys) * *Add reference/source Feature Parity Example: Multiple Deployment Model Comparison 13 © 2014 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.

14. Hybrid Premise with Hosted Resource Forest Model 14 © 2014 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.

15. Lync ® Dedicated Hosted + Exchange multi- tenant Partner Hosted Dedicated Lync with Office 365™ Exchange 15 © 2014 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners. Lync Resource forest contains user accounts disabled for logon & enabled for Lync Resource Forest must have Exchange schema extensions Key AD attributes synchronized through customer forest

16. Value Added Services from Carriers 16 © 2014 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.

17. Hybrid Lync & Contact Center Solution Partner Managed Lync & Genesys 17 Topeka DC Employee Contact Center Agents AT&T Internet Datacenter Field officeHome office AT&T Internet Datacenter MPLS - VPN Fort Worth DC Employee Contact Center Agents Field office Home office Microsoft O365 Voicemail IVR & Contact Center Solution Enterprise Voice/ IM & Presence IVR & Contact Center Solution Enterprise Voice/ IM & Presence SIP Trunking In/Outbound Calls IP Flexible Reach

18. Customer Challenges Consolidate systems to reduce number of disparate systems, network size and complexity. Centralize systems in the controlled environments of Data Centers. Converge all voice, video, and data into IP packets transported over an all IP Network. Provide enhanced communications tools to improve efficiency for internal and external customers in a Contact Center. IT demands to manage separate initiatives (Contact Center, PBX replacement for 213 legacy PBXs). “ AT&T was able to consolidate multiple technology projects into a cohesive program to integrate our Microsoft Office 365, Lync and Genesys Contact Center initiatives. BNSF and AT&T collaborated on a holistic solution to deliver reduced risk and accelerated deployment.” –Silvina Petersilge, BNSF Manager of IT Largest Railway in North America Modernizing Systems to deliver greater business value Industry Benefits AT&T’s hybrid UC approach supports the customer’s need to balance Office 365 price point while benefiting from a full featured hosted Lync solution enabling Voice Transformation of 213 legacy PBX platforms. Customer Benefits Positioning modernized systems to deliver greater business value, supporting new market growth opportunities and efficient delivery of BNSF transportation services. Consolidate systems to reduce the number of disparate systems, network size and complexity. AT&T Success Story 18 © 2014 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.

19. 19 © 2014 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.