1. Alan Percy Director of Business Development AudioCodes

2. Who is AudioCodes? Leading OEM Manufacturer of Enabling VoIP equipment o Gateways o Media Servers o Boards, Chips and Modules Key IPR holder for G.723.1 11 th Year in Business $82.8M Revenue for FY04 NASDAQ: AUDC Over 440 Employees Worldwide Company: o Headquarters in Israel o US offices in San Jose, Boston, Chicago, Dallas, RTP, and Somerset NJ o Offices in Mexico, France, UK, China, and Japan

3. Why are you here? “I want to learn more about…”

4. Learning learn·ing (lûr n ng) n. The act, process, or experience of gaining knowledge or skill.

5. How do we learn?

9. Some Observations

10. VoIP has gone Mainstream

11. VoIP is enabling the Best of Breed In the past, one vendor controlled all the technology o “You can have any color phone you want, as long as it’s black” Going forward o Softswitches, IP-PBX, Messaging, IVR… o Standard protocols and hardware platforms o VARs and Systems Integrator are choosing the best hardware and software for their application o Creating value and products that fit needs

12. What is the difference? ?=?= This one has enhanced services

13. Increasing Density Moore’s law will continue to increase density (more functionality for less money) o CISC o DSP o Packet Processors Shifting the role of dedicated hardware

14. Emergence of New Blade Form Factors ATCA o Advanced Telecom Computing Architecture o 140 sq. inches o 200 W of power/blade AMC o ATCA Mezzanine Card PCIExpress o Desktop and Enterprise

15. New Form Factors “Blade” Servers IBM, Intel, Dell, Compaq, etc. Very high computational density Ideal platform for hosting applications Proprietary, but “Open” form factor Standard peripheral form factor o Usually PCI IBM BladeCenter

16. Death of the PCI Driver PCI Driver Replaced by on-board protocols

17. On-board Protocols On-board protocols are becoming the preferred control mechanism Using a standard or proprietary protocol to control a board or stand-alone device o SIP, VoiceXML, MSCML, MGCP Displacing the traditional API/Driver model No more PCI drivers! Eliminates O/S dependence Bonus: Better test tools (Ethereal)

18. On-board Protocols Application API Device Driver T1 Interface Hardware API Device Driver Resource Hardware Legacy CTI Architecture PSTN H.100 Proprietary

19. On-board Protocols Application SIP Protocol Stack Gateway Blade Media Processing Blade SIP Architecture LAN SIP PSTN

20. Adoption of Blades vs. Boxes Software developers love distributed architecture using standard protocols Product Managers and Integrators have different challenges: o Cost Targets o Offering communications “solutions” o Branding issues o Fewer boxes Result: o PM & Integrators many times prefer blades

21. One Code Base Today, many application developers are supporting two separate code bases: o One for TDM implementations o Second for VoIP interfaces Challenges o Maintenance o Testing o Surrounding Management Software o Expertise on Boards and APIs

22. One Code Base Mass movement to supporting only VoIP o SIP, H.323, MGCP… Using gateways to connect into TDM applications Why? o Only maintaining one code base o Saves engineering resources o Focus on the application, not the plumbing o Eliminates management of TDM interfaces o No drivers o No O/S dependencies

23. Need for Transcoding Wireline and wireless carrier depend on different voice compression formats o Different needs and limitations o G.729a favorite with wireline carriers o AMR or EVRC for wireless How to interconnect? o Transcoding Resources o High Density o Low Latency o Excellent voice quality Transcoding

24. Focus on Security Cable systems are the early adopters (multi-drop nature of cable systems) Call control Encryption o IPSec and BTNS Voice Path Encryption o SRTP Management Interfaces o HTTPS Customers will demand that equipment vendors will support new security standards

25. Focus on Security Session Border Controller Protecting your network / IP-PBX from intruders o Network Isolation / Protection o Encryption / Privacy o Protect against Denial of Service Attacks o Stand-alone devices (for now) What’s next: o Built-in to IP-PBX at the Enterprise

26. The Last Mile Carriers are depending on the existing broadband facility to the Enterprise/Consumer

27. Voice Quality Greater dependence on existing IP infrastructure (Cable, DSL, T1, Wireless) Requires that equipment that can operate in “suspect” network performance. Dependence on low bit rate coders by carriers is increasing o More through the same pipe o Less congestion = less lost packets o Better voice quality More on this in a separate session

28. What to worry about Taxation o With the shift to VoIP, taxation model will have to change. o Governments will need revenue o We need to guide their decisions E911 o The solution is understood o Can carriers react quick enough? o What other similar “legacy” issues await? o Is there a better way? Will wireline phones really matter?

29. Moving Forward “An investment in knowledge always pays the best interest.” Benjamin Franklin

30. Let’s talk! Stop by Booth #405