1. Current Trends in Network Management Maintaining Acceptable Chaos

2.  Copyright 1999 Eltrax Network Services, Inc. Maintaining Acceptable Chaos Service Level Management for Accountable Providers of Service (Maintaining Acceptable Chaos)

3.  Copyright 1999 Eltrax Network Services, Inc.  Major Forces driving change in business  Historic Solutions  Managed service customers require differentiated service across diverse platforms  Deliver the network services you’ve promised Current Trends in Network Management

4.  Copyright 1999 Eltrax Network Services, Inc. Powerful forces Driving Change In Business CHANGE Telecommunicaitons Finance Utilities Government CHANGE Telecommunicaitons Finance Utilities Government NEW ENTRANTS Telcos ISPs NEW ENTRANTS Telcos ISPs Privatization Utilities enter Telecommunications Utilities enter Telecommunications DEREGULATION

5.  Copyright 1999 Eltrax Network Services, Inc. Multiple Consoles Is your NOC a “console farm” with scrolling screens of alarms-- inefficient, ineffective, and/or costly to run? Data Overload Are your operators overloaded with event data? Diverse Platforms Do you wrestle with alert data in a variety of formats -- disabling your management tools from sharing information? Service Level Oriented Are you trying to comply with defined SLAs between your NOC and customers or internal departments you serve? Service Views Across Platforms Do you deliver service across multiple disparate management platforms to different customers? Questionnaire What problems do you have?

6.  Copyright 1999 Eltrax Network Services, Inc. Network Management Issues Total Cost of 5-Year Ownership > $65,000 Capital Purchases 21% Administration 13% Technical Support 21% End User Operations 45% helpdesk Inventory Management ServiceDesk Software Upgrades & Installations Protocol Analysis & Network Performance Software Metering Desktop Management & Control Software Usage Monitoring Workstation Diagnostics

7.  Copyright 1999 Eltrax Network Services, Inc. Platform Transitions Unix NT Legacy Video & Data Both Voice Only Frame Relay ATM Dedicated

8.  Copyright 1999 Eltrax Network Services, Inc. Systems Management Market Applications Management Automated Operations & Job Scheduling Legacy Systems Management Storage Management Network & Event Management

9. New Customer Requirements Deploy Technology Gigabit WAN Switching Internet Data Security Web Performance Reducing TCO Downtime Degradation Staffing Network Manager Proactive Mgmt Planning Problem Avoidance

10.  Copyright 1999 Eltrax Network Services, Inc. Market Dynamics to Integration ServerManagement Switch Help Desk IntegratedSolutions Security  Reporting  Event Management  Alerting  Scripting  RDBMS  GUI Common Environment: NetworkManagement

11. IT MORE WIDESPREAD 1975 1990 1995 30 308 480 '81 Aug '83 Aug '85 Oct '87 Dec '89'90'91'92'93'94'96 Jan 0 2,000 4,000 6,000 8,000 10,000 Oct Thousands CAGR 116% Source: MERIT, Information Wizards Source: McKinsey analysis Global computer industry revenue $ billions

12.  Copyright 1999 Eltrax Network Services, Inc. IT SYSTEMS MORE LINKED TO BUSINESS RESULTS Finance industry example showing multiple order effects First order effects First order effects Second order effects Second order effects Third order effects Third order effects SUBSTITION OF EXISTING PROCESSES ADDITION OF NEW PROCESSES ADOPTION OF NEW BEHAVIOURS Cheque processing Accounts recording and preparations Real time credit checking Customer relationship management (databases) ATMs Telephone banking Internet banking

13.  Copyright 1999 Eltrax Network Services, Inc. Source: Micromuse VERTICAL MODEL HORIZONTAL MODEL Chip Hardware platform Operating system Middle ware Application Channel Service USERS IBMB.U.N.C.H. ILLUSTRATIVE CHANGE RESTRUCTURES BUSINESS Computer industry example

14.  Copyright 1999 Eltrax Network Services, Inc. Source: Micromuse analysis IT SERVICE DEPARTMENTS INCREASINGLY HAVE TO PROVE VALUE Typical activity value analysis approach Monitor performance against SLA Search for lowest cost supply Define service output Service level agreement In-house tenders End to end performance and availability Real time Historic £

15.  Copyright 1999 Eltrax Network Services, Inc. TELECOM INDUSTRY GOING HORIZONTAL AND ADOPTING MULTIPLE PLATFORMS VERTICAL INTEGRATED PTTs HORIZONTAL INDUSTRY Switch vendors Router vendors Software vendors Backbone carriers Retail carriers Channels On-site service Service providers will integrate services for end users from multiple vendors

16.  Copyright 1999 Eltrax Network Services, Inc. BUSINESS CUSTOMER A BUSINESS CUSTOMER A BUSINESS CUSTOMER B BUSINESS CUSTOMER B BUSINESS CUSTOMER C BUSINESS CUSTOMER C BUSINESS CUSTOMER D BUSINESS CUSTOMER D MANAGED NETWORK SERVICE PROVIDER OUTSOURCING Managed service customers require differentiated service across diverse platforms

17.  Copyright 1999 Eltrax Network Services, Inc. Historic Solutions: “ Implementing an enterprise “ Implementing an enterprise management framework is like undergoing major surgery.” Network World 1/12/98

18.  Copyright 1999 Eltrax Network Services, Inc. $1-4 Million License Cost 18-24 month implementation Implementation costs “surpass the salaries of most professional athletes” - Information Week “No suites vendor including CA and Tivoli provide comprehensive coverage of all NSM disciplines” - Gartner Group Historic Solutions:

19.  Copyright 1999 Eltrax Network Services, Inc. Completed 30% 70% FailedAbandoned Partially Used Not Used Gartner Group 1998 Historic Solutions Success Rate Implementation results after 36 months

20.  Copyright 1999 Eltrax Network Services, Inc. HQ PlantMarketing SalesEngineering  Economies of scale Infrastructure and souring Network communications Automation  Multiple customers enables knowledge leadership  Access new technology faster  Outsourcing Managed Network Service Provider Mass Production of Network Services

21.  Copyright 1999 Eltrax Network Services, Inc. Service Provider Requirements Problem & Policy Management Topography, Asset & Inventory Service Level & Impact Management Service Activation Provisioning & Billing Service Level & Impact Management

22.  Copyright 1999 Eltrax Network Services, Inc. Implementation of Management Solutions Linear Scalability Size Performance  No Management  Network and Systems domain management  Service Level Management

23.  Copyright 1999 Eltrax Network Services, Inc. What Service Level Management does...  Real-time Status of/and Impact upon Elements and Services  Monitor Availability and Compliance with agreed Service Levels Elements Services

24.  Copyright 1999 Eltrax Network Services, Inc. CENTRALISED MAINFRAME SIMPLER TO MANAGE MAINFRAME MANAGEMENT NETWORK MANAGEMENT NETWORK VDU MAINFRAME

25. Source: McKinsey database, McKinsey analysis STRONG GROWTH IN DISTRIBUTED ARCHITECTURES 12 42 33 24 19 12 57 1 PCs Workstations Mid-range Mainframe 100% =$38b$117b 19831995 Mid-range Workstations PCs Mainframes-8 3 15 16 Processor revenues % by type Compound annual growth rates 1990-95

26.  Copyright 1999 Eltrax Network Services, Inc. ELEMENT MANAGEMENT MORE SOPHISTICATED BUT NOT SERVICE LEVEL MANAGEMENT Application Desktop Network Database Server NOT service level management Management station Customised configuration of management Component reports Component management on its own Customised configuration of component manager Historic reports on component performance Performance Uptime EXAMPLE TOOLS HP OpenView IBM / CA Cabletron Spectrum

27.  Copyright 1999 Eltrax Network Services, Inc. NETWORK SERVICES RUN ACROSS HETEROGENEOUS PLATFORMS Modem LAN Web server Application WAN Legacy hardware Legacy application PBX Dial up access service Independent management domains Network services run across multiple components Existing platforms have independent management End to end service is the key metric and requires correlation across each element manager Example of salesman doing remote order entry

28.  Copyright 1999 Eltrax Network Services, Inc. DATA PRICES FALLING Cost of ISDN national call, pence per minute Source: British Telecom 19921993199419951996 14.9 13.4 12.0 10.8 9.8 In price competitive markets, service the ONLY viable basis of competition for subscale players

29.  Copyright 1999 Eltrax Network Services, Inc. Measure Only What Matters TYPICAL MEASURERS Is The Network Working? When will it be going Down? Can’it authorise a credit card in 5 seconds? Retail chain example 4 2 3 1 NOT 100 DIFFERENT METRICS

30.  Copyright 1999 Eltrax Network Services, Inc. MULTIPLE VIEWS NEEDED OF PROVIDER’S NETWORK SINGLE NETWORK Managed Network Service Provider CUSTOMER A Requires view of faults only in their own network CUSTOMER B Requires view of faults only in their own network

31.  Copyright 1999 Eltrax Network Services, Inc. THE HUMAN SOLUTION TO SERVICE LEVEL MANAGEMENT B A D C Customer service to A Customer service to A Customer service to B Customer service to B Customer service to C Customer service to C Managed Network Service Provider Management platforms Operator consoles Operators Customer service level

32. let you deliver the network services you’ve promised

33. 4 COMPONENT ARCHITECTURE Admin Users Object Server(s) Manager 1 probe Manager 2 probe Manager 3 probe Presents data to operators, users and other applications Processes data in common format Acquires data from element managers across the enterprise Gateways 3 4 2 1

34. TELCO APPLICATIONS Networks Services Corporate Telco Hutchinson Telecom BT CSO Applications e.g. SAP Outsourcing MNS ISP Internal DataWireless SDHVoice Cable & Wireless Motorola BT Syncordia Pacific Bell GEIS Deutsche T Info net Telecom Italia Airtouch Cellular One Worldcom Excel Communications X.25 Frame relay ATM Worldcom UUNet AOL Satellite Vyvx

35.  Copyright 1999 Eltrax Network Services, Inc. Reduces capital investment Cuts operating costs Enables new value delivery Consolidating delivers business benefit Enables customized service delivery and proof of service levels Allows rapid deployment of new services Consolidates network operations Expands capability of current cost base Is radically cheaper than alternatives in license & consultancy costs Is dramatically faster to implement than alternatives DELIVERING FINANCIAL RESULTS

36.  Copyright 1999 Eltrax Network Services, Inc. 3 STEPS TO SERVICE LEVEL MANAGEMENT Develop and expand tool usage Apply best of breed tools Measure what matters to the business Identify key service measures Select measures with highest economic impact Avoid too many measures Identify market leader Ensure tool delivers time service level management Develop Netcool™ usage skills Share knowledge across sites Seek innovative applications for Netcool™

37.  Copyright 1999 Eltrax Network Services, Inc. RESULTS COUNT  Business now depends on IT to deliver services rather than technology. Service Level Management is now necessary  Service Level Management has become harder to deliver as environments are larger and are growing more mixed  The answer is to deliver Service Level Management by Focusing on measuring and improving key business drivers Use best of breed tools Investing in developing usage skills

38.  Copyright 1999 Eltrax Network Services, Inc. Operational Deployments Network Operation CenterOutsource MonitoringCNM View of Services CBA AB NOCCustomer ACustomer BCustomer C Internal NOC, Outsource, Customer Network Management

39.  Copyright 1999 Eltrax Network Services, Inc. Case Study Business GoalNetcool™ SolutionReturn on Investment Simplify administration of 14 City ATM transmission network Be accountable and show compliance with SLAs Deliver CNM Views to customers Provide usage duration information of circuits to billing system Integrate NOCs in US and Italy Netcool™ central to all fault and circuit provision/failure information for the NOC Netcool™ delivers Circuit provisioning desktop for operators and customers Circuit availability (for SLA and billing) information interfaced with service providers’ billing system Customer Network Management views delivered to clients real-time showing status of VPNs ATM and Frame Relay support Accurate billing including outages of circuit usage duration to customers SLA information on customers, circuits, and reliability of equipment Faster fault resolution through centralization Has given the organization a significant feature advantage over competitive services A Telecom Service Provider Delivering CNM

40.  Copyright 1999 Eltrax Network Services, Inc. Case Study Business GoalNetcool™ SolutionReturn on Investment Retain existing customers Attract more business customers Grow network infrastructure at an accelerated rate Accurately capacity plan and deliver dial-up services Improve reliability of services Improve response times to problems Netcool™/OMNIbus centralizes all fault and failure information to the NOC Netcool™/Internet- ServiceMonitors to track reliability of major INTERNET protocol applications; Email/News, Web Sites & Pages Netcool™/Internet- ServiceMonitors to monitor RADIUS dial-up services & DNS reliability Highest customer retention rate in the industry Network grown by >1000% with no additional staff or management tools Faster fault resolution Using availability information as a sales tool 1st ISP in the world to post an operating profit An Internet Service Provider monitoring Service Levels

41.  Copyright 1999 Eltrax Network Services, Inc. Telecommunications Management Network International Telecommunications Union (ITU) defined standard largely to encourage integration between telecommunications equipment vendors Layered functional hierarchy of management services Defines how products/components interact, by protocol and function Architecture proven as operational support system design standard fault, performance, configuration, accountancy & security functions integrated acceptance and implementation of layered functional architecture greater than that for layer communication protocols

42.  Copyright 1999 Eltrax Network Services, Inc.  Netcool suite is TMN architecture compliant functional capabilities across all management layers  Netcool TMN front-end functionality Network Management Layer Integrates any element management fault data source Service Management Layer translates into operations view of status, impact, and availability integrates co-operating management applications, e.g. helpdesk & configuration management Business Services Layer Delivers business service / VPN... …and Customer focused accountability Telecommunications Management Network

43.  Copyright 1999 Eltrax Network Services, Inc. TMN Architecture

44.  Copyright 1999 Eltrax Network Services, Inc. The Future HQ PlantMarketing SalesEngineering  Simplifies enterprise management  Extends the reach of the Network Manager  Decreases the impact of management on the network infrastructure

45.  Copyright 1999 Eltrax Network Services, Inc. Windward Technology Group & You Helping to obtain Manageable Chaos TM