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Peder Jungck, CTO & Founder

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1 Peder Jungck, CTO & Founder
3/28/2017 Before launching into the vision… it is important to make sure that everyone in the room has at least a high-level understanding of DPI. Deep packet inspection (DPI) describes a technology that allows service provider & national governments to analyze, control and protect their networks by understanding everything that is happening on their network. Vision: The aspect of CloudShield that most clearly sets us apart from our competitors is the vision that guided the founding of our company. 1. We believed/believe that DPI is a fundamental building block for converged IP networks. It delivers the necessary intelligence to move service providers from a packet level view to a business level view of activity on their networks and helps them make decisions about how to best allocate their bandwidth to cut costs, protect their infrastructure and increase revenue and profits. We also believed that the number of DPI applications is large and will evolve over time. Our vision has always been that service providers and national government needs would be best served if we created open DPI architecture that empowers an active ecosystem to be created around the CloudShield platform. Our partnership with IBM, ALU and others are manifestations of this vision. Today dozens of organizations including CloudShield write DPI applications on our platform. This approach is in marked contrast to our competitors that build a services management product and are the only ones writing software to work on their platforms. Peder Jungck, CTO & Founder

2 Company Overview Profile:
3/28/2017 Company Overview Profile: Founded in 2000 115 Employees, Headquarters in Sunnyvale, CA Locations: DC, Toronto, São Paulo, London, Frankfurt, Singapore 22 technology patents filed with 12 approved to date Seasoned team: top networking, telecom & government organizations Solution Focus: Service Management & Security Policy-controlled, network elements that inspect, analyze & control all traffic; enabling lower costs, secure infrastructure & new revenues streams Large Network Operators: Telecom Service Provider, Defense Financials: Privately held, fully funded and targeting future IPO

3 Solutions Overview & Approach
Broadest Set of Deployed Applications CloudShield Applications (Services Management & Infrastructure Security) Independent Software Developers (DDoS Mitigation, Lawful Intercept…) Systems Integrator Solutions (Services Mgmt. & Cross Domain Systems…) Customer Solutions (BGP Security, BOTS, Government Open Source…) Software: packetC™, PacketWorks & CPOS™ packetC & PacketWorks: Integrated Development Environment Rapid application development – 4 times faster than other approaches packetC™ first open network and packet knowledgeable language Eclipse based IDE with Language Editors, Version Control & Debugger CPOS™: CloudShield PacketWorks Operating System Appliance virtualization – only DPI platform supporting multiple applications Proven secure architecture –strict separation between data & control planes Full layers 2-7 packet manipulation: inspect, intercept, block, modify, create DPPM-800 PN41 CS-2000 Hardware: CS-2000 & PN41 for IBM BladeCenter Architected open – only DPI vendor supporting open chassis architectures 100% packet inspection, no sampling; protocol-agnostic Most scalable solution(10Gbps/chassis & 20Gbps/Blade up to 1 terabit/rack) Low latency inline active or passive with stealth footprint

4 Service Providers – Forces at Work
Cloudshield Commit Checkpoint Tuesday, March 28, 2017 Service Providers – Forces at Work Service Providers Competition Hackers Shareholders Customers Driving down monthly fees Must grow by adding new services and revenue streams Now let’s move on to the forces at work on service providers. They are really getting it from all sides. Fore most, competition is driving monthly fees across most all product categories, POTS, broadband internet access, VoIP, wireless voice, wireless data and across most geographies especially in the US. The only way for Service providers to grow their business is add subscribers or add services. In mature markets like Western Europe, US and Japan the markets are largely saturated so that only leaves adding revenue stream and new services. Customers are demanding more for less. Broadband data rates keep going up and yet the monthly fees don’t, if anything they are declining. Finally hackers, are continuously present yet their tactics are changing. Gone are the days of exploiting server vulnerabilities hacking websites. Now the game is massive bot net driven attacks against fundamental infrastructure such as DNS servers. Taken together these forces mean that service providers must cut costs to remain price competitive, protect their infrastructures and deliver services. DPI can help with each one of these. Let’s look into more detail as to how. Attacks against networks systems Demanding increased bandwidth and more value from providers Service providers must cut costs, protect their infrastructure & deliver new services IBM Confidential 4

5 3/28/2017 Content Processing (DPI) Value Progression Improving Service Expense Control and Revenue Growth Infrastructure Expense Control P2P Control Systems & Visibility to Usage By User; Remove Network Overloads Improved Average Revenue Per User New Revenue Based Services (Security, Parental Control, Voice, Video) Network Monetization Transition Value of Content Providers Back To Network Provider (Advertising Revenue) Control Costs Network Traffic Control Infrastructure Security Appliance Virtualization Increase $/User Enable New Services VoIP, VoD, Wireless data Upgrade on Demand Hosted Services Managed Security Services Monetize Subscribers New Revenue Streams Ad Insertion & Targeting Tailored Information/Access Monetize Existing Users Usage CPM Ad Uplift New Billing Models So far there have been three waves of DPI applications. Cost Control: Services management for the purpose of cost control was the first wave. This is the application that most of our tradition DPI competitors do with their product. Service Visibility & Control: Statistics and billing: Real-time usage monitoring – QoS, QoE Control traffic to reduce costs & postpone network build-out Also control peering point charges so as to minimize service delivery costs Security: Infrastructure protection from malware, DNS/DDoS attacks, etc Enabling new services and billing models was the second wave that we are in the middle of currently Deliver the QoS necessary to add new services: (VoIP, IPTV or streaming media) Offer users personalized service billing plans based on usage or application type Opportunity to upgrade upon quota breach Monetizing subscriber is the phase that is just beginning and characterized by: managed services, whereby the service provider moves application functionality into its cloud to resell to its commercial or residential subscribers. ad targeting or insertion – monetize information about online activities by the subscriber’s behavior to get a cut of ad revenues or insert adds for the same purpose Value Time

6 METRO / CO User Purchase of Services. Media Content NW Services
Branding Retail Wholesale Approval of Purchases Feature Customer Account Status Provisioning Data Services Retail/Wholesale Customer Purchase Portal Provisioning System METRO / CO Service Delivery Service Delivery Bob Joe Sue Sly

7 3/28/2017 Thank You Peder Jungck CTO & Founder

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