Craig SteinExecutive Vice President and GM

U.S. Regions Broadband and Media Accounts

MONETIZING THE CLOUD

Competitive Carriers Association Annual Convention | 2012-09-13 | Page 2

CONGRATULATIONS

Competitive Carriers Association Annual Convention | 2012-09-13 | Page 3

Common Heritage: COMMUNICATION FOR ALL

Competitive Carriers Association Annual Convention | 2012-09-13 | Page 4

NETWORKEDSOCIETY Everything and

everywhere will be connected in real time

Fundamental changes in the way we communicate, work and are entertained

50 billion connected devices by 2020

Competitive Carriers Association Annual Convention | 2012-09-13 | Page 5

VIDEO, P2P AND STORAGE DRIVING BANDWIDTH GROWTH

Internet Traffic 2011

Web

Peer-to-Peer

Internet Traffic 2015

Online Video

Storage

5x Growth

Total = 270,000,000 PB/Yr

Total = 1,259,000,000 PB/Yr

Graphic r e-created using data from Informa Telecoms & Media Internet Services and Traffic Forecast 03/11

Competitive Carriers Association Annual Convention | 2012-09-13 | Page 6

Smartphones integrated into everyday life

Source: Ericsson ConsumerLab 2011, Base: Android/iPhone smartphone users in 6 regions globally

Morning

Commuting

Lunch

Late aftern

oon

Dinner

In bed

Before noon

Aftern

oon

Early eve

ning

Late evening

In bed

Non-voice usage of smartphone

Competitive Carriers Association Annual Convention | 2012-09-13 | Page 7

The new revenue sources

Competitive Carriers Association Annual Convention | 2012-09-13 | Page 8

OTT COMMUNICATIONS COME TO THE ENTERPRISE

Consumer adoption of OTT solutions for voice and messaging is now influencing work behavior

Competitive Carriers Association Annual Convention | 2012-09-13 | Page 9

Industry adoption of mobile VoIP is expected to increase from both consumer (Apple, Skype, Viber) and enterprise (Cisco) sources

Competitive Carriers Association Annual Convention | 2012-09-13 | Page 10

Video communication gains for niche use cases (Google Hangouts for business collaboration)

Competitive Carriers Association Annual Convention | 2012-09-13 | Page 11

Microsoft pushes comms (through Skype and more) into Azure and enterprise cloud apps

Competitive Carriers Association Annual Convention | 2012-09-13 | Page 12

Investment rationale

Addressing these goals leads to enterprise investments in:

›Managing mobility across networks›Unified communications and collaboration›Cloud, apps, APIs›M2M›Security

Enterprise communications and IT investments have three goals:

1.Ensure access2.Improve productivity and margins3.Effectively serve customers

MONETIZING THE CLOUD: THE OPPORTUNITIES

Competitive Carriers Association Annual Convention | 2012-09-13 | Page 14

EVERYTHING AS A SERVICE (XAAS)

MOBILITYMOBILITY BROADBANDBROADBAND

The network is THE differentiator.

The world goes mobile. Fast.

CLOUDCLOUD

Capitalize on a new generation of services

Competitive Carriers Association Annual Convention | 2012-09-13 | Page 15

PUSH-TO-TALK AS A SERVICE

Competitive Carriers Association Annual Convention | 2012-09-13 | Page 16 16

ENTERPRISE CLOUD SERVICES

Competitive Carriers Association Annual Convention | 2012-09-13 | Page 17

UNIFIED COMMUNICATION AS A SERVICE

Competitive Carriers Association Annual Convention | 2012-09-13 | Page 18

Investment rationale

Addressing these goals leads to enterprise investments in:

›Managing mobility across networks›Unified communications and collaboration›Cloud, apps, APIs›M2M›Security

Enterprise communications and IT investments have three goals:

1.Ensure access2.Improve productivity and margins3.Effectively serve customers