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LightEdge 2010 vision and strategy related to Cloud Computing, Unified Communications, and Virualization
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3/18/2010 1
LightEdge Solutions
2010 Vision and Company Overview
The LightEdge Vision
Businesses spend too much time, money and effort delivering communication and IT services to their employees. Technology typically requires high upfront costs Technology assets are typically underutilized Economies of scale exist in hosted and managed services Professional skills can be harnessed more effectively on large platforms Business Continuity can be achieved by moving infrastructure offsite into secure and
redundant environments
LightEdge’s Vision is to enable small and medium-sized businesses to access affordable and resilient technology to run their business. Bring enterprise-grade technology downstream to the SMB Eliminate technology purchase and maintenance costs Allow businesses to focus on their core mission Promote reliability and business continuity in all services
LightEdge Financial Backing
Anschutz Investment Company► Phil Anschutz - 37th Richest American*
► Founder of Qwest
► History of driving high-growth businesses
► LightEdge Solutions selected as
telecommunications flagshipo Funding available for organic growth and
acquisitions
*(Forbes Inc. 2009)
Accolades/Accomplishments
First to market Hosted PBX VoIP service
First to market Hosted OCS integrated with
BroadSoft
Gartner Magic Quadrant 2009 ► Unified Communications as a Service
► Only 16 North American companies selectedo Microsoft, Google, Verizon, AT&T, IBM, Cisco…
Inc. 5,000 - 2007, 2008 and 2009
Entrepreneur of the Year Finalist 2006
Gartner “Cool Vendor” 2005
Our LeadershipJim Masterson, Chairman and CEO Jeff Springborn, President and COO
Jim Albee, VP of Finance
Jim has over 25 years of experience driving bottom-line growth through business development, sales, marketing and executive management roles for companies in the fields of networking and telecom. Prior to coming to LightEdge Jim was the Senior Vice President of Worldwide sales and Marketing for Terabeam, as well as strategic management roles with !NTERPRISE Data Networking, Rhythms NetConnections and USinterworking.
Jeff’s unique abilities, consistent drive and 19 years of experience allowed him to quickly redirect the company’s staff, processes and culture to take it to the next level. He has a broad background in telecommunications and networking with previous positions in Terabeam, Inteliant Corporation and with Andersen Consulting helping Telecom Italia Mobile, Iridium, AT&T Wireless, Intel and MCI with their go to market strategies.
Jim’s addition to the team has brought a wealth of knowledge and over 19 years of experience in the areas of finance, mergers and acquisitions and litigation related specifically to technology companies. His years with MapQuest, Road9, Rhythms NetConnections, USWest and as a corporate financial consultant have allowed him to clearly understand the challenges and opportunities that impact a hosted technology provider.
Travis Thompson, VP of Engineering
With over 18 years of experience in network management, engineering and platform architecture, Travis lead all of LightEdge’s data center and networking operations. His knowledge of systems architecture and expertise in network design have allowed LightEdge to create a sophisticated, fault-tolerant network that is now ready to be scaled for the national presence that our investors have planned for the company.
Kris Harris, VP of Operations
Kris joined LightEdge in 2006 through the acquisition of Internet Express and Ascendtel, LLC, and is responsible for Customer Care and Network Operations. Prior to LightEdge and Internet Express, Kris was a Certified Public Accountant with RSM McGladrey, a national Accounting and Consulting firm working in the tax department specializing in bank tax reporting.
Industry Leading Partners
Our Facilities
• 4 LightEdge Owned/Operated Data Centers: Altoona, Des Moines, Moline, Minneapolis
• Total of 16,000 Square feet of data center space• Business Continuity Workspace available• SAS-70 Type II Audited
Data Center Facilities
• Fully redundant, carrier-class Cisco Power Network, managed by Cisco Certified Engineers and dual path fiber topology
• 2 Gbps total Internet connectivity through multiple providers: Qwest, Level3, UUnet, AT&T, XO and Cogent
Connectivity
• Secured by key cards, biometrics, man-traps and surveillance cameras• Premises manned/monitored 24/7/365
Security
• Electrical service from two utility substation grids• 1,650 kW of on-site power generation capability• Four 500 kVA UPS systems, two per data center wired in series• On-site generators (24 hour capacity)• 100 watts/sf power density• 180 Tons of cooling capacity per data center in an N + 1 configuration.• HFC-125 Fire Suppression System
Power/Cooling*
* Representative of the Altoona, IA Data Center Facility
LightEdge MPLS Network
Frame Relay
Incompatible with other connective technologies (need complex interworking)Difficult to scale (3 routers = 3 DLCIs, 4 routers = 6 DLCIs, 5 routers = 10 DLCIs…)Not always designed to natively support QoS
Connection agnostic
Each router independently connects to the Mesh
Inherently supports QoS
DLCIDLCI
DLCI
Customer Router
Customer RouterCustomer Router
MPLSMPLS
MPLS
Customer Router
Customer RouterCustomer Router
Meshed MPLS Core
Point to Point
MPLS
Ethernet
PPPFrame
3/18/2010 9
Cloud Computing
What is Cloud Computing?
“Cloud computing is a style of computing where
massively scalable IT-related capabilities are
provided ‘as a service’ across the Internet to
multiple external customers”
“By 2012, 80 percent of Fortune 1000 companies
will pay for some cloud computing service, and 30
percent of them will pay for cloud computing
infrastructure.”
Hosting - What’s the difference?
Premise-based Voice, Data and ITYour equipment, your location, your responsibility
LightEdge Hosted EnvironmentOur platforms, our data center, our management
HeadquartersHosted in LightEdge Data Center
Remote Office
Phone System / PBX
Storage
Headquarters(Internal Data Center)
E-mail Server
Backup Tapes
Managed 24/7 by LightEdge Staff
Applications
Hosting - Why should you care?
Hosted LightEdge Network
Industry Leading Hardware and Software Partners
• Redundancy and Security
• Quality of Service (QOS)
• 24x7 Monitoring and Mgmt
• Environmentally controlled
• Inherent disaster recovery
Get More
• Best-in-class enterprise-grade services
• Flexibility and Scalability
Give Less
• Minimal upfront investment
• Predictable monthly fees
• Compelling Total Cost of Ownership
Get Ahead
• Focus on your core business
• Confidence and peace of mind
• Reduce Risks
Scale-on-Demand services give you the freedom to buy only what you need and add services as your business grows
Headquarters
Remote Office
Consulting and Implementation
LightEdge Consulting Services is like no other consulting firm in the market. LCS consultants have a background in enterprise-grade and hosted platforms, which allow them to bring “best practices” and stability to the SMB.
LCS bridges the gap between premises-based and hosted IT solutions.
Premises-Based Service Provider
Consulting, Platform Design, Implementation, Migration and Server Management.
CollocationPrivate Cage SpaceDedicated ServersIBM BladeCenter
Virtual ServersSAN StorageSQL Hosting
Managed BackupSoftware as a Service
Hosted PBX VoIPConverged AccessSIP TrunkingHosted ExchangeHosted OCSHosted SharePointVoice ConferencingWeb ConferencingDesktop Faxing
Windows Server:(2000, 2003, & 2008)Active DirectoryExchange 2007OCS 2007SharePoint 2007SQL EMC Storage PlatformsBusiness Continuity Planning
Our Services
Business Internet(DSL, T1, Ethernet, Fiber)
Meshed IP WANRemote Access ServicesVirtual Private Network
Managed FirewallIntrusion Detection
Data Loss PreventionURL Filtering
Unified Communications
Networking
Consulting Information Technology
LightEdge Customer
Is it real?
“The rise of the cloud is more than just another
platform shift that gets geeks excited. It will
undoubtedly transform the IT industry, but it
will also profoundly change the way people
work and companies operate.”
-The Economist, “Let it Rise,” 10/23/08
3/18/2010 16
Server Virtualization
Server Virtualization Basics
Hardware
Virtualized World Physical World
Traditional x86 Architecture• Legacy rule: Run only one application per server
because single application crashes result in OS or server failure
• Typical hardware utilization under 8%
Virtualization: • New rule: Run multiple applications per server
because OS/applications are isolated from one another
• Typical hardware utilization 80%
Server Virtualization Fundamental Benefits
Encapsulation Entire state of the virtual machine can be saved to files Move and copy virtual machines as easily as moving and copying files
Partitioning Run multiple operating systems on one physical machine Divide system resources between virtual machines
Isolation Fault and security isolation at the hardware level Advanced resource controls preserve performance
Hardware Independence Provision or migrate any virtual machine to any similar or different physical
server
Server Consolidation & High Availability
Ubiquitous access to a
dependable platform
Plug and play ease of
use
Nearly infinitely scalable
Buy only as much as you
need taking advantage
of huge scale of
economies in the cloud
Why should you Virtualize ?
Server Consolidation & Productivity► Less capital to spend
► Less space, power & cooling
► Less to manage
► Increase resource utilization bringing down TCO
Scalability► Grow with the business
► Build what you need, when you need it
Portability & Protection► Enhanced Disaster Recovery/Business Continuity
► High Availability for automatic recovery capabilities
Causes of unplanned downtime
Operational Failures
• People and Process Issues
• Infrastructure Changes
• Configuration and Problem Management
Application Failures
• Bugs• Performance Issues• Change
Management Process
Component and System Failures
• Controller Failure• HBA/port Failure• Disk Failure• Shelf Failure• FC Loop Failure
Site Failures
• Terrorist Attacks• HVAC Failures• Power Failures• Building Fire• Plumbing Accident• Architectural
Failures• Planned Downtime
Regional Disasters
• Electric Grid Failures
• Natural Disasters• Flood• Hurricane• Earthquake
Probability of Occurrence
40% 40%
Get More Done with Existing IT Staff
% of Time Spent on Maintenance
72%
Before Managed Virtual Servers
After ManagedVirtual Servers
24%
Do more work with the same number of people = operating cost savings
Drivers of productivity improvements include
• Zero downtime maintenance
• Built-in high availability
• Dynamic patching
• Instant provisioning
• Simplified disaster recovery
Increase Staff Productivity
Evolution of the Virtual Datacenter
3/18/2010 24
Unified Communications
Benefits of Hosted Unified Communications
• Productivity & Costs – Faster Resolution– Less missed calls– Mobile Integration– Business Process Integration
• Customer Satisfaction– Responsiveness– Access to key data
• Cost Reduction– Collaboration– Less Travel– Effective Teleworkers– CapEx and OpEx reduction
• Openness– Non-proprietary phones– Any Applications
Instant Messaging
Hosted Unified Communications
The power of Unified Communications – delivered in a Hosted, SaaS model
Ideal Solution for Small & Medium Business Customers
Game-Changing Opportunity for Businesses that need efficient and effective communication
Business Telephony
Mobility
Rich Presence
Multimedia Conferencing
Integrated Contacts
Business Customers
HostedUC
Unified Communications
Platform
Hosted Unified Communications
Cisco Reference Unified Communications Solution
Benefits of Hosted UC:• Smaller IT Staff
• Lower Implementation Costs
• Predictable Operating Costs
• Easier Teleworker Support
• Auto Upgrades
• Future Proof Automatically Stay Current with Technology
• Integration with Other Hosted & SaaS Applications
• More Reliable & Disaster Resistant
Can the average SMB Really Afford to Deploy This?
Proven Results
Observed Benefits• 15-25% improvement in Exception
Processing costs
• Cost Reductions– 30% in LD– 37% in 3rd Party Collaboration– 20% in travel
• 25% Increased Customer Satisfaction ratings
• Reduced IM Security Threat
Medium Multi-Site Enterprisehigh cross-functional integration
3/18/2010 29
Hosted PBX Voice
Core Functionality
GROUP FEATURESPERSONAL FEATURES
• Alternate Numbers• Anonymous Call Rejection• Auto Callback• Barge In Exempt• Blind Call Transfer• Call Forwarding Always• Call Forwarding Busy• Call Forwarding No Answer• Call Forwarding Remote
Access• Call Forwarding Selective• Call Hold• Call Notify• Call Return• Call Transfer w Consultation• Call Transfer w Three Way
Consultation• Call Waiting
• Calling Line ID Delivery
• Calling Name Delivery• Calling Line ID
Blocking• Calling Line ID
Blocking Override• Cancel Call Waiting• Consultation Hold• Directed Call Pickup• Directed Call Pickup
with Barge In• Distinctive Alerting• Diversion Inhibitor• Do Not Disturb• Extension Dialing• Instant Group Call• Last Number Redial
• Account Codes• Authorization Codes• Call Intercept• Call Park• Directed Call Park• Call Pickup• Calling Group ID Delivery• Calling Plan
– Incoming Calls– Outgoing Calls– Redirected Calls
• Configurable Attributes– Calling Line ID– Extensions– Feature Codes– Time Zones
• Loudspeaker Paging• Music on Hold• Series Completion
• Priority Alerting• Push to Talk• Selective Call
Acceptance• Selective Call Rejection• Sequential Ring• Shared Call
Appearances• Simultaneous Ring• Speed Dial• Three Way Calling• Voice Portal Calling
Features work across any Endpoint – PBX stations, IP phones, Mobile Phones, Soft Clients, Analog Phones, Key System stations
Unified Messaging
• Next Generation Unified Messaging
– Voice Mail to Email
– Fax to Email
– Video Mail/Multimedia Mail
• Integrated “Legacy” Voice Mail
– Matches all traditional Voice Mail
functionality
– Integrated Voice Portal (fully configurable)
– Multi-Language Support Supports Fixed, Mobile, and Converged Users
Fully Integrated into BroadWorks Management and Portals
Next-Generation Unified Messaging or
Traditional/Legacy Voice Mail Solutions
The Everywhere Salesman
Mr. Sales
Customer
His Office
• Ring multiple phones simultaneously
• First phone to pick up receives the call
• Ensures important calls are always answered
• Client only has to remember one number
His home phone
His mobile phone
Up to 8 other phones
The Only Number
Customer calls Kelly’s BroadWorks
number
♦ Pick up on mobile
♦ Return to office
♦ Swap call to desk phone
Who’s the mobile operator?
Who’s the mobile operator?
Who cares?Who cares?
• Deliver mobile solutions to customers without a mobile network• TODAY
• Works on all mobile networks
• Provide a One Number solution• The BroadWorks
Number
Kelly
Customer
♦ Keep talking
Activate Remote Office
Office Inaccessible
♦ Office is inaccessible♦ Forced to work from
home♦ Activate Remote Office♦ Get on with business
240-555-0981
Punch in number
Customer
240-555-0981
Your Office
Office Backbone
• Work from anywhere • Protect caller ID information of
your current location• Ensure a professional
appearance
International Calls from the Mobile
♦ OPTION 1: Make a standard call♦ Costs $2.00 per minute♦ Mobile revenue – $60.00♦ BroadWorks – $0.00
♦ OPTION 2: BroadWorks♦ Costs $0.14 per minute plus usage♦ AT&T revenue – 30 minutes used♦ BroadWorks revenue –$4.20
♦ PLUS Steve’s loyalty and thanks Supplier
• Bidding on a large deal
• Needs to contact supplier in Brazil
• 30 minute call• Two Options
Steve
*Based on standard international calling rates
Call Centers and Call Distribution
• Advanced Call Delivery Policies
– Multi-Location
– Fixed and Mobile agents
– Multiple Distribution Policies
– Wrap-Up and Escalation
• Call Queuing
– Configurable Queue Policies
– Music/Video on Hold
– Escape Policies
• Advanced Agent/Supervisors
– Agent Login/Logoff
– Integrated PC Clients
• Service Integration
– CRM Integration
– Open APIs
3/18/2010 37
Hosted Microsoft Exchange
To-Do Bar
Instant Search
Attachment preview
Calendar publishing
Microsoft Exchange
• Multi-device access to e-mail
• Full-text search of messages
• Remote storage and backupof e-mail
• Multimedia communications (e-mail, voice mail, and fax)
On-premises deployment costs
For small and midsize businesses (fewer than 500 employees) there are significant cost advantages to trusting LightEdge versus an in-house deployment.
On-Premise
Partner Hosted
$0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000
On-Premise vs. Hosted Microsoft Exchange Year 1(example 20 Users )
Hardware (Servers, Firewall)
Software Licenses (Exchange, Security, AV/AS, Outlook)
IT Services (Installation, Maintenance, Back-up and Support)
Thank you
For more information:► http://www.lightedge.com
► 877-771-3343
