Rationalizing IT Investment Through Content Networking www novell

Rationalizing IT Investment Through Content Networking www. novell. com Steve Bannister Director, Product Management Volera, Inc. SBANNIST@volera. com

Vision…one Net A world where networks of all types—corporate and public, intranets, extranets, and the Internet—work together as one Net and securely connect employees, customers, suppliers, and partners across organizational boundaries Mission To solve complex business and technical challenges with Net business solutions that enable people, processes, and systems to work together and our customers to profit from the opportunities of a networked world

Volera provides the software and services that allow enterprises to manage content delivery, deploy rich media applications and reduce IT costs

Who Is Volera? • Majority owned Novell subsidiary, with Nortel. Networks strategic investment • Provides managed, secured, authenticated proxy-caching solutions • Delivers solutions with hardware, channel, and consulting partners including Novell • Based on industry-leading technology developed over five years

What We Will Do Today • We know this is technical conference • This is such a new problem space we need to talk about the business problems • We will finish with discussing the underlying technology

5 minutes For a Couple of Ideas • The half-second web • Volera builds the worlds most advanced and scalable intelligent internet infrastructure technologies • Content today • The rest of the web tomorrow • Now, the ability to build, manage, and use large distributed proxy networks with Velocity Content Distribution Network (VCDN)

The Basic Value Props • Scale, improve, manage user browser experience • Scale and improve, often dramatically, web site performance • Allow new classes of applications • Make new types of applications feasible 4 E. g. End-to-end e. Learning • Therefore, significantly improve investment ROI for web infrastructure

Evolution of Our Market Category Customers’ Revenue Opportunity Application Delivery Platform • What: • Enable the integration of Web Services with Media Distribution and Delivery • Add Efficiency, Reliability and Scalability to Web Media Delivery Services • Drivers: Platform • . Net Initiatives • What: • XML replaces HTML • Efficient and reliable • Proliferation of device distribution of media types • Drivers • Mature deployments, rich media demand • Markets • Enterprise • Service Providers • Applications • On-demand • Live streaming Market Shift Cache • What: • Fast delivery of static content • Drivers: • Static content • Small objects 1998 -99 Content Delivery Platform • What: • Pro-active management of content • Drivers: • Streaming Content • Enterprise: star networks • On-demand applications 2001 2002/2003/2004 Time

Delivery and Management Excelerator 4 Accelerates Web sites and the delivery of content. Media Excelerator 4 Accelerates the delivery of stored media objects and live streams - Real, Windows Media, Quick. Time Secure Excelerator 4 Secure and accelerate on-line secure transactions and connections transparently System Controller 4 Manage and monitor Excelerator and its delivered services Content Controller 4 Distribution and management solution for automating networks of Excelerators Content Accountant 4 Report on (monetize) the delivery of content to end-users through accounting and reporting systems

The Business Problems

Tough Business Climate Corporate Profits • Global economic slump • Corporate profits $ Billions falling • Reduced resources— layoffs and program cuts Sources: US Bureau of Economic Analysis • Focus on the bottom line—income, ROI

Business Expectations Higher Than Ever • Do more with less • Remain competitive in a global environment • Deliver high Qo. S to customers • Increase employee training and productivity • Retain customers and attract new ones • Find new revenue opportunities How are you going to meet these challenges?

Trend Toward New Web Applications 4 e. Learning 4 Webcasts $ Millions Roll out new web applications to improve communication, generate additional revenue lower costs and increase productivity 4 Advertising and marketing 4 Collaboration Source: Streaming Media Research

Applications Demand Bandwidth e. Learning Project Collaboration Video On-Demand Personalized Content Text Slides Images 1. 5 MB Static Audio MP 3 Audio 4 -8 MB Streaming Full Length Video 250 -300 MB Dynamic Content Types Virtual Classroom > 300 MB Interactive

Are You Ready? • A 640 x 480 30 minute training video streamed to just 50 employees requires over 50 Mbps of network bandwidth; this is more than the capacity of a full 45 Mbps T-3 circuit • Secure connections are more than four times slower than regular connections, which can bring your network to a halt • Delivery speed is important— 70% of customers will leave your e. Commerce site if they have to wait more than 12 seconds • A typical large enterprise will lose more than $7 M a year in employee productivity due to Internet delays (assuming 5000 employees, ten minutes wasted time/day) Source: *IDC; **Jupiter Communications

Market Trends: Enterprise • • • 45% more companies are streaming this year than last 86% increase in total enterprise streaming spending 230% increase in total number of stream-hours delivered • By 2002, 80% of the Fortune 500 will stream corporate communications from their public web site • The Wall Street Journal reported that the German car maker, Daimler Chrysler, covered its costs for e. Learning in just six weeks— saving on expenses such as travel to its training center and reduced number of days absent from the job Sources: Streaming Media Research, Enterprise Streaming ROI, Aug 2001, and Wall Street Journal

Market Trends: Streaming Companies use streaming media for internal as well as external applications Streaming Video Technology for External Applications Streaming Video Technology for Internal Applications 70% 64% 64% 58% 60% 50% 64% 62% 58% 60% 48% 40% 70% 50% 35% 40% 32% 30% 20% 10% 0% 29% 20% 10% 29% 0% Executive Address Employee Education Sales Training Intra-company Meetings Companies using Streaming Video Today Companies using Streaming Video Within 18 Months Source: Jupiter Communication, April 2001 23% 13% Product Launches B-to-B Collaboration Customer Training Customer Service Earnings Announcements

Using the Internet to Solve Business Challenges Infrastructure optimization • Save bandwidth costs • Scale up and reduce IT expenditures • Achieve better network ROI e. Commerce • Attract and retain customers • Open up new revenue opportunities • Improve customer service Secure intranet e. Learning Webcasts • Ensure timely access to corporate data • Improve employee productivity • Save travel expenses • Tap new revenue sources • Improve employee training • Roll out new initiatives in less time • Save travel expenses • Save printing costs

Benefits for the Enterprise Reduce Costs • “Everything Oracle does, [it does] better, faster and cheaper through streaming media…streaming media saved Oracle over $10 million in the last fiscal year. " Nathaniel Robinson, Oracle's Senior Director of Broadband Marketing Improve Communication • HP serves 150, 000 streams annually to 70, 000 employees/partners Tap Revenue Opportunities • Streaming ads increase brand awareness by 23% Millward Brown Interactive Improve Employee Productivity • Motorola estimates that employees can complete an eight hour classroom course in five hours, if done online

The Rich Media Challenge Headquarters Sys Admin International office Server bottleneck Corporate Network Internet Slow response ISP Bandwidth bottleneck X X Regional office Affiliate company Streaming content unavailable X Peering bottleneck X Access denied Common Problems Difficult remote access

Content Distribution Networks (CDN) Enable Rich Media 54% of large enterprises surveyed are evaluating or building content distribution networks to deliver rich and streaming media content. — HTRC Group

Real Frustrations My IT guy says I can’t use images, video, or audio in my training program because it takes up bandwidth needed for clearing checks. —JPMorgan Chase Bank Our e. Learning program consists of online instructor tools, telephone registration, and materials delivered on CD-ROM. We’d really like to have everything available online. —CVS/Pharmacy

Your Networking Requirements • Bandwidth optimization 4 Optimized delivery of text, graphic, rich and streaming media • Streamlined web access 4 Internet link response, connection speeds • Rapid deployment 4 Install Server OS, Install Software, Configuration • Content Control 4 Controlling unwanted or flash content • Support and implement corporate web initiatives 4 e. Learning, e. Commerce, Corporate Communications

The Solution

The Solution: CDN Building Blocks Delivery Management Streaming/Security/ Acceleration System/Content/ Reporting Professional Services Training/Support A Content Delivery Network that provides a new layer of intelligence on top of your network’s IP infrastructure, transforming the classic centralized web model into an efficiently distributed and content-aware network.

Typical IP Network Headquarters Sys Admin International office Server bottleneck Corporate Network Internet Slow response ISP Bandwidth bottleneck X X Regional office Affiliate company Streaming content unavailable X Peering bottleneck X Access denied Common Problems Difficult remote access

Velocity CDN Deployment Corporate web, media, and learning mgmt servers Sys Admin VCDN Management Server NOC Corporate Network Internet ISP International office Affiliate company Regional office

Content Delivery Request 1 System and Content Management Site Europe STREAMING #2 West Coast #1 West Coast Employee/User Browser C STATIC Media Server T ONTEN T AS West Coast O CE BC WE East Coast ON DEMAND STREAMS Asia Reporting and monitoring server Web Servers Trend/Accounti ng server

Velocity CDN For Web Content Delivery • Accelerate content delivery and access to corporate and Internet data • Increase network ROI 4 Optimize bandwidth 4 Decrease overall IT costs • Improve employee productivity 4 Faster access to frequently used content 4 Faster download times for software updates 4 Integrate with filtering applications to limit access to non-business content

Velocity CDN for e. Commerce • Accelerate and secure e. Commerce transactions • Increase revenue 4 Attract new customers • Use multimedia for more effective sales/marketing • Scale to support growing customer base without adding to existing infrastructure 4 Integrate with chargeback/billing applications to monetize digital content • Improve customer satisfaction 4 Better response times • Sub-second response times for downloads • Process 100+ times more secure transactions than Web server alone 4 Support traffic spikes and surges

Velocity CDN for Advertising/Marketing • Better, broader campaigns 4 Stream audio and video content to build brand awareness • Reach the right customer at the right time 4 4 Pin content to ensure high quality delivery Integrate with ad insertion applications (Front. Porch) • More economical 4 4 Pay only for first person who demands stream Deliver fresh content efficiently

Velocity CDN for Secure Intranet • Increase network ROI 4 4 Provide secure remote access to corporate intranet, without adding more bandwidth Future-proof your infrastructure with flexible platform Off-load redundant traffic and secure transactions from server Centrally manage content • Improve employee productivity 4 4 4 Make more efficient use of centralized applications Speed delivery of freshest content Decrease training time

The Returns

The Need for Web-Based Learning and Communications • Reduce travel costs and time away from the office • Get corporate messages out quickly and consistently on a global scale • Improve knowledge level of workforce • Cut down on printing and shipping expenses Strategic Advantage: Lower costs, better employee retention, shorter time to market

Reduce Costs and Maximize Your ROI (90 offices) $ per Hour • At even three days of online Hours Streamed (000’s) training/year for 1000 employees, Velocity CDN saves you money • Payback period is less than seven months • Maximize your ROI by using additional CDN capacity to: 4 Speed up e-commerce sites 4 Secure remote intranet 4 Stream new product launches Case: Velocity CDN for e. Learning at large enterprise with two data centers, ten regional centers, 90 remote offices

Tangibles—Bandwidth Savings Assumptions ROI of 54 K/40 K= 35% Break even in nine months

Global Consulting Company: Case Study • 5, 000 employees in 100+ offices around the world • Want to accelerate information access and push content throughout the company • Deploy streaming media • Key interests: 4 Creating a private CDN with 100+ offices 4 Streaming media for training and corporate communications 4 Centralized content management 4 Knowledge exchange

Global Consulting Company: ROI • Yearly training costs 4 $40 Million 5000 consultants at $8, 000 each • Two week training/consultant/year • Including travel, food, hotels, trainers • Assuming that 10% of training delivered through the private CDN • Implementing a private CDN $4. 0 Million $3. 5 Million 4 Infrastructure and Deployment costs $3. 0 Million 4 Outsource production of video training $0. 5 Million • Ten Regional Offices, 90 Field Offices • Two Data Centers • Cache servers, switches, request routing, management tools, professional services • $15 K per training • 30 trainings • Pay back period • Time to implement Ten months Two to five months

Better ROI With More Streaming Hours

Intangibles—Productivity Assumptions

Intangibles—Productivity Assumptions (cont. )

The Proof

Some of our Customers …

Case Study: Large Global Consulting Firm Challenges • Significant training requirements for consultants, globally • Heavy traffic congesting T 3 lines • Difficulty distributing/making accessible industry-specific information Solution • Media Excelerator deployed at 25 locations, more sites to come Results • Increase Network ROI 4 Extensible, future-proof system that grows with business • Improved Employee Productivity 4 Easy access to actionable data Client: Large global consulting firm with several remote offices. Knowledge management is done through large corporate Intranet with multiple formats of data

Case Study: Watson Wyatt Challenges • Slow network access times, particularly during software updates Solution • Excelerators deployed at regional hub and three branch locations • Routers redirect web requests from browsers to Excelerator Results • Software update time cut drastically • Corporate intranet pages open in a fraction of the previous load time • Bandwidth utilization reduced by 30% • Employee productivity increased due to faster network access “Downloading the update to the first workstation took 15 or 20 minutes. Once the update was stored in the local cache, though, downloads to the rest of the machines took only about 12 to 15 seconds each. That saved us considerable time and money. " Global human resources consulting firm with 6100 associates. -Chriss Brinkley, Information Technology Manager, Watson Wyatt Worldwide

Case Study: FLUOR Challenges • Implement a secure Web desktop for employees at 116 sites • Need platform independence, two-factor authentication, remote management capabilities Solution • Create a private CDN with Secure Excelerators • Accelerate knowledge management systems and other heavily used resources Results • Easy to implement with two IT personnel • Secure access without VPN for all remote locations Fluor Daniel - $7 B engineering and construction services group

Case Study: Uni. Super Challenges • Repetitive downloads slowing down Internet access • Bandwidth costs high • Need visibility into web usage Solution • Frequently accessed web pages are downloaded nightly to Volera Excelerators Results • Reduced bandwidth utilization and lowered costs • Doubled the performance of frequently accessed sites • Monitor Internet usage easily “Our objectives were clear, reduce the unnecessary traffic on the Internet, speed up Internet access and reduce our Internet costs, particularly in downloads. Volera Excelerator. TM met all of these requirements. In addition, it allows us to monitor Internet access usage. ” - Bruce Jewell, Systems Engineer, Uni. Super Mgmt. $8. 5 B retirement fund with global staff and membership of 250, 000+

Case Study: AT&T Challenges • Power a service to accelerate web sites and support video-on-demand, webcasting • High performance and competitive price-point Solution • Content acceleration and management servers deployed to AT&T’s U. S. data centers Results • High performance means fewer servers and faster deployment • Reduced administrative and maintenance costs • Flawlessly served webcasts to one million simultaneous users “. . . Because of the performance we are now getting out of each machine, we do not have to manage as many servers —greatly reducing administrative and maintenance burden. ” -Mario Santoro, Product Manager for IP infrastructure Leading supplier of data and Internet services for businesses. $62 B in revenues and 160, 000 employees

Case Study: Compu. Com Challenges • Growing customer based strained existing system • Need to expand use of the web as a data repository Solution • Web site acceleration improving customers’ access to data Results • Improved Qo. S for customers and partners • Reduced management costs • Easier web access “Excelerator reduces management costs. We want to deploy the latest emerging technologies that are both cost-effective and reliable in our network environment” - Tom Ducatelli, VP of Business Development, Compucom Nationwide leader in information technology services —Compu. Com’s e. Commerce site is accessed by customers to purchase products and services

Case Study: GSD&M Challenges • Several users accessing streaming media files on the site • Congested networks from transporting video ad clips between employees in online collaboration Solution • Volera Excelerator serving 45% of FTP and extranet content “As a full-service creative agency producing a great deal of broadcast media, we place very high demand on our network…since deploying Excelerator, we have been able to eliminate a significant amount of bandwidth traffic congestion and have been very impressed with Excelerator’s functionality and performance. ” - Jerry Rios, CTO and SVP for GSD&M Results • Increased Network Performance • Significantly lower bandwidth costs • Improved employee productivity; effective online collaboration GSD&M is a provider of strategic brand-building and creative marketing for national clients, including Southwest Airlines, Wal-Mart, Land Rover, and the PGA TOUR.

The Technologies

Delivery: Excelerator Browser Acceleration or Forward Proxy Functionality (Central Router Deployment Scenario) WPAD and Proxy. Pac support Browser 1 IP address = 100. 1. 1. 199 IP address = 100. 1. 1. 1 Internet Browser 2 Origin Web Server Domain Name Server (DNS) Browser 3

Delivery: Excelerator (cont. ) Transparent Browser Acceleration or Transparent Forward Proxy Functionality Browser 1 Browser 2 Browser 3 Switch /Route r Internet Origin Web Server

Delivery: Excelerator w/Authentication Transparent Browser Acceleration or Transparent Forward Proxy Functionality Browser 1 Browser 2 Browser 3 Switch /Route r NTLM, NDS, or LDAP Authentication Internet Origin Web Server

Delivery: Excelerator Web Server Acceleration or Reverse Proxy Functionality (Central Router Deployment Scenario) IP address = 100. 1. 1. 199 Browser 1 Browser 2 IP address = 100. 1. 1. 1 Internet Firewall Domain Name Server (DNS) Browser 3 Origin web server. com address Origin Web Server

Delivery: Excelerator w/Authentication Web Server Acceleration or Reverse Proxy Functionality (Central Router Deployment Scenario) NTLM, NDS, or LDAP Authentication IP address = 100. 1. 1. 199 Browser 1 Browser 2 Internet Firewall Domain Name Server (DNS) Browser 3 Origin web server. com address IP address = 100. 1. 1. 1 Origin Web Server

Delivery: Media Excelerator with Media Excelerator Add-on Functionality Media Players Media Server Everyone watches CEO webcast simultaneously or on demand Real. Networks Real Player Apple Quick. Time Media Player Microsoft Windows Media Technology

Management: System Controller Functionality System Controller Agents activated on Excelerators System Controller The Admin can manage the Excelerators in multiple locations or from outside the firewall

Management: Content Controller Functionality Browsers Content Controller Agents activated on Excelerator • Flush unwanted or stale content • Pin important content

Reporting: Content Accountant Functionality Trend/Accounting server Management workstation Content accountant agents activated on excelerators