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1 Nortel Confidential Information Genomgång av Nortels produktutbud Bo Westling Account manager Visby, maj 2008 2 Nortel Confidential Information Disclaimer Certain statements in this presentation may contain words such as “could”, “expects”, “may”, “anticipates”, “believes”, “intends”, “estimates”, ”targets”, “envisions”, “seeks” and other similar language and are considered forward-looking statements or information under applicable securities legislation. These statements are based on Nortel’s current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which Nortel operates. These statements are subject to important assumptions, risks and uncertainties, which are difficult to predict and the actual outcome may be materially different. Nortel has made various assumptions in the preparation of its financial outlook in this press release, including the following company specific assumptions: no further negative impact to Nortel's results of operations, financial condition and liquidity arising from Nortel's restatements of its financial results; Nortel's prices increasing at or above the rate of price increases for similar products in geographic regions in which Nortel sells its products; increase in sales to Nortel's enterprise customers and wireless service provider customers in the Asia Pacific region as a result of Nortel's joint venture with LG Electronics Inc.; improvement in Nortel's product costs due to favorable supplier pricing, offset by higher costs associated with initial customer deployments in emerging markets; cost reductions resulting from the 2007 and 2006 restructuring plans; increased employee costs relative to expected cost of living adjustments and employee bonuses; and the effective execution of Nortel's strategy, including implementation of its Business Transformation initiatives in 2007. Nortel has also made certain macroeconomic and general industry assumptions in the preparation of its financial guidance including: a modest decrease in the growth rate of the gross domestic product of global economies which is lower than the growth rate in 2006; global service provider capital expenditures in 2007 reflecting mid to high single digit growth as compared to high single digit growth in 2006; global growth rate to remain stable with investments in next generation products and services to offset declines in purchases of legacy equipment; and a moderate impact as a result of expected industry consolidation among service providers in various geographic regions, particularly in North America and EMEA. The above assumptions, although considered reasonable by Nortel at the date of this press release, may prove to be inaccurate and consequently Nortel’s actual results could differ materially from its expectations set out in this press release. Further, actual results or events could differ materially from those contemplated in forward-looking statements as a result of the following (i) risks and uncertainties relating to Nortel’s business including: significant competition, competitive pricing practice, cautious capital spending by customers, industry consolidation, rapidly changing technologies, evolving industry standards, frequent new product introductions and short product life cycles, and other trends and industry characteristics affecting the telecommunications industry; any material, adverse affects on Nortel’s performance if its expectations regarding market demand for particular products prove to be wrong; the sufficiency of recently announced restructuring actions; any negative developments associated with Nortel’s suppliers and contract manufacturing agreements including our reliance on certain suppliers for key optical networking solutions components; potential penalties, damages or cancelled customer contracts from failure to meet delivery and installation deadlines and any defects or errors in Nortel’s current or planned products; fluctuations in foreign currency exchange rates; potential higher operational and financial risks associated with Nortel’s efforts to expand internationally; potential additional valuation allowances for all or a portion of Nortel’s deferred tax assets if market conditions deteriorate or future results of operations are less than expected; a failure to protect Nortel’s intellectual property rights, or any adverse judgments or settlements arising out of disputes regarding intellectual property; any negative effect of a failure to maintain integrity of Nortel’s information systems; changes in regulation of the telecommunications industry or other aspects of the industry; any failure to successfully operate or integrate strategic acquisitions, or failure to consummate or succeed with strategic alliances; Nortel’s potential inability to attract or retain the personnel necessary to achieve its business objectives or to maintain an effective risk management strategy; (ii) risks and uncertainties relating to Nortel’s liquidity, financing arrangements and capital including: any inability of Nortel to manage cash flow fluctuations to fund working capital requirements or achieve its business objectives in a timely manner or obtain additional sources of funding; high levels of debt, limitations on Nortel capitalizing on business opportunities because of senior notes covenants, or on obtaining additional secured debt pursuant to the provisions of indentures governing certain of Nortel’s public debt issues; Nortel’s below investment grade credit rating; any increase of restricted cash requirements for Nortel if it is unable to secure alternative support for obligations arising from certain normal course business activities, or any inability of Nortel’s subsidiaries to provide it with sufficient funding; any negative effect to Nortel of the need to make larger defined benefit plans contributions in the future or exposure to customer credit risks or inability of customers to fulfill payment obligations under customer financing arrangements; or any negative impact on Nortel’s ability to make future acquisitions, raise capital, issue debt and retain employees arising from stock price volatility and any declines in the market price of Nortel’s publicly traded securities; and (iii) risks and uncertainties relating to Nortel’s prior restatements and related matters including: any negative impact on Nortel and NNL of such restatement; legal judgments, fines, penalties or settlements, or any substantial regulatory fines or other penalties or sanctions, related to the ongoing regulatory and criminal investigations of Nortel in the U.S. and Canada; the significant dilution of Nortel’s existing equity positions resulting from the approval of its class action settlement; any significant pending or future civil litigation actions not encompassed by Nortel’s class action settlement; any unsuccessful remediation of Nortel’s material weakness in internal control over financial reporting resulting in an inability to report Nortel’s results of operations and financial condition accurately and in a timely manner; Nortel’s inability to access, in its current form, its shelf registration filed with the United States Securities and Exchange Commission (SEC); or any breach by Nortel of the continued listing requirements of the NYSE or TSX causing the NYSE and/or the TSX to commence suspension or delisting procedures. For additional information with respect to certain of these and other factors, see Nortel’s Annual Report on Form10-K and other securities filings with the SEC. Unless otherwise required by applicable securities laws, Nortel disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.. 3 Nortel Confidential Information Nortel Solutions Large Enterprises Wireline Operators Small and Medium Businesses Cable Operators Government Wireless Operators Nortel is a recognized leader in delivering communications capabilities that help eliminate today's barriers to efficiency, speed, and performance by simplifying networks and connecting people with information 4 Nortel Confidential Information Lösningar kommer från teknologier ADVANCED RESEARCH DEVELOPMENT > Key technologies for the future > Over 10,000 developers > Global presence > Core competencies • • • • • MIMO OFDM Web Services SOA Location/ Presence • Custom ASICs • PBT/PBLSP • Etc. • • • • • • • • • > University research > Standards leadership > Strategic patents portfolio 5 Optical Voice Signaling RF Layer 2&3 Applications Real time OAM Etc. > 24 million person hours of R&D capacity Nortel Confidential Information Enterprise Solution Areas Our portfolio Clients • Desktop • Soft Clients • Wireless Clients Communication Servers • BCM for advanced IP communications for small sites • Communications Server 1000—fully featured, server-based IP PBX • Communications Server 2100—“Superclass” softswitch for large campus enterprises • Multimedia Communications Server 5100— Enterprise multimedia communications Applications • • • • • 6 Call Pilot and UM2000 unified messaging Contact Centers IVR Application Gateways Converged Office (Nortel/Microsoft ICA solution) Network • • • • • • • Ethernet Switching Secure Routers WLAN/Mesh Application Switches Security Optical SAN extension Business continuity solutions Nortel Confidential Information Lösningar - produktområden • – Vad använder er organisation? 7 Nortel Confidential Information Lösningar - produktområden 8 Nortel Confidential Information CS 1000 Portfolio Product Offerings >CS 1000E – for new VoIP customers >Scalable up to 22,500 IP users >Redundant and non-redundant configurations CS 1000E (IP Signaling Server running on COTS) >Flexible deployment configuration options >Lead product in our VoIP offering >CS 1000M – for evolution of existing TDM base >Evolution of our Meridian 1 to support VoIP >Scalable up to 15,000 IP users >Supports up to 16,000 digital or analog users >Leverages existing hardware for low cost migration to VoIP CS 1000M (Option 61) 9 Nortel Confidential Information Nortel IP Clients Current Portfolio Offering IP Phone 1100 Series Desktop IP Phone 2000 Series 2001 Soft Clients Wireless 2004 2007 IP Phone 1200 Series 1210 10 2002 IP Softphone 2050 / 6350 1220 1230 Mobile USB Adapter IP Audio Conference Phone 2033 Exp Mod Multimedia PC, Web, & Integrated Clients IP Phone 1535 1150E Exp.Mod Key Messages •Security • Broad portfolio offers choice in client type •Diagnostics Nortel Confidential Information 1140E •Application Gateways •Voice Quality Mobile Dual Mode Wireless Voice Client Mobile WLAN Handsets Client for 2050 Client 3100 2210/2211/2212 BlackBerry 1120E •Infrastructure • Seamless, Reliable, Robust & Feature Rich Clients offer added value IP Phone Provisioning • Provide alternative mechanisms to program the settings currently performed through the local configuration menus • Phase 1 – Enhanced DHCP Provisioning Auto-provisioning • Expanded DHCP Options • Delivered with CS 1000 Rls.5.5 • 2000, 1100, and 1200 Series • Phase 2 – Auto Provisioning • Set provisioning via TFTP • Planned Availability – 2Q08 • 1100 and 1200 Series TFTP Benefits • Removes the need for a trained Technician to walk desk-to-desk configuring a Nortel IP Phone 802.1ab DHCP Simplifying IP Phone Configuration Process 11 Nortel Confidential Information CS 1000 Telephony Manager CS 1000 Telephony Manager (previously called Optivity Telephony Manager ) Print Graphs and Reports • Mixed Web and Windows application suite with network level navigation Traffic, Directories Telephony Manager • Touches all FCAPS • Configuration: all customers, • Faults: target 50 systems or less, • Accounting: small to medium customers (S&M2003-0260) • Single point of access including Element 12 Managers Moves, Adds, & Changes Telecom Billing Nortel Confidential Information Navigate Systems Monitor Faults & Perform Maintenance Application Gateway 1000/2000 • Delivers optimized content and applications to IP phones • Pre-packaged applications with Voice Office • • • • • Express Directory Visual Voice Mail Broadcast Alerts Zone Paging Transformed applications • Leverage existing vertical applications • Easy to use “point-andclick” Design Studio • IP PHONE 1140E 13 IP PHONE 2007 Nortel Confidential Information Custom applications • API level integration Unified Messaging Drives Productivity CallPilot and Nortel Unified Messaging 2000 What is Nortel Unified Messaging? • Voice, fax, email and video messaging within a single interface • Access to messages from the desktop e-mail client, Web interface or telephone How does Nortel Unified Messaging work? • Two architectural approaches: • Integrated Architecture • Unified Architecture • Reduce communications overhead by minimizing LAN and WAN traffic, decreasing user training, operating independently of the corporate email server and supporting a variety of clients 14 Nortel Confidential Information Nortel Microsoft Integration Advantage Nortel CS 1000 Direct SIP & SIP CTI Interface Voice Communications (SIP) & Remote Call Control – (SIP CTI) 15 • Software only integration • No hardware or gateways required Microsoft • Less complexity, less cost of LCS/OCS ownership • Tightly integrated • CS 1000 redundancy mechanisms for Microsoft connectors so if one server / system fails, another server/system takes over control and provides Microsoft connectors • Active Directory integration • Nortel Multimedia Convergence Manager (MCM) s/w loaded on LCS/OCS to translate SIP addresses to CS 1000 dial plan Nortel Confidential Information Multimedia Client For IBM Lotus Notes • Combines the collaboration capabilities of MCS with IBM Lotus Notes in an easy to use interface • MCS Access provided via plug-in to IBM Lotus Notes • No need to launch a separate application or window for the client • Enables quick and easy access to MCS collaboration • One click access from Notes to many functions • Provides a single tool for all communication 16 Nortel Confidential Information Nortel Multimedia Conferencing 5.0 • Premise based audio/video conferencing application • The evolution of the award winning MCS 5100 Meet Me Conferencing application • Works with Communication Server 1000 (CS 1000) release 5.0 • Convenient access • SIP, VoIP, PSTN • Access anywhere, anytime through the Multimedia Conferencing telephone interface • Reservation-less Conferencing • All users permanently assigned one or more dialin numbers and a unique access code • Support for 9 languages • English, Spanish, French, German, Korean, Portuguese, Chinese Mandarin, Russian, and Japanese. 17 Nortel Confidential Information Nortel Applications Framework • Open application suite • Software framework • Standards based (SIP) • Common media server • A solution for the future Contact Center 6.0 Feature Highlights • Report Creation Wizard • Innovative SIP Contact Center • Supports new and emerging media including video, 3G wireless video and 3G wireless chat • Unified Agent Desktop • Provides a single agent interface for the management of all contacts regardless of media • Corporate Software Licensing • Reduces cost of ownership by centralizing control of software licensing • Generates custom reports without third party report writers • Increased Resiliency • Standby Server with automatic or manual fail-over • Reduced Total Cost of Ownership • Single DVD Software Installation for CC6.0 Suite • Simplified Multimedia Deployment • CCM/CCT Co-residency The SIP Contact Center and the Converged Agent Desktop enable the Expert Anywhere Solution 18 Nortel Confidential Information IVR – MPS500 Self Service and Speech • Provide reliable, convenient and cost effective access for customers wherever they are, 24 hours a day • Make customers happy - offer the extra convenience and expanded options they like using natural speech capabilities • Automate routine tasks to relieve your service reps, allowing them to focus on more complex customer interactions • Reduce average call length to speed service delivery and lower operating costs 19 Nortel Confidential Information Nortel Contact Recording Customisable Shortcuts Click speaker to replay Ability to email secure link to call Detailed Search Criteria Right click here to save as WAV 20 Real and elapsed time shown Nortel Confidential Information • Capture customer intelligence to help serve customers better • Quickly resolve disputes • Clarify customer instructions • Assess up-selling opportunities • Assist in training (best practices calls) • Quickly search & retrieve calls • Browser-based for easy access • Graphically “see” call and identify points of interest • Prolonged silence, higher volume, raised voice Secure Multimedia Controller 2450 Securing Services & Resources Media Gateways Signaling Servers Secure Multimedia Zone Call Server Perimeter Firewall SMC 2450 Enterprise Network Multimedia Services Mgmt Contact Unified Center Messaging Threat Protection System (IDS/IPS) IP Phones b System from Internal Threats Secures your VOIP Communication 21 Nortel Confidential Information Business Optimized Networking Building blocks to optimize the transformed enterprise 1 - Converge and scale your core around resilient IP/Ethernet 2 - Extend / simplify converged access to the extended enterprise 3 - Mobilize your enterprise with ubiquitous access to all users 4 - Accelerate and optimize your applications 5 - Secure and Manage your infrastructure 22 Nortel Confidential Information Simplifying the Network Common Designs Common Capabilities Common Components Uniform Strategy Uniform Applications Uniform Benefits 5500 Edge 5500 Edge 4500 Edge 4500 Edge 2500 Edge 2500 Edge 5500 SMLT Core Small 8300 SMLT Core 8600 SMLT Core Medium Large 1 - Converge and scale your core around resilient IP/Ethernet 23 Nortel Confidential Information What networking requirements are the most critical to your business? Network Resiliency If one vendor claimed to have compelling advantages over another across these requirements – wouldn’t you want to investigate more? Network Performance Total Cost of Ownership Wouldn’t you want to get the “Facts”? “Green Networking” 24 Nortel Confidential Information Fact or Fiction? The leading competitor MUST offer better network resiliency than others in the industry FACT Nortel offers up to 7x better resiliency 25 Nortel Confidential Information Prove It! Campus/LAN Resiliency Nortel offers faster network recovery and superior stacking resiliency Failover Time (seconds) 5 RSTP vs. SMLT: Failover Time Comparison Source: Tolly 4x faster from 4 3 2 link failures 7x Faster 4x Faster 7x faster from switch failures 1 0 Link Failure Nortel Ethernet Routing Solution Switch Failure Cisco Catalyst Solution HP ProCurve Solution Trust your mission-critical, real-time traffic with a highly resilient Nortel infrastructure 26 Nortel Confidential Information Fact or Fiction? To have become so dominate – the market leader MUST offer superior network performance? FACT Nortel outperforms similar solutions by up to 20x 27 Nortel Confidential Information Prove It! Performance In the LAN/Campus Nortel's ERS 5500 offers 5-20x the performance of the Cisco equivalent Across the WAN Nortel's Secure Router offers 4.5x the performance of the Cisco ISR Nortel Secure Router 3120 Versus Cisco 2821 Switching Capacity Aggregate Throughput (Mbps) Gigabits per Second (Gbps) 700 600 500 400 300 200 100 0 12 10 8 6 4 2 0 Nortel ERS 5500 Series 1 Nortel ERS 4548GT 1 Cisco Catalyst 3750 Series 2 64 128 256 512 28 2. Source for Cisco data: www.cisco.com Nortel Confidential Information 1,400 File Size (Bytes) Nortel Secure Router 3120 1. Source for Nortel data: The Tolly Group 1,024 Cisco 2821 Source: Tolly Fact or Fiction? The market leader MUST provide customers lower Total Cost of Ownership FACT Nortel offers significantly lower TCO – Based CAPEX, OPEX and Power & Cooling … ranging from 37-107% across LAN/WAN 29 Nortel Confidential Information Fact or Fiction? As a progressive, socially responsible industry leader, they must be “green” from a networking perspective FACT Nortel is 125% more Energy Efficient than comparable Ethernet solutions 30 Nortel Confidential Information Nortel’s “Energy Efficiency” Advantage Nortel’s POE switches are 70-150% more Energy Efficient than equivalent HP and Cisco switches … resulting in significantly lower overall operational (power and cooling) costs Per-Port Cost to Deliver Full Power (~15.4W) Simultaneously Over 48 PoE Ports Per-Port Costs ($) $500 $458 400 300 $312 200 100 $146 $150 “The Nortel ERS 2500 & 4500 series demonstrated the lowest per-port cost for delivering full power PoE and Nortel’s tested switches are the ‘greenest’ of all switches tested.” Source: Tolly 0 Nortel ERS 4550T-PWR with RPS 15 Nortel ERS 4548GT-PWR with RPS 15 Cisco Catalyst 3560E-48PD Cisco Catalyst 3750E-48PD Nortel: less upfront and operational costs 31 Nortel Confidential Information Secure Router 4134 • True convergence – Office ‘in a box’ • Integration with Microsoft OCS 2007 • Survivable remote gateway for CS1K • Support for 3rd party SIP call servers Communications Server 1000/ 2000 3rd party SIP Optional OCS 2007 PSTN • Service Oriented • Survivability for SIP/UNISTIM/analog clients • Extends CS1K into the branch • Full survivability • Centrally managed Mobile IP Branch WAN Secure Router 4134 • Element of a Broader Portfolio • Additional models - SR 2000 model • Localization - ADSL2+, 8x Ethernet Interfaces, 1U Chassis, MPLS 2 - Extend / simplify converged access to the extended enterprise 32 Nortel Confidential Information PSTN WLAN 2300 – Flexible Deployment Options Wiring Closet WLAN AP 2330A WMS WSS 2360 a WSS 2360 a) Directly connected to WLAN Security Switch 2300 c b) Indirectly connected to WLAN Security Switch 2300 (in wiring closet) through PoE switch WSS 2380 b d AAA Servers e c) Redundant connection using Wireless IDS dual-Ethernet ports d) Indirectly connected to WLAN Security Switch 2300 (in data center) through PoE switch e) Branch office deployment services usingLocation WLAN Security Switch 2350 Branch Office WSS 2350 3 - Mobilize your enterprise with ubiquitous access to all users 33 Nortel Confidential Information Nortel Application Accelerator • Data Centre appliance used to accelerate the delivery of any web-based applications over the Internet and across WANs • Delivers benefits to end-users everywhere without the need to deploy specialised equipment on the user side • Employs techniques like compression, caching and protocol optimisations to reduce the amount of data, significantly improving delivery times • Asymmetrical acceleration product 4 - Accelerate and optimize your applications 34 Nortel Confidential Information Mobile Client Accelerator ALL TCP application accelerated Including HTTPS MCA client MCA Server Delivers LANlike performance across a WAN Ideal for wireless or problematic networks Normal inefficient bandwidth Profile Optimized MCA bandwidth Profile 4 - Accelerate and optimize your applications 35 Application servers untouched! Nortel Confidential Information Nortel Application Switch • A high performance Ethernet Switch with added intelligence • Performs Layer 4-7 switching to balance, accelerate and secure traffic • Makes intelligent decisions based on content (not just addressing) using deep packet inspection • Integrates routing and switching by forwarding traffic at layer 2 speed using layer 4-7 information • Deploy in data center, POP or at network edge 4 - Accelerate and optimize your applications 36 Nortel Confidential Information Enterprise Policy manager 5 - Secure and Manage your infrastructure 37 Nortel Confidential Information What is It? Nortel Threat Protection System (TPS) • Enterprise-class Intrusion Detection/Prevention System (IDS/IPS) to monitor, analyze, identify, alert and block network attacks • Key element of a Layered Defense architecture • Utilizes SNORT open source rule base • Consists of up to four components: • Intrusion Sensors to inspect traffic, identify and alert on potential threats • Defense Center to manage the sensors, co-ordinate, prioritize and analyze alerts, and initiate a response • Threat Intelligence (RTI) Sensors to passively identify network assets and reduce false positives by providing behavioral context • Remediation devices to block attacks Ultimately improves the accuracy of threat detection and remediation over traditional IDS/IPS solutions 38 Nortel Confidential Information What is It? Nortel VPN Gateway • Remote access security appliance that extends the reach of enterprise applications to remote employees, partners, and suppliers • Uses native SSL capability of web browsers and traditional IPSec access to offer the industry’s most flexible and cost effective remote access VPN solution • Supports all applications; optimized for VoIP • Deployed at central site for: • Individual and managed Remote Access VPN • Mobile application gateway • Application acceleration 39 Nortel Confidential Information http://www.hyperconnectivity.com/en/saveenergy/index.html 40 Nortel Confidential Information Nortel nyhetsbrev direkt till dig? • http://www.nortel.com/nnu_signup 41 Nortel Confidential Information 42 Nortel Confidential Information