Efficient Networks

Agenda

• Service provider Problem/Issues

• Who we are, why are we here

• Focus on Increase ARPU

– VPN and Firewall managed services

• Why an Efficient solution

About Efficient Networks®

• Founded in 1993, based in Dallas, 400+ employees• Worldwide leader in DSL routers

–Delivering enterprise grade routing functionality for nearly 10 years–Leader in access technologies for small businesses (ADSL, SDSL, G.SHDSL, IDSL)

• April 2001: Efficient acquired by Siemens• Siemens

–Global Leader in Electrical Engineering and Electronics–Comprehensive Product Range –

• From mobile phones to power plants–153 Years Old –400,000 Employees in 190 Countries–Over 500 Manufacturing Locations–$75 Billion Sales Worldwide (FY99)–7th Largest Private Employer Worldwide

A Quick Q/A dialogue

• Is increasing revenue per user a priority?

• Who has a security offering?– VPN? Firewall? Managed service? How much? Which equipment?

• Where do you see value added features?

Not here to sell anything, Position value

Save money, make money or improve situation

Service Provider Issues

• Commoditized DSL monthly costs– Build value around commoditized offering

• Customer retention– Retain longer if tied to a bundled solutions

• Increase revenue per user

– Leverage existing network and truck rolls

– Deliver managed services

• Perception of resource heavy rollout, complicated process

Solution

• Efficient networks 5851, 5871 and 5940• VPN and Firewall’s• No network build-out, simple remote activation• Leverage existing truck roll• 1 box solution• Highest level of security available (Ipsec/3DES)• Zero dollar cost, immediate time to revenue

Numbers

• Average DSL monthly service = $139/mo 384k SDSL

• Charge $199 NRC VPN upgrade (143% +ARPU)– $0 dollar vpn key cost, minimal resources required

• Charge $39.95 MRC VPN (29% +ARPU)

Managed VPN Services• The Efficient firewall may be managed remotely

via Telnet or HTTP/WebGUI• Who offers managed firewall services?

– AT&T– Genuity– SBC– Qwest– Verizon– WorldCom– XO

• Sample offerings– XO $450-$750 setup, $200+ per month per router – AT&T

$TBD setup, $600+ per month per tunnel– Virtela (including access)

$TBD setup, $300-1,250 per month per site

Managed Firewall Services• The Efficient firewall may be managed remotely

via Telnet or HTTP/WebGUI• Who offers managed firewall services?

– AT&T– Genuity– SBC– Qwest– Verizon (through Activis)– WorldCom– XO

• Sample offerings– Remotefirewalls.com

$225+ setup, $95+ per month per firewall– XO $250+ setup, $100+ per month per firewall– Enterprise level

$1,375 (Genuity) - 2,500+ (AT&T) per month per firewall

VPN Gateway Interoperability

IPSec Interoperable with:• CheckPoint• Cisco VPN Concentrators• NetScreen• Nortel Contivity & Shasta• RedCreek• SonicWall• SafeNet VPN Client

IDSLEfficient 5871

VPN Gateway

WirelessModem

EfficientDSL

Modem

CableModem

EthernetEfficient 5781

ADSLEfficient 5861

SDSLEfficient 5851

SHDSLEfficient 5950

Explanation of VPN/FW on the routers

5800 series DSL routers – 5.0 EOS– VPN is shipped with the routers, but is locked within the firmware.– A software key is required to unlock the VPN– VPN key is $199 through webstore– 25% discount for reseller through distribution– Firewall is basic IP filtering and comes free

5940 T1 router – 6.0 EOS next generation– VPN/3DES shipped with router free. For the VPN line speed

acceleration, $199 for the software key– Basic firewall shipped with router free. ICSA Certified Stateful

Firewall is $299 via s/w key to unlockZero cost on 5940 (not 5800 series)

EOS 5.3 VPN Configuration

EOS 5.3 Firewall Configuration

Note: Output created by pressing Apply

• If a Truck roll is done, why not

• No second box, remote activation

• Create additional revenue streams by offering new services

– VPN creation and management

– Firewall security offering

Wholesale to Zero Cost, immediate time to revenue

SummarySummary

Increasing ARPUIncreasing ARPU

Greg Imahara(408)357-6630

gimahara@efficient.com