1. Evolving Landscape of DataNetworkingMichael RouleauSenior VP Business Development and Strategy

2. A Unique Set of Network AssetsOver 27,000 local and regional fiber route miles across 75 marketsOver 15,500 buildings lit with fiber based servicesNational footprint interconnected with fiber and 10 Gig IP backbone2

3. Trends, Applications and Strategies3

4. Computing Transition4

5. Cloud Computing Defined When you hear the term cloud- computing, what definition first comes to mind? 47% Fundamental change in how technology services are provided 19% A tool, if delivered properly, that can provide instant value to my company 9% A tool that might work for another company 13% Another buzzword all hype 12% Unsure Source 2009 Hosting.com Customer Survey Commoditization, Internet Delivery, Virtualization, Grid Computing, SOA, SaaS, PaaS, IaaS, XaaS Web 2.0, Storage are all components Technology advancements will fundamentally change the economics around how applications are supported and housed beyond a single server 5

6. Adoption Stage ~20% of Enteprises have adopted Cloud in some way Source: VMware - March, 20116

7. Drivers of Cloud Adoption Goals for Cloud: -Faster time to market -Reduce capital investment -Just In Time IT -Address critical applications cost effectively (e.g. Disaster Recovery)Source: VMware - March, 20117

8. Case Study: USDA Cloud E-Mail USDA Cloud-Based E-Mail Contract Total Cost of Ownership Forecasted Annual Costs $ Millions analysis $20 Internally owned and managed $18 infrastructure $16 Outsourced cloud strategy $14 $18.72M Mitigation of: $12 Infrastructure (servers, storage) $10 Costly software testing and $8 upgrade process $6 $11.52M IT HR resources $4 $2 40% Cost advantage through $0 Assumptions: Cloud solution 120,000 USDA users Status Quo: $13/user/mo Cloud Based: $8/user/mo8 Source: Bloomberg Government Briefing, March 2011

9. Key Application: Disaster Recovery9

10. Application Enablement Strategies10

11. Metro Ethernet Growth Metro Ethernet services expected to see exponential growth over next 5 years Internet access is primary application Video, Telepresence consumes 15 to 20 Mb per location Data Center strategies require 1 to 10 Gig Ethernet11

12. Ethernet Bandwidth Overtakes Legacy Ethernet services only available in past decade Adoption of 1 Gigabit and 10 Gigabit services Expect continued growth of 25% CAGR over next 5 years Fueled by data center and Cloud services12

13. 100 Gig 10 Gigabit Ethernet has growing position in WAN strategies Storage doubling every 18 months to 2 years Data Center strategies starting to address 100 Gigabit Ethernet "When 100G Ethernet arrives, itll be the next big thing Virtualization infrastructure and the most important, because it will last to at least 2025, solving traffic problems for a very long time." demands continuing Michael Howard, Infonetics Research scalability13

14. Class of Service Strategies14

15. Ethernet Service Capabilities Point-to-Point, Non-Oversubscribed Service Protected switching (sub 50ms recovery) E-Line Low latency, data center applications to 10 Gig Enterprise customer focusMetro Services Point-to-Multipoint, Hub and Spoke Service to 10 Gig Protected switching (typically sub 50ms recovery) EVPL Aggregation applications, with optional CoS per end-link Carrier customer focus Multipoint Meshed Service with CoS options Protected switching (typically sub 50ms recovery) E-LAN Distributed enterprise applications connectivity to 10 Gig Enterprise customer focus Point-to-Point, Dedicated or Oversubscribed ServiceNational Services National Protected switching (sub 50ms recovery) E-Line Low latency, data center applications Enterprise customer focus Multipoint Meshed Service to 1 Gig Extended Native Protected switching (IP re-routing) available LAN (VPLS) VPLS solution with VLAN tunnelling options Enterprise customer focus 15

16. Ethernet - Changing The Conversation Internet Access Access Connecting the Tall Shineys Reach Connected Branch to Data Center Connectivity Enterprise Enabling UC Strategies Convergence Voice, Video - Collaboration Data center applications Virtualization transparency Intelligent Traffic Management16

17. Carrier Ethernet for Cloud Services Role Definition Example Private Cloud Cloud Infrastructure operated solely for an organization. It may Enterprise organization, be managed by the organization or a 3rd party and may exist on or off premise. Systems Integrator Public Cloud Cloud infrastructure made available to the general public or a Amazon, Salesforce.com large industry group and is owned by an organization selling cloud services. Cloud The person or organization that maintains a business relationship Enterprise, SME with, and uses services from, Cloud Service Providers. Consumer Cloud Carrier The intermediary that provides connectivity and transport of cloud Internet provider, CLEC, services from Cloud Service Providers to Cloud Consumers ILEC MEF Ethernet The intermediary that provides Carrier Ethernet connectivity and MEF Certified (9, 14, etc.) transport of cloud services from Cloud Service Providers and Cloud Carrier Cloud Consumers and with other Ethernet Cloud Carriers. MEF Cloud An entity that manages the use, performance and delivery of TBD cloud services, and negotiates relationships between Cloud Broker Service Providers, Cloud Consumers and Ethernet Cloud CarriersCloud Consumer Cloud Provider U N U MEF Cloud MEF Cloud N N N I Carrier A I Carrier B I 17

18. Intelligent Networking Strategies18

19. Bridging the Gap19

20. Security Is Critical Microsoft - Economics of Cloud, November 201020

21. The Land Grab21 Differentiated Service Strategy?

22. What are the Top Cloud Applications? 70% of new Enterprise applications will be in the cloud by 2014 Utility Infrastructure (servers & storage) is 30% of addressable market The average Telco leverages 16 partners to deploy a cloud application Top 50 onnet DCs already have 50-150 distinct Ethernet services terminating into EACH ONE22

23. Cloud Who Do You Trust? Private or Internal Clouds are preferred Trusted Cloud Providers overwhelmingly by the enterprise (67%) Hybrid Clouds shared infrastructure becoming more accepted (30%) Fully managed and Federation cloud solutions make balance of choice Source: Yankee Group, 2010 FastView Survey: Cloud Computing Grows Up 23

24. Evolution Of The Cloud Best Of Applications Walled Breed Access and Garden Applications Enablement24

25. Elements of Cloud Enablement Visibility Visibility Ability to see network performance information in granularity Dynamic Bandwidth Ability to scale bandwidth on- Dynamic demand to meet application Bandwidth requirements Dynamic Connections Ability to establish secure Dynamic connectivity to an applications Connections environment on-demand25

26. What An Intelligent Network Enables Traffic/Demands Types of Applications Phase 1 Instant PortalEnhanced Management Visibility Telepresence Phase 2* Dynamic Capacity Storage Phase 3* ERP Applications Aware Financial Networking Consumer Traffic26 * Planned future service offerings

27. Performance Management Metro Long Haul, POP-to-POP Metro Segment Segment Segment Expensive systems infrastructure Requires training and knowledge base Performance management in the aggregate Limited fault isolation, trouble management capabilities No capabilities into The Cloud27

28. Performance ManagementCorp HQ Data Center Metro Long Haul, POP-to-POP Metro Segment Segment Segment POP-to-POP (no local access) information Typically displays network averages No visibility to application traffic or flow No capabilities into The Cloud 28

29. Enhanced Performance Management Long Haul, POP-to-POP Metro Segment Metro Segment Segment Real time presentation of data elements Segmented analysis monitoring each network element Ability to augment on-premise/CPE solution Network performance data including The Cloud data center29

30. Enhanced Management Click to Export Data Choose Class of Service Key Metrics by Location, Sort Ascending or Sample Summary Report Descending Click to View Site Click to viewChoose Time Frame Specific Charts POP to POP Metrics30

31. What An Intelligent Network Enables Traffic/Demands Types of Applications Phase 1 Instant PortalEnhanced Management Visibility Telepresence Phase 2* Dynamic Capacity Storage Phase 3* ERP Applications Aware Financial Networking Consumer Traffic31 * Planned future service offerings

32. Dynamic Capacity* Ordering interface via MyPortal (prototype) Allows customers to scale to line rate Provides appropriate budgeting information Real time performance management Highlights bandwidth utilization during increased consumption period32 * Prototype and proposed user interface screens

33. Real Time Capacity Management Manual Threshold API Driven Control Management Portal control Utilization triggers Application signals to the network the Increase capacity Event driven need for on demand provisioning incremental strategies bandwidth (e.g. SIP) Decrease capacity on- demand Scheduled capacity on-demand Eliminate need for dedicated overlay networks33

34. Equinix & Amazon Developing Ecosystem Strategy to provide Ready- Made Access to a trusted applications networking environment Equinix claims over 3000 800 cloud service providers in their centers today All delivered over a secure, scalable and predictable network34

35. Carrier Ethernet Cloud Broker Provides Carrier Ethernet Networking Class of Service strategies Network and Applications performance management Access to wide range of Compute capabilities (IaaS) Applications (SaaS) Highly elastic Pay as you go Available on-demand35

36. Applications Enabling Platform Interconnected 3rd Party Data Centers36

37. Thank You37