UNIFIED PHYSICAL INFRASTRUCTURE Introduct ion to the UPI Vis ion

A Frost & Sullivan White Paper

Presented to: Panduit Corporation

TABLE OF CONTENTS

INTRODUCING THE UNIFIED PHYSICAL INFRASTRUCTURE VISION 3

RELEVANCE OF UNIFIED PHYSICAL INFRASTRUCTURE 3

KEY DRIVERS FOR THE UNIFIED PHYSICAL INFRASTRUCTURE VISION 5Effective Management of Infrastructure Risk 5Minimizing Cost of Downtime and Improving Responsiveness 6Demand for Ensured Reliability 6Demand for Integration 6Regulatory Compliance and Security Considerations 6Compliance with Safety Regulations 7

PANDUIT SOLUTIONS ENABLE THE UPI VISION 7Data Centers 7Connected Buildings 8Industrial Automation 9

EXISTING INFRASTRUCTURE VS. UNIFIED PHYSCIAL INFRASTRUCTURE VISION 10

FROST & SULLIVAN ASSESSMENT OF PANDUIT’S UPI STRATEGY 11

TABLE OF CONTENTS

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INTRODUCING THE UNIFIED PHYSICAL INFRASTRUCTURE VISION

The physical infrastructure is the basic foundation on which enterprise systems run,including not only voice and data communication systems but also power, computing,control and security systems. The increased demand for IP communications is driving theindustry towards convergence of these systems that today are either separately deployedand managed, or are integrated through proprietary, closed technologies.

The need to provide real-time information, manage network applications, and controlbuilding automation systems through IP networking is also driving increasedinterdependence between these systems throughout several core enterprise areas:

• Data centers are mission-critical data factories delivering applications that need to be

accessed remotely with stringent performance requirements.

• Factory automation systems (i.e., process control, motion control, numeric control)

provide real-time information to enterprise business systems.

• Building systems (i.e., lighting, access, HVAC) are becoming smarter and more

manageable to reduce energy costs, improve climate control, and enhance employee

security and retention.

As the interdependence of these systems increases, a point of failure within any onesystem impacts the performance of many and creates risk. These critical systems (bothsilo and proprietary) and the physical infrastructure that supports them need to beadapted to meet evolving customer needs. Some of these critical systems which areintegrated through proprietary technologies remain inefficient and underutilized becausethey cannot be leveraged across the enterprise. In response, customers are demandingrobust and innovative solutions to support and manage their enterprise infrastructuresand support their network and industrial systems.

Unified Physical Infrastructure (UPI)-based solutions are designed to help customersmanage risk within the physical infrastructure by intelligently converging physical andlogical systems. These solutions leverage real-time information to increase safety andsecurity in the workplace, manage systems more effectively, satisfy regulatory compliancerequirements, minimize disruptions, and maximize performance. Ultimately, these solutionshelp to mitigate risk across systems and between functional departments to enablebusiness agility throughout the enterprise.

RELEVANCE OF UNIFIED PHYSICAL INFRASTRUCTURE

The growing interdependence of systems and applications, and the physical infrastructureneeds of each, requires the integration of traditionally disparate and proprietary systems.This approach is dramatically changing infrastructure design and management strategies,and effective harmonization of critical systems – communication, computing, power,control, and security – is key to improving performance throughout the enterprise and

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“PANDUIT’s qualitysolutions deliver highnetwork performance levelsand accommodate ourrequirements for futureexpansion. The high-endPANDUIT solution wehave installed is certainly agood investment.”

Ramdan Pawi, ChiefInformation Officer,

Accenture

managing risk into the future. A UPI-based solution enables tangible improvements ininfrastructure efficiency and productivity along with a substantial reduction in operationalcosts.

The degree of unification across the physical infrastructure can be defined in terms ofthree levels – Align, Converge, and Optimize. These levels refer to the degree ofintegration of the five critical systems across several enterprise areas – in the datacenter, throughout building systems, and on the factory floor. The first level involvesdeploying modular and scalable passive, active and intelligent products, software and toolsthat align and connect systems within individual areas. The second level involvesintegrating these products, software and tools into a converged physical infrastructuresolution that extends across more than one enterprise area. Finally, the third level ofunification involves optimizing the entire physical infrastructure into a seamlessinteroperable system across all critical systems and areas.

UPI-based solutions at all levels leverage real-time information to enhance business agility,risk management, and security throughout the enterprise. These solutions also addresspower, cooling, space, and policy-based management. The result is a robust and scalableinfrastructure solution that enables customers across diverse markets to mitigate risk andreduce total cost of ownership (TCO).

The UPI Vision: Align, Converge, Optimize

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KEY DRIVERS FOR THE UNIFIED PHYSICAL INFRASTRUCTURE VISION

Forward-thinking enterprises consider the entire physical infrastructure when evaluatingand deploying innovative technologies. The revolutionary UPI-based approach toinfrastructure design and development opens the door to seamless convergence andinteroperability throughout core business systems across all enterprise markets.Furthermore, UPI-based solutions are scalable and flexible, and allow enterprises toaddress areas of risk.

Effective Management of Infrastructure Risk

As applications and the networks and supporting physical infrastructure continue to faceenormous pressure for increased speed and functionality with lower TCO, the complexityand management of the physical infrastructure has intensified. As convergence becomesthe norm, seamless integration requires efficient physical infrastructure management toreduce risks which can occur at any level within the network. This ultimately translatesinto improved performance throughout the network by ensuring consistent performanceof mission-critical systems with minimal downtime.

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Minimizing Cost of Downtime and Improving Responsiveness

The increasing complexity of the physical architecture leaves it vulnerable to faults,leading to unexpected downtime and poor Mean Time To Repair (MTTR). This downtimehas the maximum impact on the overall system efficiency and performance, resulting inlost productivity, lost customers, and a direct negative impact on the bottom line. Inextreme cases, downtime can significantly diminish sales and damage brand reputation.Based on a research study by Infonetics Research, the average annual cost of downtime inthe U.S. could range from $20,000 per hour for retail services to $200,000 per hour forfinancial services. While downtime can never be completely eliminated, UPI-basedsolutions can enable faster diagnoses for maintenance and can detect the threat of faultsbefore actual downtime occurs.

Demand for Ensured Reliability

A reliable physical infrastructure is an engineered system comprised of carefully designedpower and cooling capacity; robust data transmission media; effective grounding andbonding of system elements; and pathways that protect, route and manage structuredcabling. The use of detailed requirements analysis to produce robust systems comprised ofquality components and materials can minimize network interruptions and maximizeuptime and business continuity. High quality products with high quality installation byskilled workers and the right monitoring and diagnostic tools can yield a significantreduction in issues related to the physical infrastructure.

Demand for Integration

Most physical infrastructure systems (such as power, computing, communication, control,security, and safety) currently operate as individual entities or as proprietary, closednetworks. As convergence increases, events within any single system have an impact onthe function of other systems and can potentially affect overall network performance.Without careful planning, convergence can lead to poor visibility into systems, which candelay diagnosis and prolong repair times. A UPI-based solution can yield betterpredictability and easier diagnosis leading to tangible efficiency and significant costsavings.

Regulatory Compliance and Security Considerations

Regulatory compliance helps enterprises maintain secure control of sensitive orconfidential information. Relevant statutes and best practice guidelines include the HealthInsurance Portability and Accountability Act (HIPAA), the Sarbanes-Oxley Act (SOX), theReal ID Act, the Homeland Security Presidential Directive, ISO 17799 policy, andInformation Technology Infrastructure Library (ITIL) guidance. It is also critical toconstruct network infrastructures in accordance with physical infrastructure standardssuch as the Commercial Building Telecommunications Standard (TIA/EIA-568) and

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“PANDUIT’s UnifiedPhysical Infrastructurevision establishes thefoundation for the‘Information Utility’ – asingle building informationnetwork. With a UPIapproach, the buildingsystems become a truebusiness asset, enablingstakeholders to helptransform theirorganization, improvebusiness processes andenhance real estate value.”

Dr. Rick Huijbregts,Director Real Estate

Business Development,Cisco Systems

Telecommunications Pathways and Spaces (TIA-569), the TelecommunicationsInfrastructure Standard for Data Centers (TIA-942), and Commercial Building Grounding(Earthing) and Bonding Requirements for Telecommunications (J-STD-607-A-2002).

Ensuring end-to-end security and regulatory compliance requires complete visibilitythroughout the physical infrastructure. This visibility can be achieved by using a UPI-basedarchitecture to collect and collate device, system, and administration data into aconfiguration management database (CMDB), thereby extending real-time intelligencefrom the physical up to the logical systems.

Compliance with Safety Regulations

Adherence to safety regulations poses a challenge for enterprises. The impact of thischallenge varies according to the end-user market. For example, safety regulations withinthe industrial and medical sectors are extremely stringent, and mission critical systems inthese environments are required to be fully operational at all times. Proper grounding ofthese systems improves reliability and protects against damage to human and capitalassets. Proper labeling and identification of infrastructure elements, as well as effectivelockout-tagout practices, contribute toward a safer environment.

PANDUIT SOLUTIONS ENABLE THE UPI VISION

PANDUIT’s Unified Physical Infrastructure (UPI) vision embodies the next wave of systemsintegration and risk management within the physical infrastructure. PANDUIT solutionsdeliver a comprehensive strategy for unifying the installation and management of thephysical infrastructure. These solutions leverage strategic partnerships with industryleaders and incorporate innovative product systems, tools, appliances, software andservices. They are supported by an aligned partner community to plan, design, develop,fulfill, and deploy.

PANDUIT solutions are tailored by industry and customized by application, and span allcore systems necessary to run a business from data center and facilities operations tonext-generation intelligent buildings. Overall, PANDUIT UPI-based physical infrastructuresolutions provide availability, reliability, security, integration, and safety to achieve the UPIvision of improved business agility with reduced cost of ownership.

Data Centers

Traditional concerns of data center stakeholders revolve around application availabilityand require a physical infrastructure with high availability, reliability, safety, security, andintegration. However, over the last five years, demand for processing power has surgedand server/storage equipment densities have increased dramatically. Technology evolutionin the data center is challenging IT managers to effectively budget and develop reliable,high-performance, secure, and scalable network infrastructures.

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“PANDUIT’s rich historyof innovation and thoughtleadership continues with anew generation ofintelligent solutions forcomplex logical andphysical environments.Focused on integration,service and support,PANDUIT delivers UnifiedPhysical Infrastructure-based solutions for missioncritical Data Centerapplications.”

Daniel Hoff, ChiefTechnical Officer, PTS

Consulting, Inc

Intelligent infrastructure design enables customers to meet changing power, cooling,uptime, and availability requirements that become more demanding over the life of thedata center. PANDUIT UPI-based solutions take a holistic approach toward data centerdesign and risk management by balancing site-specific infrastructure technologies witheffective capacity planning. This approach encourages stronger, more frequent interactionbetween IT and facilities management to deliver a physical infrastructure that best fits thedemand profile of high-density data center applications. These solutions also optimize dataprocessing, power, and cooling systems to support data center virtualization andconsolidation efforts.

PANDUIT UPI-based data center solutions support data center virtualization andconsolidation by providing greater visibility, management, and control of thephysical infrastructure.

Connected Buildings

Enterprises today require spaces they occupy to be designed to support a wide variety ofbuilding systems and cutting-edge communication technologies. Modern building controlsystems must be designed with interoperability in mind. Traditional control systems forlighting, security, HVAC, and energy management must now co-exist with IP-based voice,data and video communication technologies.

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“An optimized data centerinfrastructure must addressthe interdependenciesbetween the logicalnetwork and physical layerinfrastructure. Cisco® andPANDUIT havecollaborated to createenterprise data centertopologies that provideguidelines for high-performance, flexible,scalable, and reliable datacenter design.”

Deepak Munjal, DataCenter Solutions Marketing

Manager, Cisco Systems

PANDUIT is a SolutionsEnabler Partner for IPCommunications within theCisco Technology DeveloperProgram

UPI-based connected building designs link facility and network systems directly into theconverged building network, generating and sharing data over a single platform toenhance the efficiency and effectiveness of the building as a whole. Systems may beconverged electronically through a common IP network architecture; others will beconverged physically through shared conduit, cable trays, and building pathways.

This converged design allows building systems to be considered a true business asset,enabling developers and owners to reduce costs, enhance employee workplaceexperiences, attract quality tenants, and maintain building value over time.

Ground-breaking took place in June 2008 for the new PANDUIT CorporateHeadquarters in Tinley Park, IL USA. It will employ a state-of-the-art ConnectedBuilding solution and will be LEED Gold Certified.

Industrial Automation

Many system protocols, both open and proprietary, have evolved for factory automation.More of these industrial protocols are becoming interoperable, between each other andwith IP-based networks. The deployment of standardized industrial networks enablesbusinesses to utilize real-time information throughout the enterprise, allowingcommunication between the manufacturing floor and other business systems.

Within manufacturing, PANDUIT solutions ease the deployment of industrial networks andautomation control systems that enable expansion of operations as well as increasedcollaboration and productivity. On the factory floor, factors such as safety, security, andcompliance also become an important part of physical infrastructure design. UPI-basedindustrial automation designs bridge communication between factory floors andcorporate offices to enable remote management and monitoring of equipment forimproved productivity tracking and more efficient business practices.

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By integrating production, data acquisition, purchasing, quality, logistics, sales, and buildingautomation systems onto a single common infrastructure, customers can improvenetwork efficiency, reduce operational costs, and increase manufacturing productivity.

Industrial Ethernet continues to move forward towards the factory floor andoccupies a solid position at the control level.

EXISTING INFRASTRUCTURE VS. UNIFIED PHYSICAL INFRASTRUCTUREVISION

The current physical infrastructure treats power systems and data systems as separateentities or proprietary systems. Power and grounding systems are at the core of theenterprise, delivering the power necessary to drive all other systems and elements of thephysical infrastructure. Data systems move data and relay information required forbusiness operations and are further divided into four sub-systems: communication,computing, security, and control.

When many systems and sub-systems operate independently, information is not effectivelyshared and visibility into the physical infrastructure is reduced. In comparison, PANDUITsolutions enable the UPI vision with passive and active products, tools, assemblies,intelligent devices, software and services that collectively address the convergence ofcommunication, computing, power, control, and security systems.

These solutions will initially focus on simple interoperability of critical systems specific toindividual enterprise areas (i.e., data centers, building systems, the factory floor). Asinteroperability becomes better established and more sophisticated over time, these

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solutions will expand to address convergence across multiple areas. Eventually, they willlead to an optimized and unified infrastructure that provides substantial benefits to theinfrastructure and critical systems across all enterprise areas. The chart below comparesfactors between existing physical infrastructure and the infrastructure that aligns with theUPI vision.

Source: Frost & Sullivan

PANDUIT’s approach aligns the physical infrastructure to the logical architecture toaddress specific challenges and optimize the overall infrastructure design. PANDUITsolutions are aimed at helping customers reduce infrastructure risks acrossmanufacturing, facilities, and IT departments by resolving issues related to security, safety,reliability, availability, and integration. In addition, PANDUIT solutions can be applied toachieve the UPI vision across multiple industries.

FROST & SULLIVAN ASSESSMENT OF PANDUIT’S UPI STRATEGY

The Unified Physical Infrastructure vision is spurring vendors to develop scalable, robustinfrastructure solutions that can be differentiated by industry and customized byapplication. PANDUIT’s approach to developing UPI-based solutions alters the manner withwhich customers migrate from silo-based or proprietary architectures to more open,converged systems. The PANDUIT vision is based on a high level of integration thatcombines almost all discrete systems within the physical infrastructure, enabling flexibilityacross different applications.

PANDUIT’s initiatives are revolutionizing the ways that enterprises approach physicalinfrastructure deployment and design. PANDUIT solutions allow customers across different

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Proprietary

Silo, Isolated Systems

Limited Safety & Security

Reactive, Error Prone, Poor Visibility & Control

Functional Data Only

Open Standards

Integrated and Interoperable Systems

Integrated Safety and Security Compliant

Proactive, Strategic, Managed and Predictive

Real-time Information, Optimized

Today’s Physical Infrastructure Unified Physical Infrastructure Vision

Proprietary

Silo, Isolated Systems

Limited Safety & Security

Reactive, Error Prone, Poor Visibility & Control

Functional Data Only

Open Standards

Integrated and Interoperable Systems

Integrated Safety and Security Compliant

Proactive, Strategic, Managed and Predictive

Real-time Information, Optimized

Today’s Physical Infrastructure Unified Physical Infrastructure Vision

“The PANDUIT solutiongives an excellent result interms of reliability andquality. The ‘open-end’design makes installationmuch easier, saving timeand ultimately costs.”

Sig. I. Spreafico, TechnicalSupervisor, Indesit

Company

industries to migrate towards the UPI vision that meets their integration and convergenceneeds. Benefits of these solutions include the following:

• Significantly reduces cost by minimizing downtime and mitigating risk

• Improves business agility and reduces life-cycle costs

• Enhances safety and security

• Brings greater visibility and control

Overall, PANDUIT solutions based on the Unified Physical Infrastructure vision helporganizations mitigate risk within the physical infrastructure by eliminating thecomplexities associated with system convergence, integration, and interdependency toachieve lowest cost of ownership.

Frost & Sullivan endorses PANDUIT's Unified Physical Infrastructure based solutions tohelp businesses reduce system complexity and manage risk associated with integrationand convergence of physical and logical system architectures. The suite of solutions builton UPI principles has the potential to capture significant market share, achieving greateradoption rate across all industries and applications while improving security, flexibility, andbusiness agility for customers.

PANDUIT UPI-based solutions help organizations mitigate risk within the physicalinfrastructure.

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"PANDUIT has providedus with a comprehensiveend-to-end cablinginfrastructure that allowedus to converge voice, data,and security and buildingcontrols into a singlenetwork. The PANDUITgrounding system andcooling management ensurethe reliability andperformance of ournetwork and Ciscoequipment. MMM Groupsees an optimized, unifiedphysical infrastructure as astrategic advantage toenable us to manage ourbusiness more effectivelyand better service ourcustomers now and intothe future."

Dan Butler, PlanningEngineer Manager, Security

& IT Systems Group,MMM GROUP Limited

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ABOUT PANDUIT

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