Transcript Investor Presentation

Axerra Networks Solutions for
Business Services Delivery
About Axerra Networks

Founded in 1999

Global provider of SERVICE CONVERGENCE solutions over packet
transport
–
A leading vendor of multiservice pseudowire solutions
–
Active standard bodies participants and influencer
–
Field proven with live deployments

Award winning products

Offices around the world
–

Israel (HQ), EMEA, Russia (incl. CIS), USA,
APAC (Hong Kong, Singapore)
Financed by strong investors
–
Carmel Ventures
–
TLcom
–
HarbourVest
2 - © 2009 Axerra Networks®. All rights reserved.
Business Services Delivery over Packet Access (1)

The Problem
– Today Carrier Ethernet provider can sell only IP and Ethernet services for
Business customers
– For TDM or legacy services they need additional overlay networks for
each service type
– Current profits are based on wealth of existing legacy services
(Leased Line, FR, ATM...) for business customers and Mobile Backhaul
for Mobile Operators
• Traditional services are still the dominant element in the revenue stream
– IP and Ethernet services are not enough to grow revenue and maintain
good margins
 Full portfolio of services is required in order to compete and be profitable
– Lower-cost packet-based networks (Ethernet) needed for legacy services
with TDM, FR, and ATM protocols over T1/E1
3 - © 2009 Axerra Networks®. All rights reserved.
Business Services Delivery over Packet Access (2)

The Solution
– Use Pseudo-Wire to provide any legacy service over any type of Packet
Access network as cost-effective alternative with full service
to TDM access
 Ethernet services with PWE3 capabilities enable service providers
to migrate from TDM networks to a new and richer service portfolio using
converged network technology
– Proven compatibility with TDM, FR, ATM, and IP protocols for support of any
type of Business Services or Mobile Backhaul Services
– Use Carrier Ethernet, xDSL, WiMax, xPON, and HFC in the access network

Value Proposition
– Big improvement in revenue stream and profitability
– Dramatic reduction in OpEx as a result of using a single Access Network with
short ROI on equipment
– The same infrastructure can be used to deliver Mobile Backhaul Services to
mobile operators with strong synergy
4 - © 2009 Axerra Networks®. All rights reserved.
Introduction to Pseudo-Wires

Pseudo-wire (PW/PWE3) is a standardized mechanism that emulates
the essential attributes of a native service while transporting over a
Packet Switched Network (IP, Ethernet, and MPLS)
– PWs are virtual circuits that use MPLS/IP tunnels & control plane to emulate
all Layer 2 transport services across an MPLS/IP network
 PWs are bidirectional (unlike MPLS LSPs)
– PW architecture is an extension of VPN architecture
Packet Network Tunnel
CES Pseudo-Wire
ATM Pseudo-Wire
Frame Relay Pseudo-Wire
Data
Carrier
ETH
ETH
Voice
PBX
PW
Access Device
Ethernet
PW
Gateway
5 - © 2009 Axerra Networks®. All rights reserved.
Mobile
2G, 3G, 3G+
Pseudo-Wire Benefits
POP / CO
DSL
POP / CO
PSTN
GigE
FE
DSLAM
Router
FRAD
Telco
Access
GigE
FE
IAD
E3/T3/STM1
PBX
FR/ATM
Metro
Ethernet
PWE3
CPE
PWE3
Gateway
POP / CO
E1/T1-based
services

Provide traditional T1/E1 and legacy services + emerging services over
single, converged, packet access network instead of multiple overlay
networks

Leverage current investments in new packet infrastructure, furnishing
dramatically lower costs
IP/MPLS
– Reduce operating expenses dramatically

Are compatible with TDM, FR, ATM & IP protocols for support of any type of
business service
– Maintain current profits based on revenues from traditional services
6 - © 2009 Axerra Networks®. All rights reserved.
Service Delivery over Carrier Ethernet
Using Pseudo-Wire Access Devices

Small, low-cost PW access device provides any traditional T1/E1 service
–
Use of PW Emulation for TDM and Layer-2 services across Carrier Ethernet access network

Compatible with TDM, FR, ATM & IP protocols for support of all types of mobile
backhaul & business services

Transforms packet access network into a full-service alternative to TDM access

Preserves revenue from high-margin TDM and Layer-2 services while leveraging
strategic growth in Ethernet infrastructure
PSTN
T1/E1
V.35
AXN PWE3
Gateway
AXN
CPE
Ethernet
Access Network
ETH
ETH
TDM
FR
ETH
Legacy
FR/X.25
Network
ATM
Emulated Services (PWs)
7 - © 2009 Axerra Networks®. All rights reserved.
ATM
Network
PBX Backhaul Over Carrier Ethernet
Branch Office 1
PBX
1-2 T1/E1
AXN1
CE
802.1Q
PoP/CO
Branch Office 2
ETH
AXN
PW Gateway
PBX
4xT1/E1
AXN10-4
CE
Data
IP/MPLS
Ethernet
Access
Network
ETH
802.1Q
PSTN
Branch Office 3
Groomed
Voice
ETH
PBX
1xT1/E1
AXN1
SNMP
CE
802.1Q
AXNVision NMS

Backhaul of PBX and LAN/Internet traffic

Point-to-point or Point-to-Multipoint topology
8 - © 2009 Axerra Networks®. All rights reserved.
CESoPSN
IP Edge Aggregation
IP-VPN Customers
IP-VPN (2547)
Aggregation PoP
IP
FR
IP
HDLC
TDM
Access
Network
IP/MPLS
Backbone
IP
ATM
CE Router
AXN
Gateway
PE
802.1Q Gigabit Ethernet
VR VPN 1
VR VPN 2
VR VPN 3

Low-cost replacement for expensive channelized line cards on PE routers
9 - © 2009 Axerra Networks®. All rights reserved.
Multiservice Edge Aggregation
Core/Access PoP
Core/Access PoP
TDM /V.35
Network
TDM
AXN PWE3
Gateway
AXN PWE3
Gateway
PE
X.25/ FR
Network
TDM /V.35
Network
FR
ETH
TDM
PE
IP/MPLS
Backbone
ETH
X.25/ FR
Network
FR
ATM
ATM
ATM
Network

Emulated Services
ATM
Network
Enables Complete Edge Aggregation Solution for:
–
FR and ATM customers
–
Leased Line customers
–
IP customers

Eliminates the need to install FR and/or ATM switches as well as DACS for
greenfield installations

Ideal for FR & ATM “port exhaust” and “end of life” platforms
10 - © 2009 Axerra Networks®. All rights reserved.
Axerra’s Complete Product Family
AXN Product Portfolio of Access Devices and Gateways
Capacity

Scalable family of platforms
– 1 to 1000 E1/T1 capacity
– Carrier Class Reliability

AXN1600
N
1000
E1/T1
AXN800
Multiservice Pseudo-Wire
– CES + Layer 2 Pseudo-Wire

AXN10
Pseudo-Wire flexibility
– Axerra-owned code
– Software-based architecture
– 5 patents + 1 pending
AXN1
1 E1/T1
CPE/Cell Site
AXNVision

Point-and-Click provisioning

Performance Monitoring
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Comprehensive Fault Management

Standards-based
11 - © 2009 Axerra Networks®. All rights reserved.
MTU
PoP/CO
Location
Axerra’s Unique Value Proposition

Single and robust platform supporting both Mobile Backhaul
and Business Service Delivery
– Best-of-Breed Pseudo-Wire industry leader and solution provider
– Enable leased line replacement such as PBX backhaul and converging
legacy services over PSN covering private line, FR, ATM, and HDLC
services
– Multiple Services – One Solution

Beyond Circuit Emulation – variety of Layer-2 Pseudo-Wire services
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Scalable solution with modular and flexible platform
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Supports all generations of mobile & business services
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Robust and accurate adaptive clock recovery mechanism
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Strong momentum with world class OEM and SI partners

Field proven
12 - © 2009 Axerra Networks®. All rights reserved.
Thank you for your attention
Visit our website at www.axerra.com