Brocade. The New IP. Riccardo Bernasconi Territory account manager 2015 BROCADE COMMUNICATIONS SYSTEMS, INC. INTERNAL USE ONLY
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1 The New IP Riccardo Bernasconi Territory account manager 2015 BROCADE COMMUNICATIONS SYSTEMS, INC. INTERNAL USE ONLY
2 Legal Disclosure PLEASE SEE RISK FACTORS ON FORM 10-Q AND FORM 10-K FILED WITH THE SEC This presentation, with prepared remarks, includes forward-looking statements regarding s financial results, goals, plans, assumptions, strategy and business outlook, revenue, tax rate, cash, stock buybacks, OEM inventory, prospects, as well as U.S. Federal spending and order flow, and IT spending, which are only predictions and involve risks and uncertainties such that actual results may vary significantly. These and other risks are set forth in more detail in our Form 10-K for the fiscal year ended October 26, 2013 and our Form 10-Q for the fiscal quarter ended August 2, These forward-looking statements reflect beliefs, assumptions, outlook, estimates, and predictions as of today, and expressly assumes no obligation to update any such forward-looking statements whether as the result of new developments or otherwise. In addition, this presentation includes various third-party estimates regarding market share and other measures, which do not necessarily reflect the views of. Further, does not guarantee the accuracy or reliability of any such information or forecast. Certain financial information is presented on a non-gaap basis. Management believes that non-gaap financial measures used in this presentation allow stakeholders to gain a better understanding of s comparative operating performance both from period to period, and to its competitors operating results. Management also believes these non-gaap financial measures help indicate s baseline performance before gains, losses or charges that are considered by management to be outside of ongoing operating results. Accordingly, management uses these non-gaap financial measures for planning and forecasting of future periods and in making decisions regarding operations performance and the allocation of resources. The most directly comparable GAAP information and a reconciliation between the non-gaap and GAAP figures are provided in the accompanying press release, which has been furnished to the SEC on Form 8-K and posted on s website, and is included in the appendix in this presentation Communications Systems, Inc. Company Proprietary Information 2
3 & The New IP 2015 BROCADE COMMUNICATIONS SYSTEMS, INC. COMPANY PROPRIETARY INFORMATION 3
4 Key Facts Company Overview Founded in 1995 Headquarters in San Jose, California 4,550 employees in 36 countries Customers in over 160 countries $2+ billion in annual revenue NASDAQ: BRCD 2015 BROCADE COMMUNICATIONS SYSTEMS, INC. COMPANY PROPRIETARY INFORMATION 4
5 The New IP The Foundation for the Digital Business Efficiency 1994 Private Networks IP Networks The New IP B Internet Users 1B Websites 7B Mobile Devices 1/3 rd of the world s population is connected to the internet Can your Old IP handle a New IP world? 16M Internet Users 2700 Websites <100M Mobile Devices Automation Our industry runs on 20 year innovation cycles, and we are on the forefront of the next wave, now is the time to embrace the new IP in order to improve business agility 2015 BROCADE COMMUNICATIONS SYSTEMS, INC. COMPANY PROPRIETARY INFORMATION 5
6 The New IP Accelerates Service Delivery, Data Access, and Innovation Cloud Personalization From IoT Digital Business To Proprietary Hardware Devices Manual Silo d Ops High Cost Slow Innovation Content and Data New IP Agile Infrastructure Open Software-enabled Automated True Democracy Optimized Costs Fast Innovation On your terms Ecosystem Driven Open with a purpose Innovation-Centric, Software Enabled 2015 BROCADE COMMUNICATIONS SYSTEMS, INC. COMPANY PROPRIETARY INFORMATION 6
7 Campus Approach 2015 Communications 2015 BROCADE Systems, COMMUNICATIONS Inc. Company SYSTEMS, Proprietary INC. Information INTERNAL USE 7 ONLY
8 Campus Networking Strategic Focus Areas HyperEdge Architecture evolution Problem: Demand for more wireless, video, VoIP, and other services Problem: Future-proof network. It needs to last. Problem: Complex management SCALABLE OPEN AUTOMATED Solution: SCALE-OUT NETWORKING AS THE NETWORK GROWS ICX 7250 Expands ICX 7xxx family Switch Port Extender Solution: OPEN MULTIVENDOR SOFTWARE NETWORKING OpenFlow 1.3 on ICX 7750/7450 Solution: COLLAPSED NETWORK LAYER DEPLOYMENT OPTIONS Distributed Chassis with Switch Port Extender 2015 Communications Systems, Inc. Company Proprietary Information 8
9 Campus Fabric Moving away from monolithic chassis to distributed chassis Core Aggregation/core ICX 7750 ICX 7750 Aggregation Access ICX 7xxx ICX 7xxx ICX 7xxx ICX 7xxx Solution Problems: Scale-out, Complex network pay as architecture, you grow networking with too many layers and Flexible inactive network links topology 75% Many lower points network of management operation High upfront cost and maintenance Fewer costs management touch-points Underutilized, chassis with a Multivendor few line cards and SDN interoperability Forklift upgrade to move to the next level 2015 Communications Systems, Inc. Company Proprietary Information 9
10 Campus Fabric Solution Distributed Chassis with Switch Port Extender ICX 7450 NEW ICX Gbps Backplane High-Speed Campus Ring ICX 7750 ICX 7450 ICX 7750 Aggregation/Core ICX 7450 ICX 7750 NEW ICX 7250 Access ICX 7750 Aggregation/Core Benefits Simpler: Collapsed access/agg/core layer Automated: Single point of management across network layers Lower cost: A fraction of the cost of traditional chassis deployments Access ICX 7750 ICX 7750 Aggregation/ Core Highly scalable: Add switches where and when capacity is needed ICX 7250 NEW MACSec enabled Access EEE enabled 2015 Communications Systems, Inc. Company Proprietary Information 10
11 ICX Switch Advantages For Wireless Flexibility & Scalability Stacking to 12 switches Switch upgradability Ports-On-Demand: 1G to 10G 1G/10G/40G modules for ICX 7450 Power-over-Ethernet Full PoE with one power supply PoE+ on all ports Line-rate performance no over-subscription from too many AP s Simplified management with Campus Fabric (Switch Port Extender) SDN/OpenFlow 2015 BROCADE COMMUNICATIONS SYSTEMS, INC. COMPANY PROPRIETARY INFORMATION 11
12 Data Center Approach 2015 Communications 2015 BROCADE Systems, COMMUNICATIONS Inc. Company SYSTEMS, Proprietary INC. Information INTERNAL USE 12 ONLY
13 Data Center of the Future Strategy: Optimized to Lead the Transformation Management and Orchestration OpenStack Management and Orchestration Platform Applications Application Service Chaining, Network Analytics, Traffic Engineering, etc. Control OpenDaylight Network Controller Server Controller Storage Controller Virtualization Network Function Virtualization NFV: vrouting, vadc Network Function Virtualization VxLAN/NVGRE/STT NV: OpenFlow, Server Virtualization Storage Virtualization Vyatta vadx Physical Infrastructure Network Compute Storage Ethernet Fabric, L3 Router, Fibre Channel SAN MLXe 2015 BROCADE COMMUNICATIONS SYSTEMS, INC. COMPANY PROPRIETARY INFORMATION 13
14 Open Is the New Vendor Lock-In.. is Open with a Purpose Proprietary Tech Every vendor is claiming to be open, but buyer beware: Our competitors are open as long as you use their hardware or software We are re-defining open to mean that all layers of networking services from hardware, to control, to orchestration are interoperable and interchangeable and can be influenced through a standard interface We are Open with a purpose Our vrouter can run on raw intel-based hardware or in any vendors hypervisor or both even on the same box Our ODL controller will even control our competitor s hardware 2015 BROCADE COMMUNICATIONS SYSTEMS, INC. COMPANY PROPRIETARY INFORMATION 14
15 Metro Approach 2015 Communications 2015 BROCADE Systems, COMMUNICATIONS Inc. Company SYSTEMS, Proprietary INC. Information INTERNAL USE 15 ONLY
16 Routing Focus Core Routing Core, Border DC Interconnect Metro Software-Defined OpenFlow 1.3 SDN Apps OpenStack Data Privacy Embedded Wire-speed Encryption (L2 & L3) Network Visibility Embedded monitoring Filter, replicate Statistical, real-time Extensible SCALABLE: 10G/40G/100G; v4/v6/mpls/sdn Platform PROGRAMMABLE: VersaScale Processor 2015 BROCADE COMMUNICATIONS SYSTEMS, INC. COMPANY PROPRIETARY INFORMATION 16
17 Routing Portfolio NetIron Portfolio for SP, Data Center, and Enterprise applications MLX Series Cloud-Scale Router CER/CES Compact Aggregation Router Multi-purpose core router for SP, DC, enterprise backbone Tbps scale Upto GbE, GbE, GbE and G ports Full IPv4/IPv6, MPLS Highly programmable engine Advanced, scalable OpenFlow Wire-rate data encryption Aggregation router/switch Metro/enterprise WAN edge Same software as MLX 24 1GbE ports with 4 10GbE uplinks Full IPv4/v6, MPLS OpenFlow 2015 BROCADE COMMUNICATIONS SYSTEMS, INC. COMPANY PROPRIETARY INFORMATION 17
18 Multiservice Metro Ethernet IP/MPLS Network Leverage NetIron Family to deliver WAN services to end-users Service Provider MLX CER Metro Ethernet Ring MLX MLX MLX IP Edge Router MPLS Edge Router Compact Internet Peering Router MLX IP/MPLS Core MLX Data Center MLX Compact Border Router CER Metro Ethernet Ring CER MLX CER ISP 1 ISP 2 ISP 3 1 GbE Enterprise Multi-zone Enterprise Router Compact Enterprise Border Router 10 GbE 100 GbE 2015 BROCADE COMMUNICATIONS SYSTEMS, INC. COMPANY PROPRIETARY INFORMATION 18 18
19 Network Subscription 2015 Communications 2015 BROCADE Systems, COMMUNICATIONS Inc. Company SYSTEMS, Proprietary INC. Information INTERNAL USE 19 ONLY
20 Never Buy Another New Network Again Ever Pay as you go and as you grow De-risk this transition by paying as you go, without any capital expenditures Agility Lease Network Subscription network subscription (BNS) is an acquisition model offering cloud-like agility Purchase Enables organizations to expand or contract their IT resources on-demand Capital Flexibility Provides complete flexibility for upgrades to protect against technology obsolescence 2015 BROCADE COMMUNICATIONS SYSTEMS, INC. COMPANY PROPRIETARY INFORMATION 20
21 Optimal Order and Solution: Pay For What Adjust You Need, Bandwidth When You Need to It! Usage Network Subscription Work Flow 2013 Communications Systems, Inc. Time
22 Thank you 2015 Communications Systems, Inc. Company Proprietary Information 22
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