Transcript PPT_2_the_Extreme_way

Network solutions the Extreme way
delivering the most Cost-Effective
Applications Infrastructure
Jan Hof
EMEA Product Marketing Manager
Page: 1
Why Are We Here?
The Extreme Way: A Networking Success Story
We founded Extreme Networks in 1996
because networks were slow, expensive and complex –
and nobody was doing anything about it
We built some of the largest networks in the
world: Compaq, Microsoft and Shell
revolution by
making networks that are simpler,
faster and less expensive.
We led the silicon switching
Page: 3
An International Company From Day One
•
•
•
•
More than 50% of revenues come from outside the US
Sound balance between Enterprise and Service Provider market
Offices in over 25 countries
24/7 customer support based on three continents
Extreme Revenue Trends
500
114
450
113
400
112
350
111
300
110
250
109
200
108
150
107
100
50
106
0
105
1999
2000
2001
Q1
2002
Q3
Fiscal Quarter ‘02
Fiscal Year 99-02
In Millions
Q2
Page: 5
Q4
A Stable Financial Picture
• Solid revenue generation in a challenging business
environment:
– $113M in Q4 FY2002 (ending 6/30/02)
– Sequential revenue growth during FY’02
– Analyst expectations of continued sequential revenue growth
• Profitable and cash-flow positive
• Solid balance sheet
– $400M of cash & investments
– World-class DSO: range of 40 to 45 days during FY’02
– Doubled inventory turns to over 8x during FY’02
Bottom Line: Extreme is well financed
now and for the future
Page: 6
Analyst’s Comments On Q4-FY02 Results
“We continue to believe Extreme is doing a solid job in a tough
environment.”
Alex Henderson, SSB
“Extreme Networks delivered - for the third quarter in a row another quarter of modest sales growth, a commendable
achievement in today’s environment.”
Inder Singh, Prudential Securities
“The company achieved its quarterly goals of sequential
revenue growth, improved gross margins, improved operating
profit, and positive cash flow from operations.”
Bill Becklean, Commerce Capital Markets
Page: 7
Extreme’s vision for the future years
Vision:
All electronic communications will be conducted
over Ethernet and IP;
To deliver the world’s
infrastructure solutions;
Mission:
best Ethernet and IP
Objectives:
• Be recognized as the clear
enterprise market
alternative in the large
• Be the leader in the emerging Metro Ethernet Service
Provider market
Page: 8
The Extreme Strategy …..
IP- Ubiquity
Multi-service
File/Print
Mail
ERP/CRM
FIN
HR
E-Bus
APPs
Storage
Voice
over
IP
Video
Wireless
Universal
Mobility
(Bluetooth)
Personalization
To the
end-user
(powered
line)
Other
Business
APPs
Extreme Networks
most effective applications and services infrastructure
Page: 9
Construction
Healthcare
Education
Services
Utilities
Distribution
Government
Manufacturing
Finance
Metro
Simpler, Faster and Less Expensive
….. to fulfill your Objectives
• Best possible End-to-End Ethernet solution:
– 7*24 hours operational;
– redundant;
– proven and stable;
to support
Mission Critical
applications
• Reduction of Cost:
– Lower investments;
– Lower operational expenses (manpower);
to fit the
Budget
• Future Proof:
– scalable to higher capacity;
– future support of alternative services;
– viability of technology ensured;
to secure
Investments
Page: 10
Extreme Corporate Values,
most effective
• Most effective ….
–
Corporate networks: Proven 25-30% lower Total Cost of Ownership:
• Replacement by Extreme Equipment will save you money!
• … and confident to remain:
– Excellent Financial Performance:
• In spite of economic slow-down maintain revenue at current level and maintain positive net
income for FY-03;
• Quote Chet White (Wells Fargo): "We believe that Extreme Networks has established itself as the
leading NextGen second-source supplier and is among the leading vendors in the
emerging Ethernet MAN”
• Sound market mix and geographical mix;
Extreme Ethernet the most cost effective network:
-> to improve productivity
-> to allow reduction of Labour, the NR-1 variable cost
Page: 11
Extreme Corporate Values
multi-service
• Multi-service:
–
Recognized as the visionary in the emerging advanced ethernet switching arena (Gartner – Magic
Quadrant):
• Deliver technology fit to your needs:
– Mission critical applications requiring high
available solutions;
– Real time services in need of QoS policies;
– Security to ensure the confidentiality of your data;
To fulfill our promise Ethernet and IP everywhere!
–
Enhancement of our technical solutions with:
• Global support and services;
• Dedicated channel partners;
• Qualified Go-Purple partners to extend the Extreme
to a pre-integrated whole business proposition
Page: 12
Extreme Corporate Values
IP Ubiquity
• IP Ubiquity:
–
Irreversible market trends are:
• Ethernet/IP penetration will continue to grow and become integral part of our daily life;
• Technology will continue to evolve;
• Continuous price-reduction as function of the capacity;
–
Extreme has Best of class technology today and in the future:
• Numerous award-winning products available today;
• Increase R&D budget to 15% to ensure technology leadership in the future;
–
Extreme will continue to initiate and steer the relevant standards,
e.g. ethernet protection switching, powered line, etc.
Page: 13
Your primary requirements
high availability
Reliable and proven stable products, for example ExtremeWare:
–
–
–
ExtremeWare a Field-Proven Operating System: operational from 1996 onwards;
Predictable rollout: 2 release-trees per year with consecutive maintenance releases;
• Eases maintenance window planning;
• Proves ability to execute;
ExtremeWare runs across the platforms
• Quality
• Consistency: in usage and new feature introduction
•
Support of network redundancy to eliminate
–
–
Layer-1:
Layer-2:
single point of failure:
Port redundancy
EAPS:
switch over within 100 msec today;
switch over within 50 msec, planned for Q1-CY03;
–
Layer-3:
to comply with well-known SDH services -> no loss of voice calls in
case of switch-over;
Spanning Tree (today) and rapid spanning tree (1Q-CY03)
VRRP, ESPR;
Page: 14
Your primary requirements
reduction of cost
5 Year % TCO by Network Size
Upto 40K ports - 1000 Scenarios
70%
60%
50%
25% -30%
Cost-reduction
40%
30%
20%
10%
0%
0
5000
10000
15000
20000
25000
30000
35000
Total # of Access Ports
Source: Co-developed TCO/ROI tool – Extreme Networks/Independent Consultant
Measured against equivalent Catalyst products – July 2002
Page: 15
40000
Your primary requirements
And What Do Customers Say?
• “When we looked at the total cost of ownership between
Cisco and Extreme, we couldn’t afford to NOT have
Extreme as a significant supplier.”
– Senior VP, Major Bay Area Financial Institution March 2002
• “Of course it’s lower cost – with Cisco I have to manage
14 software images, with Extreme just 2!”
– CIO Coca Cola Enterprises June 2002
Page: 16
Your future requirements,
Infrastructure
Network
Business
Applications Applications
Services
A future-proof Multi-service Infrastructure
Strategy
Call
Center
Voice
CRM
Video
Wireless
Business Process
ERP
NAS
Financial
Applications
Security
Ethernet
Switching
Page: 17
Tech Integration
HR
Operation
Centre
Application
Development
Other
OSS/
NMS
Backup/
Storage
Mgmt
WAN
SAN
The Extreme Product Family
Summit
Page: 18
The Campus of the Future
The Network Infrastructure for the Virtual Corporation
ISP POP
Business
Park
LAN
Phone
wire
MTU / MDU
LAN
CPE
Fiber
LAN
Phone
wire
LAN
LAN
SONET/SDH Ring
Metro
POP
10GE Ring
GbE or
POS
POS
STM-1
STM-4
Nx
T1/E1
Gigabit Ethernet
Metro Ring
POS
STM-1
STM-4
CLEC
POP
T3
Internet
Exchange
GbE
Enterprise
10
GbE
Enterprise
Cat 5
(WDMi - 4/8 chnnl cWDM)
Gigabit Ethernet
Metro Ring
(EAPS - Ring Protection)
Bldg
POP
Internet
Data Center
Extending the Ethernet / IP Experience To The Global Business Network
Page: 19
Extreme’s Vision in Practice
We believe Extreme’s Ethernet Everywhere vision
is the future of global networking
Our ultimate goal is to be an integral part of the
world’s communications system
Page: 20
Extreme Networks
your partner to be
• We understand your business, drivers and concerns:
– We have the most
(cost) effective solution,
– available today,
– to fulfill your expectation,
– provide the required global support;
– to be your
trusted partner;
• We have the most-effective, multi-service solution to deliver the
promise IP everywhere;
Extreme Networks,
the only credible alternative
Page: 21
Thank You
Page: 22