IBM Software Group IBM Middleware Solutions for Telecommunications

IBM Software Group Discussion Topics § IBM & SWG in Telecom § Telecom Industry Solutions o Partner Content Enabler o Mobile Services Delivery o Next Generation Network Services § Key work in progress o NGN Security Solution Architecture © 2004 IBM Corporation

IBM Software Group IBM: Helping Customers Succeed A History of Accomplishments in Telecommunications 14 of the world’s 15 largest Telecommunications Service Providers leverage IBM middleware to run their applications Within the last 12 months, 16 of the world’s largest Service Providers leveraged IBM middleware to more effectively integrate their Operational and Business Support Systems (OSS/BSS) IBM led the formation and initiatives of: IBMer Zygmunt Lozinski serves as president of the Parlay Group © 2004 IBM Corporation

IBM Software Group Market Leadership Leading industry analysts recognize IBM’s market share leadership across the core integration infrastructure components Source: Wintergreen Research Application Integration License Revenue 300 200 IBM The Gap Widens IBM “continued its long time lead of this market, ” IDC says (June 2003) Application Deployment Platform Software Market 2002 Share* 2001 -02 Growth % IBM 23. 3% 17. 5% BEA Systems 17. 3% 9. 6% Oracle Corp. 9. 5% 8. 0% Tibco Inc. 4. 9% -19. 4% web. Methods 4. 3% 6. 3% * Based on license revenue and license-related service fees “IBM Has Top Share in All Application Integration Middleware Markets” Gartner Dataquest, May 2003 Worldwide IBM Market Share Position Based on New 2000 License 2001 Revenue 2002 100 Web. Methods Tibco See. Beyond Mercatur Vitria 0 1999 2000 2001 2002 2003* Application Servers Integration Broker Suites Portals Message-Oriented Middleware Application Platform Suites Composite Market Transaction Processing Monitors Total Market 2 1 N/A 1 2 1 3 1 2 1 1 1 1 1 * Estimate based on 1 H 03 actual growth rates Sources: • IDC, “Application Deployment Platform Software Market, 2000 -2002, with Leading Suppliers” June 2003, Dennis Byron, Vice President, Business Process and Deployment Software Research • Gartner First Take "IBM Has Top Share in All Application Integration, Middleware Markets", J. Correia, Y. Natis, M. Pezzini, R. Schulte, 7 May 2003. © 2004 IBM Corporation

IBM Software Group IBM Service Provider Delivery Environment (SPDE) Reference Architecture Application Delivery Environment Users Devices Network Delivery Services Brokerage Connected (external) Content and Applications Mobile Broad. Band Network Services Presentation Services Location Services B 2 B Gateway PSTN Integration Hub Operations Support & Readiness (CRM) Fulfillment Services Assurance Services Commerce Messaging Subscription Services Provisioned Assets (internal) Services Management Business Processes and Workflow other Business Applications other Core IP other User Services Financial Services External Billing Services © 2004 IBM Corporation

IBM Software Group IBM Middleware Solutions for Telecommunications Telecom Industry Processes IBM Middleware Solutions Developing New Products and Markets Partner Content Enabler Acquiring and Managing Customers Contact Center Optimizer Mobile Services Delivery Developing and Providing Network Services Managing the Supporting Enterprise Processes Next Generation Network Services OSS/BSS Optimization Industry Know-How Consulting and Implementation Services ISV Applications Industry-Specific Middleware Core Products deliver the On Demand Operating Environment © 2004 IBM Corporation

IBM Software Group IBM Middleware Solutions for Telecommunications Partner Content Enabler Contact Center Optimizer Mobile Services Delivery Next Generation Network Services OSS/BSS Optimization § Provides new revenue creating opportunities for Service Providers § Solution provides the ability to manage and automate the introduction of products to consumer and enterprise customers for digital content such as business applications (CRM, SFA) and consumer content - ring tones, games, multimedia content and business applications § Resulting in increased revenue and more value add to customer © 2004 IBM Corporation

IBM Software Group Partner Content Enabler Complexity in bringing to market 3 rd party content Challenges § Long and costly new product introduction cycles § Declining revenue and margins § High customer churn § Abundance of data capacity with limited applications to drive consumption Traditional Process Content Provider 3 days Product Mgmt 2 days Legal 2 weeks Test 2 days Operations 3 days Web Publishing Accounting © 2004 IBM Corporation

IBM Software Group Partner Content Enabler Our Solution reduces partner content introduction cycle by 50% Improves time to business value by: § Integrating internal and external processes Reduces Risk by: § Creating centralized repository § Guaranteeing approval steps prior to release Commerce, Portal, Subscriber Mgmt 3 rd Party Content Provider Content Management / Publishing Content Delivery Digital Rights Management Network Infrastructure § Optimizing new product introduction/ modification Transformed Process Billing, Operations, CRM Increase market responsiveness through a centralized process © 2004 IBM Corporation

IBM Software Group Partner Content Enabler Content Provisioning U. S. Service Provider Business Challenge § Expediting new content introduction cycle § Ensuring complete product introduction process is followed § Extending product introduction process to business partners Solution § Manages third party content (ring tones and games) through unique role-based interfaces from content ingestion through automatic publishing, download management and e-commerce Business Benefits § Reduces time to market by 50% § Creates formalized new product introduction work flow § Common portal framework for development efficiency § Minimal end-to-end integration § Web. Sphere Commerce, Web. Sphere Digital Media Enabler, Web. Sphere Portal, DB 2 Content Manager © 2004 IBM Corporation

IBM Software Group IBM Software Solutions for Telecommunications Mobile Services Delivery Partner Content Enabler Contact Center Optimizer Mobile Services Delivery Next Generation Network Services OSS/BSS Optimization § Meets the challenge of creating new value added service § Solution provides seamless service and unified support to the enterprise, enabling their mobile workforce regardless of geography, access point or device type, while also enabling the enterprise to include customized value added services § Resulting in a more productive and empowered workforce © 2004 IBM Corporation

IBM Software Group Mobile Services Delivery Our solution empowers employees with instant access to information and increases employee productivity Improves time to business value by: § Giving employees access to information when they need it and want it Transformed Process User and Device Access Network GPRS Network § Enabling employees to become more productive Applications WECM 1 Connection Mgmt DSL/ Cable ‘ Reduces Risk by: § Leveraging existing infrastructure and alliances § Creating “sticky” source of revenue from enterprise clients Enterprise and Internet Service Provider Portal Connection Mgmt ( (( ( Hot Spot Hot ( Spot Point of Presence Corporate Intranet VPN Server & Firewall Strong encryption New enterprise focused “sticky” revenue source © 2004 IBM Corporation

IBM Software Group Mobile Services Delivery Multi-Channel Customer Portal Business Challenge § Improve profitability and customer service § Increase ARPU to cover costs of 3 G licenses by providing more data services § Increase presence in the corporate marketplace Solution § Flexible and robust platform with multichannel access § Personalized content § Web. Sphere Portal, Web. Sphere Everyplace, Web. Sphere Studio, Web. Sphere Application Server, Tivoli Management Business Benefits § A flexible and robust platform with multi -channel access § Consistent infrastructure across all geographies § Common interface for customer regardless of access method § Provide personalized content and information management § Deliver ease of use and a platform for growth © 2004 IBM Corporation

IBM Software Group IBM Software Solutions for Telecommunications Next Generation Network Services Partner Content Enabler Contact Center Optimizer Mobile Services Delivery Next Generation Network Services OSS/BSS Optimization § Meets the challenge of creating new value added services § Solution delivers a secure, open, resilient, and autonomic service platform enabling service providers to deliver enhanced voice, messaging, multi-media conferencing and other personalized services faster, and with less ongoing operational expense. § Resulting in a lower cost, higher value network © 2004 IBM Corporation

IBM Software Group Next Generation Network Services Our solution increases flexibility to offer new services and lowers the cost of network maintenance Improves time to business value by: § Leveraging existing data network Transformed Process customer premise access network 3 rd party ISP § Creating new enterprise services § Componentized modules Reduces Risk by: § Easily trialing in target markets § Scaling hardware with demand § Cannibalizing own sales before competitors do metro aggregation network enterprise intranet PSTN Internet ATM residential DSLAM subscriber portal, Qo. S provisioning, & device management business mux edge router hotspot Frame relay Web services invocation framework voice integration & unified messaging service platform integration bus service creation tools instant messaging & presence content management services availability & security services New enterprise focused “sticky” revenue source © 2004 IBM Corporation

IBM Software Group Next Generation Network Services NGN Subscription Mgmt and Provisioning Latin American Service Provider Business Challenge § Decreasing wireline revenues § Cover costs of transitioning to Next Generation Network Services § Control costs Solution § Provides subscriber management and provisioning of Next Generation Network services, such as video-on-demand, for Brazil’s largest telecom provider with over 18 million wireline subscribers Business Benefits § Increases ADSL demand revenue through personalized services § Increases customer satisfaction through value added services § Reduces administration costs through centralized management of subscriptions and accessibility § Web. Sphere Everyplace Subscription Manager, Web. Sphere Portal © 2004 IBM Corporation

IBM Software Group Next Generation Network Services – SPDE and SW BOM Device Domain Network Delivery Domain Service Brokerage Domain WAST Parlay Server Web. Sphere Portal Server Leapstone CCE SIP Broker SS 7 WDME Content Manager WECM Client Digital Rights Manager (EMMS) 2 G/3 G PLWN GMSC HLR WES Intelligent Notification GGSN S/MMSC WES Data Sync Engine NGN GMLC WEDM Device Manager Carrier Grade Open Framework WECM Client DSLAM Wi. Fi W-AP WECM Client AC Softswitch Complex Media Server Parlay Gateway TDM->RTP Firewall WECM Client Media Gateway NAT Traversal Qo. S Security Enterprise LAN/WAN Lotus IM Broker (Service Provider/3 rd Party/Enterprise) Lotus Presence Server Sip Proxy SGW MGC Announcements Conferencing Voice. XML AIN (RM) Session Controller Openwave Download Manager Applications Web Services Gateway ISCP Web. Sphere Application Server PSTN SSP (Ae. PONA) Remote Access (WECM Gateway) Web. Sphere Business Integration Hub • Service Level Management • Trouble Ticket Management • Order Entry/Management • Billing Hosted Mobile Office • Lotus Workplace e. Meetings • Web. Sphere Everyplace Access • Lotus Workplace Team Collaboration Instant Messaging Subscriber & Service Management WESM Subscription Manager Web. Sphere Application Server Tivoli Identity Manager OAM&P Portal (Retail/CRM/…) • Digital Media Delivery • Commerce • Gaming • e. Learning • Self-Service Portal Hosted IP Communications • IP Unity Unified Messaging • Ubiquity Conferencing • Sylantro IP PBX/Centrex DB 2 Tivoli Privacy Manager Tivoli Access Manager Services Management • Telcordia Number Management • Leapstone Service Management • Configuration Management • Usage Management User Services Domain External Systems (Email/PIM/…) Service Creation Service Quality & Performance Management Tivoli Orchestrator Tivoli Monitoring Tivoli Event Console Zvolve Traffic Engineer Syndesis Ubiquity SIP Application Server Micromuse Netcool Web. Sphere Studio Eclipse Rational Suite Ubiquity SDK §Java §Parlay §SIP §Voice. XML §Portlets §BPM §… © 2004 IBM Corporation

IBM Software Group Next Generation Network Services – Key Work in Progress: Security NGN

IBM Software Group Next Generation Network Services – Key Work in Progress: Security Risks § Distributed Denial of Service Attacks - Render a server or site useless by sending large amount of data from various sites § Virus - When executed, capable of causing damage to computer system § Worms - Uses security loopholes in OS to spread from systems via network § Trojan horse - Masks as useful utility. When executed, causes damage to system § Port Scanning - Scan for open ports to hack into computer system § Back doors - Remote admin program to access and control your computer § Sniffers - Packet capturing programs to steal passwords, logon IDs or confidential info § Spoofing - Masquerade as another user in using and sending IP and e-mail § Intrusion - Unauthorized access to a computer, web server, private network or DB © 2004 IBM Corporation

IBM Software Group Next Generation Network Services – Key Work in Progress: Security - Towards Autonomic Operations: Security Integrity Intrusion Detection Authorization omic n o t Au Authentication Anomaly Detection and Mitigation Reactive Monitoring And policy © 2004 IBM Corporation

IBM Software Group Next Generation Network Services – Key Work in Progress: Security Management Solution Architecture: Tivoli Enterprise Console Converged Portal Tivoli Service Level Advisor Console Tivoli Net. View Tivoli Risk Mgr Network Management Events, incidence Summary, correlation Reporting Archive Tivoli Data Warehouse Events Archival SNMP / Syslog Events Scanners … IDS Firewall Configure Examples: IBM Scanner IIS Scanner Examples: Tivoli IDS Cisco IDS Network Integrity System AD, Mitigation Relational Anomaly Detection Correlate Examples: Checkpoint Netscreen Arbor Networks Peakflow|SP (Service Provider, Managed Services) Arbor Networks Peakflow|X (Enterprise) © 2004 IBM Corporation

IBM Software Group Next Generation Network Services – Key Work in Progress: Security Solution Bill of Material: IBM Components: o Web. Sphere and Information Management: • • • Web. Sphere Portal Server (WP) Web. Sphere Application Server (WAS) Web. Sphere Development Tools (Eclipse) Web. Sphere Message Queue (WMQ) DB 2 Web. Sphere Business Integrator (WBI) – OSS/BSS integration (optional) o Tivoli Family • • • Tivoli Risk Manager (TRM) Tivoli Enterprise Console (TEC) Tivoli Data Warehouse IBM System Scanner Tivoli Host and Network Intrusion System (IDS) Tivoli Service Level Advisor Tivoli Directory Server (LDAP) – (Optional) Tivoli Access Manager (TAM) – fine grain access control (Optional) Tivoli Identity Manager (TIM) – VAS authorization (Optional) Tivoli Net. View – Network Management (Optional) Arbor Network Components: • Peak. Flow|SP (Service Provider and Managed Services) • Peak. Flow|X (Enterprise) © 2004 IBM Corporation

IBM Software Group Next Generation Network Services – Key Work in Progress § NGN demonstrations and POCs o Showcase IBM and partner capabilities o Lab set up with key ISVs and NEPs § Telco Application/Business Process Life Cycle Environment o Create, Manage, Monitor, Secure o Rational, WSAD, WAS-T, WBI Modeler/Monitor o SPDE & e. TOM § Solution Architectures o Value Added Services – Gaming, Video, Music © 2004 IBM Corporation

IBM Software Group IBM Middleware Solutions for Telecommunications Telecom Industry Processes IBM Middleware Solutions Developing New Products and Markets Partner Content Enabler Acquiring and Managing Customers Contact Center Optimizer Mobile Services Delivery Developing and Providing Network Services Managing the Supporting Enterprise Processes Next Generation Network Services OSS/BSS Optimization Industry Know-How Consulting and Implementation Services ISV Applications Industry-Specific Middleware Core Products deliver the On Demand Operating Environment © 2004 IBM Corporation