Metaswitch Symposium Business Market Overview and Deep Dive

Metaswitch Symposium Business Market Overview and Deep Dive April 27 th, Portland, Sentinal Hotel Bill Allen, Regional Sales Manager April , 2017 Metaswitch Networks | Proprietary and confidential | © 2017 | 1

Metaswitch – Scrappy – Like You Guys • #1 In North America in Class 4/5 & SBC • <$200 M a year in revenue, David against Goliaths (Sonus, Gen. Band, Oracle/Acme) • While continuing to grow customer base globally and add large carriers, small Telcos still are our largest revenue source

Metaswitch – “Bill Allen” Trends • 35% YOY Growth in Hosted revenues • Virtual – Multi-site Active/Active cluster architecture • BYOB is not your enemy • M&A very high • Innovate, Consolidate/Co-operate or dwindle

Whats “Hot” In Residential – Robocall Blocking “ An average of 298, 000 complaints were made to the FTC every month in 2015 about robocalls ” Federal Trade Commission, National Do Not Call Registry Data Book, Nov 2015 Unwanted calls is the #1 consumer complaint about communication services • New cloud based service, . 10/month per Opted in Subscriber Metaswitch | Proprietary and confidential | © 2017 | 4

Business Market Trends (psst – UC) § 93% Businesses have employees who use mobile phone as primary communications device § 56% Businesses employ teleworkers (work remote part time) Prevalence of § 59% Businesses employ remote workers mobile devices (work remote full time) and workers § 2 Billion Mobile Devices used by Business by 2020 Metaswitch Networks | Proprietary and confidential | © 2016 | 5

Business Market Trends § #1 goal of enterprise IT spend is to improve Enhancing Productivity of changing workforce productivity. § #3 goal of enterprise IT spend is to improve customer service § 92% of mobile business workforce feel disconnected from office § 70% of workforce will be millennials by 2025. Metaswitch Networks | Proprietary and confidential | © 2016 | 6

Business Market Trends Cloud is the future of communications § Hosted Business Services -- Fastest Growing Category of communications for which service providers are well-placed § Enterprise Vendors are pivoting their business model for cloud deployments § Cisco Spark, Amazon Chime (Collaboration) and Connect (Contact Center), Skype for Business § Laggards are left behind – Avaya, Toshiba …. . (lack of adoption service providers? ) Metaswitch Networks | Proprietary and confidential | © 2016 | 7

Driving Growth of Hosted Business Services Market $40. 7 B $20. 6 B 24% 23% 36% 26% 46% 62% 20% 13% 31% SIP Trunking Hosted PBX Hosted UC 26% Cloud Contact Center SIP Trunking 2015 Hosted PBX Hosted UC Cloud Contact Center 2020 Hosted UC and Cloud Contact Center will drive overwhelming majority of revenue * IHS, Frost & Sullivan, Market & Markets Metaswitch Networks | Proprietary and confidential | © 2016 | 8

Metaswitch Business Experience Metaswitch provides strong support for business services and features, augmented with a comprehensive go-tomarket wrap challenging the market leaders … Metaswitch has taken the lead in terms of virtualized application server contracts UCaa. S continues to be a force for change within the business communications market. Metaswitch is the 2 nd leading provider of UCaa. S to Service Providers Frost & Sullivan attributed the remarkable growth to Metaswitch’s continuous technology innovation (in IP Telephony and UC) and outstanding customer service and support” Metaswitch’s focus on integration of web and videoconferencing capabilities within the UC client are a reason we chose this product as a winner this year Metaswitch | Proprietary and confidential | © 2016 | 9

And an overwhelming majority of users 34% 67% 66% 33% 2015 2020 Hosted PBX * IHS, 2016 Hosted UC

Drivers of the evolution: Hosted adoption is moving up-market • Mid-market and enterprises have growing comfort-level with Hosted vs. Premisescentric communications, especially for remote offices and home office workers • Greater demand for UC Features and richer contact center capabilities 100% 80% 11% 18% 29% 34% 60% 40% 36% 30% 25% 18% 0% 2015 2020 Micro Business Small Business Medium Business Large Enterprise

Powering Enterprises Across Multiple Verticals Government Education Health Care Retail Wholesale/Agent Ministry of Interior (Croatia) De. Pauw University Freedom Village of Brandywine Avis Sandler Partners Los Angeles County Sarah Lawrence University S. Jersey Behavioral Health Kahala Brands (Cold Stone Creamery) Cloud. Net City of Dover Clay County School District Abbott House Honeybaked Ham LS Networks Tulalip Tribal Government Billings School District Dunn-Edwards Paints Metaswitch Networks | Proprietary and confidential | © 2017

Shifting requirements for productivity & collaboration 2017 IHS-Market Survey of Mid to Large Enterprise UC Feature Priorities 2016 86% 71% 85%87% Video Conferencing E-mail 84%86% IM 83% 69% 75%80% web conferencing Text messaging 79% 60% Unified Messaging 2018 91%86% 74% 60% 71% 59% Audio Conferencing Doc sharing Time to market is vital to capture demand Metaswitch Networks | Proprietary and confidential | © 2016 | 13 Voice

Business Market Trends: Improve business performance productivity Boosts employee productivity Simple, familiar, consistent experience Flexible, mobile workforce Improve customer interaction Connect people with information & resources Friendly to environment (reduce travel $$$) Ease of Use Business End User Metaswitch Networks | Proprietary and confidential | © 2017 | 14

Drivers of the evolution: Increased competition “Seat” Pricing • Competition increasing for services • Telcos, MSOs, OTTs • Traditional enterprise vendors introducing “cloud” deployment options • Messaging-centric cloud-native vendors entering voice • ARPU pressures on more basic PBX functionality Hosted PBX $10 - $20 Hosted UC Cloud Contact Center $20 - $35 $100+ Intensifying competition and considerable price pressures are forcing providers to enhance their solutions portfolios with more services, including comprehensive UCaa. S applications suites comprising of telephony, voicemail/unified messaging, instant messaging (IM), group chat, presence, mobility, contact center and audio, web and video conferencing. Frost & Sullivan, Oct. 2016

Extensive Business Communications Experience Leading US nationwide provider to multi-location enterprises #4 US Telco Leading Pan-LATAM Provider Enterprise Subsidiary of Chunghwa, Taiwan >13 M subscribers >280 operators 35% Yo. Y growth Leading Provider to Education Vertical Metaswitch | Proprietary and confidential | © 2016 | 16 3 rd Largest US Cable Operator US Nationwide On. Net & OTT Largest Quad-Play Provider in Croatia

Business Services APPS PLM Metaswitch Networks | Proprietary and confidential | © 2016 |

Full Business Portfolio Hosted Unified SIP Trunking Communication s Mobile UC Metaswitch Networks |

Metaswitch value proposition Full Business Portfolio, Unique Innovation Exceptional User Experience Rapid Deployment and

A Complete Solution for Web and Video Conferencing Fully integrated UC Collaboration Standalone Web and Video Conferencing Full Feature Webinar up to 10 K participants Low cost room systems Accession Meeting Metaswitch Networks | Proprietary and confidential | © 2016 | 21 H. 323 & SIP Room Connectors

Roadmap – Accession Meeting Launch (50 attendees) SIP/H. 323 room systems Standalone deployment 2016 2017 Large Rooms (200 attendees) Webinars (10000 attendees) Small Rooms (4 attendees) Low cost COTS room systems Metaswitch Networks | Proprietary and confidential | © 2016 | 22

Accession Meeting – Large Room Add-On 50 Attendee Interface • Targeted at Accession Meeting users that need more than 50 people in their meeting room • Options for 100 and 200 Attendees o • All attendees can share video, annotate and more. o • Same function as standard Accession Meeting Gallery mode shows 25 video streams on screen o • Additional options in the pipeline Scroll between video feeds Show active speaker o Show only the video of the active speaker Metaswitch Networks | Proprietary and confidential | © 2016 | 23 100/200 Attendee Interface V 9. 3. 20 Apr ‘ 17

Accession Webinar • • Target market is users presenting to groups o Hosts share audio and web content o Users communicate via Q&A and chat functions Full Featured o Email invitations and reminders with end-user logo o Open or closed registration o o o • V 9. 3. 20 Apr-17 Questions and Answers dialog box with live or text answers Registration and post-webinar reporting Host controls such as mute/unmute panelists, recording and more Scalable o Up to 50 interactive video participants, ideal for panels o Options for up to 3, 000 attendees. o Options to 10, 000 attendees available soon Metaswitch Networks | Proprietary and confidential | © 2016 | 24

Metaswitch Cloud Contact Center – Designed for Service Providers • New License Types o o • Multi-Location Agent – Detailed call reporting and dashboard – non call center lines New BI Dashboard o Add power of historic and real-time statistics into powerful dashboards o Filter by queue or team o Metrics Dashboard o o • Silver – Comparable to Gold, without IVR and Call Recording Color Coded Thresholds for Inbound Voice Queues and Agent Teams New UI Service Provider Branding o Yourbrand. mycontactcenter. net o Logos Metaswitch Networks | Proprietary and confidential | © 2016 | 25

Enterprise Call Analytics • Deliver business insight to your customers o o • • V 9. 4. 10/ Dec ‘ 17 Analyse call patterns, missed opportunities BG, department, extension scope Meaningful reports o Daily Summary o Frequent caller o Most called o Heaviest user o Missed/unreturned call analysis Comm. Portal or scheduled email o Extends Integrated ACD style analytics to non-ACD businesses/lines Metaswitch Networks | Proprietary and confidential | © 2016 | 26 Illustrative UI

Other highlights V 9. 3. 20 Apr ‘ 17 • Finer control over whether concurrent MLHG calls are offered • Option to allow caller to skip pre-alerting announcements (June) • Custom ringback in ICM (June) • SIP Trunking: Skype for Business Certification o V 9. 4/ 2 H 2017 Updates required to pass latest certification tests • Mixed SIP/ISDN PBXs • Integrated Call Forwarding for SIP phones Metaswitch Networks | Proprietary and confidential | © 2016 | 27

Comm. Portal Refresh V 9. 3. 20 Apr ‘ 17 Modern look and feel

Comm. Portal Refresh • • • Runs within existing Comm. Portal “customization” framework o New set of web client files (HTML, Java. Script etc. ) o Same operational processes for upgrade, language packs etc. o Requires minor changes to “surround” files o Updated sample HTML file supplied o New UI is usable within old fixed sized frame Can continue to use old UI and upgrade other components to V 9. 3. 20 o Possible to run old & new simultaneously (accessible via different customization URLs) o Must move to new UI to allow new features to be exposed in Comm. Portal Web Re-branding o Standard branding available by completing updated branding questionnaire o o See https: //communities. metaswitch. com/docs/DOC-24474 for scope Professional services available for more complex (re-)brandings, or can do yourself Metaswitch Networks | Proprietary and confidential | © 2016 | 30

UC Quality of Experience – ongoing investment • Real-world voice & video quality o o o • Audio – refined buffer algorithms Video – en/decoder improvements for mobile data Network mgmt – better access point transitions Microphone test Device integration o i. OS signalling calls late o Native app audio interruption Business-wide line state presence o o • • Line-state for all BG-lines plumbed into AMS Presence • Accession users see all BG line on the phone / DND status Accession Meeting o o o Dial out Whiteboarding Assign scheduling privileges to other user Metaswitch Networks | Proprietary and confidential | © 2016 | 31 UX refinement o o o o o Faster file transfer Multiple file transfer (i. OS) Richer contact search Richer caller ID display Copy/paste on message threads (i. OS) Tighter Bluetooth integration Mobile – reduce bandwidth & battery use Forgotten Password links Fax MWI Multi-device UX o o o Cross-device call rejection Missed call notification suppression Accession and SIP handsets

Accession & Apple Call. Kit • Makes 3 rd party Vo. IP apps ‘primary citizens’ o • Incoming calls: standard call notification; answer from lock screen o Bluetooth and Car. Play integration o Call Waiting follows native dialler experience o Make calls on i. Pad too! Outgoing calls: initiate from Contacts and Siri o o Place an Accession call via Siri Calls can be made directly to contacts in the native contacts app • Accession Call. Kit integration now available as part of v 2. 24 – April 2017 • Working through App Store launch with Apple Metaswitch Networks | Proprietary and confidential | © 2016 | 32

Support for Apple Push Notification Service (APNs) • Apple changed its architecture for Vo. IP Apps in i. OS 10/i. OS 10 SDK – introduced APNs • APNs addresses battery life extension - Vo. IP Apps now forced to background to sleep • Accession Mobile now relies on Push Notifications from • o Perimeta for calling (v 4. 2, GA July 2017), and o AMS for messaging (v 9. 4. 10, GA Dec 2017) Calls SBC Perimeta IM Accession Mobile client v 2. 25 built on i. OS 9 SDK, and on i. OS 10 devices with i. OS 10 SDK – planned for mid 2018 o Push Notification PNS G/W Timeline allows for Perimeta and AMS upgrades Metaswitch Networks | Proprietary and confidential | © 2016 | 33 AMS APNS Push Notification Call IM Alert Push Notification Voicemail EAS

Accession Message Sync V 9. 4. 10 Dec ‘ 17 SMPP • Message Sync across all user devices • Message store in AMS SMS plugin • Messages available across user Accession Messaging Server devices • Continuity of user experience • Applies to SMS and IM • Old messages are aged out Metaswitch Networks | Proprietary and confidential | © 2014 | 34 SMS gateway

Succeeding in Market Success requires that you offer subscribers the right features at the right price • How do you know if you’re succeeding? o Are you extracting the best value from the features you’re offering? o Does your marketing target the things your subscribers care most about? o Has a new feature launch been a success? • Focus o Your market offering o Your sales team o Your operations Metaswitch Networks | Proprietary and confidential | © 2016 | 36

Behavioral Analytics Drill down Identify heavily used features V 9. 3. 20 Apr ‘ 17 Gain insight … take action • Tailor feature bundles o o • o Messaging for the features which matter Increase awareness of ‘sticky’ features with limited penetration View Trends Operational efficiency o • Introduce package to target market segments Focus sales & marketing o • Move popular features to encourage uplift, ensure table-stakes features in base package Drop rarely-used features from standard offering Market. Visions – analysis and recommendations available Discover who is using what Metaswitch Networks | Proprietary and confidential | © 2016 | 37

Meta. View Analytics – architecture Diagnostics Analytics (existing) large quantities of data intended primarily for highly targeted diagnostic purposes. Network elements SAS Events Meta. View SAS Meta. View Server Splunk Subscriber configuration (nightly dump) Metaswitch Networks | Proprietary and confidential | © 2016 | 38

Other highlights V 9. 3. 10 Dec ‘ 16 V 9. 3. 20 Apr ‘ 17 • SIP Trunking: support SIP UPDATE • AMS: SMS interop with Bandwidth • Endpoint pack settings export/import o V 9. 4/ 2 H 2017 Analogous function to copy/paste from built-ins • Device twinning for analog business lines • Larger Businesses • o More lines & departments per Business groups o More DID ranges per PBX EAS geo-redundancy: active/standby “DR” failover improvements Metaswitch Networks | Proprietary and confidential | © 2016 | 39

Mobile UC Metaswitch Networks | Proprietary and confidential | © 2017 | 40

Business Mobile Communications -- Market Problems Businesses Users • New business line means a new OTT app • Ineffective collaboration across mobile workforce • Prefer Native Dialer experience • Low adoption of UCaa. S OTT apps • High costs of redundant fixed and mobile communications • But lack Business UC features • 92% of Mobile business workforce feel disconnected * * Plantronics, 2016 Metaswitch Networks | Proprietary and confidential | © 2017 Mobile Operators • Declining ARPU on mins/megabyte packages • Eo. L of IN-based m. VPN/Centrex platforms • Need a way to participate in growing business UC market

Unique Approach to Mobile UC NATIVE DIALER EXPERIENCE • Multi Line on Cellular • Business Identity • Dual Persona – Network AI • • BEST CONNECTIVITY FOR MULTI-DEVICE TEAM COLLABORATION Native network voice Multi-Device Full mobility, no drop calls Device Agnostic (Android/i. OS) • Meetings & video • Secure Group messaging • Voice messaging, PTT USER & BUSINESS CONTROL • Manage work life balance • Admin Portal • Full suite of business services and policies Business Value with Native User Experience Metaswitch Networks | Proprietary and confidential | © 2017

Desired User Experience for the Business User Multi-Line On Single SIM, Single Device Native User Experience Transparent Dual Persona with Network Control AI Rich Business Features with Work. Groups and Business Policies Metaswitch Networks | Proprietary and confidential | © 2017 Simple Intuitive UX