prague , 22 nd of september 2004

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Prague , 22nd of September 2004

Company Overview & DirectionCompany Overview & Direction

22

Packeteer…Packeteer…

Contains malicious, recreational, and other non-Contains malicious, recreational, and other non-business trafficbusiness traffic

Maximizes network and application investmentsMaximizes network and application investments

Optimizes WANs and the Internet for business applicationsOptimizes WANs and the Internet for business applicationsOptimizes WANs and the Internet for business applicationsOptimizes WANs and the Internet for business applications

Protects and accelerates key business applicationsProtects and accelerates key business applications

Our intelligent appliances deliver an Our intelligent appliances deliver an Application Traffic Application Traffic ManagementManagement system at the LAN/WAN interface that… system at the LAN/WAN interface that…


33

A WAN Optimization “Overlay”A WAN Optimization “Overlay”

Optimize Application TrafficOptimize Application Traffic

Over Existing NetworksOver Existing Networks

Application TrafficApplication TrafficManagement SystemManagement SystemApplication TrafficApplication Traffic

Management SystemManagement System

Business Critical Applications

ERPERPFrontFrontOfficeOffice

BackBackOfficeOffice

WebWebSiteSite

SupplySupplyChainChain

EmailEmail

No disruption to existing applications or network infrastructure

Align network resources and application performance with business needs

“The technology division’s goal and J. Walter Thompson’s overall goals are unified now.”Jose Cedillo, Systems Director, J. Walter Thompson

“The technology division’s goal and J. Walter Thompson’s overall goals are unified now.”Jose Cedillo, Systems Director, J. Walter Thompson


44

Global PresenceGlobal Presence

Proven effectiveness with hundreds of business-critical applications

Over 32,000 units shipped to over 5,000 customers

700+ sales partners in 90+ countries

24x7 global support

Partnerships

– IBM Global Services, HP Services, AT&T, Equant, France Telecom, NTT, Telecom New Zealand, Samsung, Citrix, Extreme Networks, Polycom, Concord, BMC, Avaya…

Dozens of product awards worldwide


55

Packeteer founded

1996

Financially SoundFinancially Sound

1999

IPONASDAQ: PKTR

$18.4M

2001

PacketShaper 8500

$46.7M

2002

ReportCenter, PacketSeeker

$55.0M

1998

$7.2M

1997

PacketShaper 1000, 2000, 4000

$1.4M

2000

PacketShaper 1500, 2500, 4500, 6500, PolicyCenter

$41.1M

2003

PacketShaper Xpress

$72.7M Profitable

$90M cash reserves

240+ employees

2002: Ranked by Forbes as the 5th fastest growing technology company based on 5-year growth2002: Ranked by Forbes as the 5th fastest growing technology company based on 5-year growth

2003: Named to the Deloitte Technology Fast 500 for 661% growth during the previous 5 years 2003: Named to the Deloitte Technology Fast 500 for 661% growth during the previous 5 years


66

Market ShareMarket Share

Expand7.2%

Compuware4.6%

NetQoS3.6%Network Physics

2.0%

Route Science2.0%

Adlex2.0%

Other10.8%

Nortel6.6%

Allot10.0%

Cisco7.6%

Peribit6.6%

Packeteer37.0%

Worldwide WAN Optimization Management Revenue by Vendor, 2003.(source IDC, 2004)

“Others” comprise of vendors with 1% market share or less:Ipsum networksPacket designProficientRocksteadyAnd other un-named companies with less than 1% market-share each


77

30 Of The Global 50 Use Packeteer30 Of The Global 50 Use Packeteer


88

More Packeteer Enterprise CustomersMore Packeteer Enterprise Customers


99

Communications & Service Provider CustomersCommunications & Service Provider Customers


1010

HealthcareHealthcare

Driscoll CHILDREN'S HOSPITAL CHILDREN'S MEDICAL CENTER OF SOUTH TEXAS

Universities

Providers Payees/Suppliers


1111

International EducationInternational Education

Japan ASPACEMEA


1212

Business Depends On Networked ApplicationsBusiness Depends On Networked Applications

Increasing IP-based application dependence on the WAN and Internet

DocumentDocumentManagementManagement

BusinessBusinessAnalyticsAnalytics

TransactionTransactionProcessingProcessing

CRMCRM

ERPERP

EmailEmail

DataDataWarehousingWarehousing

Supply ChainSupply ChainAutomationAutomation

Sales ForceSales ForceAutomationAutomation

Responsive applications are critical to success

Increasing application performance problems due to congestion at the LAN/WAN edge


1313

The LAN/WAN MismatchThe LAN/WAN Mismatch

Corporate Office

SiebelSiebel

PeopleSoftPeopleSoft

SAPSAP

OracleOracle

High SpeedLAN

High SpeedLAN

Branch OfficeBranch OfficeFrame Relay, Fractional

T1, T1, MPLS, etc.

InternetInternet

Small OfficeSmall OfficeBroadband, Dialup

Mobile UserMobile User

Cellular, WiFi

Business applications must work for all users Business applications must work for all users


1414

Malicious and Recreational TrafficMalicious and Recreational Traffic

Even well designed networks are subject to attacks and congestion

– Worms and viruses

– Major software updates

– Web traffic from major news events

– Rich/streaming media and P2P

– Internet radio

– Large file transfers and email attachments

SiebelSiebel

WebWeb

EmailEmailVoice and Video over IPVoice and Video over IP

PeopleSoftPeopleSoft

SAPSAP

OracleOracleMalicious and Recreational Traffic

Malicious and Recreational Traffic


1515

A Typical Response – Add More BandwidthA Typical Response – Add More Bandwidth

Temporary

Ineffective

Initial and recurring costs

May not be possible

Applications will consume all available bandwidthApplications will consume all available bandwidth

Bandwidth will not go to critical applicationsBandwidth will not go to critical applications

The WAN is the single largest recurring IT costThe WAN is the single largest recurring IT cost

Higher speed links are not always availableHigher speed links are not always available


1616

A Typical Use Of BandwidthA Typical Use Of Bandwidth

OtherOther4% / $1M4% / $1M

TN3270TN32702% / $500K2% / $500K

CitrixCitrix5% / $1.3M5% / $1.3M

OracleOracle7% / $1.8M7% / $1.8M

File TransfersFile Transfers9% / $2.4M9% / $2.4M

EmailEmail20% / $5.3M20% / $5.3M

Streaming MediaStreaming Media8% / $2.1M8% / $2.1M

P2PP2P12% / $3.2M12% / $3.2M

Internet GamingInternet Gaming5% / $1.3M5% / $1.3M

Web BrowsingWeb Browsing28% / $7.5M28% / $7.5M

Total Budget: $26.6M

53% of bandwidth being used by recreational applications

14% of bandwidth is “business critical” (Oracle, Citrix, & TN3270)


1717

Adding Bandwidth Does Not HelpAdding Bandwidth Does Not Help

OtherOther4% / $1M4% / $1M

TN3270TN32702% / $500K2% / $500K

CitrixCitrix5% / $1.3M5% / $1.3M

OracleOracle7% / $1.8M7% / $1.8M

File TransfersFile Transfers9% / $2.4M9% / $2.4M

EmailEmail20% / $5.3M20% / $5.3M

Streaming MediaStreaming Media8% / $2.1M8% / $2.1M

P2PP2P12% / $3.2M12% / $3.2M

Internet GamingInternet Gaming5% / $1.3M5% / $1.3M

Web BrowsingWeb Browsing28% / $7.5M28% / $7.5M

Total Budget: $26.6M

53% of bandwidth being used by recreational applications

XXIncrease budget by 50%

to $39.9M for more bandwidth

Increase budget by 50% to $39.9M for more

bandwidth

14% of bandwidth is “business critical” (Oracle, Citrix, & TN3270)

Increase $14.1M to $21.2M for recreational applicationsIncrease $14.1M to $21.2M

for recreational applications

Business critical applications still only get

14%

Business critical applications still only get

14%


1818

Gartner Research AgreesGartner Research Agrees

When application performance is the key concern, throwing more bandwidth at the problem is often the wrong response.

It will be more economical for enterprises to improve WAN performance by using WAN optimization technologies, rather than adding bandwidth.

Gartner Research Note: “Enterprises Will Waste Money on Bandwidth in 2004”, 2 December 2003

Mission-critical networks can't survive without some congestion control and application priority management for critical traffic.

Gartner Research Note: “Optimize Your Broadband WAN”, 15 September 2003


1919

The META Group AgreesThe META Group Agrees

As users wait for the mythical "free and unlimited bandwidth" promised by utopian press reports, they face hard choices on how to optimize increasingly congested wide-area network (WAN) bandwidth, given increasing demand and budget cutbacks. Before upgrading WAN links, users can achieve significant savings by exploiting edge optimization solutions appropriate for their particular application/protocol mix.

META Group Report: “Bandwidth Compression and Optimization”, 3 September 2003


2020

Ace Insurance Chose PacketeerAce Insurance Chose Packeteer

UK-based global provider of property and casualty products

– Global MPLS network with two data centers, mix of frame and ATM traffic, VPN network in parallel.

– Total of 50 WAN links serving 11,000+ users

Looked for improved performance of business-critical applications such as Oracle and email

– Traffic generated by worms and viruses impacting the performance of critical applications

Packeteer now on all WAN connections

– Guaranteed the performance of key applications…

– …and saved 14% of global WAN budget


2121

Beckman Coulter Chose PacketeerBeckman Coulter Chose Packeteer

Global medical instrument company

– Offices in 130 countries around the world

– Over $2B in revenues in 2002

Up to 75% of their WAN bandwidth was being consumed by non-business critical traffic

– Jeopardizing plans for an enterprise-wide PeopleSoft rollout

Packeteer’s solution aligned bandwidth utilization with business priorities

– Ensured a successful ERP rollout


2222

J. Walter Thompson Chose PacketeerJ. Walter Thompson Chose Packeteer

One of the world’s largest advertising firms

– 11,000 employees in 168 offices around the world

As much as 95% of their WAN bandwidth was being consumed by non-business traffic

– Delayed email delivery was costing them business

Packeteer enabled efficient, reliable WAN and email communication

– Avoided $72K in planned bandwidth upgrade costs at one site alone


2323

DSE Chose PacketeerDSE Chose Packeteer

Australian Department of Sustainability and Environment

– In 2003 deployed a converged wide area network supporting data and voice/video conferencing over IP at 34 sites

Key application performance dropped dramatically

– Packeteer improved application response times for Oracle financials from 30-40 seconds to only 3-4 seconds

Better alignment of network with operational objectives

– “When the wildfires struck, we could immediately increase the priority of fire suppression applications. We couldn’t possibly have responded with the same speed using a routing platform. The only way to get granular enough to manage each application individually is to use Packeteer.”

Andrew Paynter, Senior Technical Manager, DSE


2424

LandAmerica Chose PacketeerLandAmerica Chose Packeteer

The 3rd largest title underwriter in the US– 10,000+ employees at 700 sites connected via frame-relay

connections, total bandwidth investment exceeds $1.5M/month

– Financial applications were seeing transaction delays, help-desk calls were on the rise

Packeteer optimized existing WAN infrastructure– Avoiding an estimated $600K/year in additional bandwidth costs

Further benefit seen with upcoming VoIP delpoyment– “I plan to install a Packeteer solution for that entire network to

control their voice traffic over IP. Packeteer’s ability to classify and control IP telephony traffic is unmatched anywhere in the industry — period.”

Lou Prestipino, WAN Design Architect, LandAmerica


2525

IssuesIssues

Ensuring bandwidth for basic services– Scaling & traffic engineering with P2P

– Containing virus and worm traffic

Building value (and the business): advanced services– VoIP, Video on demand streaming

video and rich media content

– Business services & differentiated service levels

Managing large subscriber bases– Sorting issues & managing across

thousands of customers

Traffic Management Equipment– Effective testing & evaluation

Bandwidth alone will not unleash the full economic potential of broadband, but it is a prerequisite for this. Carriers must ensure their budgets for network upgrades match their ambitions on the service side of the business, and should carefully consider how to obtain a defendable position in the broadband value chain.Gartner Group, Broadband Economics, December 5, 2003

Bandwidth alone will not unleash the full economic potential of broadband, but it is a prerequisite for this. Carriers must ensure their budgets for network upgrades match their ambitions on the service side of the business, and should carefully consider how to obtain a defendable position in the broadband value chain.Gartner Group, Broadband Economics, December 5, 2003


2626

How Packeteer AppliesHow Packeteer Applies

Protect bandwidth & broadband economics – Contain malicious traffic and P2P,

minimize impact on shared resources– Manage bi-directional nature of

congestion– Protect broadband economics to ensure

sustainable and scaleable networks, fair access, and maintain reasonable costs

Ensure critical traffic & enable new service revenues– Provide QoS for voice and video traffic– Protect important business applications– Create multiple levels of service

Simplify management of large subscriber bases and large installations– Dynamically allocate & ensure bandwidth

per POP with a few simple policies (not thousands)

– Centralize management for large unit installations

Provide Visibility into Network Use and Application Performance– Identify what traffic is running the network– Identify users/abusers and top impacts– Track utilization & provide detailed

reporting Increase scalability

– Ensure effective traffic engineering

Increase performance on VSAT network links– Manage congestion– Increase capacity with application-

intelligent compression– ‘Fast recovery’ mechanism for data lost in

transmission

Enhance security by providing in depth diagnostic, troubleshooting, and control– Identify and contain virus and trojan traffic– Protect network and performance, add to

tiered security framework


2727

The Unique Value Of Packeteer’s SystemThe Unique Value Of Packeteer’s System

Application visibility provides

knowledgeOrder Entry SystemOrder Entry System

WebWeb

ExchangeExchange

SiebelSiebel

Application control aligns

network applications and

resources with business needs

Order Entry SystemOrder Entry System

WebWeb

ExchangeExchange

SiebelSiebel Compression makes the network “bigger” and accelerates critical applications

Order Entry SystemOrder Entry System

WebWeb

ExchangeExchange

SiebelSiebel


2828

ROI JustificationROI Justification

Align network usage with business priorities

– Minimize business-critical application disruptions

– Optimize application performance

– Limit use of of recreational applications

– Limit impact of malicious traffic

Avoid upgrading WAN and Internet connections

Reduce help-desk calls

“In two months of using Packeteer, the savings have already paid for the units.”

Jose Cedillo, Systems Director, J. Walter Thompson

“In two months of using Packeteer, the savings have already paid for the units.”

Jose Cedillo, Systems Director, J. Walter Thompson

“We’ve avoided unnecessary spending on bandwidth. More and more now, we are finding that we really can get everything we need with Packeteer.”

Ron Van Dusen, Senior Network Systems Specialist, Beckman Coulter

“We’ve avoided unnecessary spending on bandwidth. More and more now, we are finding that we really can get everything we need with Packeteer.”

Ron Van Dusen, Senior Network Systems Specialist, Beckman Coulter

“Our current cost of WAN bandwidth is between $2.2 and $3 million per year right now. It would have cost us three times as much to solve some of the problems we were able to solve with the Packeteer solution.”

Andrew Paynter, Senior Technical Manager, Australian Department of Sustainability and Environment

“Our current cost of WAN bandwidth is between $2.2 and $3 million per year right now. It would have cost us three times as much to solve some of the problems we were able to solve with the Packeteer solution.”

Andrew Paynter, Senior Technical Manager, Australian Department of Sustainability and Environment


2929

Industry-Leading Application DiscoveryIndustry-Leading Application Discovery

Typical Network Device: Router,

Probe, etc.

Static Port 8080

Dynamic Port 7228072280

IP 192.168.1.1192.168.1.1

Link Layer 00D059B71F3E00D059B71F3E

TCP/UDP 06/1106/11

Applications

HTTP/SSL, SMTP/POP3,

FTP, etc.

HTTP/SSL, SMTP/POP3,

FTP, etc.

ApplicationsEmbedded in

HTTP, Citrix, etc.

ApplicationsEmbedded in

HTTP, Citrix, etc.

Pac

kete

er

Pac

kete

er

CompleteApplication

Classification

“Layer 7” Stateful Inspection

Citrix, Oracle,VVoIP, SAP,KaZaA, etc.

Citrix, Oracle,VVoIP, SAP,KaZaA, etc.


3030

Industry-Leading ArchitectureIndustry-Leading Architecture

Industry-leading application intelligence yields…

…industry-leading fine-grain application visibility

…industry-leading fine-grain application visibility, control

…industry-leading fine-grain application visibility, control and compression

All managed by our own central management platforms

All managed by our own central management platforms with integration into industry-standard platforms


3131

Packeteer…Packeteer…

Contains malicious, recreational, and other non-Contains malicious, recreational, and other non-business trafficbusiness traffic

Maximizes network and application investmentsMaximizes network and application investments

Optimizes WANs and the Internet for business applicationsOptimizes WANs and the Internet for business applicationsOptimizes WANs and the Internet for business applicationsOptimizes WANs and the Internet for business applications

Protects and accelerates key business applicationsProtects and accelerates key business applications

Our intelligent appliances deliver an Our intelligent appliances deliver an Application Traffic Application Traffic ManagementManagement system at the LAN/WAN interface that… system at the LAN/WAN interface that…

prague , 22 nd of september 2004

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