Nortel Confidential Information

BUSINESS MADE SIMPLE

Larry TsangSenior Director, Nortel China

Transform Your Business

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Hyperconnectivity

Anything that can be connected and would benefit from being connected will be connected

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Hyperconnectivity is Happening Much Faster than Many Expected

• By 2010, worldwide:

• 4-fold growth in Internet Commerce to 100B transactions

• 1-2 billion GPS-enabled handsets

Person to Machine

• Western Europe – 112 mobile phones per 100 people (Italy, 147 per 100)

• 250,000 new Facebook registrations per day

• One Laptop Per Child

Person to Person • 98% of all CPUs today

are embedded (by 2010 – 14 billion connected, embedded devices)

Machine to Machine

• Sensor pocket in Nike shoes

• iPhone 2.3m sold in Q4, 2007; hyper-connectivity at applications level

• Amazon’s Kindle launched Nov 07; sold out in 4 hrs

Verizon, 2008: Will allow non-subsidized endpoints to connect to its network

• 70%+ of all 2007 cars in U.S. have iPOD connectivity

• Eye-Fi: camera uploads photos wirelessly

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The Evolution of Carrier

Transport Networks, Telephony Fixed Mobile Convergence (Wireless/Wireline), Collaboration/UC/Context

Today Tomorrow

• Value-Add• Open

• Rapid response• Lower cost per bit

• Commodity• Closed

• Slow moving • Costly

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The Evolution of Enterprise

Ethernet, LANS, TDM, VoIP Wireless Mobility, Unified Comms, SOA

Today Tomorrow

• Federated• Integrated services

• Insular • Separated services

• Complex• Product centric

• Bus. optimized• Solutions-based

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The Evolution of Enterprise Infrastructure

Transport Networks, Signaling Intelligent Networks with Mobility, Applications, Context

• Efficient• Adaptable

• User value• Converged

• Costly• Slow evolution

• Low value• Separate

Today Tomorrow

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The Evolution of Enterprise Applications

SOA, Web ServicesMonolithic Software

Tools of Communications

Sources of Information

• Network aware• Personalized

• Rapid creation• Infinite options

• Network oblivious• Homogeneous

• Long cycles • Few options

Today Tomorrow

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Customer Business Transformation

Wireline

Application

WirelessEnterprise

Infrastructure

Carrier

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Nortel Creating Differentiation

Wireline

Wireless

Services

Infrastructure

Carrier

Enterprise

Application

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Business Communication & Collaboration

Unified Communications

Communications Enabled Applications

IP Telephony Total Cost of Ownership &

Virtualization

Anywhere,

Anytime

Personal &

Group

Productivity

Nortel Agile Communication Environment Context

Agile

Faster

Accuracy

Business

Productivity

Tactical Strategic

Hig

h va

lue

Low

val

ue

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Services Increase Your IT Value to Business

Wireless

Wireline

Infrastructure

Application

Enterprise

Carrier

Telepresence Network Managed Services

Life-Cycle Services

Solutions Consulting /

Systems Integration

Unified CommsServices

ContactCenter

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Thank You !

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Backup

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Nortel’s Unified Communications Vision

All Devices, Applications, Interfaces Context

Services Environment

PresenceLocation

Identity

Policy

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Network

Unified Communications

Technological Underpinnings of Change

Converged IT/Telecom Industry

> $1 Trillion

Business Process Integration

Carrier Ethernet

High-Performance Optical Network

(40G/100G)

4G/Unwired Enterprise

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Nortel Global R&D Footprint

Bangalore (NTEC)

Maidenhead

Research Triangle Park

Billerica

Richardson

Galway

Netas

Beijing

GDNT(Guangzhou)

Belleville

Ottawa

Bohemia

Châteaufort

Calgary

Harlow

Silicon Valley

MontrealToronto

Legend: Full Services R&D Sites R&D CoEs Specialty Sites Other R&D

China Lab

LG-Nortel