P2P Media Summit

PacketExchange:

Content Delivery and Wide-area Peering

Chuck Stormon

Chief Marketing Officer

August 4, 2008

Packet Exchange at a Glance

Leader in Application Delivery Networking Infrastructure

– Founded in 2001 in U.K.

– 1,000 live service contracts

– U.S. subsidiary established in 2006

– Privately owned with key investors DFJ Esprit and HBOS

Positioning Statement

PacketExchange is a breakthrough application delivery platform for contemporary content and interactive applications, such as Web 2.0 and Software as a Service (SaaS) solutions, where the web solution defines the customer’s revenue stream. Providers of social networking, VoIP, streaming media, gaming, online CRM, and even ISPs can now ensure revenue by ensuring uploads and downloads, business transactions, and continuous, rich media interaction.

Packet Exchange Value Proposition

• Purpose-built no-hop overlay network

• Bypasses the Internet and guarantees performance and security for critical applications and content

• Optimizes real-time media delivery, rich-interaction, transactions, downloads and uploads.

• Creates a private networked peering community

• Tier 1 reach

PacketExchange

Application Delivery Network

The distribution model

http://metacast.agora.com/link.asp?m=49067&s=7317792&l=0

Is changing dramatically…

http://metacast.agora.com/link.asp?m=49067&s=7317792&l=0

InternetCDN/P2P

A good online experience translates into…

• Increased Revenue– Transactions completed (vs. abandoned)

– Advertising revenues

– Content delivered

• Reduced Costs– Enterprise productivity

– Fewer phone calls

• Brand / Reputation Protection– Everyone measured by Google/Amazon yardstick

The Generic Internet

Tier1Service Provider Tier

2

Tier 2

T3

T3

T3

T3

Tier1Service Provider

Tier1Service Provider

Tier1Service Provider

T3

T3T4

T3

T3

Tier 2

Tier 2

Tier 2

Tier 2

• Up/downstream flow via different routes

• Multiple hops = congestion & security issues

• Packets get lost & need retransmitting; performance changes over time

• Lack of control & performance accountabilityT4

T4

T4

T4T4

T4

T4

T4 T4

T4

T4

T4

Bandwidth is only a part of the WAN problem

“Why is my connection so slow?”

“Why is this service so poor?”

The problem is a boundary problem,not a bandwidth problem

PacketExchange Service Levels vs Best effortsSource: Internet Traffic Report (June 16, 2008)

Region Avg. Response Time (ms) Avg. Packet Loss (%)

Asia 238 1%

Australia 175 0%

Europe 236 11%

North America 93 5%

South America 374 25%

PacketExchange <100ms ~0.1%

TCP Throughput Over Time

Onset of Congestion

Dynamic Changes in Available Bandwidth

Eliminate Loss and Jitter for High Performance

Variable Impact on Applications & Content

Peering - locally

Peering is voluntary interconnection of administratively separate Internet networks for the purpose of exchanging traffic between the customers of each network.

London

Frankfurt

London

Frankfurt

What you have to pay for to peer at a local Internet Exchange Point is:- Colocation- Membership

The TOP 6 Internet Exchange Points:- AMSIX – Amsterdam, NL- LINX – London, UK- DECIX – Frankfurt, D- Equinix – Ashburn, USA - PAIX – Palo Alto, USA- JPIX – Tokyo, Japan

Peering - globally

Frankfurt

DE - CIXFrankfurt

Tier1

Tier1

2

Hong Kong

Amsterdam

FrankfurtDublin

Brussels

London

ManchesterParis

Secaucus

San Jose

San Francisco

Palo Alto

New York

MiamiLos Angeles

ChicagoAshburn

Dallas

Seattle

PacketExchange

global peering

locally

AMS-IXAmsterdam

locally

LINXLondon

locally

Tier1

Tier1 Tier1

eXpress™ Automatic, global, wide area peering

BGP4

PacketExchangeMPLS backbone

Content Access Software Hosting

eXpress™

Capabilities Customer Use

• Ethernet VPLS instance

• Automatic route broadcast of new PacketExchange eXpress™ members

• Global reach

• Bandwidth scaleable on demand

• Latency:

–<20ms pan European

–<50ms transatlantic & across US

• 100% network availability

• <0.2% packet loss

• Measurable & enforceable SLAs

• 24/7 technical support

• Automatically peer across US & Europe with over 140 peering partners

• High-performance delivery of rich-media content & time-sensitive application data

• Platform for entertainment delivery – real-time, streaming video

• Ideal for VOIP, teleconferencing, global content sharing

PacketExchange – Connect Direct to the World

With our exclusive eXpress service, a single Ethernet port and one agreement gives you automatic peering with hundreds of other networks around the globe, saving you both time & money.

BYPASS the public Internet

Tier1Service Provider Tier

2

Tier 2

T3

T3

T3

T3

Tier1Service Provider

Tier 1Service Provider

Tier 1Service Provider T3

T3

T4

T4

T3

T3

Tier 2

Tier 2

Tier 2

Tier 2

• Gain SLAs • Gain Quality

of Service• Reduce latency• Reduce loss & jitter • Consistent bidirectional

traffic performance• Control routing

PacketExchangeMPLS backbone

T4T4

T4

T4

T4T4

T4

T4T4

T4T4

T4T4

London

Amsterdam

FrankfurtSan Francisco

Seattle

New York

™DireXion Ethernet Private Lines

A

B

C

D

E

We interconnect globally:- Datacenters- Internet Exchange Points- Subsidiaries

With:- EPL- Point to Point circuits- Point to Multipoint circuits- VLANs over MPLS

PacketExchangeMPLS backbone

DireXion

Capabilities Customer Use

• Point-to-Point or Point-to-Multipoint private line service between company locations

• IP-VPN, SDH/SONET replacement

• Bandwidth scaleable on demand

• Latency:

–<20ms pan European

–<50ms transatlantic & across US

• 100% network availability

• <0.25% packet loss

• Measurable & enforceable SLAs

• 24/7 technical support

• IP-VPN, SONET/SDH managed ring replacement

• Segment traffic among applications & public Internet

• Deploy private networks for telepresence, VoIP, Web content, specific industry verticals

• Deploy secured network with protected bandwidth, protected against DDoS or any 3rd party

• Billing at Internet economics – on demand per MBit commit & use

™

VLAN connections

Level 3

Abovenet

Teleglobe

GXKPN

Customer Ethernet connection

eXpand™ Direct access to multiple Tier1 ISPs

PacketExchangeMPLS backbone

eXpand™

Capabilities Customer Use

• Aggregate VLAN for redundant Tier1 IP transit providers

• Bandwidth scaleable

• Bursting limited only by port size

• 100% network availability

• BGP direct to provider with no hop

• Low latency across all regions

• Measurable & enforceable SLAs

• 24/7 technical support

• Network performance Web portal

• Seamless, direct access to several global Tier1 providers for best routes & resiliency

• Simplify aggregate bandwidth use & billing

• Meet growing & unpredictable traffic levels

• Minimize congestion to offer high level of availability to customers

PacketExchange – Global Layer 2 Ethernet

The PacketExchange Difference

Content

PacketExchange Layer 2 MPLS Mesh Network

AccessNetwork

s

Predictable Performance – Essentially No Jitter, No Packet Loss, Very High Throughput, Secure

PoPRouter Switch

Route Reflectors

PoPDSLAM CMTS

Router Switch

Servers

Provides for controlled content and application delivery to user

ISP

Cable Co

Enterprise

Hosted AppPTT

SaaS Provider

IPTV

MMORPG

Music Web Site

Consistent & Fast Performance

1

2

3

4

5

6

7

8 • Consistent user experience extends time online

• Faster speed prompts users to try & adopt more Internet apps

• Reliability boosts revenues & lower support call costs

• Network extends reach from just from 1 data center

Results normalized between CA and VA

Slow

OK

Preferred

Pag

e D

ow

nlo

ad

Tim

e (

Sec)

Time/PST

IP Transit

PacketExchange Global Peering

PacketExchange Delivers Performance

• Dramatically better end-user experience

– Fast

– Reliable

– Consistent

• Better economics for the Content Provider– OPEX not CAPEX costs– Minimized operating expense (pay for what is used)– Security, diversity and resilience built in to the model– Private networking improves QoS and performance

Increased page impressionsIncreased ad revenuesIncreased subscriber stickinessGrowth in brand and service value

PacketExchangeBecause the Web Is the Revenue Stream