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3G Offload - Overview

Sriram RamachandranVice President, Strategic Initiatives

September 2010

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Who Is Aruba?

$300M in Revenue

850+ Employees

11,000+ Customers

Gartner 2010 WLAN MQ Leader for three consecutive years

: ARUN

Quick Facts Industry Recognition

Copyright © Gartner, Inc. "Magic Quadrant for Wireless LAN Infrastructure, 2009" by Michael J. King and Timothy Zimmerman, 12 February 2009 . The Magic Quadrant is copyrighted 2009 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner’s analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the “Leaders” quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all

warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

-

2,000

4,000

6,000

8,000

10,000

12,000

To

tal C

usto

me

rs GrowthMore than 900 new customers just in Q4FY10

$1.1 $12.0

$72.5

$127.5

$178.3

$199.3

$266.5

$0

$50

$100

$150

$200

$250

$300

FY 2004FY 2005FY 2006FY 2007FY 2008FY 2009FY 2010

Revenue up YOY

GAAP Profitable

No debt, $150M+ cash

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Keerti MelkoteFounder, CTO

Chris SpainVP, Product Management

Bob BruceVP, Channel Sales

Sriram RamachandranVP, Strategic Initiatives

Mike KirbyVP Sales, Americas

Greg MurphyVP, Marketing

Dominic OrrPresident, CEO and Chairman of the Board of Directors

Steffan TomlinsonCFO

(Peribit)

Ankur SinglaVP, Engineering

Hitesh ShethCOO

Veteran Management Team

Peter Cellarius VP, Business Development and Partnerships

Aaron BeanVP, Human Resources

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Public Transit Public Venues ServicesHospitality

Government Healthcare RetailEducation

Enterprises Around the World Depend on Aruba Networks

Internet Finance Media & Ent.High Tech

Manufacturing Logistics TelecomOil and Gas

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Organizations Worldwide Use Aruba Solutions

Largest Federal WLANs

Largest Enterprise WLANs

Largest Campus WLANs

Largest Industrial WLANs

Largest Multi-tenant WLANs

Largest Retail WLANs

Largest Cisco WLANs

All3 Major Carriers in China deployed Aruba for3G Offload

• Alcatel Shanghai Bell is OEM partner for Aruba

• Deployed 50,000 + Aruba Access points and controller

• Over last 24 month

• Aruba/Alcatel amongst top 3 WLAN vendor for the China

Carrier market !!

Verizon Wireless – Thin Retail Store

• 2200 Stores Country-wide

Reason For New WLAN

No Existing Wireless In Stores

Mobile POS

Roving district manager laptop

Aruba Value

Ease of installation-rapid deployment, scalability, ARM & Firewall

Solution

Aruba 6000’s for central control

2 Aruba APs in each store

NEC Mobile terminal (XP tablet)

One of Largest European GSM Mobile Operator

• Distributed WLAN deployment at campus and branch

• Hard to manage Cisco legacy AP infrastructure

• Nation wide configuration, policy management required

• Initial RFprotect customer - countless meetings and

demos opened the door for Aruba WLAN and VBN

• AirWave provided a better migration strategy to 11n Thin

• Equip

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Only Aruba Delivers Secure Mobile Access

Reliable Manageable ScalableSecure

Application Aware Wi-Fi

delivers consistent performance to all users and devices

AirWave Network Management

centrally controls multi-vendor

networks

Highest Performance Controllersscale across enterprise

User Centric Security

makes wireless more secure than wires

NYMEX

Trading Over WLAN

Verizon, BT

Managed WLAN services

Microsoft

>15,000 APs >80,000 users

U.S. Air Force

Meets DoD security policy

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3G Offload – Key Issues

10/28/2010 10

Mobile Operator Core

PCRF

AAA / HSS

Internet

3G Macro Network

NodeB(s) RNC

Wi-Fi Offload Network

WLAN

Controller

1 - Device Issues

2 - WiFi (RF) Issues

3 - WiFi System Issues

4 – Network

Integration Issues

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Device Issues

1. Client must select the “best” network for connectivity

3G vs. Wi-Fi, which SSID? etc.

802.11u standard will enable inter-SP roaming

2. Client must authenticate with the chosen networka. Captive portal

b. Client-based authentication

• WISPr clients; WISPr 2.0

c. 802.1X (EAP-SIM)

• Natively supported in mobile platforms (e.g. iOS 4, Android)

• Subscriber authentication against an HLR through Radius (e.g. Inventum AAA service Controller/Gateway)

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Network Integration Issues

• WiFi Network interface with the Mobile Network Core: • Authentication, Service Delivery, Handover, Internet Traffic Offload

Options:

1. Network Bypass

2. Managed Network Bypass

3. Integrated Offload

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Option 1: Network Bypass

Internet

3G Radio

Network

IP/MPLSWi-Fi Network

3G Content Services:

Mobile Video, Ringtones,

Games, Music, Video Calling,

Email

GGSNSGSN

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Option 1: Network Bypass

Example: AT&T WiFi Services (AWS)

• Mobile Core network is completely bypassed for data

• No visibility and control over the subscriber through Wi-Fi

Aruba Value Proposition:

• Scalability & Reliability

• Robust RF performance

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Option 2: Managed Network Bypass

Internet

3G Radio

Network

IP/MPLSWi-Fi Network

GGSNSGSN

TT

G

3G Content Services:

Mobile Video, Ringtones,

Games, Music, Video Calling,

Email

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Managed Network Bypass

Example: China Service Provider deployments

• Wi-Fi traffic is tunneled to a Tunnel Terminating Gateway (TTG)

• Visibility and control over the Wi-fi subscriber is restored

Aruba Value Proposition:

• Central Encryption provides secure tunnel without requiring IPSec

• User-aware firewall can be used to implement tiered service levels

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Option 3: Integrated Network Offload

Internet

3G Radio

Network

IP/MPLSWi-Fi Network

GGSNSGSN

TT

G

PD

G

Network

Gateway

3G Content Services:

Mobile Video, Ringtones,

Games, Music, Video Calling,

Email

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Integrated Network Offload

10/28/2010 18

3G Macro Network

IP Backhaul

Network

Mobile Operator Core

PCRF

AAA / HSS

Internet

NodeB(s)

GTPTunnels

RNC

Metro/Campus Wi-Fi

WLAN

Controller

Regional

IP Network

802.1x

802.11i (WPA2/AES)

Radius

EAP

IP Address Assignment

GTP

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Azalea – Outdoor Wireless Mesh Solution

Wireless Wide Area Coverage for Multi-purpose Networks

• Multi-radio, multi-frequency system for capacity

• Intelligently routes traffic from node to node

• Flexible IP infrastructure• Carrier Grade WLAN

• Video surveillance

• Access control

• Automated meter reading

• Panic alarm systems

• SCADA

• Extending fiber

Industrial Strength Wi-Fi HotZones

Ubiquitous Wi-Fi Coverage• 802.11 a/b/g/n Wi-Fi access

• Indoor and outdoor coverage

• 16 SSIDs for each radio

Supports Multiple User Groups• Virtual LANS

• Quality of Service

Highly Security• Authentication

• Access control

• AES, TKIP encryptionApplications

CECT-Chinacomm Deploys “Wireless Beijing” Municipal

Network with Azalea

Beijing Olympics Wireless Network

• CECT-Chinacomm, one of the largest service providers in China, built an Azalea wireless network, covering 50 km2 of Beijing, including the financial district and Olympic stadium vicinity

• Wireless services for residents, city workers and visitors during the 2008 Olympic games• Wi-Fi broadband access

• Mobile patrol access

• Fixed video surveillance

Patent-Pending Azalea AOS

Only Scalable Solution in Routing, Architecture and Roaming.

• High-throughput radio architecture• Patented cellular radio architecture and auto radio channel

assignment algorithm to maximize the wireless performance and minimize the radio interference.

• AWR routing protocol• Special designed for wireless mesh architecture, fast

convergence, works well for both fixed wireless and mobile mesh situation.

• Motrix layer-3 roaming• Fast handoff ensure VoIP no drop call

• Only solution able to fast roam cross IP subnet, ensure scalability.

• End to end QoS, Video Optimization• Integrated with 802.11e, and enhance QoS in the backhaul

portion, and ensure end to end QoS.

• AVT ensure smooth video delivery

• Carrier-class serviceability• Radio Frequency Management (RFM) software

automatically manages wireless links.

• build-in deployment tools to help the deployment and service

China Carrier WLAN Market

• All three major China carriers working on “Cellular + WiFi”• WiFi to compensate 3G: hot spots hot zones hot cities• Major carriers becoming the main developers of China wireless cities• Explosive growth: > 300k carrier-grade APs order in 2009 to 1000K APs in

2011• This trend is expected to continue for at least another 4 years from 2009

0

200000

400000

600000

800000

1000000

2007 2008 2009 2010(E) 2011(E)

China Carrier's WiFi purchase (Number of indoor APs)

Carrier Wireless Network Coverage Strategies

3G：large Coverage-high speed mobile-mid speed data

WIFI：hotspot-semi mobile-high speed data

2G/2.5G：Voice + Low Speed Data

扇区1

扇区2

扇区3

WIFI offload 3G data —— Add in hotspot

or hot-zone in the 3G sector coverage edge

or the high speed data required or large user

capacity required area

China Mobile 2009 to 2010

16.74%

13.70%

12.17%

10.65%9.13%

7.61%

3.52%

3.15%

2.96%2.78%2.59%

2.22%

1.67%

1.30%

1.11%8.70%

Fit AP with 500mW Azalea

Hong

haoJing xin

Zhong

taiGuo ren

Hong xin

Da Tang

32.26%

25.81%

22.58%

19.35%

Fat AP with 500mW

Xin

youtongAzalea

Honghao

Da Tang

• Azalea won number one share (16.74%) for Fit AP with 500mw

• Azalea won number two share (22.58%) for Fat AP with 500mw

• Current market share Azalea has in China Mobile • About 30% of Hunan province• About 25% of Henan mobile• About 40% of Helongjiang

mobile• About 20% of Yunnan mobile

• From April, total CMCC shipment reach about 14,000 APs

Fully integrated indoor and outdoor solution

Single network

management

Total indoor and

outdoor coverage

Fully roaming

capability

Wireless Broadband, any where any time.

Full city coverage

Fast deployment

Full mobility

supported