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Comstor’s vertical focus

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The Comstor Approach to Vertical Market PenetrationIndustry Expertise Well established Comstor vertical edge programs Strong industry association affiliation and participation Government agency expertise Connecting partners with established end-users

Partner Services Trade show representation Lead generation services Solutions based proposals Training via classroom, web and teleconference One stop reference and lead center via the Comstor web site End-user and reseller presentations to drive demand Seminar-in-a-Box presentations for partners

Helping Close the Business – With Services to Help Revenue Growth Special pricing and financing Industry leading million dollar plus demo rooms for hands on demonstrations Strong pre-sales and post-sales support from design to installation to staging to financing Participation in our industry leading GSA program

The Comstor Value Proposition:The Comstor Value Proposition:

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The purpose of The Government Edge program is to provide our reseller partners with the market intelligence, guidance, support, vehicles, products, and services that they need to be successful in this growing $111 Billion IT marketplace!

The Government Edge Program

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Trends in Federal IT Spending

Over the next four years, it is anticipated that the Federal government will spend in excess of a quarter trillion dollars on IT.

FY2002 - $49 BFY2003 - $58 BFY2004 - $60 BFY2005 - $62 B

FY2007 Estimate - $72 B

No shortage of potential customers 85,000 public purchasing authorities 17 million end users

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Trends in State and Local IT Spending

Over the next four years, it is anticipated that State and Local government’s will spend in excess of $200 Billion dollars on IT.

CY2004 - $47 BCY2005 - $49.5 BCY2006 - $51 BCY2007 - $57 BCY 2008 - $59 BCY 2009 - $64 B

Source - FSI

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House panel has given the government an overall “D+” mark for lax protection of federal computer networks against hackers, terrorists and others. “D+” grade increased from an “D-” grade received last year and a F grade the year before that.

Agriculture, Commerce, Energy, Health and Human Services, Housing and Urban Development and Veterans Affairs joined DHS in receiving failing scores for the latest government wide computer security report card.

Government Report CardD+D+

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Federal Information Security Management Act (FISMA)

The head of each agency shall be responsible for providing information security protections commensurate with the risk and magnitude of the harm resulting from unauthorized access, use, disclosure, disruption, modification, or destruction of information collected or maintained by or on behalf of the agency and information systems used or operated by an agency or by a contractor of an agency or other organization on behalf of an agency.

Driving Opportunities

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E-Government Act of 2002

Strategy includesImproving cyber security:

Desktop, data, applications, networks, threat and vulnerability-focused, business continuity, and privacy protection.

Goals includeMajor IT systems are

certified, accredited, or otherwise authorized as being properly secured.

Driving opportunities

“Implementation of E-Government is important in making Government more responsive and cost-effective.”    

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Government technology requirements

Convergence$13 B in 2004 to $16.2 B in 2007

68% Voice and data circuits13% Professional services 12% Network services6% Communication equipment1% Wireless

Security$5.6 B in 2004 to $7.1 B in 2009

Fueled by recent eventsHLS

OMBWireless$4 B in 2004 to $5.2 B in 2004

Data provided by FSI

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•Consulting and Strategic Planning:• Guidance into leading technology based market opportunities that match your capabilities or strategic focus• Government business planning sessions including business continuity solutions• Manufacturer table top program• Linking and mapping to appropriate vendor end user account managers

Training:• How to sell to the Government market• Manufacturer Government related programs and focus• Sales, technical and certification programs

Government Consulting and Training

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•Lab usage for live test demos or proof •of concept•Qualification’s and past performance•capabilities•Professional Services technical responses•Certified personnel to ensure your demonstration as a responsive and responsible bidder•Financing Programs

Bid and Proposal Support

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End User Contact Database:• Over 395,000 government decision-makers and key staff at the federal, state and local levels

• Biographies of all executive and key level members of government, federal and state organization charts

• Organization charts cover more than 2,000 headquarters and command level DoD offices, with an emphasis on research and development areas and program management

• Approximately 80 defense companies, with their divisions and subsidiaries

• Government organization charts, which cover 21,000 civilian departments, bureaus and agencies

Leads:• Tracking of end user opportunities from inception

Contacts and Leads

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We hold our own GSA schedule –

We are currently ranked 11th on the elite GSA Top 20 list

Participating manufacturers:Cisco Check Point RSA SecuritySymbol Nokia Blue CoatProxim Radware NSI SoftwarePowerDsine Enterasys FortinetAPC Comstor Professional Services

GSA Schedule Holder and Sponsor:

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GSA attractiveness

• GSA Multiple awards are replacing full and open competitions• GSA constitutes over 33% of total IT spending• Benefits

– GWAC vehicle– Decreased procurement timelines– Fast implementation of tech solutions– We manage and administer– BPA and teaming opportunities– Cooperative Purchasing

• 50 states• 3,139 counties• 19,365 incorporated municipalities• 30,386 minor subdivisions• 3,200 public housing authorities• 14,178 school districts• 1,625 public educational institutions• 550 Indian tribal governments.

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Comstor’s Value When Targeting the Government

•Experts in the Government Market•Started the Federal Channel for Cisco•Inventory - forecasted, allocated product relief•Credit – specialized to accommodate Government paying cycle•Staging, integration and installation •Asset tracking compliance - UID•Training's•Consolidate channel•Minimize penalties for missed deadlines•GSA schedule- over 30% of Government IT purchases are acquired through the schedule•Leads and POC database

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There are 119,235 K-12 Schools in the US

Public – 91,833

Private - 17,410

Religious - 9,992

99% of them are now connected

92% of all “instructional rooms” are connected

City Schools 88%

Towns 96%

Rural Areas 93%

There are now more classrooms with Internet access than telephonessource: NCES 2004-011 January 2004

Primary Education in America is ConnectedPrimary Education in America is Connected

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Of the 119,235 K-12 Schools in the US:

5,000 are currently under renovation

1,800 new schools are being built each year

1,200 to replace those falling down

600 new schools is the current “rate of growth”

Two Conditions Driving Sales to SchoolsTwo Conditions Driving Sales to Schools

The average school building in America is 47 years old 73% have had a major renovation

22% of all US Public Schools are legally overcrowded

8% of all US Public Schools are severely overcrowded

Public School enrollment in 2006 to hit an all time high of 44.4 million students

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– New threats are mounted daily – Qualified IT staff is difficult to recruit/retain – Extranets dramatically increase complexity– Internet services continue to evolve– Most security breaches are internal! – Breaches are costly and time consuming– (Sounds familiar, doesn’t it?)

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85

124

0 50 100 150

Internal Hacking

External HackingVirus Infection

Minutes to Repair Security Breaches

(IT Minutes Per Incident)

Source: IDC

School Networks and Security ChallengesSchool Networks and Security Challenges

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School & Library Internet Filtering Mandated by Law - HR 4577

All Public Schools must filter content against pornography

All Public School Libraries filter content against pornography

Schools must be in compliance by October 2004

Schools not in compliance with CIPA will lose all Federal Funding

CIPA-The Children’s Internet Protection ActCIPA-The Children’s Internet Protection Act

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Who’s entering the buildings? 24/7 Security on all Campus trails

What happened in the parking lot ? One console - and the answers are yours

Physical Security Solutions for SchoolsPhysical Security Solutions for Schools

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4 Year Colleges 2309– Public 615– Private,non-profit 1528– Proprietary 166

2 Year Colleges 1755– Public 1755– Private,non-profit 179– Proprietary 484

Community Colleges 1132– Public 968– Private 137– Tribal 27

(* times the # of campuses & departments)

All Other Institutions 5568 Public 545 Private, non-profits 1101 Proprietary 3992

The Post Secondary Market in AmericaThe Post Secondary Market in America

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16%

16%

4%8%31%

21%

4%

Multi Use Residential Science

Athletic Other Classroom

Student Union

Classrooms & Dorm Rooms account for 37% of all University Construction

Where is University Construction Money Spent? Where is University Construction Money Spent?

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0

2

4

6

8

10

12

14

16

18

20

'98 '99 '00 '01 '02 '03

New Buildings

Total College

University Construction and RenovationsUniversity Construction and Renovations

Construction Expenditures in Millions of Dollars

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Retrofit Performed Schools Colleges

ADA Compliance 39% 51%

Carpeting 33% 57%

Electric 49% 73%

Flooring 41% 67%

HVAC 52% 63%

Indoor Air Quality 15% 26%

Lighting 47% 69%

Painting 41% 73%

Plumbing 35% 62%

Roofing 30% 32%

Security/Life Safety 24% 41%

Technology Infrastructure 32% 58%

Windows/Doors 41% 50%

Renovation Dollars Spent in 2003Renovation Dollars Spent in 2003

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Convergence Issues– The initial basic network connection

(still > 250,000 classrooms to go!)– More network connections than

phones

Wireless Issues– make every room a lab– free a lab to reduce overcrowding– staff has “always on” connection

Security Issues– Data security– Physical security

Web Sites for Schools– attendance– homework– grades

Communication Issues– Early dismissals– Fund Raising/Charity events

Fiscal Responsibility– Band Width Management– Man Power issues– And More

Smarter Edge - Where Education (and Opportunity) Begins

Education Selling OpportunitiesEducation Selling Opportunities

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Healthcare is 1/7 of the GNP of AmericaHealthcare is 1/7 of the GNP of America

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Healthcare Insurance Portability & Accountability ActPublic Law 104-191Based on the Kennedy-Kassebaum billCompliance required by 04/23/2003

As required by HIPAA, the final regulation covers health plans, health care clearinghouses,and health care providers that conduct certain financial and administrative transactions electronically.

Within HIPAA, HHS published standards for privacy of individually identifiable health information - The HIPAA Privacy Rule. This was finalized December 28, 2000 and goes into affect for most providers in April 2004* . This rule tightly regulates how patient information can be used, shared and transmitted. Utmost priority is given to protecting patient’s privacy, and steep fines will be levied for non-compliance.

Understanding the HIPAA OpportunityUnderstanding the HIPAA Opportunity

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Administrative Security Includes security certification and contingency planning, information access control, internal audits, security configuration management, security incident procedures, & security management processes

Physical Security Includes media controls, physical access controls, secure workstation use and availability, and end user security awareness

Technical Security Measures Includes access & audit controls, authorization controls, and entity authentication

Electronic Transmission Includes communication and network controls

Electronic Signature Digital signatures to provide user authentication and non-repudiation

HIPAA Regulations Fall Into 5 Main GroupsHIPAA Regulations Fall Into 5 Main Groups

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Providers Hospitals, medical groups, physicians’ LLPs, clinics, emergency care facilities, teaching universities as well as others

Health Plansprocessing of health information

Other Entities Plans that provide for or pay for medical careEmployers that self-insure

ClearinghousesPublic or private organizations that process or facilitate health care services Employers that want to utilize medical information for data miningPharmaceutical companies conducting clinical research

Departments within an affected Organization can include: Marketing Legal/Compliance Risk Management Customer ServiceEnrollment Internal Audits Reimbursement Accounting/FinanceClaims Processing Human Resources Research Information TechnologySecurity Record Keeping Contract Compliance Utilization ManagementQuality Management Facilities Management Underwriting Provider Contracting

Who Is Affected By HIPAA Regulations?Who Is Affected By HIPAA Regulations?

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Statutory PenaltiesStandards: Up to $25,000 per violation per year

1000 names given to a telemarketer = $25,000,000 in fines!

Wrongful disclosure: Up to $250,000 and 10 years in prison

Cost SavingsReduction in processing costs

Simplification of manual processing

Improved Customer ServiceFewer errors

Quicker turnaround

E-commerce Implementation

What’s Driving Industry Compliance?What’s Driving Industry Compliance?

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Channel Development

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Government focused BDM

Division sales staffs focused on Government markets

Dedicated Government marketing personnel

Dedicated Government programs staff

Links into vendor Government market programs

SDB-8a program

Dedicated Government Market Resources

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ROI Tools For Making Your Case

Interested in entering the Education space?

– White Paper

Need tools to grow your existing Education practice?

– ROI Tool– Resources– Comstor Website– Solution Demo

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http://www.comstor.com

Market Overviews and End User PresentationsMarket Overviews and End User Presentations

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http://www.comstor.com/smarteredge

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End User Contact Database:Over 395,000 government decision-makers and key staff at the federal, state and local levels

Biographies of all executive and key level members of government, federal and state organization charts

Organization charts of more than 2,000 headquarters and command level DoD offices

Leading defense companies, with their divisions and subsidiaries

Federal organization charts, which cover 21,000 civilian departments, bureaus and agencies

SDB-8a Program: Provide guidance and support to pursue new market opportunity Professional Services to augment your existing resources Extend your geographic reach nationally and internationally For large integrators, Our referral program can team you with

SDB-8a partners by classification and or technical focus

Government POC’s and Leads

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http://www.comstor.com/smarteredge/leads_request.asp

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Identify Construction & Renovation Opportunities

Where tomorrow’s schools will be builtWho is designing themWho is building themWho is writing the bid specifications

Get in on the design stage of the project…...

where YOU can control the bid specs

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The Comstor Approach to Vertical Market PenetrationIndustry Expertise Well established Comstor vertical edge programs Strong industry association affiliation and participation Government agency expertise Connecting partners with established end-users

Partner Services Trade show representation Lead generation services Solutions based proposals Training via classroom, web and teleconference One stop reference and lead center via the Comstor web site End-user and reseller presentations to drive demand Seminar-in-a-Box presentations for partners

Helping Close the Business – With Services to Help Revenue Growth Special pricing and financing Industry leading million dollar plus demo rooms for hands on demonstrations Strong pre-sales and post-sales support from design to installation to staging to financing Participation in our industry leading GSA program

The Comstor Value Proposition:The Comstor Value Proposition:

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David AmbroseBDM - Vertical Markets

Westcon Group North America14850 Conference Center Drive

Chantilly, VA 20151800-511-7296

dambrose@westcongroup.com

Ronald ShepsBDM - Vertical Markets

Westcon Group North America520 White Plains RoadTarrytown, NY 10591

888-612-7331rsheps@westcongroup.com

Where Can I Go For Further Help?Where Can I Go For Further Help?