Vertical Networks Announces Voice/Data Convergence Roadmap; Five-Phase Strategy Details a Smooth, Flexible Migration Path to Fully Integrated Voice/Data Networks - Company Business and Marketing

Cambridge Telcom Report, April 24, 2000

Vertical Networks, Inc., the leading provider of Integrated Communications Platforms (ICPs), Monday announced a five-phase Convergence Roadmap for companies planning their migration from today's separate voice/data networks to fully converged, IP-based networks. The Roadmap shows how voice and data communications networks will evolve and how they will scale as providers implement IP-based voice and data services, and it helps companies to plan their equipment investments, migration timetables, and application deployments during the migration period.

Vertical Networks ICP Convergence Roadmap includes five phases. The introduction of the InstantOffice TM system in 1998 marked Phase 1, the convergence of voice and data platforms and management systems. Phase 2, access convergence, supported by Vertical Networks since June 1999, provides integrated broadband access for both voice and data. Vertical Networks introduced Phase 3, the convergence of voice and data services, with Voice over IP (VoIP) in December 1999. The next phase is application convergence; the InstantOffice 3500 and 5500 platforms introduced in April 2000 are fully application-ready. The final phase, end-to-end convergence, will unify voice, data, and communications applications services on one IP-based network.

The Convergence Strategy traces the major steps leading to full voice/data network convergence and shows how Vertical Networks is uniquely positioned to offer a rational path to convergence. The InstantOffice, the world's first ICP, allows businesses to choose the voice, data, and application services they need today as well as plan for future needs. The InstantOffice offers a wide variety of communications solutions, including PBX, a voice mail system, a multiprotocol router, a 10/100 switched hub, a voice over IP (VoIP) gateway, and applications. All features are remotely manageable via a Web-based interface and support SNMP. In addition, the system supports a variety of WAN access types--T1, Frame Relay, ISDN, Digital Subscriber Line (DSL), 56/64K DDs, and analog lines.

"Voice/data convergence is inevitable because a single, multiservice network eliminates redundant functions, enables centralized management, and lowers costs," said Matthew Howard, vice president of marketing at Vertical Networks. "Our corporate focus from the beginning has been to provide integrated communications platforms, and the Convergence Roadmap shows how companies can use our InstantOffice products to migrate to converged networks while adding new services."

Vertical Networks has been implementing its convergence strategy since its first InstantOffice products were introduced in 1998.

"Vertical Networks is a leader in the market for ICPs at the customer premises," said Ter Bracco, an analyst at Current Analysis, "and this roadmap outlines an effective strategy for migrating from today's largely separate networks to full voice/data convergence."

Phase 1: Platform and Management Convergence

The first step along the convergence path is to integrate standard voice and data services in a single platform. In Phase 1 of the Convergence Roadmap, customers begin replacing multiple, hard-to-manage network platforms (e.g., routers, PBXs, remote access servers, etc.) in remote offices with one integrated solution, thus simplifying overly complex environments. Voice and data traffic are still carried on separate wide area networks (WANs), while the company maintains its current WAN and telephone services, and other legacy equipment as needed.

Vertical Networks' InstantOffice System, introduced in October 1998, was the first ICP to support this phase by providing Public Switched Telephone Network (PSTN) and data network connections, high-bandwidth Internet connectivity, and a single Web-based management interface in a low-cost device.

Phase 2: Access Convergence

Once voice and data networks are physically integrated in a single platform, the next step is to support integrated broadband access. Access convergence allows customers to save money on their physical WAN connection costs by transmitting all of their traffic over one broadband service line. The InstantOffice system expanded access options in June 1999 to include DSL.

Phase 3: Service Convergence

With network access and physical convergence achieved, the next phase converges voice and data services over IP, including virtual tie lines, enterprise tie lines, voice mail networking, and Voice-over-IP (VoIP). In this phase, users can move from simply transmitting all of their traffic over the same physical link to encapsulating all of their traffic into the same protocol (IP) for transmission. By delivering a broad array of services through the same platform, companies avoid the complexities and expense of using different providers and different devices to deploy these services. Unlike other systems that require an external gateway between the PBX and router to handle VoIP, Vertical Networks' InstantOffice ICP provides direct conversion between telephones and IP trunks, eliminating the need to configure multiple devices. The InstantOffice platform has supported VoIP since December 1999 and was also the first VoIP gateway to provide dynamic support for both H.323 and Media Gateway Control Protocol (MGCP) call-control signaling.