This presentation discusses opportunities for hybrid VSAT/DSL networks to provide managed network services for enterprises. Nearly ubiquitous DSL coverage exists today in the US, providing low-cost broadband but often unmanaged connectivity. Hybrid networks using VSAT as a backup or for additional burst capacity can provide reliable, managed connectivity to address growing application bandwidth needs where high-speed DSL coverage may be limited. Gilat's Prysm Pro appliance allows providers to customize managed network services across terrestrial and satellite links through centralized configuration, monitoring and control. Case studies demonstrate how Prysm Pro has enabled managed network services for enterprises like Regis across thousands of retail locations.
1. Confidential and proprietary information
This presentation constitutes proprietary and confidential information of Gilat Satellite Networks Ltd. This presentation may
not be disclosed, used or duplicated, in whole or in part, without the prior written consent of Gilat Satellite Networks Ltd.
Oferta de serviços gerenciados sobre redes
híbridas VSAT/DSL
Vicente Barsted - 30 de Novembro de 2010
VSAT Day 2010
2. Confidential and proprietary information
Forward-Looking Statements
This presentation contains forward-looking statements that are subject to a number of risks and uncertainties, many of
which are outside our control. These forward-looking statements include statements about our business strategy,
objectives, and expectations, our future operating results, projections of capital expenditures, competitive pressures,
revenues, growth prospects, product development, financial resources and other financial matters. The inclusion of
forward-looking statements should not be regarded as a representation by us that any of our plans will be achieved. Actual
results may differ materially from those set forth in this presentation due to the risks and uncertainties inherent in our
business including, without limitation, slower than anticipated growth in the wireless communications markets; failure to
win or maintain large-scale contracts; difficulties or delays in developing, producing and marketing new products,
applications and services; competition from other network communications companies; our ability to control our expenses;
and other risks detailed in the “Risk Factors” section of our latest Annual Report on Form 20-F.
You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.
All forward-looking statements are qualified in their entirety by this cautionary statement and we undertake no obligation
to revise or update information herein to reflect events or circumstances after the date hereof.
Information regarding market and industry statistics contained in this presentation is based on information available to us
that we believe is accurate. It is generally based on industry publications and reports that are not produced for purposes of
securities offerings or economic analysis.
Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the
reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new
information becomes available in the future.
3. Confidential and proprietary information
Gilat at a Glance
~1000 employees worldwide
1987, public since 1993 (NASDAQ:GILT)
16 offices worldwide
Networks in 85 countries
Annual revenue 2009: $228M
Strong free cash position: $155M
A leading global provider of broadband satellite
communications, networking products and services,
focused on:
Commercial SATCOM (enterprise & government)
Defense and HLS (DoD and International)
Our business:
Employees:
Founded:
Presence:
Financials:
3
4. Confidential and proprietary information
Worldwide Presence
16 Offices
430 Networks
90 Countries
Over 780,000 VSATs
5. Confidential and proprietary information
Acquisition of Raysat Antenna Systems –
leader in low-profile SOTM antennas
Signed agreement to acquire Wavestream –
leader in SSPA technology
Recent Announcements
6. Confidential and proprietary information
Enterprise VSAT Market
Our perspective to the future of the Enterprise VSAT
market:
6
Is there an oasis or is it a mirage?
7. Confidential and proprietary information
Past, Present and Future
7
Legacy Enterprise
Market
Present US
Enterprise Market
Future Enterprise
Market
8. Confidential and proprietary information
Legacy Enterprise Market
Large enterprises requiring ubiquitous connectivity
All branches using the same applications
US market has historically led this segment
Many large enterprises
Fragmented telco coverage
VSATs provide primary communications for ubiquitous coverage
8
9. Confidential and proprietary information
DSL Availability Today - US
Almost ubiquitous coverage
is provided by DSL!
Throughput <3Mbps
$15-$30/Mbps/month
US Wire-line broadband availability and
adoption (in households)
10. Confidential and proprietary information
Broadband Availability - Brasil
10
Fonte: SICI (Anatel) considerando-se o atendimento por operadoras de SCM com as
tecnologias xDSL, Cable Modem,
Fonte: Operadoras e Teleco, não inclui dedicado
49,90%
63,50% 63,50%
68,20%
82,40%
86,90% 86,90% 87,90%
3T09 4T09 1T10 2T10
Cobertura
Municipios População Atendida
10.360 10.754 11.001 11.380 11.790
12.268
12.800
1T09 2T09 3T09 4T09 1T10 2T10 3T10
Conexões
Nota: Números não contabilizam conexões IP dedicadas (mercado corporativo), acessos via satélite e acessos 3G.
11. Confidential and proprietary information
Managed Network Services is
Big and Growing
MPLS
Major growth in managed layer 2
connectivity
Throughput 100’s kbps – 100’s Mbps
US Market: $50-$100/Mbps/month
L2 IP MPLS VPN Revenue (Worldwide)
12. Confidential and proprietary information
Enterprise Market Migrate to DSL/MPLS
High end: MPLS covering 100% of the US
Expensive
Low end: DSL, covering >90%
Lower priced than satellite, but still unmanaged
Provided by multiple carriers (in the US)
VSATs provide backup for high availability and managed network
12
13. Confidential and proprietary information
Near Future Needs and Solutions
New applications requiring additional bandwidth
Limited service coverage of High Speed DSL (DSL2)
VSAT combined with low-speed DSL could bridge the DSL2 gap
Additional burst throughput
Increase service uptime
13
14. Confidential and proprietary information
Prysm Pro
To address the market of backup and managed network
services, more than a VSAT network tool is required
Unified appliance provides:
Hybrid connectivity for
prime and backup
Voice and FAX
Wireless extension
Non-IP interfaces
Management of additional network elements
Targeting a market of low-end MPLS-like services and DSL
complement services
14
DSL
VSAT
LAN
WiFi
Serial
Phone Line
3G
15. Confidential and proprietary information
Internet
Terrestrial
Satellite
Hybrid
Network
Customer requirements:
Mix of Cost effective solution -
Hybrid DSL/VSAT solution
Sometimes integration
with legacy non-IP Point-of-Sale
Central management
99.98% service reliability
In the US:PCI DSS
PCI DSS = Payment Card Industry Data Security Standard
Enterprise Case Study
16. Confidential and proprietary information
Regis Case Study
Managed Network Services for over
7000 sites
Technology enabler – PrysmPro
Open VSAT platform
Smart device for management
Technology
Prysm Pro + ATA + Wi-Fi Access Point
+ 3G USB
DSL Primary WAN, 3G Wireless or
dialup as backup
Internet
Terrestrial
Satellite
Hybrid
Network
3G
16
17. Confidential and proprietary information
Regis Case Study - UK
Managed Network Services for over 300
sites
Technology enabler – PrysmPro
Open VSAT platform
Smart device for management
Cloud based service
Service
Vodat prime contractor providing
service and support to Regis UK
NMS servers based in the US and
managed by Spacenet Internet
DSL
17
Birmingham City
3G
18. Confidential and proprietary information
Opportunity for the Enterprise Market
Hybrid VSAT/DSL networks can bridge this new gap
between needs and availability
Additional burst throughput
High availability
Low latency
Broad coverage
Cost effective MPLS-like services
Prysm Pro can provide customizable managed network
services, unified central configuration, monitoring and
control
18
19. Confidential and proprietary information
Gilat Satellite Networks
Spacenet focuses on being a Managed Service Provider
with advantages that pure terrestrial players have a very
hard time to see
Gilat provides solutions that enable service providers to
provide Managed Network Services, beyond just IP
connectivity