Comstor’s vertical focus

1. Comstor’s vertical focus

2. The Comstor Value Proposition: The Comstor Approach to Vertical Market Penetration Industry 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

3. The Government Edge Program 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!

4. 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 B FY2003 - $58 B FY2004 - $60 B FY2005 - $62 B FY2007 Estimate - $72 B No shortage of potential customers • 85,000 public purchasing authorities • 17 million end users

5. 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 B CY2005 - $49.5 B CY2006 - $51 B CY2007 - $57 B CY 2008 - $59 B CY 2009 - $64 B Source - FSI

6. 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 Card D+

7. Driving Opportunities 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.

8. Driving opportunities E-Government Act of 2002 Strategy includes Improving cyber security: Desktop, data, applications, networks, threat and vulnerability-focused, business continuity, and privacy protection. Goals include Major IT systems are certified, accredited, or otherwise authorized as being properly secured. “Implementation of E-Government is important in making Government more responsive and cost-effective.”    

9. Government technology requirements Convergence $13 B in 2004 to $16.2 B in 2007 68% Voice and data circuits 13% Professional services 12% Network services 6% Communication equipment 1% Wireless Security $5.6 B in 2004 to $7.1 B in 2009 Fueled by recent events HLS OMB Wireless $4 B in 2004 to $5.2 B in 2004 Data provided by FSI

10. Government Consulting and Training • 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

11. Bid and Proposal Support • 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

12. Contacts and Leads 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

13. GSA Schedule Holder and Sponsor: We hold our own GSA schedule – We are currently ranked 11th on the elite GSA Top 20 list Participating manufacturers: Cisco Check Point RSA Security Symbol Nokia Blue Coat Proxim Radware NSI Software PowerDsine Enterasys Fortinet APC Comstor Professional Services

14. 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.

15. 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

17. Primary Education in America is Connected 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 telephones source: NCES 2004-011 January 2004

18. Two Conditions Driving Sales to Schools 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 The average school building in America is 47 years old 73% have had a major renovation 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”

19. Minutes to Repair Security Breaches(IT Minutes Per Incident) Source: IDC School Networks and Security Challenges • 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?)

20. CIPA-The Children’s Internet Protection Act 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

21. Physical Security Solutions for Schools Who’s entering the buildings? 24/7 Security on all Campus trails One console - and the answers are yours What happened in the parking lot ?

22. The Post Secondary Market in America 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

23. Where is University Construction Money Spent? Classrooms & Dorm Rooms account for 37% of all University Construction

24. University Construction and Renovations Construction Expenditures in Millions of Dollars

25. Renovation Dollars Spent in 2003

26. 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 Education Selling Opportunities Smarter Edge - Where Education (and Opportunity) Begins

28. Healthcare is 1/7 of the GNP of America

29. Understanding the HIPAA Opportunity Healthcare Insurance Portability & Accountability Act Public Law 104-191 Based on the Kennedy-Kassebaum bill Compliance 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.

30. HIPAA Regulations Fall Into 5 Main Groups 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

31. Who Is Affected By HIPAA Regulations? • Providers • Hospitals, medical groups, physicians’ LLPs, clinics, emergency care • facilities, teaching universities as well as others • Health Plans processing of health information • Other Entities • Plans that provide for or pay for medical care Employers that self-insure • Clearinghouses Public or private organizations that process or facilitate health care services Employers that want to utilize medical information for data mining Pharmaceutical companies conducting clinical research • Departments within an affected Organization can include: • Marketing Legal/Compliance Risk Management Customer Service • Enrollment Internal Audits Reimbursement Accounting/Finance • Claims Processing Human Resources Research Information Technology • Security Record Keeping Contract Compliance Utilization Management • Quality Management Facilities Management Underwriting Provider Contracting

32. What’s Driving Industry Compliance? Statutory Penalties Standards: 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 Savings Reduction in processing costs Simplification of manual processing Improved Customer Service Fewer errors Quicker turnaround E-commerce Implementation

33. Channel Development

34. Dedicated Government Market Resources 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

35. 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

36. Market Overviews and End User Presentations http://www.comstor.com

37. http://www.comstor.com/smarteredge

38. Government POC’s and Leads 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

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

40. Identify Construction & Renovation Opportunities Where tomorrow’s schools will be built Who is designing them Who is building them Who is writing the bid specifications Get in on the design stage of the project…... where YOU can control the bid specs

41. The Comstor Value Proposition: The Comstor Approach to Vertical Market Penetration Industry 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

42. Where Can I Go For Further Help? David Ambrose BDM - Vertical Markets Westcon Group North America 14850 Conference Center Drive Chantilly, VA 20151 800-511-7296 dambrose@westcongroup.com Ronald Sheps BDM - Vertical Markets Westcon Group North America 520 White Plains Road Tarrytown, NY 10591 888-612-7331 rsheps@westcongroup.com