David Ambrose Federal Business Manager, Comstor

1. Welcome to the “Federal Government – IT Security Opportunities and Cisco Systems” Tele Trackhosted by:ComstorFor the audio portion of this event, please call:1-877-522-7671 David Ambrose Federal Business Manager, Comstor

2. Conference Features • Questions • To send a text question to the presenter, type your question in the “To ask the presenter a question” field and click “Ask”. • Please hold all audio questions until the end. • All questions will be answered following our last presentation. • Downloading Presentations • During a featured presentation, you may obtain a PDF version by clicking “File” ￫ “Print to PDF” within Microsoft Live Meeting. • All presentations featured in this Tele Track will be available for download following the conclusion of today’s conference. • A recording of the conference will be available tomorrow morning. • An e-mail will be sent out to all participants with the presentation URL following the conference.

3. Today’s Agenda • David Ambrose, Comstor Federal Business Manager • Corporate overview • Market overview • Comstor’s support capabilities • Hardy Stanley, Cisco AT Security Channel Account Manager • Cisco security addressable market • Cisco solutions and programs • Rick Reid, Comstor AT Security Product Manager • Comstor security programs

4. Overview • World’s largest “convergence networking only” channel provider • Vendor-focused distribution strategy • Industry leader of branded, value-added services and support programs • Worldwide headquarters in Tarrytown, NY, U.S., Chantilly, Va is US headquarters • Presence on every continent with 1,200 people strong

5. Complementary Products Network Support • ADTRAN • APC • Avaya • Enterasys • NSI Software • Packeteer • PowerDsine • Symbol • Tripp Lite Wireless • Enterasys • LightPointe • Motorola • Proxim • SpectraLink • IP Telephony • 3Com • ADTech • Avaya • GN Netcom • NICE Systems • SpectraLink • Veramark • Security • e-Watch • Enterasys • netForensics • Radware • RSA Security • Tripwire Storage • LeftHand Networks

6. Comstor’s Sales Organization • Professional sales team • Organization exclusively focus is on Cisco and Cisco complementary vendors • Organizational structure maps to Cisco’s channel teams • Comstor sales and sales support reps hold the following: • Cisco Product Solutions Essentials Certification (CSE) • Enterprise Sales Expert Certification • AVVID Sales Expert Certification • Security Sales Expert Certification • Cisco Service Expert Program • No Requirement for a 1-800 Tech Support Number!

7. Business Intelligence and Support • Vertical MarketsProfit-producing vertical market support in government, education and healthcare • TrainingBranded, vital training programs in more formats than any other distributor • Marketing ServicesCustomer marketing services for awareness and lead generation

8. Customer Marketing Services • Full-service production and consulting capabilities that can augment customer’s services, or serve as primary support. We can be involved as little or as much as they like - the choice is theirs! • New technologies: • web site design • banner advertising • mini-web promotions • online lead generation and survey forms • Traditional media: • direct mail • print advertising • corporate literature • Additional services: • teleconferences • telemarketing and more... • multi-media promotions and displays • email messaging • presentation templates • promotional and corporate merchandise • public relations

9. Logistical Strengths • Staging • Same day integration, testing and shipping • Identifies problems and reduces RMA’s • Saves on shipping costs • Inventory Management • Project-oriented, guaranteed inventory availability • Build and hold - Provides complete integration and immediate availability • Reseller-owned inventory stocking, tracking and handling • Private Labeling • Asset Tagging – UID compliance • Reseller’s logo on packing slips/blind drop-shipments • Custom Bundling Solutions • Bundling multiple products and services under a single SKU • Streamlines ordering and fulfillment process

10. State-of-the-art E-Commerce • Place and track orders on-line • View product availability • View pricing • Multiple price schedules allowed • Customized by Account Manager • Deal specific/competitive pricing available • Obtain proof of delivery information • Obtain serial numbers • Print detailed copies of their invoices • On-line customer RMA requests • Future enhancements • Automatic push info to customer (i.e. order notifications, B/O reports) • Enhance user customization via “My profile”

11. 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. Highest growth out of the sectors. • FY2002 - $49 B • FY2003 - $58 B • FY2005 – $62 B • FY2007 Estimate - $72 B • No shortage of potential customers • 85,000 public purchasing authorities • 17 million end users

12. 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 scoresOne Third of federal agencies-including the Departments of Energy, Justice, HHS, Interior, State and Homeland Security flunked the latest government wide computer security report card. D+ Government Report Card

13. 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.

14. Driving Opportunities “Implementation of E-Government is important in making Government more responsive and cost-effective.” • 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. • GAO – Major systems not secured, No funding

15. 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 • OMB • HLS • Wireless • $4 B in 2004 to $5.2 B in 2006 Data provided by FSI

16. Comstor’s Federal Edge Program • The purpose of the Comstor Federal program is to provide our reseller partners with the market intelligence, guidance, training, support, vehicles, products, and professional services that they need to be successful in this growing $62 Billion IT marketplace!

17. Federal Consulting and Training • Consulting and Strategic Planning: • Guidance into leading technology based market opportunities that match your capabilities or strategic focus • Federal 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 Federal market • Manufacturer Federal related programs and focus • Sales, technical and certification programs

18. Bid & Proposal Support • Lab usage for live test demos or proof of concept • Vendor demo programs • Liaison to appropriate vendor representative • Letter of Supply • Flow downs – where applicable • Certified personnel to ensure your demonstration as a responsive and responsible bidder • Qualification’s and past performance • Capabilities

19. 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 • Federal organization charts, which cover 21,000 civilian departments, bureaus and agencies • Leads: • Tracking of end user opportunities from inception

20. SDB-8a Program • Bringing the status resellers to the Governments Diversity requirements. • Providing the Government with not only status companies, but with certified and specialized companies. • For Prime Contractors, Comstor's Diversity program can team you with SDB-8a partners by classification and or technical focus to meet your small business plan requirements • Offer incentives to help with credit, pricing and marketing efforts • Augment your existing resources and capabilities • Pursue new market opportunities • Provide access to Comstor’s GSA Schedule and lead-generation sources

21. GSA Schedule Holder & Sponsor • We hold our own GSA schedule – Moved up to number 11 on the elite GSA Top 20 list • Participating manufacturers: • Cisco Check Point Radware • Avaya Nokia RSA • Blue Coat Enterasys NSI Software Tripwire PowerDsine APC • Proxim Comstor Professional Services

22. GSA Attractiveness • GSA Multiple awards are replacing full and open competitions • GSA constitutes 31% 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.

23. Thank You • Comstor can support you in the generation and development of Federal market opportunities, as well as the execution of your Federal business. • Contact David Ambrose 800-955-9590 ext 5195, dambrose@westcongroup.com for any and all questions