2011 South African Data Centre Green Excellence Award in Technology Innovation Cybernest

© 2011 Frost & Sullivan 1 “We Accelerate Growth”

2011 Global Gigabit Ethernet Test Equipment

Customer Value Enhancement Award

2011

BEST PRACTICES RESEARCH

© 2011 Frost & Sullivan 2 “We Accelerate Growth”

Customer Value Enhancement Award

Gigabit Ethernet Test Equipment

Global, 2011

Frost & Sullivan’s Global Research Platform

Frost & Sullivan is in its 50th year in business with a global research organization of 1,800

analysts and consultants who monitor more than 300 industries and 250,000 companies.

The company’s research philosophy originates with the CEO’s 360-Degree Perspective™,

which serves as the foundation of its TEAM Research™ methodology. This unique approach

enables us to determine how best-in-class companies worldwide manage growth,

innovation and leadership. Based on the findings of this Best Practices research, Frost &

Sullivan is proud to present the 2011 Global Customer Value Enhancement Award in

Gigabit Ethernet Test Equipment to VeEX Inc. (VeEX).

Significance of the Customer Value Enhancement Award

Key Industry Challenges

Budget constraints due to the economic slowdown have acted as a deterrent to growth in

the Ethernet Test Equipment market. In order to address this challenge, companies must

offer testing services of higher value in terms of pricing and quality.

Moreover, in regions such as Asia, the market has seen price pressure due to the

emergence of low-cost products. Therefore, in order to be successful in the market,

participants will have to develop products that directly cater to market requirements while

creating enhanced value for customers by addressing their unmet needs. Test equipment

vendors will also have to ensure that they stay ahead of the competition in terms of

introducing new products and ensuring rapid return on investment for customers.

Impact of the Customer Value Enhancement Award on Key Stakeholders

The Customer Value Enhancement Award is a prestigious recognition of VeEX’s

accomplishments in the Gigabit Ethernet Test Equipment space. An unbiased, third-party

recognition can provide a profound impact in enhancing the brand value and accelerating

VeEX’s growth. As captured in Chart 1 below, by researching, ranking, and recognizing

those who deliver excellence and best practices in their respective endeavors, Frost &

Sullivan hopes to inspire, influence, and impact three specific constituencies:

• Investors

Investors and shareholders always welcome unbiased and impartial third-party

recognition. Similarly, prospective investors and shareholders are drawn to

companies with a well-established reputation for excellence. Unbiased validation is

the best and most credible way to showcase an organization worthy of investment.

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© 2011 Frost & Sullivan 3 “We Accelerate Growth”

• Customers

Third-party industry recognition has been proven to be the most effective way to

assure customers that they are partnering with an organization that is leading in its

field.

• Employees

This Award represents the creativity and dedication of VeEX’s executive team and

employees. Such public recognition can boost morale and inspire your team to

continue its best-in-class pursuit of a strong competitive position for VeEX.

Chart 1: Best Practices Leverage for Growth Acceleration

Best Practice Award Analysis for VeEX

The Frost & Sullivan Award for Customer Value Enhancement is presented each year to

the company that has demonstrated excellence in implementing strategies that proactively

create value for its customers with a focus on improving the return on the investment that

customers make in its services or products. This Award recognizes the company's

inordinate focus on enhancing the value that its customers receive, beyond simply good

customer service, leading to improved customer retention and ultimately customer base

expansion.

VeEX’s Performance in the Gigabit Ethernet Test Equipment Market

VeEX is a leading provider of advanced test and monitoring solutions to the global

Communications industry. The company has a commendable product portfolio that caters to

the evolving testing needs for next-generation networks and equipment. The key strength

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© 2011 Frost & Sullivan 4 “We Accelerate Growth”

of VeEX lies in its ability to develop products that offer high price-performance value to its

customers. Additionally, the company’s strong focus on customer requirements and its

superior customer support services have enabled VeEX to succeed in this highly dynamic

and competitive market.

Key Performance Drivers for VeEX

Factor 1: Strong Product Portfolio

VeEX offers a strong product line in the Gigabit Ethernet Test Equipment space, with several

products that support 1GigE and 10GigE deployments. The company designs each product

to offer optimum test efficiency at a highly affordable price. Such cost-efficient products and

solutions have enabled VeEX to position itself in the market as a company that offers

maximum price-performance value to its customers. Although the company has several

product lines that enable it to cater to a large number of applications, some of the key

products largely contributing to VeEX’s success include the MX100+, TX130+, CX350,

CX380, MX300, and TX300/e.

Factor 2: Product Line Enhancements

Although VeEX offers a strong and comprehensive product line for the Gigabit Ethernet Test

Equipment market, the company continuously strives to enhance its product portfolio to

meet constantly changing market requirements. Its recent product introductions include the

TX130M+, which was introduced in May 2011. With this product, VeEX meets the Ethernet

synchronization needs in the Mobile Backhaul market. The TX130M+ is a handheld test tool

that validates packet synchronization on mobile backhaul and carrier Ethernet networks.

The unit also supports legacy PDH/DSn technologies and can emulate both master and slave

clocks. Another noteworthy product introduction of VeEX is the CX150-D3, which the

company launched in August 2011. The CX150-D3 is the industry’s smallest portable and

handheld tester that supports 8x4 channel bonding in CATV networks. It incorporates a

DOCSIS 3.0/EuroDOCSIS 3.0 modem, which has the capability to support an upstream data

rate of up to 120Mbps and a downstream data rate of 400Mbps. Utilizing this advanced test

tool, CATV service providers can deploy efficient and fail-safe high-speed internet and other

multimedia services.

Factor 3: Extensive Customer Base and Geographic Coverage

VeEX demonstrates a strong commitment to serving a large section of the Global Gigabit

Ethernet market. The company’s diversified range of products enables it to cater to a

substantial number of applications, such as testing of broadband, CATV networks, Metro

Ethernet, and transport networks. Its customer base comprises approximately 80 to 90

percent service providers, followed by network equipment manufacturers (NEMs), and large

enterprises across the globe. In the 10GigE space, VeEX has been experiencing explosive

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© 2011 Frost & Sullivan 5 “We Accelerate Growth”

growth in the North American market. VeEX has increased its Ethernet revenues

considerably in North America, Europe, and Asia due to the rise in mobile backhaul

deployments. Moreover, with new product introductions in the Ethernet synchronization

space, VeEX is positioned to capture the global mobile backhaul market, as well.

Conclusion

VeEX is a provider of test equipment for various applications such as broadband, CATV,

and transport network testing. The company stands out in the global Gigabit Ethernet Test

Equipment market with its extensive range of products and solutions. The company

displays strong skills in identifying emerging customer requirements and introducing

suitable products to address them. VeEX’s extensive global coverage, combined with its

impressive customer base, makes it the worthy recipient of the 2011 Global Customer

Value Enhancement Award in Gigabit Ethernet Test Equipment.

The CEO 360-Degree PerspectiveTM

- Visionary Platform for

Growth Strategies

The CEO 360-Degree Perspective™ model provides a clear illustration of the complex

business universe in which CEOs and their management teams live today. It represents

the foundation of Frost & Sullivan's global research organization and provides the basis on

which companies can gain a visionary and strategic understanding of the market. The CEO

360-Degree Perspective™ is also a “must-have” requirement for the identification and

analysis of best-practice performance by industry leaders.

The CEO 360-Degree Perspective™ model enables our clients to gain a comprehensive,

action-oriented understanding of market evolution and its implications for their companies’

growth strategies. As illustrated in Chart 5 below, the following six-step process outlines

how our researchers and consultants embed the CEO 360-Degree Perspective™ into their

analyses and recommendations.

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© 2011 Frost & Sullivan 6 “We Accelerate Growth”

Chart 2: CEO's 360-Degree Perspective™ Model

Critical Importance of TEAM Research

Frost & Sullivan’s TEAM Research methodology represents the analytical rigor of our

research process. It offers a 360-Degree view of industry challenges, trends, and issues

by integrating all seven of Frost & Sullivan's research methodologies. Our experience has

shown over the years that companies too often make important growth decisions based on

a narrow understanding of their environment, leading to errors of both omission and

commission. Frost & Sullivan contends that successful growth strategies are founded on a

thorough understanding of market, technical, economic, financial, customer, best

practices, and demographic analyses. In that vein, the letters T, E, A and M reflect our

core technical, economic, applied (financial and best practices) and market analyses. The

integration of these research disciplines into the TEAM Research methodology provides an

evaluation platform for benchmarking industry players and for creating high-potential

growth strategies for our clients.

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© 2011 Frost & Sullivan 7 “We Accelerate Growth”

Chart 3: Benchmarking Performance with TEAM Research

About Frost & Sullivan

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