BROCADE NETWORK SUBSCRIPTION FREQUENTLY ASKED QUESTIONS

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1 FAQ BROCADE NETWORK SUBSCRIPTION FREQUENTLY ASKED QUESTIONS Introduction Brocade helps organizations easily address their information technology requirements by offering flexible, as-a-service network acquisition and support alternatives to meet their financial needs. Brocade Network Subscription complements the existing purchase and lease approaches. Brocade Network Subscription provides a new way for organizations to acquire network infrastructure and align network capacity with their changing business needs. They can now acquire a fully supported cloud-optimized network infrastructure on their terms, without upfront capital investment. Instead, they pay monthly for the network infrastructure they utilize. Brocade Network Subscription does not require multi-year term commitments, and risk is minimal since organizations have the flexibility to expand, contract, or refresh their network infrastructure as required. As a result, organizations now have a network acquisition model that provides the same level of flexibility as a cloud-based business model. For more information, visit: General Questions and Answers Q What does Brocade Network Subscription provide? A Brocade Network Subscription provides organizations with a specified level of network capacity, bandwidth, and performance, along with Brocade Direct Support. Network operation remains the expense of the organization. Q How is Brocade Network Subscription different from a lease? A A lease is a means of financing a purchase over a fixed term and might include origination fees, finance changes, and penalties for early termination. (NOTE: Brocade does not charge origination fees for leases.) Leases might include support, and organizations typically treat a lease as a liability on their balance sheet. Brocade Network Subscription has no origination fees, no fixed term, and no penalties for early termination. Moreover, Brocade Direct Support is included. Additionally, since Brocade Network Subscription provides use of equipment with no transfer of title, organizations do not incur depreciation expenses on the equipment or identify it as liability on their balance sheet.

2 Q What type of organization is best suited for Brocade Network A Brocade Network Subscription is most suitable for: Cloud hosting providers and managed service providers seeking to align network infrastructure costs with revenue streams, which typically are monthly payments Large enterprises that view network performance and flexibility as business differentiators Government organizations looking to adopt scalable, as a service delivery to meet federal objectives. Or who are facing budget challenges and uncertainty Q Can organizations upgrade or refresh products provided under Brocade Network A Yes. To upgrade or refresh products, organizations simply must initiate a new subscription schedule. Since there are no termination or origination fees, the new subscription schedule does not result in a penalty or hidden fees to the organization. However, a new monthly subscription charge will be established to reflect the difference in performance, features, and capabilities of the upgraded products. Q How is Brocade Network Subscription billed to organizations? A Brocade Network Subscription is billed on a monthly basis, commencing once the organization receives the equipment. Q How are Brocade Network Subscription orders shipped? A Brocade utilizes its standard shipping process for Brocade Network Subscription orders to ensure that all products are delivered in a timely manner. Q What happens to the Brocade products that come out of service from Brocade Network A Brocade Network Subscription products that come out of service are shipped to a Brocade facility, where they are fully reconditioned, updated, and brought up to new product standards. These refurbished products may be used for subsequent Brocade Network Subscription deployments, service spares, or sold. Refurbished products will not be sold as new. Q Are the products shipped under Brocade Network Subscription new or refurbished? A Brocade will ship a combination of new and refurbished products under Brocade Network Subscription, subject to product availability. Changing Network Capacity Q What flexibility is built into Brocade Network Does it allow organizations to flexibly manage capacity? A Brocade Network Subscription allows organizations to add or reduce capacity, or refresh parts of their infrastructure without penalty. They can then align their network capacity and performance requirements with the needs of their business. Q How do organizations increase network capacity under Brocade Network A Organizations whose Brocade Network Subscription Agreement is contracted directly with Brocade must contact Brocade and provide their additional capacity requirements. Brocade will then present a new Brocade Network Subscription quotation, and the organization will be required to sign a new agreement schedule to authorize the capacity increase. 2 of 8

3 Organizations whose Brocade Network Subscription Agreement is contracted through a Brocade Partner must work with the partner to increase their Brocade Network Subscription network capacity. Q Is there a minimum Brocade Network Subscription transaction amount for adding capacity or other enhancements to an existing Brocade Network Subscription deployment? A There is no minimum transaction amount. Q What is the lead time for adding network capacity under Brocade Network A Capacity can be added at any time.. Q How do organizations decrease network capacity under Brocade Network A Organizations whose Brocade Network Subscription Agreement is contracted directly with Brocade must provide Brocade with 60 days written notice of their intent to return any equipment under Brocade Network Subscription. Organizations are given a full packet of return instructions to guide them through the return process. All equipment must be returned in good condition, with only normal wear and tear. Organizations are required to pay return freight. Organizations whose Brocade Network Subscription Agreement is contracted through a Brocade Partner must work with the partner to decrease their Brocade Network Subscription network capacity. Q Is there a minimum Brocade Network Subscription transaction amount for reducing capacity of an existing Brocade Network Subscription deployment? A No. Q How do organizations terminate Brocade Network A Organizations whose Brocade Network Subscription Agreement is contracted directly with Brocade must provide Brocade with 60 days written notice of their intent to terminate Brocade Network Subscription. Organizations are given a full packet of return instructions to guide them through the return process. All equipment must be returned in good condition, with only normal wear and tear. Organizations are required to pay return freight. Organizations whose Brocade Network Subscription Agreement is contracted through a Brocade Partner must work with the partner to terminate Brocade Network Subscription. Q Under what conditions may organizations terminate Brocade Network A Organizations whose Brocade Network Subscription Agreement is contracted directly with Brocade may terminate Brocade Network Subscription for any reason, as long as they give Brocade 60 days written notice. Organizations whose Brocade Network Subscription Agreement is contracted through a Brocade Partner are subject to the partner s terms and conditions. Q Is there a penalty for adding capacity or reducing capacity under Brocade Network A No. 3 of 8

4 Q Is there a penalty for cancelling Brocade Network A No. Q Do organizations have the option to purchase network equipment they have acquired under Brocade Network A Yes. At any time organizations can purchase outright network equipment obtained under Brocade Network Subscription at fair market value. Q Will Brocade provide a managed inventory arrangement as part of Brocade Network A No, Brocade will not consign product or provide managed inventory under Brocade Network Subscription. However, Brocade will work directly with organizations or via the Brocade Partner who is supporting Brocade Network Subscription to anticipate additional capacity requirements to minimize any gaps between supply and demand. Technical Support Q What level of Brocade Direct Support is included with Brocade Network A Brocade Essential Support with a Next-Business-Day Parts Service Level Agreement (SLA) is included with Brocade Network Subscription. Organizations have the option of upgrading to Brocade Premier or Premier-Plus Support, or a higher level SLA for an additional monthly fee. NOTE: Brocade Partner technical support offerings may vary. Q What is included with Brocade Essential Support? A Essential Support includes secure remote access, 24 7 telephone support, unlimited online support and trouble ticketing, software bug fix and maintenance updates, and next-business-day advanced hardware replacement. Q What is available with Brocade Premier Support? A Premier Support provides the personalized, preferential, and proactive support needed for large networking environments. These contracts for Brocade hardware and software support include all the offerings of Essential Support, in addition to: Management of call activity Support Account Manager Premier account profile Priority access to Brocade Technical Support expertise Fault management and proactive monitoring Quarterly support reviews Annual Brocade SAN Health and/or Brocade NET Health checks Optional firmware upgrade services 4 of 8

5 Brocade Support Account Managers (SAMs) are knowledgeable about an organization s specific implementations and act as a single point of contact for all Brocade software and hardware issues. They also keep organizations informed about key support matters by proactively communicating and coordinating: Updates on escalated issues Software recommendations for upgrades and releases Technical tips, best practices, white papers, and other sources of applicable information Quarterly support reviews Annual Brocade SAN Health and/or Brocade NET Health checks Firmware upgrades, if purchased Q What is available with Brocade Premier-Plus Support? A Premier-Plus Support includes all the offerings available in Premier Support, with the addition of a Brocade Onsite Support Engineer (OSE) to provide proactive support and management. Brocade OSEs are senior technical professionals who have access to a vast Brocade knowledge base and the ability to leverage many strategic Brocade partnerships to help resolve issues in heterogeneous IT environments. They are also available to augment an organization s IT staff, performing activities such as: Tuning and optimization of Brocade products Software and release planning Change management planning Assistance with software upgrades Brocade SAN Health and Brocade NET Health data collection Q What other SLAs are available with Brocade Network A The following higher SLAs are available with Brocade Network Subscription: 4-Hour Onsite (4-hour onsite hardware repair labor and parts) 4-Hour Parts (4-hour advanced replacement parts) Next-Business-Day Onsite (next-business-day onsite hardware repair labor and parts) Secure remote access, 24 7 telephone support, unlimited online support and trouble ticketing, and software bug fix and maintenance updates are common across all SLAs. Q Does Brocade manage the organization s network environment using its services personnel under Brocade Network A No. Although Brocade provides direct support, it is not responsible for managing the network environment. Brocade complements but does not replace an organization s network operating team. Additional onsite professional services are available from Brocade for a fee. Brocade Professional Services include but are not limited to migration services, installation services, and Brocade Resident Consultant (BRC) services to assist organizations with change management and optimization of their infrastructure. 5 of 8

6 Q Are any professional services included with Brocade Network A No. Professional services are not included with Brocade Network Subscription. However, onsite professional services are available from Brocade for a fee. Brocade Professional Services offers assessment, design, implementation, migration, and Brocade Resident Consultant (BRC) services to assist organizations with change management and optimization of their infrastructure. Benefits Q How can cloud hosting providers and other managed service providers benefit from Brocade Network A Brocade Network Subscription enables cloud hosting and other managed service providers to deliver new services over a cloud-optimized network infrastructure with minimal risk and no capital investment. They can acquire a fully supported network infrastructure on a monthly basis to increase business agility and differentiate their offerings. Brocade Network Subscription: Helps align network infrastructure costs with revenue, streamlining time to profitability Allows organizations to acquire network infrastructure without upfront capital investment, so they can invest in scaling their business instead of their network infrastructure Provides a pay-as-you-go approach that increases financial flexibility by eliminating term commitments and lease obligations Includes Brocade Direct Support, which provides different levels of support to meet specific needs, scale with growing environments, and help ensure maximum data reliability Q How can enterprise organizations benefit from Brocade Network A Brocade Network Subscription allows enterprises to migrate to cloud-optimized networks with minimal risk and no capital investment. They can acquire a fully supported network infrastructure on a monthly basis and have the flexibility to expand, contract, and refresh their network infrastructure as required. Brocade Network Subscription: Allows organizations to acquire network infrastructure without upfront capital investment, so they can invest in scaling their business instead of their network infrastructure Provides a pay-as-you-go approach that increases financial flexibility by eliminating term commitments and lease obligations Includes Brocade Direct Support, which provides different levels of support to meet specific needs, scale with growing environments, and help ensure maximum data reliability Enables debt-heavy enterprises to refresh networks without impacting credit ratings or key business performance ratios, such as ROA and ROIC, by providing an off-balance sheet transaction 6 of 8

7 Q How can government and public sector organizations benefit from Brocade Network A Brocade Network Subscription helps government and public sector organizations migrate to cloud-optimized networks with minimal risk and no capital investment. They can acquire a fully supported network infrastructure on a monthly basis and have the flexibility to expand, contract, and refresh their network infrastructure as required. Brocade Network Subscription: Meet federal directive by shifting from IT As-an-Asset to IT As-A-Service Allows agencies to acquire network infrastructure without upfront capital investment, so they can invest in scaling their business instead of their network infrastructure Provides a pay-as-you-go approach that increases financial flexibility by eliminating term commitments and lease obligations Includes Brocade Direct Support, which provides different levels of support to meet specific needs, scale with growing environments, and help ensure maximum data reliability. Allows government and public sector organizations to use operating budget instead of capital budget to acquire network infrastructure Q How does Brocade Network Subscription protect U.S. federal employees from violating the Antideficiency Act? A Brocade Network Subscription is a pay-as-you-go acquisition model. You pay only for the equipment you use. There is no term commitment or penalty for returning the equipment at any time. As a result, there is no risk of authorizing an obligation for funds in excess of the amount available. Q How does Brocade Network Subscription avoid non-appropriation and termination for convenience risks? A Brocade Network Subscription is a pay-as-you-go acquisition model. You pay only for the equipment you use. There is no term commitment or penalty for returning the equipment at any time. Q How does the Total Cost of Ownership (TCO) for equipment and services acquired via Brocade Network Subscription compare to commercial lease or traditional purchase models? A. The TCO for any organization is dependent on that organization s specific needs and objectives. For organizations that have available capital, purchasing typically provides the lowest total cost of acquisition. Purchasing ties up capital and limits business agility once the equipment is acquired. For organizations that are preserving capital but frequently need to add new network infrastructure, leasing can offer the lowest total cost of acquisition. Leasing frees up capital and provides more business agility than purchasing. 7 of 8

8 For organizations that are cash or budget constrained, or need to align cost/capacity with revenue/demand, Brocade Network Subscription can provide the lowest total cost of acquisition. Brocade Network Subscription enables greater capital flexibility and business agility than leasing. Q Do organizations pay a premium for Brocade Network Subscription versus leasing or purchasing their equipment and services? A. Yes, organizations pay a slight premium for the capital flexibility and business agility provided by Brocade Network Subscription. Availability Q Who offers Brocade Network A Brocade Network Subscription is available directly from Brocade and through selected and approved Brocade Alliance Partner Network Premier and Elite resellers, Brocade Global Systems Integrators, and Brocade Federal Partners. Q What Brocade products are available under Brocade Network A Brocade Network Subscription in available only for products within the Brocade IP/Ethernet networking portfolio. Q Where is Brocade Network Subscription available? Q Brocade Network Subscription is available direct and through Brocade Partners in all geo s. What conditions or restrictions must organizations meet to take advantage of Brocade Network A Organizations must be creditworthy; and the organizations must be willing to contract with Brocade directly or through an approved partner that supports Brocade Network Subscription. Q What is the minimum Brocade Network Subscription transaction amount? A There is no minimum transition amount 2014 Brocade Communications Systems, Inc. All Rights Reserved. 01/14 ADX, AnyIO, Brocade, Brocade Assurance, the B-wing symbol, DCX, Fabric OS, HyperEdge, ICX, MLX, MyBrocade, OpenScript, VCS, VDX, and Vyatta are registered trademarks, and The Effortless Network and The On-Demand Data Center are trademarks of Brocade Communications Systems, Inc., in the United States and/or in other countries. Other brands, products, or service names mentioned may be trademarks of others. 8 of 8