JCJ Business

JCJ Proprietary & Confidential

Corporate Overview

• JCJ provides solutions to governments,

service provider sand enterprises seeking to achieve

full control of Skype within their networks.

• JCJ was founded in April, 2010. – Offices located in the U.S and Canada

– $800K initial angel investment

– Headcount – 8 employees and contractors

• JCJ solutions protected by patents: – Skype detection and blocking

– Skype traffic analysis

– Skype Legal Intercept

– Defensive capabilities that protect customer networks and assets from Skype based attacks and exploits

– Offensive capabilities based on Skype infrastructure

– Intelligence collection using Skype infrastructure

• Only available from JCJ

• Deployed within US government and overseas in telecom infrastructure supporting 30+ million people

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What is Skype? Network of 800 million users and 30% of global telco traffic

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SuperNode

SuperNode

SuperNode

Relay

Relay Relay

Vulnerabilities to Networks • P2P - Decentralized & distributed • Bypasses firewalls, IPS and NAT • Unmanageable • Untraceable • Undetectable • Exposes organizations to significant risk

Benefits to Skype User • Highly secure proprietary encrypted signalling • Highly secure proprietary encrypted media (voice,

video, IM, files) • Extremely cost effective • Best in class obfuscation and anti-debugging

protection

Client Client

Skype Global Market

• 800+ million registered users, 45 million concurrent users on-line

• Strong move to wireless space via smartphones.

• Moving to consumer products such as TV sets.

• Tight integration with Microsoft products

• Integration with Facebook (1 billion users).

• Corporate security managers see Skype as a potential threat.

• Skype for iPhone and Android represent a threat to telecoms

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Challenges of Skype • Security and Compliance

– Enables untraceable transfer of information from/to enterprises using Skype

file transfer, IM, voice and video channels (source code, client information,

trade secrets, etc.)

• Telco's revenues

– Skype heavily impacting voice revenue due to usage of data components of

the calling plans

• Network enumeration and reconnaissance

– Allows to obtain external/internal IP addresses of devices behind firewalls/NAT

– Enhances attacker ability to perform targeted attacks on targets

• Cyber attacks

– Ideal platform for launching sophisticated attacks (bypasses security

infrastructure)

• Legal Intercept

– Fully encrypted communication

• Network Resources

– Unauthorized utilization of computing and network resources

– Skype video calls can reach a peak at 500 kbit/s per user, taxing the

enterprise infrastructure 5

JCJ Value Proposition

• Manage and control unwanted/unauthorized communications within, as well as, to and

from the network through visibility to Skype.

• Provide Skype reporting, tracking, and historical communications records for applications

like Skype, across the network, ensuring compliance with internal security practices and

industry requirements.

• Provides Skype blocking capabilities in conjunction with 3rd party firewalls,

IPS, etc.

• Enables telcos to control and manage Skype traffic

• Provides Skype Legal Intercept (LI) capabilities

• Enable the organizations to rapidly respond to, and defend against,

Skype born cyber attacks.

• Enables implementation of unique offensive capabilities based on

Skype infrastructure

• Reclaim enterprise assets and reduce expenses associated with them by managing

resources hijacked by Skype applications

JCJ Products and Solutions

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• Detection Engine™ provides 100% reliable detection of Skype

traffic:

• Collection of information about Skype users, calls, sessions and other

information related Skype usage

• Very high performance (proven in production) - 10 and 20 Gbit/s

• Network connectivity – in-line or network tap

• Provides Skype blocking capabilities in conjunction with 3rd party

firewalls, IPS, etc.

• Implementation – Stand-alone product or OEM

• Analytical Engine™ works in concert with Detection Engines and

provides:

• Skype usage statistics reports

• maps of Skype network providing comprehensive view of

infrastructure, clients, relays and other resources used by Skype

• Centralized management for Detection Engines infrastructure

JCJ Products and Solutions

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• Skype LI™ uses the infrastructure provided by Detection

Engine™ and Analytical Engine to collect content of the

communication carried over Skype voice, video and IM

channels.

• Skype DLP™ provides protection against data leakage

utilizing Skype infrastructure.

• Specialized capabilities available to government customers

JCJ Technology Stack

JCJ Products Roadmap

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Enhancements to Existing Solutions and Products:

10Gbit/sec Skype media type identification

Skype conferencing and call out handling

Support for Skype/Facebook

Integration with firewalls using OpenFlow

GUI enhancements

New Product Functionality

RipTide Data Leakage Protection

Expanded support for mobile devices

Enhanced LI

Skype Blocking Solutions

JCJ Customers

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• Oversea Service Provider

Skype Legal Intercept Solution

30+ million people

24x10 Gbit/s pipes

14 Detection Engines

1 Analytical Engine

LI module

Several more deployment expected next year

• US Government Agency

Specialized capabilities

Potential License Sales Revenue

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• Average large deal size (24x10 Gbit/s pipes)

Software/Appliances - $4,175,000

Implementation – $20,000

Average Sale – $4,195,000

Support @20%/year - $835,000

• Average medium deal size (8x10 Gbit/s pipes)

Software/Appliances - $1,925,000

Implementation – $10,000

Average Sale – $1,925,000

Support @20%/year - $385,000

• Average small size deal (1x10 Gbit/s pipe)

Software/Appliances - $1,250,000

Implementation – $10,000

Average Sale – $1,260,000

Support @20%/year - $252,000

Market Analysis

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• Market segments:

• Government agencies globally

• Service Providers globally

• Enterprises North America and Europe

• Market Segment – JCJ Solutions

• Government agencies globally – Skype LI, special cyber capabilities

• Service Providers - Skype detection and management

• Enterprises – Skype detection and management including Data Leakage Protection (DLP)

• Market Segments – TAM, 2013

• Governments - 90 countries ~ $400M

• Service Providers – top 100 ~ $200M

• Fortune 500 and Europe 500 - ~ $100M

• TAM - ~$700M

• Market share targets:

• 2013 – 1% of the total market

• 2014 – 4% of the total market

• 2015 - 8% of the total market

Government

Service Providers

Fortune 500 and Europe 500

Competition

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Existing solutions use statistical and behavioral analysis to identify and/or block Skype: High false/positive

Outdated

No Skype control, statistics, content, etc.

No LI capabilities

No Direct Competition – Technology Is Only Available From JCJ

JCJ IP

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• Complete, in-depth knowledge of Skype protocols,

applications and network topology built over the

last 3 years

• Products and Solutions

• Research team

• Two non-provisional patents pending (09/2011) –

“Method and Detection System for Detecting Encrypted Peer-to-peer (EP2P) Sessions Associated With a

Particular EP2P Network”

“Method and Discovery System for Discovering Encrypted Peer-to-peer (EP2P) Nodes Associated With a

Particular EP2P Network”

• Two provisional patents –

“Systems And Methods For Implementing Lawful Interception On Encrypted and/or Obfuscated P2P

Communication Network”

“Systems and Methods for Preventing And Blocking Network Security Attacks Executed Through Encrypted

and/or Obfuscated P2P Communication Networks”