digital global systems inc

25
Delivering Unparalleled Wireless Visibility

Upload: scott-frayser

Post on 23-Jan-2017

339 views

Category:

Technology


0 download

TRANSCRIPT

Delivering

Unparalleled

Wireless

Visibility

Enhancements in wireless technology and services over the last decade, have fundamentally altered the way we interact with data and each other

In order to sustain wireless innovation and support exponential demand, similar innovation in monitoring technologies are an absolute necessity

Innovation in Wireless Technologies Provide Efficient Access to Information In Real-time

Advancements in Wireless Devices Connect Billions Around The Globe Instantly

2010• Post IPhone• LTE Mass Adoption• E-Commerce in Full Swing• Birth of Social Media

2015• Facebook 1 Billion+ Users• Video Streaming = 70% of Traffic• Federal and Commercial Sharing

Spectrum

As spectrum is a finite resource, Tier-1 carriers (AT&T), First Responders (Police/Fire), the Federal Government and Transportation Services (Freight Rail) have been

forced to relocate, consolidate and explore sharing initiatives

2006• Pre-Apple IPhone• Pre-LTE• Pre-Social Media• Early Days of Streaming

All wireless communication signals from radios, to cell phones, to tablets, travel over the air, via radio frequencies. The collection of radio frequencies is called spectrum.

Spectrum is often referred to as “The Oxygen of Wireless Networks.”

Exponential Demand Has Escalated Spectrum Management to a Global Discussion

3

Reduced Situational Awareness Along our

National Borders

Dropped Calls and Poor Download Speeds

Confusion due to Communication Failures In

Times of Crisis

Derailments for Freight, Commuter and Passenger

Trains

Telecommunications Public Safety Transportation Federal

With Mobile Subscriptions set to outnumber the World’s Population by a ratio of 2:1 by 2020, the problems are only going to intensify. Without automated systems, able to organize significant amounts of wireless signal activity quickly and efficiently, spectral environments will become

nearly unnavigable, unable to support continued demand for services

4

An Overall Lack of Insight Into This Complex Environment, Has Led To Some Very Real Problems

What has done for search, DGS is doing for Spectrum Management. Our innovative technology makes sense of today’s chaotic wireless spectral environment. For the first time, there is a more holistic view of the spectrum, in real-time

Our innovative algorithms automatically decipher large complex and dynamic spectral environments rapidly, unlike anything in the market today. Our software produces the data needed to:

• Reduce wireless interferenceand improve network performance

• Clear frequencies of unauthorized users

• Identify and locate signals of interest to improve National Security

• Find available frequencies to enable the FCC mandated sharing of spectrum between government and commercial users

DGS: Organizing the World's Spectral

Information, making it easily accessible and

useful, supporting Wireless Communication

Digital Global Systems (“DGS”): Who We Are

Reduce Wireless Interference

• Enable Broadband Service Providers (AT&T), to improve network performance, capacity and quality, while reducing cost with maximizing usage of deployed network assets

• Ensure the railroad trackside safety mechanisms which wirelessly control track signaling and locomotives are clear from Interference allowing safe transport of commuters and freight

• Improve the “Fan Experience” at stadiums and concerts

Identify and Locate Signals of Interest

• Detect and locate, rogue or potentially harmful signals, which may be associated with illegal activity (Homeland Security application)

• Actively de-conflict a spectral environment (compare known to unknown signals) to better identify friendly and hostile signals in a crowded venue or battlefield

Clear Frequencies of Unauthorized Use

• Identify open channels, suitable for communications in a matter of seconds, for our Nation’s armed forces to utilize during deployments

• Ensure frequencies dedicated for first responders are clear of unauthorized users

• Enable State and Federal Emergency Services organizations to mange the spectrum as its re-allocated between carriers

Find available Frequencies

• With environmental sensing capability, assist Federal Agencies and Commercial entities with relocation to new frequencies, ensuring they are cleared and ready for use

• Automatically monitor spectrum allocated for sharing between the federal and commercial use

• Conduct capacity and usage Studies for all industries using Land Mobile Radio (LMR), to be utilized in industry wide network planning and frequency coordination efforts

Digital Global Systems (“DGS”): What We do

• Test and Measurement/Monitoring Equipment, Is primarily developed for laboratory use

• The “Big Box” hardware centric mentality, still dominates the industry

• Spectrum Monitoring/Interference hunting, is still largely manual, with teams deployed to sites 3 to 4 times, in order to resolve issues

• Specialized equipment, requires highly trained engineers to operate

• Environmental studies are typically completed by an individual, with little collaboration from teammates or senior engineers

• Multiple pieces of test equipment, including a laptop for processing, are required to complete tasks

• Software is not portable to other form factors, while hardware is incapable of integrating 3rd party technology

Current Spectrum Management Technologies Fail to Meet Market Needs

Anritsu

Rohde Schwarz

CFRS

The Digital Global Systems (“DGS”) Difference

Algorithms Make Sense of Complex, Dynamic Environments

Data is Organized Efficiently for Analytics

Software Centric Networked Platforms

• Complex environments are efficiently converted into easy to follow data points

• Large volumes of information are efficiently sorted through, producing actionable information

• Manpower and cost are significantly reduced, while results are ascertained faster and more efficiently

• Any and all data points are stored, producing actionable reports

• User data, baselines (expectations) can be compared to real-time data, to highlight anomalies (Defense Applications)

• Available spectrum can be identified for utilization, acquisition or sharing

• Portable software can be placed on multiple devices, or inside of infrastructure, such as towers

• Multiple software packages can be integrated into one platform, combining best of breed technologies

• Advanced, networking connects devices anywhere, reconnecting automatically if a connection is dropped

Digital Global Systems has Developed the First Spectrum Analysis Software Which:

• Automatically Distills Actionable Data at the Point of Intercept over Wide Spans• Adapts to Rapidly Changing Signal Environments to Deliver Accurate Results• Recognizes and Captures Transient and Bursting Signals (LTE)• Pre-processes Data to improves speed and accessibility of data feeding the big data

architecture and advanced analytics system aspects

The Digital Global Systems (“DGS”) Difference – Automatic Signal Detect

DGS Software is Built to Work with C.O.T.S Components and 3rd Party Platforms, Evolving as Technology Evolves. This Allows the Company to:

• Answer the market demand by providing Modular Solutions to Clients enabling recurring revenue streams

• Integrate with New Form Factors, Existing Infrastructure and Software Platforms• Be seen as a Systems Integrator vs. a Box Company

The DGS Difference – Flexible Software and Hardware Capable of Integrating 3rd Party Technologies, to Deliver Best of Breed Solutions

The DGS Difference – Flexible Architecture (Software)

DGS has architected our software to work with:

• Multiple OS (Windows, Linux)• Multiple Server Environments (Ubuntu, RedHat, BSD, Solaris)• Multiple Security Packages (SSL, SSH, HTTP)

A common software architecture which can work on a variety of platforms:

• Reduces cost complexity both internally and for clients• Allows DGS to take advantage of C.O.T.S components/platforms• Reduces the IT barrier to gain acceptance to enterprise

Flexible Network Architecture

While competitors offer remote access, DGS has developed an innovative architecture enabling:

• Remote systems to automatically configure and connect to a network

• High speed, secure data flow over Wi-Fi, mobile radio (SIM) or Ethernet

• Command and control over spectral displays and reporting from anywhere at anytime

11

The DGS Difference – Mission Specific and Flexible Solutions

SigBase 4000W/Enclosure

SigBase 5000Wall Mount

SigBase 2000All-in-one Laptop

Transportable Distributed RF Monitoring Multi-Function

Common Software Platform Regardless of Hardware Selection

DGS has architected a common software platform that is software centric, working with a multitude of devices. This allows the company to provide cost-effective, mission specific solutions, which reach a larger percentage of the market

DGS offers Solutions which are:

• Ruggedized and Modular - Lasting up to 3 times longer than standard equipment• Networked – Facilitating Collaboration Across Enterprise Resources and Systems• Permanent or Transportable – Enabling equipment to be hand held or left on site for extended periods• Multi-function – Incorporating third party hardware or software, to provide additional value to the client

12

Big Data - Managing Complex, Unstructured Spectral Data

13

Operational Impact

• Take Immediate Action on an event – Determine a drone is inbound to a high risk target area (Whitehouse, U.N.Buidling, Sporting Venues)

• Improve Quality of Service Proactively - Reduce Interference, Increase Capacity for First Responder Networks

• Plan Coverage Efficiently - During Terrorist Incidents and Natural Disasters, quickly identify connectivity issues and find open space

DGS is a pioneer in capturing unstructured spectral data from an environment and transitioning it into actionable information

That actionable information is used in tandem with rules engines, historical data, and existing engineering processes in optimization efforts (coverage, capacity and interference analysis)

Why DGS is Unique – Greater Awareness

14

Autonomous, Unattended Operation

• Permanent or Portable Platforms can work autonomously collecting spectral data• Advanced algorithms reduce the amount of personnel needed to collect and analyze data

Remote Access “Connect Anywhere”

• Connect, control and share data remotely between one, or multiple units utilizing mobile radios (SIM), Wi-Fi, or a local area network (SSH, Encrypted Connection)

Identify Correlated Events

• Link together multiple events occurring in the spectrum simultaneously, such as intermodulation

Triggers, Alerts and Notifications

• Environmental expectations can be compared to spectral events in near real-time to create alarms and alerts. Alerts will be sent when anomalies or variances are detected, enabling the remote units to become active participants vs. passive data collectors

Flexible Deployment Models

• Capable of designing intricate hardware and software platforms, to meet the needs of the mission, with an adaptable software architecture

Wideband Scanning Allows the Entire Picture to be Seen

• Wideband Scanning enables a greater percentage of a spectral environment to be observed and analyzed to identify adjacent channel interference, open space and intermodulation

U.S. Patents Issued to DGS

QualcommInterDigital Technology

Broadcom Motorola

Nokia

Samsung

AT&T

Ericsson

TruePosition

Alcatel-Lucent

Cisco

Sony Microsoft

Intel Wi-LAN

ParkerVision Sprint

Hewlett-Packard

Texas Instruments

Government of the United

States of America

Research In

Motion

LG Electronic

s

Andrew

Nortel Networks

Other Assignees and

Unassigned Patents

Other companies with 20+ Patents in this space• 24 Issued U.S. Patents

• 4 non-provisional utility patent applications pending

• 2 International filings pending under the Patent Compliance Treaty (PTC)

• Compatible patent context with many large, key corporations making us an attractive acquisition target

• Blocking patents create licensing opportunities and future revenue streams

• DGS portfolio strategically fills patent gaps

15

Blue Chip Clients in All Targeted Verticals

The DGS Difference – Not a Typical Early Stage Company

25-30 years of Experience in Key

Leadership Positions

Seasoned Technical and Channel partners

24 Issued U.S. Patents in less than 3 years

Positive Cash Flow in 2016 with Exponential

Growth Potential

Completed Series A of $8.25M to Individual & Strategic investors

Market Size – Test and Measurement (T&M)

17

Test & Measurement (T&M)

Market Size - $47.2 billion by 2025

Highest Revenue Generator - The Communication segment (Broadband Service Providers, Land Mobile Radio, Defense) due to rapid growth and evolution of communications technology

Explosive Growth for DGS – DGS has focused on automated solutions, which blend dynamic signals analysis software with Big Data Analytics. Automated collection and Advanced Analytics, are the keys to maintaining communications for the Transportation, Telecommunication, Defense and Public Safety Sectors. With Billion spent on spectrum acquisition and equipment, advanced software and automated services are desperately needed, to maintain quality communications for these groups

Market Guidance - Frost and Sullivan Report – 2016, defined “Big Data Analytics” as the “Mega Trend” in Test and Measurement. This subset of the T&M industry is growing at a compound annual growth rate (CAGR) of 28.2% and is expected to reach 2.4 billion by 2021 alone

Industry Vertical 2015 (Billions) 2020 (Billions) 2025 (Billions)

Global Test & Measurement $19.24 $30.68 $47.20

Global Big Data in T&M $0.55 $2.4 >$5.0

Global Communications Segment in T&M* $11.75 $20.72 $33.41

North American Communications Segment T&M* $4.10 $6.65 $10.38

DGS Targeted Verticals in North America ** $1.23 $2.33 $4.67

* Big Data Analytics Revenue is in addition to these table values** DGS Targeted Verticals – Telecom, Public Safety, Transportation, Select Government Agencies

Vertical Market Focus

Broadband Service Providers

Government Agencies Public Safety Transportation

Enabling World-Class customer experience through maintaining quality and maximizing capacity in any Wireless Environment

Supports Self Optimizing Network initiatives through remediation of interference

Providing greater wireless Situational Awareness for high risk National Security targets

Manages Sharing of Spectrum Assets between Government & Enterprise

Enabling clear & sustained coordinated communications Nationally for Fire and Police First Responders

Identifies available spectrum for wireless communications during Disaster or Crisis Events

Interference Management across critical wireless systems improving safety & reducing derailments

Providing visibility to manage spectrum ensures Freight and Passenger traffic continue to flow effectively without disruption

18

Telecommunications

• User demand continues to explode requiring additional spectrum assets to be acquired and shared with other entities

• Interference will only increase, placing additional strain on operational efficiency and increasing cost

• Existing test and measurement equipment is limited in capability and has a short lifecycle

• Maintaining the number of sites exceeds personnel availability and training capabilities

Current Challenges• Automated alerting and collection systems

capture anything and everything

• DGS consolidates SW & HW into a common platform, reducing capex

• DGS automatic signal detect analytics transform dynamic external environments into easy to follow data points – In 15 field trials, DGS technology was able to solve problems 98% faster (hours vs. days)

• DGS networking enables multiple sites to be observed simultaneously, remotely and collaboratively (Required Under a C-RAN Model)

DGS Solutions

Long-term costs and challenges associated with network optimization and user demand will only continue to grow with spend for new infrastructure planned for $100B by 2018 with more spectrum assets in use than ever before

19

Transportation - Rail

The Railway Industry is in the middle of unprecedented change and reform to its communication systems.

Freight Rail needs better visibility into spectral environments

• With 575 Freights in North America, Passenger and Commuter all competing for limited space, identifying open frequencies, suitable for communication is paramount

• Federally mandated Positive Train Control (PTC) network deployment for all Rail in an interference rich environment

• Interference is proving to be the Achilles heel of narrow banding initiatives

Government mandates, such as PTC (Positive Train Control), have united freight, passenger and commuter rail in an effort to use data in order to become more secure. Other mandates such

as Narrowbanding, have forced the Railway industry to utilize their spectrum more efficiently.

Current ChallengesDGS Technology is designed to provide the railway industry better visibility into spectral environments

• Form factors can be placed in towers, on locomotives, or used in the field to identify open channels for acquisition and utilization

• Uniquely positioned with sole PTC radio manufacturer negotiating for exclusive strategic relationship

• Interference can be identified and remediated faster by comparing the expected with the actual automatically

DGS Solutions

20

Government Agencies

The Federal Space has recognized the important role spectrum plays in both continued innovation and our Nation’s security

At a time when the Federal Operations are requiring greater access to real-time information, budgetsare being reduced. Reduced spending and workforce allocations, combined with mandates to reallocate or share spectrum, are impacting the Government’s ability to perform operations

Current Challenges DGS Solutions

• Controlling the U.S. Borders and preventing narcotics from entering

• Clearing and maintaining new spectrum, supporting federal communications

• Facilitation of sharing initiatives in AWS-3, 3.5 GHz and the ISM Bands

• Creating and Enforcing policy while workforces (FCC) are being reduced

• Autonomous DGS units can send triggers and alerts when anomalies are detected

• Wideband, automated processing maps geographies faster than current, highly manual processes

• Automatic Signal Detect, Databasing and recognition will assist in sharing initiatives

• Transportable devices, with automated collection capabilities can supplement capability and reduce the impact of workforce reductions

21

Public Safety

Public Safety Communications are evolving with the advent of LTE and advanced LMR systems co-existing while potentially sharing spectrum assets with the commercial world

Over a decade since 9/11, events such as Hurricane Katrina and the Boston Marathon bombing, remind us how our communications systems can be impacted during crisis

Current Challenges DGS Solutions

• Rebanding is still far from complete as states, counties and municipalities struggle to identify open frequencies to migrate to

• Intermittent interference has proven difficult to overcome

• Self-Inflicted interference, such as PIM are silently impacting the LMR market

• Supporting Mission Critical Systems while planning for the build-out of broadband infrastructure

• Frequencies with limited activity can be selected for utilization, with sources of potential interference identified quickly

• Long-term automated scanning can be used to better locate the source(s) of intermittent interference

• Impact from Intermodulation and other forms of self-inflicted interference are reduced

• DGS autonomous and cost-effective nodes can be located in towers, aggregating real-time data for reactive and proactive planning

22

Revenue Projections

EBITDA

Gross Revenue

2016 2017 2018

100,000 3,750,00011,250,…

6,500,00016,250,000

38,500,000

REVENUE 2016-2018EBITDA Gross Revenue

Tier 1 Carriers

12%

Railroads & Utilities

30%

Public Safety28%

Government30%

2016 Gross Revenue By Percentage

Forward looking statements based on unaudited results

23

Copyright © 2016 by Digital Global Systems Inc. All rights reserved. No parts of this document may be reproduced, transmitted or stored electronically without Digital Global Systems Inc.’s prior written permission

Confidentiality Statement

24

THIS PRESENTATION INCLUDES CERTAIN STATEMENTS, ESTIMATES AND PROJECTIONS PROVIDED BY THE COMPANY WITH RESPECT TO THE ANTICIPATED FUTURE PERFORMANCE OF THE COMPANY. SUCH STATEMENTS, ESTIMATES AND PROJECTIONS REFLECT VARIOUS ASSUMPTIONS BY THE COMPANY CONCERNING ANTICIPATED RESULTS AND ARE SUBJECT TO SIGNIFICANT BUSINESS, ECONOMIC AND COMPETITIVE RISKS, UNCERTAINTIES, AND CONTINGENCIES, MANY OF WHICH ARE BEYOND THE CONTROL OF THE COMPANY AND ANY OF WHICH MAY HAVE A MATERIAL ADVERSE EFFECT ON OUR BUSINESS, OPERATIONS, AND FINANCIAL PERFORMANCE. ACCORDINGLY, THERE CAN BE NO ASSURANCE THAT SUCH STATEMENTS, ESTIMATES AND PROJECTIONS WILL BE REALIZED. THE COMPANY DOES NOT MAKE ANY REPRESENTATIONS AS TO THE ACCURACY OR COMPLETENESS OF SUCH STATEMENTS, ESTIMATES AND PROJECTIONS OR THAT ANY FORECASTS WILL BE ACHIEVED. INDEPENDENT PUBLIC ACCOUNTANTS HAVE NOT REVIEWED, EXAMINED OR COMPILED THE PROJECTIONS PRESENTED IN THIS MEMORANDUM, AND WE ASSUME NO RESPONSIBILITY FOR THEM.

INFORMATION AND PROJECTIONS CONTAINED IN THIS PRESENTATION HAVE BEEN PREPARED BY THE COMPANY FROM INTERNAL INFORMATION AND FROM OTHER SOURCES WHICH ARE BELIEVED TO BE RELIABLE TO ASSIST INTERESTED PARTIES IN MAKING THEIR OWN EVALUATION OF THE COMPANY, AND DO NOT PURPORT TO CONTAIN ALL OF THE INFORMATION THAT AN INTERESTED PARTY MAY DESIRE IN MAKING SUCH AN EVALUATION. NO REPRESENTATIONS AND WARRANTIES ARE MADE AS TO THE ACCURACY OF SUCH INFORMATION, ANY OF THE PROJECTIONS, OR ANY OTHER WRITTEN OR ORAL COMMUNICATION TRANSMITTED TO THE RECIPIENT IN THE COURSE OF ITS EVALUATION OF AN INVESTMENT IN THE COMPANY. NEITHER THE INFORMATION CONTAINED IN THIS PRESENTATION, NOR THE PROJECTIONS BASED ON SUCH INFORMATION WERE PREPARED WITH A VIEW TO PUBLIC DISCLOSURE OR COMPLIANCE WITH PUBLISHED GUIDELINES OF THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION, OR THE GUIDELINES ESTABLISHED BY THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS. THERE CAN BE NO ASSURANCE THAT THESE PROJECTIONS WILL BE REALIZED. THE FORECAST AND ACTUAL RESULTS WILL LIKELY VARY, AND THOSE VARIATIONS MAY BE MATERIAL. THE COMPANY EXPRESSLY DISCLAIMS ANY AND ALL LIABILITY FOR INACCURACY OR INCOMPLETENESS OF ANY INFORMATION CONTAINED HEREIN, OR IN ANY OTHER WRITTEN OR ORAL COMMUNICATION TRANSMITTED OR MADE AVAILABLE TO A PROSPECTIVE INVESTOR (COLLECTIVELY THE "INFORMATION"). IN ALL CASES, INTERESTED PARTIES SHOULD CONDUCT THEIR OWN INVESTIGATION AND ANALYSIS OF THE COMPANY, THE SECURITIES AND THE INFORMATION. IF THE RECIPIENT OF THIS PRESENTATION DOES NOT WISH TO PURSUE A TRANSACTION WITH THE COMPANY, THE RECIPIENT AGREES TO PROMPTLY RETURN THE INFORMATION OR OTHERWISE DESTROY IT AND NOT FURTHER DISTRIBUTE OR DISSEMINATE THE INFORMATION OR THIS PRESENTATION. IN ANY EVENT, THE COMPANY RESERVES THE RIGHT TO REQUIRE THE RETURN OF THE INFORMATION AND THIS PRESENTATION AT ANY TIME.

25