Virtela Launches World's First Global Enterprise Services Cloud (ESC) for Networking, Security and Mobility

Industry-Breakthrough Architecture Features 50 Local Cloud Centers Worldwide, Bringing Services to End-User's Doorstep

DENVER, June 8, 2010 -

                            Key Enterprise Benefits:

    - Open Architecture Delivers Any Service, from Any Location, using Any
      Network

    - Eliminates "One Device, Per Service, Per Location" Model for 80% Cost
      Savings

    - Enables World's First Cloud-Based Application Acceleration
      Service and Application Performance Guarantee

Virtela, the world's largest independent managed network services
company, announced today the world's first cloud architecture purpose-built
for enterprise networking, security and mobility: Virtela Enterprise Services
Cloud (ESC). Virtela ESC extends Virtela's disruptive multi-carrier network
model to the cloud, up-ending conventional cloud models to deliver higher
cost savings and faster service to enterprises worldwide.

Unlike other cloud computing approaches, Virtela ESC offers a
breakthrough architecture that is open at every level, locally distributed
around the world, and optimized for virtual devices. These innovations unlock
exponential benefits for enterprises faced with supporting increasingly
distributed workforces that need fast and secure access to applications from
anywhere in the world, often with decreasing IT budgets and staff. Virtela
ESC frees the enterprise from common cloud constraints: closed platforms that
tie services to a single network provider, centralized models that are
inefficient for delay-sensitive applications, and "rack and stack" approaches
that remain complex, costly and cannot scale with enterprise demand.

"Virtela ESC is doing for enterprise networking, security and mobility
what Amazon EC2 has done for storage and computing," said Michael Suby,
director of Stratecast, a division of Frost & Sullivan. "At the same time,
Virtela is offering enterprises for the first time a completely agnostic
architecture that is interoperable across any public or private cloud, data
center or hybrid environment, while delivering the consistently fast
application response times that end users want and need."

Conventional cloud architectures are typically designed to support
store-and-forward services, such as storage and computing. Virtela ESC was
built from the ground up specifically to optimize real-time and
delay-sensitive applications that enterprises rely on and which require a
different approach on three key fronts:

    Open Architecture. Virtela ESC is independent of the underlying
    network, carrier and technology. As a result, it delivers the best
    service to any location, using any network anywhere in the world.
    This infrastructure independence gives customers the freedom to
    choose the best mix of carriers and technologies, for example, to
    optimize access to any enterprise application, public/private
    cloud service or data center resource. Virtela ESC is the only all-
    inclusive cloud architecture available today.

    Locally Distributed. Virtela ESC effectively brings services to the
    end user's doorstep via its highly distributed network of 50 Local
    Cloud Centers (LCCs) around the world. By extending the cloud
    closer to the end user, Virtela accelerates applications
    immediately, near the content source, and instantly mitigates
    security threats near the origin of attack. This is in stark
    contrast to the centralized hosting model of conventional clouds,
    which may take end user traffic halfway around the world before
    reaching desired applications. Virtela ESC offers the deepest
    geographic reach of any cloud platform available today.

    Optimized for Virtual Devices. Virtela ESC changes the "One Device,
    Per Service, Per Location" status quo model. Virtela has decoupled
    services from hardware, virtualizing multiple services in its Local
    Cloud Centers to eliminate the complexity and expense of deploying
    multiple branch office devices. This results in an order of
    magnitude cost savings and ease of use.

    Virtela ESC services are available at zero upfront cost and have
    proven to deliver an 80% reduction in total cost of ownership. For
    example, an enterprise network and security deployment for 20
    branch offices could cost US$600,000 upfront for hardware devices,
    plus the same amount in maintenance and IT staff costs, for a total
    of US$1.2 million in the first year. The same deployment with Virtela
    ESC would require no upfront cost and a total of US$120,000 in
    service fees: 10 times less expensive.

    Virtela ESC services scale from as few as two branch offices to
    thousands of branch offices for a single enterprise. Services can
    be activated within minutes and feature a consumable pay-as-you-
    go pricing model. Virtela ESC is the only virtualized cloud
    architecture for networking available today.

"With an astounding total of 10 million branch offices around the world,
enterprises are more distributed than ever and need to cost-effectively
extend centralized cloud benefits to the branch office while maintaining
control and functionality," said Vab Goel, CEO of Virtela. "Virtela ESC meets
that need with a distributed architecture that gives enterprises an
all-access pass to whatever resource they need, wherever they need it,
instantly from the cloud at dramatically lower costs."

New Services Enabled by Virtela ESC

Virtela ESC serves as the foundation for a multitude of industry-first
services in enterprise networking, security and mobility. In a separate
announcement today
(www.virtela.net/press-room/press-releases/2010/worlds-first-cloud-base
d-application-acceleration-service-and-application-performance-guarantee),
Virtela launched the flagship service powered by Virtela ESC: the world's
first cloud-based application acceleration service. Available now, Virtela's
Cloud-Based Application Acceleration Service speeds applications five to 25
times faster for just US$5 a day per branch office.

Virtela's new application acceleration service is backed by the
industry's first application response time experience guarantee. If a
customer's applications do not run faster, they do not pay - in fact, Virtela
pays them 250% of the service charge. This unprecedented Service Level
Agreement (SLA) also extends to Virtela's existing managed application
acceleration services, including its appliance-based offering, and hybrid
cloud/appliance -based solutions continue to be available to meet customers'
specific requirements per location.

Virtela ESC also enables equally disruptive new security services, such
as real-time distributed security, and mobility services, such as managed
smartphone services, which will be formally announced at a later date and
feature industry-breakthrough service pricing, activation and guarantees.

To learn more about Virtela ESC, please see these online resources:

    - Virtela ESC Executive Brief by Frost & Sullivan
      (www.virtela.net/resource-center/whitepapers/more-whitepapers/the-enterprise-communications-cloud)

    - Two-minute Virtela Application Acceleration Video
      (www.virtela.net/services/managed-wan-acceleration-services/2-minute-video)

    - Test Drive Virtela's Cloud-Based Application Acceleration Service
      (www.virtela.net/interactive-model/)

Virtela offers an extensive suite of managed network, security,
infrastructure management, and application acceleration services, which
leverage a unique model that aggregates and integrates the best local,
regional and global networks to offer unparalleled geographic reach. By
adding a unique overlay of intelligence that performs optimal routing and
automatic failover for customer network traffic, Virtela's multi-carrier
Global Service Fabric(SM) and Enterprise Services Cloud(SM) give enterprises
an inherently higher performing, more resilient and cost effective
alternative to traditional carrier networks. Virtela is the single point of
contact for expert design, implementation and 24×7 proactive monitoring and
management worldwide.

About Virtela

Virtela Technology Services Incorporated, the world's largest independent
managed network services company, offers award-winning services, including
MPLS and IP-based Virtual Private Networks (VPNs), Security, Infrastructure
Management, and Application Acceleration, to enterprise customers around the
world. Offering services in 190 countries, Virtela integrates and manages
best-of-breed service providers through partnerships with 500+ carriers, to
address the unique needs of its customers.

Virtela is headquartered in Denver, Colorado, with Global Network
Operations Centers in Denver, Mumbai, India and Manila, Philippines. For more
information, please call +1-720-475-4000 or visit www.virtela.net.

Jane Morrissey, Virtela, +1-720-475-4012, jmorrissey at virtela.net; Catharine Morgan, Greenough Communications, +1-617-275-6552, cmorgan at greenoughcom.com