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  • A key differentiator for us – slide is pretty much self explanatory Make sure to emphasize our focus on Interpretation and Application of our research and analysis to our clients’ unique business requirements. We are not a content company, we are focused on helping our clients solve problems, make tactical and strategic decisions, and compete effectively.
  • complexity = transition from waving the flag to the realities of VoIP
  • 24% of line shipments 2003 3.5 Million IP Phones sold in 2003 Large Deals Emerging Boeing, 60k handsets Roche, 15k handsets
  • Productivity to Every desktop Context – IP makes this happen. {compare to history of CTI}
  • Download our Power Point Presentation: Is VoIP Right for your ...

    1. 1. Presenter: Zeus Kerravala, VP Enterprise Infrastructure Is VoIP right for my business?
    2. 2. Our Approach <ul><li>Advisory and consulting services delivered by experienced analysts conducting original research </li></ul><ul><li>Global view, interpreted and </li></ul><ul><li>applied to local market conditions. </li></ul><ul><li>Easy, direct, frequent client-analyst interaction allowing interpretation and application of our research and guidance </li></ul>AnalystDirect sm
    3. 3. Agenda <ul><li>Today’s Business Challenges </li></ul><ul><li>Traditional Telephony </li></ul><ul><li>IP Telephony </li></ul><ul><li>The Business Case </li></ul><ul><li>Potential Pitfalls </li></ul><ul><li>VoIP Lifecycle </li></ul><ul><li>Recommendations/Conclusions </li></ul><ul><li>Questions and Answers </li></ul>
    4. 4. What is Voice over IP?
    5. 5. VoIP Definitions (continued) IP Phone IP Phone PC TDM
    6. 6. Business Challenges <ul><li>Improve user productivity by using technology </li></ul><ul><ul><li>-Competitive advantage vs. Necessary evil </li></ul></ul><ul><li>Increase revenue while lowering costs </li></ul><ul><li>Growing mobile workforce </li></ul><ul><li>Unify all communications platforms </li></ul><ul><li>Improve communications </li></ul>
    7. 7. Telephony the Old Way PSTN PSTN PBX Key System Digital Set Digital Set <ul><li>Highly reliable </li></ul><ul><li>Closed architectures </li></ul><ul><li>Limited ability to share applications </li></ul><ul><li>Deployed on a per-node basis </li></ul><ul><li>Users are tied to a location </li></ul><ul><li>Complex administration </li></ul><ul><li>Expensive MACD </li></ul><ul><li>Call control located locally </li></ul>
    8. 8. Telephony Becomes An Application on the LAN & WAN <ul><li>Resides anywhere </li></ul><ul><ul><li>Hosted v. Premises Solutions </li></ul></ul><ul><ul><li>LAN or WAN </li></ul></ul><ul><li>Accessed from anywhere </li></ul><ul><ul><li>Uniform access </li></ul></ul><ul><ul><li>Common Interface </li></ul></ul><ul><li>Open Architecture </li></ul><ul><ul><li>Interoperability w/ TDM </li></ul></ul><ul><ul><li>IPT variants </li></ul></ul>Complexity IP provides flexibility in deployment but increases complexity Cellular Teleworker DSL/ Cable Premises-based Applications IP PBX WAN Legacy PBX PSTN IP Phones Hosted VoIP Network-based Applications
    9. 9. Enterprise Adoption is Strong Source: Dec. 2003, Enterprise Communications Survey Q13 & Q14 N=239 businesses with 1,000 employees or more Which best describes your deployment of IPT? 0 2 4 6 8 10 12 14 16 18 2002 2003 2004 2005 2006 Total Lines IP Telephony (Millions Lines Shipped)
    10. 10. Companies Are Adopting IP Telephony <ul><li>Adoption Results </li></ul><ul><ul><li>2002 – 10% penetration of line shipments </li></ul></ul><ul><ul><li>2003 – 24% penetration of line shipments </li></ul></ul><ul><ul><li>2004 – 40% penetration of line shipments </li></ul></ul><ul><ul><li>2 Million IP Phones sold in 2002 </li></ul></ul><ul><ul><li>3.5 Million IP Phones sold in 2003 </li></ul></ul><ul><ul><li>6 Million IP Phones sold in 2004 </li></ul></ul><ul><ul><li>$24 Million in softphone revenue for 2004, 2x 2003 revenue </li></ul></ul>
    11. 11. Analysis of Adoption <ul><li>2004 adoption was over 40% for a number of reasons </li></ul><ul><ul><li>Most traditional phone system vendors have adopted IP Telephony </li></ul></ul><ul><ul><li>Standards such as SIP are much more mature today </li></ul></ul><ul><ul><li>Technology is reliable and there are many options for each type of firm (early adopter, mainstream adopter) </li></ul></ul><ul><ul><li>Channel from both the voice and data world have adapted and new channels have been introduced (system integrators) </li></ul></ul><ul><ul><li>Many major corporations have started to adopt VoIP </li></ul></ul>
    12. 12. What Are Companies Doing With VoIP <ul><li>VoIP help companies grow and lower cots </li></ul><ul><ul><li>Lowers long distance charges </li></ul></ul><ul><ul><li>Lowers MACD charges </li></ul></ul><ul><ul><li>Reduces IT training costs </li></ul></ul><ul><ul><li>Streamlines productivity </li></ul></ul><ul><ul><li>Improves mobile communications </li></ul></ul><ul><ul><li>Enables new business process </li></ul></ul><ul><ul><li>Improves customer satisfaction </li></ul></ul>
    13. 13. Users Expect Strong Cost Savings Thinking about IP Telephony’s total costs and cost of ownership, what kind of savings or premium do you expect from the following categories?
    14. 14. IPT Improves Productivity Thinking about IP Telephony’s total costs and cost of ownership, what kind of savings or premium do you expect from the following categories?
    15. 15. Reasons Companies Consider a Converged Solution Adapting to Current and Future Needs Improved Productivity Cost Savings and Existing Investments Improved Service to Compete Better <ul><li>“ Our workforce, and the need for the telephony is growing faster than the present infrastructure will allow it to expand.” </li></ul><ul><li>“ A converged system can more readily adapt to our changing needs.” </li></ul><ul><li>“ We are behind the times.” </li></ul><ul><li>“ We are building a new headquarters.” </li></ul><ul><li>“ To manage an ever-changing, an ever-moving environment.” </li></ul><ul><li>“ We want one system that we will not have to change for quite some time and will be easy to train people.” </li></ul><ul><li>“ To upgrade from current antiquated system and integrate recent business acquisitions in the same system.” </li></ul><ul><li>“ To reduce the number staff working on the phone system.” </li></ul><ul><li>“ For conferencing bridging,reduction in total cost of bridging.” </li></ul><ul><li>“ To eliminate the bandwidth wastage.” </li></ul><ul><li>“ Will be cost savings over time. Will provide benefits over existing system.” </li></ul><ul><li>“ Faster service and reliability.” </li></ul><ul><li>“ It seems to the next generation of phone systems. We also need ability to gather customer data and serve it up to agents before the customer says ‘Hello’.” </li></ul><ul><li>“ Need to keep up with the times.” </li></ul><ul><li>“ We need to update in order to be able to compete with today's market.” </li></ul><ul><li>“ Better to service our customers.” </li></ul><ul><li>“ “ to better server our customers and to be more efficient.” </li></ul><ul><li>“ To compete with others with the latest technology.” </li></ul><ul><li>“ It will be cheaper, easier to manage and more reliable.” </li></ul><ul><li>“ When the upgrade occurs we want it to enhance productivity & to be a platform we can use for a minimum of 5 years, hopefully longer. </li></ul><ul><li>“ To simplify things, to make everything more convenient.” </li></ul><ul><li>“ Ease of use and management of system.” </li></ul><ul><li>“ Ease of maintenance. Consolidation of resources and personnel. Greater control without reliance on 3 rd party scheduling/costs, etc.,” </li></ul><ul><li>“ So we can get rid of proprietary phone system programming language.” </li></ul>
    16. 16. Inhibitors Revolve Around Cost What are your organization’s main concerns about deploying IP telephony? ( Select up to three. ) Source: The Yankee Group 2003 U.S. Enterprise Communications Survey n = 239 93 86 84 75 56 57 52 33 27 24 0 10 20 30 40 50 60 70 80 90 100 Uncertain Price/Cost Advantage High Equipment Costs Uncertain Voice Quality Install/Configuration and Training Cost Single Point of Failure Lack of Staff Skills/Knowledge Network Security Lack of Confidence in VoIP SPs Insufficient Network Management Tools Lack of Confidence Number of Responses
    17. 17. Networking Trends Drive Adoption <ul><li>Networks will be packet optimize </li></ul><ul><li>Web technology continues to drive app. Integration </li></ul><ul><li>Network and computing platforms will be homogenized through standards </li></ul><ul><li>Voice platforms will be adapted to packetized networks </li></ul><ul><li>The phone and PC become key voice/data integration points </li></ul><ul><li>Third party software vendors will develop vertically oriented “deadly” applications </li></ul>Networking Trends IPT Impact Telephony will become an application on the data network
    18. 18. VoIP Is Transformational Similar to the migration from mainframes to distributed computing 0-5 years <ul><li>Early Adopter Mkt </li></ul><ul><li>Making IP looking like TDM </li></ul><ul><li>Similar to 3270 emulators </li></ul><ul><li>Focus on the technology </li></ul><ul><li>Concerns: </li></ul><ul><ul><li>Availability, Reliability </li></ul></ul><ul><ul><li>Security </li></ul></ul><ul><li>TCO more important than ROI </li></ul>5-10 years <ul><li>Mass Market Adoption </li></ul><ul><li>More focus on applications </li></ul><ul><li>Similar to growth of distributed applications </li></ul><ul><li>Value prop delivered by ISVs </li></ul><ul><li>Concerns: </li></ul><ul><ul><li>App Integration </li></ul></ul><ul><ul><li>What’s possible? </li></ul></ul><ul><li>ROI is more important than TCO </li></ul>10+ years <ul><li>Laggers </li></ul><ul><li>Standardization </li></ul><ul><li>Removing cost </li></ul><ul><li>Efficiency </li></ul>
    19. 19. The Changing Value Proposition <ul><li>What we have been saying: </li></ul><ul><ul><li>VoIP, convergence, multicast, layer2, layer3, QoS, switching, TDM, PSTN, etc. </li></ul></ul><ul><ul><li>Value proposition: TCO savings, IT productivity, etc. </li></ul></ul><ul><li>What we should be saying: </li></ul><ul><ul><li>Its about managing and using information and communications better. </li></ul></ul><ul><ul><li>Value proposition: driving business value through productivity improvements. </li></ul></ul>
    20. 20. Tomorrows Requirements: Extending Communications Partner Employee Managing Information at The Point of Contact E-Mail IP Voice TDM Voice Web Information Call Center Fax Voice Mail Mobile Phone Messaging IVR Video Conference
    21. 21. VoIP Enables Integrated Communications <ul><li>Integrated Interface </li></ul><ul><li>Uniform Experience </li></ul><ul><li>Voice and Data </li></ul><ul><ul><li>Telephones and Computers </li></ul></ul><ul><ul><li>Telecom and IT </li></ul></ul><ul><li>Anywhere. Anytime. </li></ul>Picture yourself in a hotel room accessing your office and mobile voice mail and email from your laptop with the same interface and procedures you use in your office. Now imagine every employee in your company with the same capability. VoIP enables integrated voice and data applications and delivers them to potentially every employee, and desktop.
    22. 22. The New Value Proposition Lower TCO Improved IT Process Streamline BP Competitive Advantage Increasing ROI
    23. 23. Recapping the Business Case <ul><li>Productivity benefits from unified communications </li></ul><ul><li>Distribution of telephony applications to branches and home workers </li></ul><ul><li>Improved customer satisfaction </li></ul><ul><li>Future multimedia applications </li></ul><ul><li>Facilitates business process change </li></ul><ul><li>Lower telecommunications costs </li></ul><ul><li>Savings from adds, moves, and changes </li></ul><ul><li>Simplified administration </li></ul>
    24. 24. What This Does to the Business Talking Collaborating Delayed Real Time Media Restrictive Media Adaptive Delayed Reactive Proactive
    25. 25. IP Telephony Challenges <ul><li>Voice and video applications are extremely sensitive to delay, jitter, and packet loss </li></ul><ul><li>Need PSTN-like call quality: </li></ul><ul><ul><li>-New features and functionality will not compensate for poor call quality </li></ul></ul><ul><li>Large networks require network audits and upgrades </li></ul><ul><li>QoS must be implemented: </li></ul><ul><ul><li>-Best practice on the LAN </li></ul></ul><ul><ul><li>-Mandatory for WAN </li></ul></ul><ul><li>Call quality difficult to measure and monitor </li></ul>
    26. 26. The Quality Challenge <ul><li>VoIP is NOT just another application on their IP network </li></ul><ul><ul><li>Voice sensitive to the inherent characteristics of IP networks </li></ul></ul><ul><ul><ul><li>Latency, packet loss, variable transmission rates (jitter) </li></ul></ul></ul><ul><ul><li>Organizations have never internally managed an application with such high availability and performance requirements over shared facilities </li></ul></ul><ul><li>How do I guarantee the quality and availability of voice traffic without degrading data packet transmission? </li></ul>
    27. 27. VoIP Requires a Lifecycle Plan Design Implement Operate Optimize VoIP <ul><li>Lack of proper lifecycle will </li></ul><ul><li>Drive costs up </li></ul><ul><li>Eliminate any value from the solution! </li></ul>
    28. 28. The VoIP Lifecycle Use a trusted partner to help deliver the full lifecycle!
    29. 29. Successful Deployment Checklist Consultation, engineering and management services from trusted partner -Delivering the full lifecycle can only be done with a services partner Understand your calling patterns -%off net/on net calls, international/domestic calling, average calls per employee hr, MOU, call duration are biggest factors Understand where the various types of VoIP fit best -Ideal implementation will be a mix -Video, unified messaging, audio/web conferencing, presence Roadmap current and future communications and choose correct platform
    30. 30. Recommendations <ul><li>IP telephony/VoIP will happen – be ready. </li></ul><ul><li>Perform a network assessment to evaluate all current networks and elements. </li></ul><ul><ul><li>LAN, WAN, PSTN, video, faxes, power, UPS, cabling, management tools. </li></ul></ul><ul><li>Choose a test bed for deployment. </li></ul><ul><li>Review sample business cases, calculate TCO and ROI. Visit “live” implementations </li></ul><ul><li>Success depends on planning and management infrastructure. </li></ul><ul><ul><li>“ Measure twice, cut once.” </li></ul></ul>
    31. 31. Thank You