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  • I am going to touch briefly on IP communications strategy because although VoIP gets all the press, it is important to understand that VoIP is a subset of a broader Internet Protocol (IP) communications strategy I will attempt to simplify and define the important business issues with respect to VoIP. Most of the presentation will deal specifically with implementation considerations with VoIP.
  • Theses are the big bucket categories that we are developing IP solutions in at Aliant. The puzzle indicates that there are standalone solutions but there are definitely interrelated with respect to broader communications strategy in an organization. The focus of today’s session will be about VoIP but before getting into the subject in detail I would like to touch very briefly on our IP data solutions, because as a component of today’s presentation I was asked how you might use some component of Aliant’s services even if you don’t select one of our VoIP solutions.
  • Topics covered in this section of the presentation
  • Computer application commentary – Voice is delivered using the same digital / packet based technology that delivers our email Analogies Plumbing Analogy - Imagine if there was no hot and cold water pipes in a house. All water flowed through one pipe and was heated or chilled by device at the sink. Think of the implications on plumbing manufacturers, speed of plumbing installations through simplification, cost reductions for construction, etc. Highway & the Train Tracks - Imagine if trains could run on the highway and the huge implications on transportation distribution, infrastructure, users of the infrastructure, real estate values, economy in general etc. In the communications business the train is voice and the highway is data. We are investing 1 billion+ $$$ to make the train run on the highway. Growth Geographic barriers to communications are reduced as it is easier to grow with your customers New applications – one of our solutions looks like a browser with a series of buttons. People will make money building new buttons Outsourcing – Converged networks creates for converging suppliers and or creating new partnerships Others - TBD Threats Speaking note: Kodak example The name Kodak has been synonymous with cameras for generations. “Canon” was a copier. But when the digital revolution hit, Kodak waited too long to get in the game. Canon beat them to the punch and is now the brand synonymous with digital cameras. Kodak’s name became synonymous with ‘old technology.’ Today, Kodak is in trouble. Positioning, once gained, must be protected. It cannot be taken for granted. It can be lost. At the same time, the time of flux is the perfect opportunity for YOU to be ‘Canon’ and reposition your competition.
  • Speaking Notes: Business Customers Trade and commerce across increasing geographic disbursement. Companies are expanding geographically and looking for solutions that meet enhanced communication requirements. There is also enhanced regional & or world wide competitors with unique competitive advantages Benchmarking as vertical leaders such as Manulife, Ford, Boeing, etc are embracing the concept and initiating multi year implementation projects. Requirement for information anytime & anywhere on a proliferation of devices Governments Efficiency with tax dollars & budgetary / public priorities for scarce resources Technology Advancements / Early Success Stories IP has been present in IT shops around for 10 years. Recent progress with open standards has enables major vendors such as Cisco, Nortel Networks, etc. to produce commercially reliable products. These products are now getting pushed to market through the service providers VAR channel. Companies like Cisco and startups (Vonage) are disrupting the market There are case studies and testimonials from early adopters.
  • Three reasons that people are deploying VoIP. I have listed the reasons in terms of peoples interest but I personally believe that the order should be inverted if you are thinking strategically. Financial Short term business case– Elimination of toll for intra company calling, drastically reduce MACD’s, audio & video conferencing cost reductions Longer Term – Reduce travel, operational resources, vendors, & IT implementation costs Productivity Employee level – more efficient communications & better mgmt control through enhanced features (find me follow me features, 1 number) Organizational level – Better customer service, faster project implementations of small & large projects. Extend standard toolsets to decentralized / mobile workers. Management Control IP technology will facilitate easier decisions wrt a customers business preference to outsource / in source communications functions
  • Three reasons that people are moving cautiously with VoIP deployments. These Security Concerns about denial of service attacks / Information Privacy Initial Investment Wide levels of expenditures depending on the function of the existing state of the network. I have seen statistics that 85% of networks are not ready Scarcity of capital / cash for investments in technology improvements (i.e. competing for capital) Ongoing Reliability How critical is voice / data systems to operation of business, customer service, etc. For example there are testimonials where an outbound call center company sacrificed small amounts of downtime in exchange for standard tools and large cost savings. This trade off would be unacceptable to an inbound call center needing 100% reliability while outbound may not
  • Speaking note: 4 categories of discussion points
  • This is probably the most important slide in the deck because convergence will drive 4 critical questions of business owners: Decision # 1 – What is my business strategy for communications? Is telecommunications and IT core or non core to my business success and business strategy? Specifically am I in the oil, forestry, fishing, mining. transportation business, etc. One network makes it easier to decide if I want to get out of a business that typically supports my core business or to expand it. Practically speaking it will drive decisions to outsource, in source, or use hybrid models for your business communications needs. Decision # 2 – Who are the key business supplier partnerships that I need? Convergence is also convergence of suppliers Need to standardize on a voice technology provider and or a technology provider in order to standardize tools, resource skills, etc across and enterprise Need to standardize on an operational provider who will ensure the single IP network is functioning optimally Need to standardize on provider and or process to develop custom applications for my business Decision # 3 (made after decisions 1 & 2 are made) – How much will I invest to do this and would I allow someone else to invest in my business? Decision # 4 (made after decisions 1 & 2 are made) – How fast do I want to implement and what are my drivers for going that speed?
  • What do I want to do in my business? Is communications really core or non core to my business and how do I want to move forward managing it.
  • Who do I want to have helping me with my business strategy? Three skills and resources that need to be drawn upon. It could be done all by one partner / all internal resources or up to three different partners with specialized skillsets depending on your organization’s competencies and plans Be prepared to invest time and $ in your people and or your relationship with your supplier.
  • Speaking notes: Right hand side - Context setting for where are you spending money and where are there opportunities to save, avoid costs with convergence. For some people they be able to increase total spend with preferred suppliers at a lower cost per unit. (WIN / WIN scenario) The financial models are critically important considerations for most of our customers Variable is essentially pay by the line / port etc that is preferred by the majority of our customers (Centrex service) Fixed is synonymous with owning the equipment. In most of NA this is the operating model. Costs are lowered by paying off equipment and operating on extended life with no ownership payments or by adding increasing volumes of users at lower incremental operating costs Hybrid generally not available from most providers
  • Managed – Analogous to today's Aliant Centrex business model. Centralized infrastructure on evergreen management model with variable cost model. IP PBX – Many customer have their own equipment and manage their own infrastructure. Also attractive to businesses with large IT shops. Many are considering network upgrades to data networking gear to handle telephony. Cisco, Nortel Networks, Avaya and Mitel are all vendors with established equipment in this space Hybrid – Not common but a component of one of our Nortel Networks solution where customer can use applications and get productivity returns without expensive upgrade, but they also don’t get all the benefits Peer to Peer – Small business and consumer solutions where quality standards may or may not be a significant tradeoff to cost of service. ( like SKYPE / MSN that allow for internet based)
  • Visual of IP network with variable cost VoIP solution Variable cost models have been more widely accepted in the Atlantic region then anywhere else in NA. Expand & contract as needed with changes in revenues and have partner handle evergreen technology evolution. Can migrate at a more controlled rate. Calls or data messages initiated at one device cross the LAN and Core IP Network to distribution / input network where applications determine where to route the calls or messages to the destination device. All information travels in the form of packets
  • Visual of an IP network with fixed cost telephony Fixed cost models popular where control of telephony is important and there is opportunity to add increasingly volumes to lower costs. Upfront investment and more commitment to internal resources required to deploy solution. Generally need to flash cut to new system Example of a fixed cost IP model. Primary difference is location of telephony infrastructure and requirements for PSTN connections
  • Speaking note: The assessment deals with business and technology needs. Depending on the resources used expect technology assessment to be strong and business may be weaker. The assessment may pay for itself as audit will find services not being used. In one implementation the cost decreased significantly as team played musical chairs with routers and switches to get provisioning costs down. The horror stories have come from sales without assessing data network and from interoperability being less then stated. TCO – How are you allocating initial and operational costs. Fully or incrementally. Usually the business case accounts for all savings but maybe not costs. We have an implementation where his occurred but after using system they didn’t care as they believed efficiency was drastically improved. I have seen testimonial from Coldwell Banker essentially saying the same thing.
  • From personal experience the mobility is incredible. True mobile office especially effective for road warriors. Also max VoIP benefits occur from multi site implementation (costs, collaboration, etc). I don’t want to use the phone anymore after using PC. User interface is better. Unified messaging (getting voice mail on email has received rave reviews, find me follow me also from sales force not missing customer calls.
  • Understand whose issue it is when voice is down. Is it traffic issues caused by other applications on data network
  • Self explanatory
  • These slides are to answer expected questions
  • Speaking notes: Read bullets then Subsequent slides will discuss the benefits in more detail, but the slide can be summarized as stating that IP convergence in your business will result in definable hard cost reductions, enable increased productivity, and improve management control of your business. However the most important impact that I would like to highlight is the ability of IP communications solutions to eliminate geographic barriers impeding the success of your business. In our case we are better able to support clients with remote operations because we do not have to purchase hardware based telephony systems and have a massive physical presence to be an effective provider. Agency Notes Cut Costs: - hard costs such as long distance charges for intra-office calling, conference calls, supporting multiple New Tools: - link everyone, no matter where their location (in office/out of office/home based) - audio and video conference. Geographic barriers: - simply will not exist. (IP Call Centre could be discussed here.)
  • Speaking Notes: The practical results of a simplified network are as follows: First Bullet Point The tools that you use today will work together more seamlessly an allow you to be more efficient with your time. There will be huge opportunities to leverage and create new business applications specific to your business. Today application development is expensive and time consuming because 33 to 50%+ of the costs are planning and testing for integration with multiple systems. The future will see large reductions in cost and time to deployment, as design and integration is based on a single IP standard. Second Bullet This is a practical example of the elimination of geographic barriers that was discussed in a previous slide. Often branch office workers with considerable responsibilities for the success of an organization do not have access to the same tools and support mechanism s that are available in head office. IP destroys that barrier by easily porting standardized capability to multiple locations while maintaining the advantage of a centralized and managed cost structure. Agency Notes With IP Convergence, you’ll move from multiple networks to one network. Instead of having phone, email, wireless and more, each on their own network, they’ll all be on the same network - integrated. You’ll also be moving from a hardware intensive system to a software based system -which means enhanced flexibility for future upgrades. Branch offices that had different systems in the past can now be included in a centrally controlled, standard system. .

Understanding Understanding Presentation Transcript

  • Understanding & Implementing VoIP How will you use it to your advantage ?
  • AGENDA 1. Aliant’s IP Solution Context 2. Defining VoIP 3. Implementing VoIP
  • 1 . Aliant’s IP Solution Context: IP Call Centre Wireless Data solutions VoIP and LAN management solutions View slide
  • 1. Aliant’s IP Solution Context IP VPN – All about bandwidth on demand on a simplified, less expensive network (MPLS) Aliant Ethernet - Business data access solution that offers significantly higher bandwidths across the WAN (up to 800Mbps) Disaster Recovery Plan Legacy Network (ATM, Frame Relay, etc.) Back-up location (Secondary site) Head Office (Primary site) Branch offices IP Network Disaster Recovery Plan Back-up location (Secondary site) Head Office (Primary site) Branch offices View slide
  • AGENDA 1. Aliant’s IP Solution Context 2. Defining VoIP 3. Implementing VoIP
  • 2. Defining VoIP
    • Defining VoIP
    • What is it & the significance of the change
    • Environmental Business Conditions Driving Adoption
    • Benefits of VoIP
    • Important Considerations
  • 2. Defining VoIP
    • Defn. & Significance of the Change
    • Instead of being an entirely separate system, voice has evolved to being an important computer application (i.e. VoIP) operating on a customers custom IP network.
    • Analogies for illustration purposes
    • Growth Opportunities – Reduced geographic barriers, new applications, outsourcing
    • Threats – More & new competitors, digital photography example
  • 2. Defining VoIP
    • Environmental Business Conditions Driving Change:
    • Business Customers – Productivity / Cost reductions / Competitive Pressures
    • Governments – Efficiency with tax dollars / Public priorities for scarce resources
    • Rate of Technology Advancement & Early Success Stories
  • 2. Defining VoIP
    • Benefits of VoIP:
    • Financial – (10-25%+)
    • Cut costs directly from bottom line
    • Productivity – (0-25%+)
    • Give your team new tools for collaboration & mobility
    • Eliminate geographic barriers to business
    • Management Control of Core Business Functions
    • Simplification, increased competitiveness, cost avoidance
    • Open new offices & manage communications centrally
  • 2. Defining VoIP
    • Important Considerations
    • Security – Has emerged as the # 1 concern
    • Initial Investment to Deploy Network
    • Ongoing Reliability – Simplification, increased competitiveness, cost avoidance
  • AGENDA 1. Aliant IP Solution Context 2. Defining VoIP 3. Implementing VoIP
  • 3. Implementing VoIP
    • Planning
    • Implementation Options
    • Business Models / Cost Structure
    • Lessons Learned / Anecdotes
  • 3. Implementing VoIP Mapping your Strategy
    • 4 Critical Questions
    • What is your business strategy for communications?
    • Who will be your supplier / partners to deliver on business strategy?
    • What are the preferred financial models & what is your capacity to deliver benefits?
    • What is your timeline / drivers to deliver benefits?
  • 3. Implementing VoIP Business Strategy
    • IP Convergence strategy is in source , Voice services are provided by organizational resources as part of convergence strategy to in source
    • IP Convergence strategy is to outsource communications function, voice services are provided by 3 rd party provider with expertise, competitive advantage etc.
    • IP convergence strategy is hybrid, voice is provided by Application Service Provider (ASP) model
  • 3. Implementing VoIP Suppliers / Partners Strategy
    • Technology Partner / Skills
      • Vendor selection
    • Operational / Organizational Skills
      • Desktop troubleshooting, LAN & WAN management, IP networking
    • Business skills
      • Application design
  • 3. Implementing VoIP Financial Considerations
    • Financial Models
    • Variable
    • Fixed
    • Hybrid Models
    • Cost Avoidance
    Spending Profile YY Thousands Other (Misc) Z Thousands IT Department XX thousands Wireless Amount Category X thousands Voice Y Thousands Data ZZ Thousands Total
  • 3. Implementing VoIP Timelines
    • Other priorities in the IP network & or business
    • Driving out costs
    • Financing the one time costs of infrastructure upgrades
    • Greenfield deployments
  • 3. Implementing VoIP
    • Implementation Options
    • Network Hosted / Managed IP Solutions
    • Customer Premise Equipment Based Solutions (IP PBX)
    • Hybrid IP / TDM based solutions
    • Peer to Peer Technology Solutions
  • 3. Implementing VoIP Managed IP Telephony Devices Local Area Core infrastructure Distribution Devices Network /Access /Input Atlantic Region Offices Your Offices USA/Worldwide Offices IP Virtual Private Network (Core IP Network) IP Telephony PSTN & Wireless Internet VPN WI-FI MAX HOME IP Network: Variable cost 3rd Party Data Provider Direct Connection
  • 3. Implementing VoIP IP Telephony (CPE solution) Devices Local Area Core infrastructure Distribution Devices Network /Access /Input Atlantic Region Offices Your Offices USA Offices IP Virtual Private Network (Core IP Network) Wireless PSTN Internet VPN WI-FI MAX HOME IP Network: Fixed cost IP PBX IP PBX 3rd Party Data Provider Direct Connection IP PBX
  • 3. Implementing VoIP Lessons Learned & Anecdotes Planning & Implementing
    • Business Case
    • Really understand Total Cost of Ownership (TCO) particularly as it relates to which costs you are going to allocate to your business case
    • Target mobility users & high traffic multi site locations to get best and fastest returns. Consider abandoning hard phones with power users
    • Implementing
    • Skills and abilities of your people to implement, upgrade, operate
    • Multi vendor voice solutions will not have operability of enhanced functionality in the short term
    • Forklift implementations with CPE solutions
    • Innovation opportunities for network agnostic applications
  • 3. Implementing VoIP Lessons Learned & Anecdotes
    • Devices & Users
    • Users like many of the new features (unified messaging, find me follow me, etc) , PC interface and enhanced applications. Need better training solutions when implementing alot of new functionality especially with soft phones on PC.
    • Consider evolution of wireless devices (dual mode cellular / IP)
    • IP phone costs not yet commoditized
    • Details & quality of peripheral devices (headsets /camera’s) and PC specifications are important to quality voice experience
  • 3. Implementing VoIP Lessons Learned & Anecdotes
    • LAN’s
    • Use professional services / internal resources to Assess / Audit Data Network for VoIP Readiness.
    • Estimates can vary significantly based on initial network assessment (positively or negatively from a customers perspective) Most data networks require upgrades to handle traffic & compatibility issues can occur depending on technology decision
    • Same costs to upgrade data network regardless of VOIP vendor selection
    • VPN upgrades likely
    • VoIP will have substantial impact on LAN mgmt & desktop support
      • Traffic, network upgrades, security, etc
      • Statistics of problem reports as tools integrated at desktop
      • Troubleshooting - will be critical on 1 network for both uptime, security, and sourcing cause of issues.
    3. Implementing VoIP Lessons Learned & Anecdotes / LAN’s cont
  • 3. Implementing VoIP Lessons Learned & Anecdotes
    • WAN
    • Should be able to choose any voice solution and have choice of WAN providers
    • Demarcation points with LAN to trouble quality of service issues, security issues etc
    • Need PRI’s to PSTN if using CPE solution
  • 3. Implementing VoIP Lessons Learned & Anecdotes cont.
    • Operational Considerations Post Implementation
    • Trouble shooting voice issues – Whether in sourcing or outsourcing voice as an ASP solution (i.e. Running your own data network) make sure there are a clear series of troubleshooting procedures for tracking & solving source of the problem
    • Initially need to expect many more help desk calls then traditional telephony, especially if using PC
    • Understand 911 responsibilities
    • There are case studies where implementation success is measured by a combination of cost savings, productivity, and operational enhancements, etc
  • 3. Implementing VoIP The question is not “if” to change: It is when, how, and with whom
  • Q & A
  • Appendices
    • Appendix A – Aliant IP Communications reference slides
    • Appendix B – VoIP Implementation reference slides
  • Appendix A – Aliant IP Solution Context Reference Slides
  • 1. Aliant IP Solutions Context Data Solutions - IP VPN
    • Simplicity – one converged network allows for simplified network administration and reporting, ease of deployment
    • Flexibility – customers can order quality of service and bandwidth on demand (future)
    • Accessibility – access to wider community of interest and to IP business networking applications on a single platform
    • Cost Savings – customers are reporting 15-40% cost savings & enhanced productivity, depending on overall operating network and IT environment
  • 1. Aliant IP Solutions Context Data Solutions – Aliant Ethernet (AE)
    • What is Aliant Ethernet?
    • Business data access solution that offers significantly higher bandwidths across the WAN (up to 800Mbps),
    • Benefits of Aliant Ethernet
    • AE combines the flexibility, simplicity and cost-effectiveness of Ethernet, with the reliability, speed and reach of optics (fibre) to allow users to extend their LAN environment across the MAN and WAN
    • Enables prioritizing of customer traffic and rigid controls over QoS
    • Offers simple provisioning - Any-to-Any and P2MP configurations and proactive trouble response by Aliant management
  • 1. Defining Aliant IP Solution Context Call Center Solutions “Cost Reductions & Efficiencies of Scale are the Business Drivers”
    • Business Drivers
    • Centralization of infrastructure in stable countries for easier management, administration, and to take advantage of commoditized costs like 800 service
    • Use capability to IP to offshore and reach inexpensive labour
    • Use technological capability of IP to create larger pools of virtual agents / knowledge that results in organizational productive gain
    • Lower costs of application licensing through sharing of licenses across geographic boundaries
    • Note
    • Standard range of solutions
    • Developing hosted solution for deployment in 2005
    • Don’t need all of previous points to apply to make strong improvements in your business. Example would be to use local points of presence for sales, marketing, and or customer service for market penetration but do it from centralized location
  • 1. Defining the IP Evolution
    • With IP Convergence, you can:
    • Cut costs directly from your bottom line
    • Give your team new tools for collaboration
    • Make your mobile workers more efficient
    • Open new offices & manage the communications centrally from head office
    • Eliminate geographic barriers
    • and more …
  • 1. Defining the IP Evolution The Benefits: Simplicity
    • Before:
    • Multiple devices/applications/ networks that didn’t work together efficiently
    • Difficult to standardize branch offices
    • Now:
    • One network links them/they all work together
    • Branches centrally controlled and standardized
  • What’s Different – One Network that is More Flexible Centralized location IP Network St. John’s Saint John Halifax PSTN Network St. John’s Saint John DMS Centrex DMS-PRI DMS App Server Soft Switch City A City B City C Data Network (collection of networks) Before IP After IP Centrex Separate Voice & Data Networks Limited flexibility / multiple protocols Geographic / Territorial Hardware Intensive Difficult to partner Single Network Flexible, Reliable / 1 protocol No geographic dependency Software intensive Open to wide range of partners Halifax IP PBX IP PBX PBX
  • NGN Enabling VoIP, new services, etc PSTN Wireless Messaging Data Network Wireless Voice/Messaging Products New Applications & Enhanced Traditional 2002 Separate networks with separate applications 2003 –2004 Separate networks with integrated applications 2005 + Converged Networks and Network Agnostic Applications “ Simplicity will Create Innovation Opportunities” New Business Applications will Appear Rapidly Voice Products Voice Products PSTN Wireless Data Network Network Agnostic Applications Video Wireless Voice Services Data Services
  • Appendix B – VoIP Implementations Reference Slides
  • 1. Defining the Revolution Devices Local Area Core infrastructure Distribution Devices Network /Access /Input Atlantic Region Offices Your Offices USA Offices IP Virtual Private Network (Core IP Network) PSTN & Wireless Internet VPN WI-FI MAX HOME IP Network: Variable Cost Case 2- Halifax calls New York customer 3rd Party Data Provider Direct Connection PSTN & Wireless IP Telephony IP Telephony IP Virtual Private Network (Core IP Network)
  • 1. Defining the Revolution Devices Local Area Core infrastructure Distribution Devices Network /Access /Input Atlantic Region Offices Your Offices USA Offices IP Virtual Private Network (Core IP Network) IP Telephony PSTN & Wireless Internet VPN WI-FI MAX HOME IP Network: Variable Cost Case 3- Denver calls Toronto, looks like it’s a call from Halifax. 3rd Party Data Provider Direct Connection Internet Your Offices IP Telephony
  • 1. Defining the Revolution Devices Local Area Core infrastructure Distribution Devices Network /Access /Input Atlantic Region Offices Your Offices USA Offices IP Virtual Private Network (Core IP Network) Wireless PSTN Internet VPN WI-FI MAX HOME IP Network: Fixed Cost Case 5 - Halifax calls New York colleague IP PBX IP PBX 3rd Party Data Provider Direct Connection IP PBX
  • 1. Defining the Revolution Devices Local Area Core infrastructure Distribution Devices Network /Access /Input Atlantic Region Offices Your Offices USA Offices IP Virtual Private Network (Core IP Network) Wireless PSTN Internet VPN WI-FI MAX HOME IP Network: Fixed Cost Case 6 - Halifax calls New York customer IP PBX IP PBX 3rd Party Data Provider Direct Connection IP PBX IP Virtual Private Network (Core IP Network) Wireless PSTN IP Virtual Private Network (Core IP Network)