Why TCO when considering Unified Communications is Paramount

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Considering a Unified Communications project?

Know what the total costs will be?

ROI or TCO - Whose budgets are affected?

Come and find out what you should be considering - it is a lot wider than you think!

Ultimately you need to be 100% informed - come and find out how......

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  • VISION for a single system with SIMPLICITY at its core
  • The Sober decade is upon us Private sector expected to pick up
  • But first let me pose a question. When did Complexity become the Norm?IT’s almost in our DNA now. We expect things in IT to be complex? WhyWhy should I have a Highly accredited, certified IT Professional.. Resetting passwords? Adding a user. Why should I have to know a glossary of acronyms just because I want to communicate to my customers.
  • NOT going to concentrate on the RIGHT HAND SIDE – everyone does that LEFT HAND SIDE is what we will concentrate on today
  • 5 MAJOR AREASCAPITAL EXPENDITURE = HEART TURNING PAGES TO THE BACK
  • Chart of Accounts vs. Budget line items. Points to difficulty that customers have analyzing, budgeting. Total costs are often scattered. On one model gathered all of the considerations. Seeded them with ‘reasonable’ defaults.IF YOU GET YOUR VENDOR down by 10% of the capital costs it is only 3% in real terms – GOOD ENOUGH ??
  • OBJECTIVE MEASURMENTIMPROVES DECISION MAKINGIMPROVES FINANCIAL PLANNINGPOWERFUL INSIGHTMAXIMIZE CASH FLOWORGANISATIONAL IMPACT
  • BASIC FRONT SECTION This is the excel versionOnline version as well
  • Less FTELess time trainingFree software upgrades through system liufe.Minimum downtimeEven less electricity.
  • Why TCO when considering Unified Communications is Paramount

    1. 1. Beat<br />Complexity<br />The Importance of TCO<br /> Tom Perry<br />Director of Marketing EMEA<br />
    2. 2. 1<br />Company Overview<br />Founded<br />In 1996-Superior technology designed from a clean sheet of paper<br />Headquarters<br />Sunnyvale, California with offices in the UK, Germany, Spain, Australia, Singapore and Hong Kong<br />Growth<br />More than 14,000 customers globally – serving over a million end users<br />850 partners to date, growing at roughly 10% year over year<br />Financial Strength<br />Over $100M in cash, no debt<br />1<br />
    3. 3. 14,000+ Customers - All Industries in EMEA<br />2<br />
    4. 4. What is unified communications?<br />UnifiedMessaging<br />Voice<br />Presence<br />And IM<br />Video<br />Business<br />Processes<br />Office Apps<br />Integration<br />Conferencing<br />Mobility<br />Web Collaboration<br />Office<br />Mobile<br />Hotel<br />Home<br />Airport Wifi<br />3<br />
    5. 5. What do clients need?<br />4<br />Lowest Total Cost of Ownership<br />Easy to Use and Easy to Manage<br />Scalability <br />Reliability and Availability<br />
    6. 6. 5<br />ShoreTel Products<br />ShoreWare®Applications<br />ShorePhoneTMIP Telephones<br />ShoreGear®Voice Switches<br />
    7. 7. One brilliantly simple solution for the way you work<br />6<br />Business Communication Solution<br />Unified <br />Communications<br />IP Phone System<br />Contact Center<br />
    8. 8. One brilliantly simple solution for the way you work<br />Business Communication Solution<br />Unified <br />Communications<br />IP Phone System<br />Contact Center<br />Unifying rich communication capabilities into a modular design that scales and integrates with ease<br />
    9. 9. One brilliantly simple solution for the way you work<br />Business Communication Solution<br />Unified <br />Communications<br />IP Phone System<br />Contact Center<br />Unifying rich communication capabilities into a modular design that scales and integrates with ease<br />Integrating voice, video, and data across any device to streamline collaboration and enhance productivity<br />
    10. 10. One brilliantly simple solution for the way you work<br />Business Communication Solution<br />Unified <br />Communications<br />IP Phone System<br />Contact Center<br />Unifying rich communication capabilities into a modular design that scales and integrates with ease<br />Integrating voice, video, data across any device to streamline collaboration and enhance productivity<br />Combining flexible yet sophisticated multimedia contact center capabilities to empower agents anywhere<br />
    11. 11. One brilliantly simple solution for the way you work<br />10<br />Business Communication Solution<br />All-in-One<br />IP Phone System<br />Contact Center<br />Unified <br />Communications<br />
    12. 12. Brilliant Simplicity - Results In Lower TCO<br />EASY TO<br />EASY TO<br />EASY TO<br />DEPLOY<br />EASY TO<br />EASY TO<br />SCALE<br />LEARN<br />USE<br />MANAGE<br />11<br />
    13. 13. What is the Key Driver for People Making Purchase Decisions?<br />12<br />
    14. 14. 13<br />
    15. 15. Complexity targeted as a major new area for cost reduction<br />Numerous documented cases of companies able to reduce costs by 15% to 30% by aggressively attacking complexity<br /><ul><li>Proctor & Gamble – $4B savings
    16. 16. Motorola’s ‘War on Complexity’ – $2.6B / 2 years
    17. 17. Kraft – $400M annual savings</li></ul>Companies That Have Beaten Complexity<br />14<br />
    18. 18. It’s not just about savings: it’s also about the gains<br />Low<br />purchase cost<br />Greatcustomer experience<br />Impactfulcommunication<br />Low<br />deployment cost<br />Dynamiccollaboration<br />Low<br />operating cost<br />Productive<br />workforce<br />Low<br />growth cost<br />15<br />
    19. 19. ShoreTel<br />Lowest TCO<br />
    20. 20. ROI v. TCO<br />Total Cost of Ownership (TCO)<br />Return on Investment (ROI)<br /><ul><li>Capital costs (hardware & software)
    21. 21. Implementation and training
    22. 22. System management / MACs
    23. 23. Network and long distance charges
    24. 24. End user productivity
    25. 25. Presence services (3.9 hrs / week / employee)
    26. 26. Remote employees (4.0 hrs / week / employee)
    27. 27. Mobile employees (4.3 hrs / week / mobile emp.)
    28. 28. Unified Messaging (3.6 hrs / week / employee)
    29. 29. Organizational Productivity
    30. 30. Increased call volumes
    31. 31. Increased customer satisfaction
    32. 32. Increased CC agent effectiveness
    33. 33. Business process integration (e.g., CRM)</li></ul>Focus on revenue impact regardless of vendor<br />Prove overall technology business case(e.g., IPT vs. TDM)<br />Focus on reduction of tangible costsEnable correct choice between vendors (Including TDM)<br />Source: Sage Research<br />17<br />
    34. 34. The Reality: Up-front Costs Represent 26% of TCO<br />18<br />TCO Components<br />
    35. 35. Defining Total Cost of Ownership<br />19<br />OperationalStart-Up Costs<br />UC System Costs<br />Capital Expenditures<br />Energy Costs<br />OngoingNetwork Costs<br />19<br />
    36. 36. Defining Total Cost of OwnershipMeasuring the Total Financial Impact of a Unified Communications System<br />UC system costs<br />Support services (maintenance and upgrades)<br />Moves, Adds & Changes (MAC)<br />System management<br />Recurring training<br />Cost of system downtime<br />Electricity consumption<br />Ongoing network costs<br />WAN cost<br />Voice Trunk Cost(Analog, Tie Line, E1/T1, SIP trunks)<br />Long distance charges<br />20<br />Ongoing / Annual Recurring Costs<br />Up-front Costs<br />Capital costs<br />Telephony system<br />Hardware replacement<br />Network upgrade<br />Operational start-up costs<br />Implementation<br />Training<br />
    37. 37. Why is total cost of ownership important?<br />TCO provides an important metric for evaluating the risks, costs and benefits of UC solutions. <br />TCO serves as:<br />risks<br />Financial guide to inform decision-making process<br />Technology insight into product functionality and future needs<br />Overview of increased efficiencies<br />Comparison of system management complexity across UC vendors<br />Objective measure of the total business impact of UC <br />Effectively comparison between leasing and purchasing a UC system<br />21<br />
    38. 38. Beat<br />Complexity<br />The TCO Tool<br />
    39. 39. History<br />Pedigree<br />Profile<br />Alinean: Value-Based Sales and Marketing Tools<br />OUR FOCUS: Aligning B2B solution providers with frugal buyers via interactive, value-based tools<br /><ul><li>Original pioneers (1994) of B2B Value Selling Tools
    40. 40. Sold first TCO/ROI software company to Gartner in 1998
    41. 41. 1st scalable business value platform – XcelLive™
    42. 42. Over 75 customers and 650 ROI/TCO models across an array of IT and B2B disciplines
    43. 43. Endorsed as best practice by many leading vendors including Microsoft, HP, IBM, EMC, NetApp, Siemens Healthcare.
    44. 44. Partnerships with IDC, Morningstar and ZDE
    45. 45. Founded in 2001
    46. 46. Headquartered in Orlando, FL
    47. 47. 30+ full-time professionals
    48. 48. ex-Gartner business value / ROI experts
    49. 49. IT content experts from top IT vendors including IBM, HP, Sun, SAS, Oracle, Siemens, CSC</li></li></ul><li>24<br />TCO Tool – Structure<br />Third Party Cost Data<br />Customer Configuration<br />Product List Calculations<br /><ul><li>Network upgrade costs
    50. 50. Upfront operational costs
    51. 51. Ongoing telephony system costs
    52. 52. Ongoing network costs
    53. 53. Energy consumption
    54. 54. ShoreTel switch & phone configurator
    55. 55. Cisco & Mitel configurator
    56. 56. Nortel /Avaya Price regression
    57. 57. Server and equivalent phone mix for leading IPT competitors
    58. 58. # phones (IP phones, analogue phones & extension)
    59. 59. Vertical industry
    60. 60. # sites
    61. 61. International (sites, currencies)
    62. 62. Trunk requirements</li></ul>TCO Detail Worksheet<br /><ul><li>Configured for customer’s exact circumstances
    63. 63. User able to update / override assumptions or results (all categories)
    64. 64. Simultaneous / parallel calculation for TDM and IPT alternatives</li></ul>Financial Results<br /><ul><li>TCO calculations (pre- & post-tax)
    65. 65. Graphical output (TCO, cash flow)
    66. 66. Financial ratio analysis(payback period, IRR, ROI, NPV)
    67. 67. Energy consumption results(kWh, $)</li></li></ul><li>ShoreTel TCO Tool – WHY?<br />25<br />Improves organizational decision making, efficiency and alignment<br />Provides an objective measure of the total business impactof the UC purchase decision<br />Offers powerful insight, regardless ofdeployment size<br />Improves financial planning and accountability<br />Captures the organizational impact of UC product and system management complexity<br />Maximizes cash flow and long-term shareholder value<br />
    68. 68. Total Cost of Ownership Tool <br />26<br />
    69. 69. https://roianalyst.alinean.com/shoretel/sales<br />27<br />
    70. 70. A Quick Look…<br />28<br />
    71. 71. A Quick Look…<br />29<br />
    72. 72. A close look at TCO with ShoreTel<br />TCO comparison of<br />major UC system vendors<br />(pre-tax)<br />30<br />$26.65<br />10-year analysis based on standard large enterprise configuration:<br />1,500 users across 3 sites<br />30<br />25<br />$19.80<br />$19.79<br />20<br />$14.76<br />$14.02<br />15<br />$M<br />Long distance charges<br />Network costs<br />10<br />Electricity consumption<br />System management, MACs, downtime<br />$6.86<br />Support services<br />5<br />Implementation and training<br />Capital cost for network upgrade<br />Capital cost for telephony system<br />0<br />Source Data: Ferris Research, Inc., Wainhouse Research, Nemertes Research, Alinean Research, The Tolly Group<br />Avaya<br />Microsoft<br />ShoreTel<br />TDM<br />Mitel<br />Cisco<br />30<br />
    73. 73. Rapid ROI drives business value<br />31<br />Financial ratio comparison by vendor<br />
    74. 74. 1<br />2<br />3<br />ShoreTel TCO summary<br />A TCO analysis as part of the evaluation process offers important technological and financial insight<br />ShoreTel offers superior gains with brilliantly simple solutions<br />The ShoreTel TCO Tool draws on third-party data for a full competitive analysis<br />ShoreTel offers industry leading TCO, lower than Mitel, Avaya, Nortel, Cisco and existing TDM with:<br /><ul><li>Low purchase costs
    75. 75. Low deployment costs
    76. 76. Low operating costs
    77. 77. Low growth costs</li></ul>32<br />
    78. 78. Where is Low TCO Driven from?<br />33<br />
    79. 79. Key Drivers of TCO VarianceBrilliantly Simple Has a Unique Architecture<br />ShoreTel Architecture<br /><ul><li>Embedded switch-based call control
    80. 80. Distributed software architecture
    81. 81. Managed as a single image</li></ul>… Drives 4 Key Benefits<br /><ul><li>Unmatched reliability and availability
    82. 82. Easiest to install, maintain and use
    83. 83. Most scalable solution
    84. 84. Lowest TCO</li></li></ul><li>Beat<br />Complexity<br />TCO Guarantee<br />STAND 523 at IP Expo<br />

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