A Winning VoIP Solution For SMB <ul><li>The SMB Market </li></ul><ul><li>SMB Purchasing Patterns </li></ul><ul><li>The VoI...
Overview <ul><li>VoIP & SMB: An opportunity to  advance ! </li></ul><ul><ul><li>Magnified market presence </li></ul></ul><...
ABOUT THE SMB MARKET
SMB Market Potential Source: US Census NAICS Data SMBs There are ~4.5M SMB with 2 to 100 employees* SMBs make up 97.6% of ...
SMB – Local & LD Expense % of Total Telecom Expenditure 68.9% 74.0% 65.2% 62.5% 65.4% 74.7% 42.0% 54.7% 38.3% 37.7% 62.0% ...
Target  SMB Market <ul><li>Define 3 Market Segments within 2-100 Employees: </li></ul><ul><ul><li>“ Basic Communicators” 3...
SMB Market Segmentation <ul><li>Approximately 2.7M “Professional Communicator” SMBs </li></ul><ul><ul><li>16% - 20% turn-o...
SMB VoIP Concerns <ul><li>Perceptions of Drawbacks from traditional service </li></ul><ul><ul><li>911 Calling (32% selecte...
SMB & VoIP Adoption <ul><li>In 2005, SMBs spent roughly $2.1 billion on telephone service, according to a Wall Street Jour...
SMB BUYING TRENDS AND MOTIVATIONS
SMB Purchasing Triggers <ul><li>What motivates an SMB to invest in a new telecommunications system? </li></ul><ul><ul><li>...
SMB Selection Criteria <ul><li>SMBs selection solutions based on: </li></ul><ul><ul><li>Risk </li></ul></ul><ul><ul><ul><l...
SMB Purchasing Concerns <ul><li>Risk: Reliability, Quality of Service, Resource commitment </li></ul><ul><li>Lack of knowl...
SMBs Differ from Big Enterprise <ul><li>SMBs are more sensitive to cost, especially installation costs </li></ul><ul><li>R...
Common Pitfalls in Addressing SMBs <ul><li>Price points  out of line  with SMB expectations </li></ul><ul><ul><li>Installe...
OPPORTUNITIES IN VOIP FOR THE SMB MARKET
Opportunity for The Reseller <ul><li>A source of new sales opportunities </li></ul><ul><ul><li>VoIP provides a strong ince...
Opportunity for the SMB <ul><li>Core Value Proposition: </li></ul><ul><li>A managed VoIP offering will provide… </li></ul>...
Opportunity for the SMB <ul><li>Key VoIP Features and Benefits: </li></ul><ul><ul><li>Monthly telecom & data service cost ...
Example: Multi-site/Remote User
Example: Call Routing/Notification <ul><li>A SMB supplies “kitchen equipment” to local restaurants and provides an SLA-bas...
<ul><li>Provide SMBs with a multi-year agreement to: </li></ul><ul><ul><li>Maintain the business LAN & WAN network environ...
Growing a Reseller into an MSP: <ul><li>A managed service provider (MSP) is a company that manages IT services (LAN/WAN/vo...
The Major Elements <ul><li>The Reseller </li></ul><ul><ul><li>Data & Telecomm Savvy </li></ul></ul><ul><ul><li>Sales & Ser...
To offer a true managed services product, a reseller should: <ul><li>Offer network and voice hardware (VoIP) </li></ul><ul...
The SMB Customer Offering <ul><li>A Complete Data & Voice Package </li></ul><ul><ul><li>Service delivered via T1 & backing...
Example VoIP Solution <ul><li>The Fastest Growing SMB VoIP Solution! </li></ul><ul><ul><li>$400 - $600 / seat installed </...
A Real World Example <ul><li>“ Acme Services”: 55 emp. New England Business </li></ul><ul><li>3 Sites + remote small offic...
Initial Needs Analysis <ul><li>Analysis of “Acme’s” current monthly telecom expense showed opportunity for dramatic reduct...
Acme’s Current Cost Structure Current Scenario Monthly Yearly 3 Years Data - DSL for Business Class (4 DSL Lines) $400 $4,...
Acme’s Proposal <ul><li>Customers signs a 3 year service contract with reseller for $1,410/month </li></ul><ul><li>Lease p...
Acme’s Proposed Cost Structure Managed Services Scenario Monthly Yearly 3 Years Monthly Managed Services Fee       Telepho...
Conclusion <ul><li>Managed VoIP Solutions can benefit all businesses </li></ul><ul><ul><li>Savings, Streamlined Communicat...
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Daddis George

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Transcript of "Daddis George"

  1. 1. A Winning VoIP Solution For SMB <ul><li>The SMB Market </li></ul><ul><li>SMB Purchasing Patterns </li></ul><ul><li>The VoIP Opportunity </li></ul><ul><li>A Winning SMB VoIP Offering </li></ul>
  2. 2. Overview <ul><li>VoIP & SMB: An opportunity to advance ! </li></ul><ul><ul><li>Magnified market presence </li></ul></ul><ul><ul><li>Increased customer responsiveness </li></ul></ul><ul><ul><li>“ Location Transparency” </li></ul></ul><ul><ul><li>Potential monthly savings on telecom </li></ul></ul><ul><li>VoIP & the VAR: Growth opportunity! </li></ul><ul><ul><li>Develop recurring revenue stream </li></ul></ul><ul><ul><li>Become vital to your customer’s operation </li></ul></ul><ul><ul><li>Differentiate your business </li></ul></ul><ul><li>The Opportunity: </li></ul><ul><ul><li>Provide a Total Solution </li></ul></ul><ul><ul><li>Bundled IT/Voice Service & Maintenance </li></ul></ul>
  3. 3. ABOUT THE SMB MARKET
  4. 4. SMB Market Potential Source: US Census NAICS Data SMBs There are ~4.5M SMB with 2 to 100 employees* SMBs make up 97.6% of the business population! (but only 20% of the employee base!) * After eliminating 0 and 1 employee businesses
  5. 5. SMB – Local & LD Expense % of Total Telecom Expenditure 68.9% 74.0% 65.2% 62.5% 65.4% 74.7% 42.0% 54.7% 38.3% 37.7% 62.0% 58.6% 56.3% 67.0% 46.4% --- --- --- --- --- --- 57.9% # of SMB's (5-99 EE's) Market Value $ 153,781 $2,294,258,739 172,478 $1,204,213,800 84,005 $486,560,320 155,242 $842,181,640 115,262 $578,278,675 290,277 $1,100,625,884 60,456 $213,433,862 31,299 $102,820,971 201,388 $632,390,542 51,038 $158,258,630 208,596 $618,378,670 234,560 $661,374,758 455,446 $1,178,931,080 284,813 $726,444,038 3,250 $3,558,750 34,485 --- 22,336 --- 6,789 --- 5,275 --- 5,096 --- 1,402 --- 2,577,274 $10,801,710,360 KEY Market Segments
  6. 6. Target SMB Market <ul><li>Define 3 Market Segments within 2-100 Employees: </li></ul><ul><ul><li>“ Basic Communicators” 33% of SMB </li></ul></ul><ul><ul><ul><li>Minimal and simplistic data & voice communication requirements </li></ul></ul></ul><ul><ul><ul><li>Drycleaners, gas stations, independent small retail, 0 & 1 employee businesses… </li></ul></ul></ul><ul><ul><li>“ Power Communicators ” ~5% of SMB </li></ul></ul><ul><ul><ul><li>Advanced data & voice requirements – high volume, fully converged, complex traffic patterns, highly reliable </li></ul></ul></ul><ul><ul><ul><li>Call centers, some financial services, some medical </li></ul></ul></ul><ul><ul><li>“ Professional Communicators” 62% of SMB </li></ul></ul><ul><ul><ul><li>Communications in voice & data are integrated and essential to business operation </li></ul></ul></ul><ul><ul><ul><li>Business-to-Business Services, Retail, Manufacturing, Local/Municipal Government, Health Care </li></ul></ul></ul>
  7. 7. SMB Market Segmentation <ul><li>Approximately 2.7M “Professional Communicator” SMBs </li></ul><ul><ul><li>16% - 20% turn-over or 700K systems sold annually in this segment </li></ul></ul><ul><li>VoIP Penetration: Estimates vary widely but opportunity is large! </li></ul><ul><ul><li>Only 15% of all prof small businesses use VoIP services in any fashion within the entire SMB market </li></ul></ul><ul><ul><li>Only 6% of all new telephone systems sold today to SMB are pure VoIP Solutions </li></ul></ul><ul><li>Cost burden of telecommunications services </li></ul><ul><li>is high to SMB : </li></ul><ul><ul><li>0 to 4 employees/firm - $82.81/emp/mo </li></ul></ul><ul><ul><li>5 to 9 employees/firm - $50.18/emp/mo </li></ul></ul><ul><ul><li>10 to 499 employees/firm - $20.99/emp/mo </li></ul></ul>Source: - &quot;The State Of SMB Network And Telecom Adoption: Business Technographics North America“ – June 2006 - 2005 Telecom Report: Hot Issues Facing the Industry – Harris Interactive VoIP Study – October 2005 - A Survey of Small Businesses Telecommunications Use & Spending – TeleNomic Research – March 2004
  8. 8. SMB VoIP Concerns <ul><li>Perceptions of Drawbacks from traditional service </li></ul><ul><ul><li>911 Calling (32% selected it as a huge drawback) </li></ul></ul><ul><ul><li>Network Reliability (23%) </li></ul></ul><ul><ul><li>Voice Quality (23%) </li></ul></ul><ul><ul><li>Hassle factor of switching (14%) </li></ul></ul><ul><li>Don’t see the advantages </li></ul><ul><ul><li>Only 19% see Ease of Use as an advantage of VoIP </li></ul></ul><ul><ul><li>Quality of the Voice Connections (18%) </li></ul></ul><ul><li>High Price!! </li></ul>Sources: 2005 Telecom Report: Hot Issues Facing the Industry – Harris Interactive VoIP Study – October 2005 2007 Frost & Sullivan “North American Enterprise Telephony Sys”
  9. 9. SMB & VoIP Adoption <ul><li>In 2005, SMBs spent roughly $2.1 billion on telephone service, according to a Wall Street Journal Report </li></ul><ul><li>Familiarity with VoIP </li></ul><ul><ul><li>On average 50% of businesses (all sizes) are “somewhat familiar with VoIP” </li></ul></ul><ul><ul><li>26% are “very or extremely familiar” </li></ul></ul><ul><ul><li>24% are “not very familiar or not at all familiar” with VoIP </li></ul></ul><ul><li>High Satisfaction with VoIP </li></ul><ul><ul><li>A Savatar survey reports 69% of SMBs with VoIP would “highly recommend” VoIP, while 22% would just “recommend” it </li></ul></ul><ul><li>SMB IT spending is growing faster than enterprise spending </li></ul><ul><ul><li>48% of total US IT is for SMB ($320 billion) – Forrester </li></ul></ul><ul><li>In the “Technology Adoption Curve”, SMB is ready to enter mainstream adoption! </li></ul>Sources: - 2005 Telecom Report: Hot Issues Facing the Industry – Harris Interactive VoIP Study – October 2005 - SMB VoIP Research Study – Savatar – September 2006 - 2007 Forrester Research
  10. 10. SMB BUYING TRENDS AND MOTIVATIONS
  11. 11. SMB Purchasing Triggers <ul><li>What motivates an SMB to invest in a new telecommunications system? </li></ul><ul><ul><li>The “Impending Event” </li></ul></ul><ul><ul><ul><li>Business Establishment </li></ul></ul></ul><ul><ul><ul><li>Business Expansion </li></ul></ul></ul><ul><ul><ul><li>Business Move </li></ul></ul></ul><ul><ul><li>Technology Obsolescence </li></ul></ul><ul><ul><ul><li>It broke! </li></ul></ul></ul><ul><ul><ul><li>It costs to much to grow to the next step </li></ul></ul></ul><ul><ul><li>Reduction of Monthly Recurring Costs (MRC) </li></ul></ul><ul><ul><ul><li>> 25% seems to be the trigger! </li></ul></ul></ul><ul><ul><li>Solving a key business application </li></ul></ul><ul><ul><ul><li>Remote users, Improved Customer Response (Follow-me, Notification/Escalation…), data/voice integration etc. </li></ul></ul></ul>
  12. 12. SMB Selection Criteria <ul><li>SMBs selection solutions based on: </li></ul><ul><ul><li>Risk </li></ul></ul><ul><ul><ul><li>“ Threshold Criteria” </li></ul></ul></ul><ul><ul><ul><li>Is the solution reliable? Will it consume large amounts of resources/time to maintain? Will deployment not disrupt my business? </li></ul></ul></ul><ul><ul><li>Feature Set </li></ul></ul><ul><ul><ul><li>“ Threshold Criteria” </li></ul></ul></ul><ul><ul><ul><li>Does the solution support my daily business operation (legacy features)? </li></ul></ul></ul><ul><ul><ul><li>Will the solution improve my ability to work with customers & employees (advanced features)? </li></ul></ul></ul><ul><ul><li>Cost </li></ul></ul><ul><ul><ul><li>“ Comparative Criteria” </li></ul></ul></ul><ul><ul><ul><li>Initial investment, TCO, MRC </li></ul></ul></ul><ul><ul><ul><li>Impact on cash flow </li></ul></ul></ul><ul><li>SMBs look for a complete solution that is supported ! </li></ul><ul><ul><li>One-stop shop – a single contact to manage the infrastructure – LAN, Network Appliances, Telephone, WAN voice & data </li></ul></ul><ul><ul><li>SMBs require a strong relationship with a trusted local resource! </li></ul></ul>
  13. 13. SMB Purchasing Concerns <ul><li>Risk: Reliability, Quality of Service, Resource commitment </li></ul><ul><li>Lack of knowledge of what VoIP solution is best for them </li></ul><ul><ul><li>70% of the SMBs which haven’t yet migrated to VoIP have almost no idea which service to use </li></ul></ul><ul><ul><li>Overall complexity of VoIP systems </li></ul></ul><ul><li>Security Issues </li></ul><ul><li>Customer Service / On-site Repair </li></ul><ul><ul><li>Due to lack of IT resources </li></ul></ul><ul><ul><li>Is there a dedicated responsive support resource? </li></ul></ul><ul><li>Conclusion: A strong need & opportunity for the local reseller! </li></ul><ul><ul><li>Equipment Sales & Ongoing Maintenance of the LAN/WAN environment </li></ul></ul>Source: SMB VoIP Research Study – Savatar – September 2006
  14. 14. SMBs Differ from Big Enterprise <ul><li>SMBs are more sensitive to cost, especially installation costs </li></ul><ul><li>Risk and redundancy requirements are different </li></ul><ul><ul><li>Reliability of TDM Key-systems </li></ul></ul><ul><ul><li>Don’t expect to pay premium </li></ul></ul><ul><li>Usually lack IT knowledge and/or resources </li></ul><ul><li>They typically have shorter sell cycles (1 week to 6 months) than their enterprise counterparts </li></ul><ul><li>SMBs telephone system feature sets are different! </li></ul><ul><ul><li>One-touch access / Key system features </li></ul></ul><ul><ul><li>“ Technologically Conservative” </li></ul></ul><ul><ul><li>True “value-add” improvements integrate existing technologies: </li></ul></ul><ul><ul><ul><li>PC/ MS Office & Outlook, Cell Phone, Telephone System </li></ul></ul></ul>
  15. 15. Common Pitfalls in Addressing SMBs <ul><li>Price points out of line with SMB expectations </li></ul><ul><ul><li>Installed VoIP costs range from $600 - $1,500 / employee </li></ul></ul><ul><ul><li>Out of line with today’s TDM $300 - $500 / employee </li></ul></ul><ul><li>Inappropriate feature set </li></ul><ul><ul><li>Most VoIP IP-PBXs provide only PBX behavior with their VoIP feature set </li></ul></ul><ul><ul><li>Legacy key-system behavior is dropped! </li></ul></ul><ul><li>Requirement to move abruptly to VoIP service – poor transition plan! </li></ul><ul><ul><li>Requires change in carrier/service & LNP hassles </li></ul></ul><ul><ul><li>Expensive or impossible to mix TDM & VoIP services </li></ul></ul><ul><li>A “High Technology” message to a conservative market </li></ul><ul><ul><li>Buzzwords </li></ul></ul><ul><ul><li>Technology integration & features well beyond current state </li></ul></ul><ul><li>These issues keep most VoIP SMB solutions in the “early adopter” market segment </li></ul>
  16. 16. OPPORTUNITIES IN VOIP FOR THE SMB MARKET
  17. 17. Opportunity for The Reseller <ul><li>A source of new sales opportunities </li></ul><ul><ul><li>VoIP provides a strong incentive to turn-over an installed base of aging key systems </li></ul></ul><ul><ul><li>VoIP MRC savings, flexibility, and features drive adoption </li></ul></ul><ul><li>A differentiated offering in competitive bids </li></ul><ul><ul><li>Most SMB proposals are TDM Key systems today! </li></ul></ul><ul><ul><li>VoIP strongly advantaged in application-based sales over TDM </li></ul></ul><ul><li>VoIP can expand your business into new areas </li></ul><ul><ul><li>Telecom VARs grow into networking/data domains </li></ul></ul><ul><ul><li>Networking VARs grow into voice domains </li></ul></ul><ul><li>An opportunity for more profitable installs and ongoing service revenue </li></ul><ul><ul><li>Growth of complexity in the SMB LAN is outpacing the ability of the SMB to manage it </li></ul></ul>
  18. 18. Opportunity for the SMB <ul><li>Core Value Proposition: </li></ul><ul><li>A managed VoIP offering will provide… </li></ul><ul><li>* the key system features they use today </li></ul><ul><li>* the best of SMB VoIP features </li></ul><ul><li>* slow/risk-free transition to VoIP w/ PSTN backup </li></ul><ul><li>* a worry-free support package </li></ul><ul><li>* opportunity to use VoIP trunks to reduce cost </li></ul><ul><li>… all without paying a premium relative to TDM Key Systems </li></ul>
  19. 19. Opportunity for the SMB <ul><li>Key VoIP Features and Benefits: </li></ul><ul><ul><li>Monthly telecom & data service cost reduction </li></ul></ul><ul><ul><li>Multi-site integration </li></ul></ul><ul><ul><li>Location Transparency ( Remote Users / “Road Warrior” ) </li></ul></ul><ul><ul><li>Presence Management / Advanced call routing </li></ul></ul><ul><ul><li>Advanced messaging / notification </li></ul></ul><ul><ul><li>Cell Phone Integration </li></ul></ul><ul><ul><li>Computer Integration </li></ul></ul><ul><li>Summary: Beyond VoIP cost savings, VoIP truly has an opportunity to improve an SMB’s operation! </li></ul><ul><ul><li>“ Application Sale” vs. “Price War” </li></ul></ul>
  20. 20. Example: Multi-site/Remote User
  21. 21. Example: Call Routing/Notification <ul><li>A SMB supplies “kitchen equipment” to local restaurants and provides an SLA-based contract for their maintenance </li></ul><ul><li>Business problems: </li></ul><ul><ul><li>How to quickly move customer calls to technicians deployed in “the field” </li></ul></ul><ul><ul><li>How to escalate problems seamlessly if primary technicians are unavailable </li></ul></ul><ul><ul><li>How to document response time for SLA </li></ul></ul><ul><li>VoIP Solution: </li></ul><ul><ul><li>VoIP Features: Cell phone integration, Call routing, Presence Management, Call Detail Reporting, and Advanced Messaging / Notification </li></ul></ul><ul><ul><li>Calls routed seamlessly to technicians with “available” status at their cell & office phones. If no answer, re-routed automatically to “secondary responders”. Off-hours svc requests go to voicemail which notifies via pager/email/SMS-Text the first and second level responders. Call reporting documents response times. </li></ul></ul>
  22. 22. <ul><li>Provide SMBs with a multi-year agreement to: </li></ul><ul><ul><li>Maintain the business LAN & WAN network environments </li></ul></ul><ul><ul><li>Extended equipment warranties </li></ul></ul><ul><ul><li>Data and equipment backup </li></ul></ul><ul><ul><li>Administration and MAC support </li></ul></ul><ul><li>Bundle with network services & equipment lease </li></ul><ul><li>Simplify SMB IT infrastructure management </li></ul><ul><ul><li>Single point of contact for telephony & networking </li></ul></ul><ul><li>Lower overall cost to the SMB </li></ul><ul><ul><li>Bundled voice/data services, single vendor, VoIP savings… </li></ul></ul>Example: Managed Services
  23. 23. Growing a Reseller into an MSP: <ul><li>A managed service provider (MSP) is a company that manages IT services (LAN/WAN/voice/data) for other companies remote and/or onsite. </li></ul><ul><ul><li>VoIP Technology provides new features & benefits to drive upgrades within the SMB Market </li></ul></ul><ul><ul><li>The rapid growth of remote technology allows for MSPs to control network operations completely off-site. </li></ul></ul><ul><ul><li>The Managed Service model provides a total, single source solution lowering risk & providing security and simplicity to SMBs </li></ul></ul>Source: Wikipedia Managed Services
  24. 24. The Major Elements <ul><li>The Reseller </li></ul><ul><ul><li>Data & Telecomm Savvy </li></ul></ul><ul><ul><li>Sales & Service Oriented </li></ul></ul><ul><li>IP-PBX/Key System & NW Server </li></ul><ul><ul><li>$400 - $600 / seat installed </li></ul></ul><ul><ul><li>Key system + VoIP functionality </li></ul></ul><ul><ul><li>VoIP / Network Server “Appliance” </li></ul></ul><ul><ul><li>PSTN & VoIP WAN interfaces </li></ul></ul><ul><li>Managed Service Offering </li></ul><ul><ul><li>The Total Solution </li></ul></ul>
  25. 25. To offer a true managed services product, a reseller should: <ul><li>Offer network and voice hardware (VoIP) </li></ul><ul><ul><li>Allows you to offer full service to client/customer </li></ul></ul><ul><ul><li>One point of contact </li></ul></ul><ul><li>Support remote monitoring & diagnostic capabilities </li></ul><ul><ul><li>Delay/Network latency & jitter </li></ul></ul><ul><ul><li>Mean Opinion Score (MOS) </li></ul></ul><ul><ul><li>Bandwidth usage / Packet loss </li></ul></ul><ul><ul><li>Security </li></ul></ul><ul><li>Establish agent relationships with: </li></ul><ul><ul><ul><li>Phone/Network hardware vendor </li></ul></ul></ul><ul><ul><ul><li>ITSP </li></ul></ul></ul><ul><ul><ul><li>Regional ILEC/CLEC </li></ul></ul></ul><ul><ul><ul><li>Leasing Agency </li></ul></ul></ul><ul><li>Build 24/7 Customer/Technical Support </li></ul>The Major Elements
  26. 26. The SMB Customer Offering <ul><li>A Complete Data & Voice Package </li></ul><ul><ul><li>Service delivered via T1 & backing POTs </li></ul></ul><ul><ul><ul><li>ISP / data bandwidth </li></ul></ul></ul><ul><ul><ul><li>VoIP & backing TDM trunks </li></ul></ul></ul><ul><ul><ul><li>Direct Inward Dialing, Redundancy, LNP… </li></ul></ul></ul><ul><ul><li>Complete Allworx System & Telephones </li></ul></ul><ul><ul><ul><li>Industry best SMB feature set & price point! </li></ul></ul></ul><ul><ul><ul><li>5 Year Extended Warranty </li></ul></ul></ul><ul><ul><li>Managed Network Services </li></ul></ul><ul><ul><ul><li>24x7x365 voice trunk SLA with monitoring & utilization reporting </li></ul></ul></ul><ul><ul><ul><li>Allworx remote configuration management (MACs) & monitoring </li></ul></ul></ul><ul><ul><ul><li>Data backup </li></ul></ul></ul><ul><ul><ul><li>Disaster recovery: Immediate off-site system backup </li></ul></ul></ul><ul><ul><ul><li>LAN event monitoring & troubleshooting </li></ul></ul></ul><ul><ul><li>Complete Installation & Training Package </li></ul></ul><ul><ul><ul><li>Network assessment </li></ul></ul></ul><ul><ul><ul><li>Service provider coordination </li></ul></ul></ul><ul><ul><ul><li>End user training, etc </li></ul></ul></ul>
  27. 27. Example VoIP Solution <ul><li>The Fastest Growing SMB VoIP Solution! </li></ul><ul><ul><li>$400 - $600 / seat installed </li></ul></ul><ul><ul><li>Complete TDM PBX/Key-system feature set + Best of SMB VoIP </li></ul></ul><ul><ul><li>PSTN & VoIP Trunk support for easy transition to VoIP </li></ul></ul>
  28. 28. A Real World Example <ul><li>“ Acme Services”: 55 emp. New England Business </li></ul><ul><li>3 Sites + remote small offices/users </li></ul><ul><li>Customer Priorities: </li></ul><ul><ul><li>Key-system features </li></ul></ul><ul><ul><li>Integrated, free calling between sites </li></ul></ul><ul><ul><li>Highly reliable: backup, redundant service, simplified </li></ul></ul><ul><ul><li>Advanced communication features: </li></ul></ul><ul><ul><ul><li>Conference Bridge, Call Queuing, Integrated Voice/Email, virtual employees, cell phone integration, call follow-me/notification, multiple AA… </li></ul></ul></ul><ul><ul><li>Unified incoming call mgt across sites </li></ul></ul><ul><ul><li>MRC Reduction </li></ul></ul><ul><li>Single point IT resource </li></ul>
  29. 29. Initial Needs Analysis <ul><li>Analysis of “Acme’s” current monthly telecom expense showed opportunity for dramatic reduction </li></ul><ul><ul><li>Inefficient use of POTs trunks </li></ul></ul><ul><ul><li>Expensive calling between sites </li></ul></ul><ul><ul><li>Separate data trunk and expense </li></ul></ul><ul><ul><li>Data via DSL with reliability & bandwidth issues </li></ul></ul><ul><li>Current feature set poor with minimal integration </li></ul><ul><ul><li>Simple key systems at each site </li></ul></ul><ul><ul><li>Sites not integrated </li></ul></ul><ul><ul><li>Inability to route phone calls </li></ul></ul><ul><ul><li>Inability to support remote users </li></ul></ul><ul><ul><li>Inflexible configuration/environment </li></ul></ul>
  30. 30. Acme’s Current Cost Structure Current Scenario Monthly Yearly 3 Years Data - DSL for Business Class (4 DSL Lines) $400 $4,800 $14,400 Local & Long Distance Charges with usage (16 CO Lines) $1,500 $18,000 $54,000 Service Contract: Data   $100 $1,200 $3,600 Service Contract: Telephony   $100 $1,200 $3,600 TOTAL $2,100 $25,200 $75,600
  31. 31. Acme’s Proposal <ul><li>Customers signs a 3 year service contract with reseller for $1,410/month </li></ul><ul><li>Lease payment on equipment: </li></ul><ul><ul><li>$475/mo </li></ul></ul><ul><ul><li>5 yr lease, 7.5% annual rate with 20% residual value </li></ul></ul><ul><li>Customer Receives: </li></ul><ul><ul><li>Flat Rate fee for voice and data network services </li></ul></ul><ul><ul><li>Reduction of $690 per month in telecom expense </li></ul></ul><ul><ul><li>New VoIP phone system and all the key features </li></ul></ul><ul><ul><li>Higher speed access to Internet (Move from DSL to T1) </li></ul></ul><ul><ul><li>Significantly improved reliability & redundancy </li></ul></ul><ul><ul><li>Single point of contact for all IT administration </li></ul></ul><ul><ul><li>Very flexible, reliable and customer/employee friendly communications </li></ul></ul>
  32. 32. Acme’s Proposed Cost Structure Managed Services Scenario Monthly Yearly 3 Years Monthly Managed Services Fee       Telephony & Data Services Flat Rate Fee $1,110 $13,320 $39,960 Includes:       1. ITSP Services / 12 SIP trunks / Flat rate LD + 55 DID numbers ($25-$30mo each)     2. 2xHigh speed Internet Access (up to T1 @ $350/mo each) + DSL ($60/mo)       3. CO Lines - basic coverage for fall over ($50/mo w/o usage)               Service Agreement - Data & Voice $300 $3,600 $10,800         TOTAL $1,410 $16,920 $50,760 Savings - % 33% 33% 33% Savings - $'s $690 $8,280 $24,840         One Time Charges:     1st Year 3 VoIP Ready New Phone Systems (e.g. Allworx)     $5,400 55 12-button PBX/Key VoIP Phones     $12,595 Software/Hardware Options     $3,000 Other Hardware & Installation and Set-up     $6,230 Total One Time Charge for Equipment     $27,225
  33. 33. Conclusion <ul><li>Managed VoIP Solutions can benefit all businesses </li></ul><ul><ul><li>Savings, Streamlined Communications, Location Transparency… </li></ul></ul><ul><li>However, SMBs have unique needs and limited resources compared to big business </li></ul><ul><li>The Keys to the SMB- VoIP Market are: </li></ul><ul><ul><li>Understand the SMB business process </li></ul></ul><ul><ul><li>Create a tailored application solution fitting the SMB </li></ul></ul><ul><ul><li>Solve the whole problem: Equipment, Network, Maintenance </li></ul></ul><ul><ul><li>Utilize VoIP for its advanced features & lower costs </li></ul></ul>

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