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Beat<br />Complexity<br />The Importance of TCO<br />   Tom Perry<br />Director of Marketing EMEA<br />
1<br />Company Overview<br />Founded<br />In 1996-Superior technology designed from a clean sheet of paper<br />Headquarte...
14,000+ Customers  - All Industries in EMEA<br />2<br />
What is unified communications?<br />UnifiedMessaging<br />Voice<br />Presence<br />And IM<br />Video<br />Business<br />P...
What do clients need?<br />4<br />Lowest Total Cost of Ownership<br />Easy to Use and Easy to Manage<br />Scalability <br ...
5<br />ShoreTel Products<br />ShoreWare®Applications<br />ShorePhoneTMIP Telephones<br />ShoreGear®Voice Switches<br />
One brilliantly simple solution for the way you work<br />6<br />Business Communication Solution<br />Unified <br />Commun...
One brilliantly simple solution for the way you work<br />Business Communication Solution<br />Unified <br />Communication...
One brilliantly simple solution for the way you work<br />Business Communication Solution<br />Unified <br />Communication...
One brilliantly simple solution for the way you work<br />Business Communication Solution<br />Unified <br />Communication...
One brilliantly simple solution for the way you work<br />10<br />Business Communication Solution<br />All-in-One<br />IP ...
Brilliant Simplicity - Results In Lower TCO<br />EASY TO<br />EASY TO<br />EASY TO<br />DEPLOY<br />EASY TO<br />EASY TO<b...
What is the Key Driver for People Making Purchase Decisions?<br />12<br />
13<br />
Complexity targeted as a major new area for cost reduction<br />Numerous documented cases of companies able to reduce cost...
Motorola’s ‘War on Complexity’ – $2.6B / 2 years
Kraft – $400M annual savings</li></ul>Companies That Have Beaten Complexity<br />14<br />
It’s not just about savings: it’s also about the gains<br />Low<br />purchase cost<br />Greatcustomer experience<br />Impa...
ShoreTel<br />Lowest TCO<br />
ROI v. TCO<br />Total Cost of Ownership (TCO)<br />Return on Investment (ROI)<br /><ul><li>Capital costs (hardware & softw...
Implementation and training
System management / MACs
Network and long distance charges
End user productivity
Presence services (3.9 hrs / week / employee)
Remote employees (4.0 hrs / week / employee)
Mobile employees (4.3 hrs / week / mobile emp.)
Unified Messaging (3.6 hrs / week / employee)
Organizational Productivity
Increased call volumes
Increased customer satisfaction
Increased CC agent effectiveness
Business process integration (e.g., CRM)</li></ul>Focus on revenue impact regardless of vendor<br />Prove overall technolo...
The  Reality: Up-front Costs Represent 26% of TCO<br />18<br />TCO Components<br />
Defining Total Cost of Ownership<br />19<br />OperationalStart-Up Costs<br />UC System Costs<br />Capital Expenditures<br ...
Defining Total Cost of OwnershipMeasuring the Total Financial Impact of a Unified Communications System<br />UC system cos...
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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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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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