Make no mistake about it: Cloud technologies are here, they’re real, and they’re the answer to your most vexing communications problems. Let’s begin our discussion with a quick overview of generic cloud-based technology. Keep reading.

1. Cloud Communications
The Top Five Advantages For Your Enterprise
Authored by: Steve Shepard, President, Shepard Communications Group, LLC
xo.com

2. The Top Five Advantages for your Enterprise XO Communications
Cloud Communications
The Top Five Advantages for your Enterprise
Introduction 1
1 - Lower Total Cost of Ownership (TCO) 3
2 - Self-Management 4
3 - Productivity 5
4 - Business Continuity 6
5 - Focus on Core Competencies 7
.
In Summary 8
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COMMUNICATIONS
Hosted PBX 9
About XO Communications 10
About Steve Shepard 10
Authored by:
Steve Shepard, President
Shepard Communications Group, LLC
Commissioned by XO Communications

3. Introduction XO Communications
Introduction
Many would consider Cloud Make no mistake about it: Cloud technologies
Communications to be a new phenome- are here, they’re real, and they’re the answer to
non in the pantheon of IT capabilities and your most vexing communications problems.
resources, but that’s not exactly true. Let’s begin our discussion with a quick
overview of generic cloud-based technology.
Cloud technology has been around since 1968,
when the first computer users logged in to the The resources required to deliver processing
corporate mainframe (probably an IBM System power, enterprise storage, complex
“Make no mistake about it:
360 or the equivalent) using their 3270 “dumb applications, functional enterprise application
platforms, or corporate communications are Cloud technologies are here,
terminals” over a blazingly-fast 1,200 bit-per-
second analog facility. Thankfully, we have complicated, expensive environments. Most they’re real, and they’re the
evolved a bit since then. Today’s cloud services corporations have one or more data centers answer to your most vexing
.
dedicated to the delivery of these and other
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go far beyond the technological capabilities communications problems.”
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of those early days, offering much more capabilities. Applications are being moved into
than the ability to share costly IT resources the cloud, for example, because by hosting
among a large group of people. Today’s cloud them centrally, the client can provide access to
solutions radically improve resource flexibility, all employees, regardless of location, and
manageability, productivity, security, reliability, can guarantee that the applications are
and operational effectiveness. not only the most current version, but also
completely free of viruses, malware and other
intrusive elements.
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4. Introduction XO Communications
The truth is that corporations have these data sales personnel, regardless of their physical
centers because they have to – until recently location. Google Apps provides an entire
there has been no cost-effective alternative. enterprise platform that offers communication,
Today, however, that is no longer the case. collaboration, and cooperation to all employees
The astute enterprise must pay attention to within the enterprise. And XO Communications
a question being asked by cloud providers: offers a cloud-based communications service
If you’re not in the business of running data that allows multiple locations to communicate “Perhaps the most exciting new
centers, why are you running data centers? as if they were physically adjacent. entrant – and the one that will
fundamentally change the way
Today’s IT environment has adapted to this In a cloud-based environment, all of the
businesses communicate – is
reality, one result of which is the emergence of functionality resides “in the cloud” – within
organizations dedicated to delivering storage, Web-accessible data centers that are centrally Cloud Communications”
processing power, applications, platforms, and managed. The resources behave as if they
communications from a centrally-managed, were on the user’s computer, when in fact they
universally accessible place – the cloud. could be across town, across the continent or
on the other side of the world. And while cloud
.
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The companies that offer these services are based computing, applications, platforms and
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numerous and capable. Amazon’s Elastic storage have received a lot of attention in the
Cloud offers storage on-demand. VMWare last few years, perhaps the most exciting new
provides computing power-on-demand. entrant – and the one that will fundamentally
SalesForce.com offers a suite of sales support change the way businesses communicate – is
applications, all delivered to roving or fixed Cloud Communications.
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5. Lower Total Cost of Ownership (TCO) XO Communications
Changing the Paradigm:
Lower Total Cost of Ownership (TCO)
Today, the enterprise relies on a variety of communica- the cloud, leaving the customer with operating expenses (OPEX)
tions modalities: voice, texting, e-mail, and video chat, only – and far less oversight and management activity, which in
1
even social media applications like Facebook, Twitter turn leads to lower costs.
and Yammer.
This is the benefit of the converged network that a cloud solution
In fact, according to research from technology strategy firm makes possible. Each of the communications modalities listed
Cumulus Technology, one-quarter of business process improve- earlier is delivered from a different source, and each must be
ment initiatives today include integration of information from separately managed and administered. For precisely this reason
enterprise social computing solutions1. Connectivity options, the concept of Unified Communications emerged a few years
therefore, must evolve beyond standard enterprise applications, ago, thanks to the arrival of IP as a central unifying force in the
legacy systems, and databases, to modern Web service and world of enterprise communications. Thanks to IP, all of these
Web 2.0 APIs. This is where the cloud shines. disparate modalities can be unified under a common system,
thus reducing the complexity of operations and the total cost
.
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Consider this: the cost elements of a voice solution are not trivial. of ownership (TCO) involved in administering the daunting
They include the monthly fees associated with multichannel PRIs task of effective, multi-site enterprise communications. There
required for site-to-site connectivity; the potentially significant – are no up-front equipment costs (other than a possible LAN
and variable - cost of monthly local and long-distance usage; the upgrade to handle voice); there are no costs associated with
people, software and systems required to administer, manage, network management or infrastructure maintenance; there are
operate, monitor, and maintain what can be an extraordinarily no access charges, since all voice and data communications
complex communications infrastructure; and perhaps most are carried across a single converged IP network; and the risk
important, the capital expense associated with having to own of technological obsolescence, always a behind-the-scenes fear
and operate a collection of depreciable assets. of IT budgeters, completely disappears, since maintenance of
technological currency now becomes the responsibility of the
With a cloud solution, however, this cost structure flips on its cloud provider rather than the enterprise. The network literally
head. The capital expense (CAPEX) associated with network and becomes future-proof, something that makes IT managers
terminal equipment follows the communications application into smile for days.
1
Seven Best Practices for Cloud Computing. Cumulus Technologies; http://www.cumulus.com.au/pervasive-news/
pervasivenews/19-seven-best-practices-for-cloud-computing.
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6. Self-Management XO Communications
Changing the Paradigm:
Self-Management
Remember our earlier admonishment: of IP, but the very fact that you are thinking about a cloud-based
communication solution means that you have probably already
2
done much of this prep work, meaning that any additional
“If you’re not in the business of running
required support will be minimal.
data centers, why are you running
data centers?” Enterprise-scale PBXs are complex devices that require
administrators to complete comprehensive training and
Nowhere is this a more appropriate question than in the area of certification. This adds to the cost of operations.
Self-Management. In today’s hyper-competitive communications
marketplace, companies benefit enormously when they place as But with a cloud solution, any required activities such as
much control of the relationship between the service provider adding or modifying profiles of users or modifying features
and the customer in the customer’s hands as possible. It is clear – the infamous “moves, adds, changes and deletes” – are
that service providers in today’s competitive environment are
.
accomplished via a simple Web interface, and are therefore as
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being pushed by their customers to place a great deal more scalable as the enterprise itself. And because the enterprise is
emphasis on simplicity, transparency, the ability to customize the in control of all functions related to managing the relationship
relationship between the customer and the network, and real- between itself and the network cloud, there is no need to be
time choice of delivered services. dependent on a service provider to handle routine tasks, nor are
there any fees associated with the changes.
Self-Management as a central element in Cloud Communications
speaks directly to this. Needless to say, there is a certain amount
of up-front work required to prepare your network for the arrival
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7. Productivity XO Communications
Changing the Paradigm:
Productivity
What would be the point of moving to a Calls made in the environment, regardless of
cloud-based communications solution if it the originating device, appear to the called
“ The enterprise can enjoy
3
failed to deliver a significant leap forward party as if they were made from the main
office, thus preserving brand identity and complete IP-PBX functionality
in terms of organizational productivity?
customer intimacy. without having to buy an IP-
With a cloud-based communications solution, PBX. ”
the “tyranny of twisted pair” disappears, And because of the power of truly unified
because enterprise communications communications, calls can be transparently
functionality can now be delivered to any moved between desk, mobile and home
device, at any location, with a single phone phones to ensure seamless communications
number, dial plan, and guaranteed voicemail and uninterrupted customer service. The
forwarding to an e-mail account, regardless of result? A leap in organizational and personal
.
productivity, as the functional playing field
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geography. In other words, the enterprise can
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enjoy complete IP-PBX functionality without among fixed phones, mobile phones and video
having to buy an IP-PBX. devices is leveled – permanently. Instead of
having to focus on the infrastructure, users can
focus on what it does for them.
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8. Business Continuity XO Communications
Changing the Paradigm:
Business Continuity
Business continuity, formerly known as “disaster Furthermore, the infrastructure is completely secure:
recovery” or “disaster avoidance,” earned its stripes in
4
There is no physical hardware required at the enterprise
the early days of cloud infrastructure when data storage
location, which means that even in the event of a complete loss
made its way into the cloud.
of the facility, full-featured communications can continue in an
The ability to back up critical data on multiple servers in different uninterrupted fashion as long as employees can find a working
geographic areas as a way to avoid disruption by geopolitical phone. Running a corporate communications infrastructure
events or natural disaster went a long way toward assuaging IT is an expensive, complex, and human-intensive process –
managers’ concerns about business continuity following such not to mention a heavy consumer of CAPEX. By shifting the
an event. When companies like XO took that same concept and expense, capital and operational burden of communications
applied it to enterprise communications, a whole new level of to the enterprise cloud provider, those same financial and
reliability emerged. Suddenly, weather and natural disaster – both human resources can be redirected to core business activities.
.
In some companies, IT and IT support, including enterprise
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of which seem to have become more common of late – pale into
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relative insignificance in terms of their ability to adversely affect communications, can be as much as 3-5% of total revenue .
enterprise communications. Even in situations where weather or Imagine the impact of redirecting a large portion of that to other
other disruptions prevent employees from going to their primary activities that positively affect customer service, intimacy or
work location, they can still be fully productive because the cloud stickiness? That would be a well-received decision by senior
houses all of the functionality they need to do their jobs, and that leadership, and its strategic value would be equally well-
functionality can be delivered to them, regardless of where they received. Moving non-core business functions such as VoIP to
are physically located. Calls can be routed to mobile devices or a reliable outsourcing entity like XO means that resources that
to fixed facilities that are unaffected by whatever problem would otherwise be spent on these non-core functions can
is occurring. be redeployed into activities that provide a clear competitive
advantage, without sacrificing service quality in any way.
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9. Business Continuity XO Communications
Changing the Paradigm:
Focus on Core Competencies
Running a corporate communications Imagine the impact of redirecting a large
infrastructure is an expensive, complex, portion of that to other activities that positively
“ By shifting the expense,
5
and human-intensive process – not to affect customer service, intimacy or stickiness?
That would be a well-received decision by capital and operational burden
mention a heavy consumer of CAPEX.
senior leadership, and its strategic value of communications to the
By shifting the expense, capital and operational would be equally well-received. Moving non- enterprise cloud provider, those
burden of communications to the enterprise core business functions such as VoIP to a
same financial and human
cloud provider, those same financial and reliable outsourcing entity like XO means that
resources can be redirected to
human resources can be redirected to core resources that would otherwise be spent on
business activities. In some companies, IT can these non-core functions can be redeployed core business activities.”
represent as much as 3.5% of total revenue. into activities that provide a clear competitive
advantage, without sacrificing service quality in
.
any way.
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2
Gartner, Inc. IT Metrics: IT Spending and Staffing Report, 2011. Published 25 January 2011
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10. In Summary XO Communications
In Summary
Corporate communications is considered by most IT to not only survive a major disruptive event but to in fact be fully
directors to be an important but largely tactical activity. functional in spite of it, and perhaps the most important of all,
the ability to focus valuable human and capital resources that
When it moves into the cloud, however, enterprise would otherwise be consumed by non-core functions on those
communications rapidly becomes a strategic function because functions that are revenue and customer service affecting, are
of its ability to directly affect a significant number of revenue and clearly strategic in importance.
service-impacting functions in the enterprise.
Yet all of them result from one simple change: creating a
The five areas that cloud communications affects which are trusted relationship with a best-in-class cloud communications
described in this paper – the ability to lower the total cost of provider and working with that provider to create an IP-based
ownership of the communications function, the ability to move unified communications infrastructure that supports multi-site
control and management away from the service provider and offices, teleworkers, and mobile workers, allowing them to
.
put it in the hands of the customer, the enhanced productivity achieve their highest possible level of productivity by erasing the
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that results from the irrelevance of physical location, the ability complexity of communications.
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11. XO Enterprise Cloud Communications XO Communications
Hosted PBX
Even if your head is already in the cloud, you can measurable benefits that result in a significant return on their
work with a provider with proven VoIP and cloud communications investment. These benefits include:
communications capabilities: with the right products, the
• The ability to transfer the operations and management of the
expertise and the business sense to help you succeed.
enterprise communications function to a capable and trusted
partner, thus freeing up resources for redeployment.
XO Communications can help you migrate to the cloud simply,
flexibly and cost effectively. Hosted PBX helps businesses • The knowledge that the monthly per-employee cost is predict-
with locations across the US integrate complex voice and able on an enterprise-wide basis. Calling features and tele-
IT environments, centralize voice applications, and take phones are included in the overall price.
advantage of the productivity and economic gains of cloud
• Awareness of the fact that because of the cloud architecture,
communications.
site-to-site calling will incur no additional cost across the
entire enterprise.
.
The company’s IP-based Hosted PBX service allows multi-
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location businesses to scale their communication requirements • The ever-present ability to upgrade to a full suite of IP-PBX
as required, while at the same time reducing the CAPEX and features and to VoIP telephones without the need to purchase
OPEX spend typically associated with the management of new PBX equipment, and the attendant ability to avoid tech-
enterprise-wide communications. In fact, for those companies nology obsolescence and benefit from “fuure-proofing.”
that can classify the one-time setup and installation fees as
• A broad range of calling features, local and long-distance call-
capital expenditures, the conversion to Hosted PBX could be
ing, enterprise-wide, multi-site high-definition voice and video,
done with no CAPEX at all. secure online feature management, and SIP-enabled, high-
definition phones.
At the same time the service allows enterprise customers
to accelerate the deployment of VoIP and the rollout of a XO has been in the communications business since 1996,
comprehensive unified communications strategy. And developing an enterprise-centric network that satisfies the
because the XO solution is an end-to-end IP environment, growing and evolving needs of its enterprise customers. XO’s
client companies enjoy a wide array of tangible and one million VoIP subscribers using over 43 billion minutes of
VoIP traffic a year prove that XO is a leader in IP services,
including network-based cloud solutions.
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12. About XO Communications XO Communications
About XO Communications
XO Communications is a leading nationwide provider of
advanced communications services and solutions for
About Steve Shepard
businesses, enterprises, government, carriers and service
providers. Dr. Steven Shepard, Ph.D. is president of the Shepard
Communications Group. A professional writer, educator
XO customers include more than half of the Fortune 500,
and industry analyst with more than 25 years of
in addition to leading cable companies, carriers, content
experience in the technology industry, Dr. Shepard
providers and mobile network operators. Utilizing its unique
specializes in international telecommunications issues,
combination of high-capacity nationwide and metro networks
the social implications of technological incursion and
and fixed wireless capabilities, XO offers customers a
the analysis of financial issues related to technology-
broad range of managed voice, data and IP services with
dependent businesses. He is the author of 45 books on a
proven performance, scalability and value in more than 85
wide variety of topics and regularly speaks to audiences
.
metropolitan markets across the United States.
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throughout the world, and has clients in more
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than 50 countries.
For more information, call your XO sales representative,
visit www.xo.com or call: 800.474.1703
Mr. Shepard can be reached at:
Steve@ShepardComm.com.
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