We will address the changes in Unified Communication as it pertains to silos vs platforms providers. The goal would be to give everyone a better understanding of how to evaluate suppliers and creating long term value to their customers.

1. The Strategy of
Platforms
Carl Katz
VP of Channel Sales, Nextiva

2. What is a platform?

4. • Connect individuals and organizations
• For a common purpose or to share a
common resource
• So they can innovate or interact in ways not
otherwise possible with the potential for
nonlinear increases in utility and value
• “Network effect” - each additional user can
benefit from access to all the other users and
innovations already available through the
platform
Platforms:

5. Transaction
Platforms
Hybrid
Platforms
Innovation
Platforms

6. Transaction Platforms:
Large intermediaries or online
marketplaces
• Enable users to share information
or to buy/sell/exchange
• The technology and scale is what
makes these platforms powerful
• Value derivedfrom collecting
transaction fees or advertising

7. Innovation Platforms:
“Technological buildingblocks” that are shared to facilitatethe
development of new complementary productsand services (usually by a
3rd party)
• Enable users to build upon it, make it even better,and add
ancillary services
• ARPU: 4-5 times higher because they enable users to do more
• 3-4x greater valuethan transactionalbecause innovation platforms
givecustomers the ability to do more
• Valuederived from selling/renting the platform or through
advertising or selling ancillary services
• Nextiva is an innovation platform: On top of the UCaaS platform,
we havebuilt/added SaaS tools to increase productivityand gain
competitiveedge in market, and opened up APIsto enhanceuser
experience (IVR and other integrations),and on one platform.

8. Hybrid Platforms: The Mix of Both
• Facilitate transactions while also allowing
development of additional technology to be
built onto/into their platforms
• Many times, firms start with one type of
platform (transactional or innovation) and
build and integrate the second (ex: add a
marketplace), or simply support both types of
platforms.

9. • Seen as more profitable and more valuable in the world economy than
transaction platforms
o Companies are often 4 to 5 times larger in terms of median sales and
employees
o Median Market Value: 3 times higher than tran
• More value to the customer per unit, so the platforms can charge more per
license
o Avg Revenue Per Unit (ARPU): 4-5 times higher because the platforms
enable users to do more
• Complementary technology, usually developed by a 3rd party, stimulate
demand for the platform by making new products and services that add
significant value
• The more complementary technology that is developed and added to a
platform, the stickier the customers will become
o Sticky customers = longer annuities.
Benefits of an Innovation Platform

10. Benefits of an Innovation Platform
Stickier Customers → Larger & Longer Annuities

11. PLATFORMS ARE THE
FUTURE OF UCaaS

12. • Scalability: The future value of a UCaaS company is dependent
on their product portfolio and scalability of their product set
• Customers want to minimize disparate tools and applications
behind a single pane of glass
• UCaaS Innovation Platforms are the future, as customers look for
added functionality beyond the typical telephony/collaboration
Platforms are the future of UCaaS

13. Platforms are the future of UCaaS
• Example: Nextiva & Nextiva NextOSSuites
o With NextOS Suites, Nextiva has developed added SaaS technology on top of our UCaaS
platform
o CRM, proactiveweb chat, surveys,customer sentiment technology goes beyond telephony
o NextOS Relationships suites will eventually integratewith other UCaaS solutions
• Nextiva is an innovation platform that enables customers to gain a competitiveedge in their market
utilizing SaaS tools
• API Access to enhance product experience with integrationsthat can assimilate into our product
scope (ex: Inferencefor Advanced IVR)
• As customers adopt more of the complementary NextOS SaaS technology (example: chat or CRM),
they become stickier with the Nextiva platform and will maintain a longer lifecycle with the
technology leading to partnersgetting longer annuities.

14. THANK YOU!