Transitioning Traditional Centrex

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1 WHITE PAPER IP Communications Transitioning Traditional Centrex to Hosted IP Centrex Introduction Hosted IP Centrex Service By Verizon VoIP Marketing Team and Adtran Hosted IP Centrex Migration Scenarios Application and Feature Requirements Conclusions

2 Introduction Voice over IP (VoIP) has become more prevalent among businesses of all sizes. If you subscribe to traditional Centrex service or own a legacy PBX system, you have likely been using your current technology platform for several years and it may be time to decide which technology is the best migration path for your company. You are probably hearing the buzz in the market about VoIP technology and the advantages of a converged network. Service providers and equipment manufacturers alike will try to convince you to move to their new VoIP system. This white paper will help you to accurately compare traditional Centrex service to Hosted IP Centrex. It will also share critical information to help make your migration from Centrex to VoIP a success. When we talk about a migration plan from TDM based Centrex to Hosted IP Centrex, it is important to highlight the incremental benefits that Hosted IP Centrex service delivers. Traditional TDM-based Centrex Benefits Cost Generally, the cost per line equates to less than half the cost of a standard business line. Reliability Centrex service reliability is proven through the history of the service offering. Redundancy Redundancy is built into the service provider s network. In addition, access redundancy can be built into your solution as an option to provide additional protection. Reduced Risk of Technology Obsolescence Centrex offers a lower technology risk than a Customer Premises Equipment (CPE)-based solution since Centrex harnesses the latest network technology. Core Features Centrex provides core calling features such as hold, forward, transfer and caller ID. Hosted IP Centrex Service Hosted IP Centrex service is designed for companies that require converged networks and enhanced calling features that reside within a service provider s network rather than at the customer premises. The service usually includes unlimited local, toll and domestic long distance calling, basic Centrex features, plus a number of innovative VoIP features and voice applications. Hosted IP Centrex service is a logical migration path for existing TDM based Centrex customers with expiring contracts who are looking to move toward the latest generation of VoIP technology. A hosted solution can require less capital than purchasing a new premise based phone system. Hosted IP Centrex is also an excellent solution for those looking to replace an older PBX with the desire to move toward a hosted VoIP solution. This can help reduce the maintenance expenses associated with a premise based PBX and allows customers to more efficiently utilize existing access circuits. Hosted IP Centrex can deliver a cost-effective VoIP service to all business locations, allowing you to focus on driving the applications that will improve the productivity and collaboration of your employees. The following diagram illustrates two Hosted IP Centrex configurations: one with IP phones and another with an analog gateway that interfaces with a customer s analog phones. These two options can also be mixed at the same location, if desired.

3 Incremental Benefits of IP Centrex Include: Cost Control Increased network efficiency can be realized via compression and dynamic bandwidth allocation. This can reduce the number of access pipes needed to carry traffic and provides capacity on an as-needed basis. Centralized administration allows for easy access (MACD) activity from virtually anywhere anywhere helping reduce travel time, staffing requirements and expense. nlimited Unlimited or discounted long distance calling provides cost control and is frequently offered. On-net calling is usually provided at no additional cost. o No premise-based PBX or ey Key System to maintain. Versatility Scalable from a small number of users to thousands with a consistent feature set across all locations and users. Moving from one facility to another results in the same user experience. Can assign unique feature groups and calling privileges to different employee groups. Seamless service extensions are provided for mobile and remote employees allowing them to work from offsite or remote locations. Ease of Use Familiar telephone user interface Easy-to-use desktop Web interface to manage everyday functions performed by end users and administrators. Changes to end-user features and calling privileges are effective.in near real-time. End users have the ability to manage their individual feature set to determine how their inbound calls are handled. Service Quality Some service providers carry voice traffic over their private IP network. This capability provides for Quality of Service (QoS) and Service Level Agreements (SLAs) for reliable transmission of voice traffic. Converged Access Support for local, toll, long distance, international, fax services and E911 E over one network. Simplified architecture is offered by Hosted IP Centrex sites with the ability to integrate with other sites. Simplified product offering provides consistent pricing and feature set across locations within multiple geographies. Multiple access methods are possible. Offers Traditional Centrex Features, Plus Enhanced Feature Options Comprehensive feature set can help you improve productivity and customer service. Sample Hosted IP Centrex Features End User Visual Voic otification Notification of messages is available via , pager or message waiting light indicator. Voic can also be retrieved via phone, Website or . Simultaneous Ring Enables multiple phones in a group ring simultaneously when incoming calls are received on the subscriber s phone number. The first phone to be answered is connected. Remote Office When established for an end user, the subscriber can access and use their VoIP service when away from the office (e.g. home office and mobile phone). Find-Me Follow-Me Find-Me/Follow-Me This service sequentially attempts up to five phone numbers to reach the user. Upon triggering the Sequential Ring service, the caller is played an announcement stating to hold while the system attempts to reach the user. The callers are then provided with ring-back and comfort announcements, in sequence. Selective Call Accept/Forward/Reject Accept Forward Re ect Enables a subscriber to define criteria that cause certain incoming calls to be redirected to another destination number. Call Logs The Call Log enables subscribers to view and dial from the lists of stored numbers (missed, received, and dialed calls). Call otify Enables a subscriber to define criteria that cause certain incoming calls to trigger an Call Notify Enables a subscriber to define criteria that cause certain incoming calls to trigger an notification. If an incoming call meets the subscriber s specified criteria, an (or text message to a mobile phone) is sent informing the subscriber of the details of the incoming call attempt.

4 Web Interface Provides a Web-based tool for end users to invoke their services, as an alternative to using feature codes or depressing the flash hook. Any changes are available for use in near real-time. Administrator Web interface for MACDs Web portal that empowers a business administrator to provision services for subscribers, a location or the entire enterprise. An administrator account is established on a central Website for establishing default feature classes for a range of users. These changes are available for use in near real-time. Reporting Billing reports can be generated daily, weekly, or monthly for call detail and are printable via the service provider s Website. Company-Wide Auto Attendant The Auto Attendant serves as an automated receptionist. It answers the phone and provides a personalized greeting to callers with options for connecting to the operator, dialing by name or extension, or connecting to up to six pre-configurable extensions (e.g. 1 = Marketing, 2 = Sales). The customer administrator can configure the Auto Attendant via a Web interface. Customers have the added flexibility to treat calls via their Auto Attendant differently at different times of the day or days of the week. These changes are available for use in near real-time. Attendant Console The Web-based Attendant Console enables a designated subscriber (e.g. receptionist) to monitor a configurable set of subscribers. The console graphically displays the subscribers status (busy, idle, do not disturb) and detailed call information. The attendant may also perform functions such as click-to-transfer or click-to-dial. Custom Music on Hold Enables administrators to upload an audio file onto the system to be played to parties on hold. Authorization Codes Authorization Codes enable a company to better track and manage their telephone costs and control calling privileges. When an end-user places a phone call to an outside location, he/she will be required to enter an authorization code. The call will only be connected if a valid code is entered. Accounting Codes Account Codes are an important feature to companies that want to easily assign, track and cross-charge telephone costs across the enterprise or bill back charges to clients. This capability enables the tracking of calls placed to numbers outside the enterprise by prompting the end-user to enter an Account Code. E E911 Support Enables routing of emergency calls to the correct tandem switch based on the caller s phone number. Hosted IP Centrex Migration Scenarios Migration scenarios will differ based on the size of the organization, the current technology deployed at the locations and the overall business needs. This section will discuss migration from TDM-based Centrex service and TDM-based PBX systems to Hosted IP Centrex. TDM-based Centrex to Hosted IP Centrex Hosted IP Centrex service is the next natural step for customers wanting to migrate from TDM-based Centrex service to an IP-based Centrex service. As service contracts come up for renewal, many businesses may be looking to realize efficiencies associated with converged voice and data networks today, while planning the implementation of future IP-based applications, such as collaboration and conferencing services. Hosted IP Centrex offers cost-effective Centrex voice services, and a converged network infrastructure, the enhanced features of an IP-based service along with an easy-to-use, Web-based administration center. In addition, the customer is able to control the pace of the VoIP migration. Customers with older TDM-based PBX systems looking for a replacement strategy may also be interested in Hosted IP Centrex for the same benefits mentioned above. The current PBX system has probably been fully depreciated and may no longer meet current business requirements. Some companies are also constrained by lack of capital to invest in a new PBX system, or lack of expertise to manage and maintain an IP network.

5 As the network becomes more complex, additional skill sets are required to manage and maintain a premise-based PBX system. Hosted IP Centrex provides PBX functionality without the high up-front capital outlay or the related complex on-site administration and management of an in-house PBX system. This service is also well suited to serve remote users and branch locations. If the TDM-based PBX system needs to be retained, VoIP services can be deployed to branch or new locations. This is an excellent way to introduce VoIP technology at a slower pace and retain the investment in existing PBX systems. IP-PBX Coexistence with Hosted IP Centrex If you recently invested in an IP-PBX system, you will likely want to continue to leverage that investment. However, if you have a larger company with dispersed locations, you may benefit from a hybrid VoIP implementation approach, utilizing Hosted IP Centrex services at remote/branch locations or a new site. Hosted IP Centrex Migration Strategies Hosted IP Centrex services are evolving in the market and providers are continually offering new capabilities, especially those required by larger companies. The issues are complex to bring forward all of the familiar capabilities from the older TDM-based technology, provide IP-based enhancements to the service, verify interoperability between the TDM and IP environments during the migration and provide services supporting converged voice and data applications, while providing a value proposition that justifies the new investment. There are several migration strategies from which to choose: Total Replacement Coexistence Phased Total Replacement Strategy The ultimate goal of a total replacement strategy is a complete migration to VoIP services. This is typically implemented by small- and medium-sized businesses. A total replacement strategy is not recommended for larger customer implementations due to the contractual agreements and complexities of converging all locations at once. The total replacement strategy allows all users to benefit from new VoIP services at the same time. It is ideal for customers who are concerned about the interoperability between the old TDM-based platform and the new IP platform. Coexistence Strategy The ultimate goal of the coexistence strategy is to have a hybrid VoIP/TDM solution in the end. This is commonly adopted by larger businesses. A coexistence migration strategy from legacy TDM services to VoIP services allows: The customer to continue their use of the TDM-based Centrex service through the end of the service contract term and/or the use of existing TDM-based PBX through the end of its usable life. This allows customers to complete contractual commitments for the Centrex service or to fully amortize the ongoing investment in the PBX/IP-PBX system. Centrex customers to fulfill their existing Centrex contract, while migrating some locations to Hosted IP Centrex. A more controlled migration whether you begin at a single location or multiple locations. The number of locations and the speed of the migration are up to the customer. Introduction of IP Telephony benefits into the organization earlier than originally planned. It enables benefits like unified messaging and desktop call control to legacy and IP users. Many users can continue to use their existing analog and digital phones. Phased Migration Strategy The ultimate goal of the phased migration strategy is to implement VoIP in a controlled manner. Larger enterprises with thousands of users across several locations should consider employing a phased approach. Smaller sites or new locations should be considered for deployment first, with basic VoIP functionality allowing the support staff to get acquainted with the new IP Centrex features and nuances. This approach also allows the continued use of the legacy TDM-based system at the primary location, while the smaller satellite offices are converted. Any additional features can be activated over time, once training has been completed and users are comfortable.

6 The benefits of a phased migration strategy include: Providing time to coordinate existing service contracts with carriers. Location or department-based installation planning with customers facilitating a well-coordinated deployment while mitigating risks such as delay of service or incorrect equipment delivery. Planned migration in stages simplifies implementation scheduling, reducing or eliminating the need for off hours installations which can help prevent cost overruns. Quality installation through project pro ect coordination, service management and excellent technicians. nowledge Knowledge transfers that identify key components of the migration experience including phone features, usability, training requirements and key processes and procedures that would make future implementations more effective or efficient. Limited disruption to the business, since locations or users within locations are migrating in a controlled manner, the enterprise can designate backup personnel for those being migrated. Eliminates a full enterprise cut-over and possible catastrophic disruption of service. Application and Feature Requirements During the planning phase, a business needs to identify which features are important to have in a new phone system. The following are several common optional features deployed with VoIP. Conferencing Audio conferencing is typically delivered through phone-based features, an internal conference bridge or a third-party conference provider. Videoconferencing can be as basic as desktop cameras deployed to each user or full-blown videoconferencing studios in each facility. Users should conduct a cost/benefit analysis to determine the type of system needed to meet their needs based on frequency of use, classes of users and related costs. Presence A Web interface provides a visual indication of who is already on a call and who is available for a call. This is similar to an instant messaging contact list and can sometimes be integrated with multiple media types. Customer Relationship Management (CRM) System/Contact-Center Integration If the user operates a contact center or uses any CRM system, account management, or sales management software an in-depth inventory should be conducted to determine user requirements, data sharing needs, information storage and protection requirements, as well as data back-up and disaster recovery plans. Auto Attendant The Auto Attendant serves as an automated receptionist that answers the phone and provides a personalized message to callers with options for connecting to the operator, dialing by name or extension, or connecting to up to six configurable extensions. (e.g. 1 = Marketing, 2 = Sales). The user s administrator can configure the Auto Attendant via an administrative dashboard or Web interface as needed. Attendant Console An attendant or receptionist may be able to answer and monitor calls for a single business location or the entire business across multiple locations from a single CPE or software-based console. Centralized Voic Regardless of the number of business locations, voic for the entire enterprise can be centralized within a single voic system. This allows for easy message broadcasts and forwarding of messages among the user base. Voice Portal Voice Portal capability enables users to easily manage their personalized communication from any telephone, even when Web access is not available.

7 Conclusions After a number of years, VoIP has gained market acceptance. Businesses are actively requesting services deployed over IP networks so that they may take advantage of convergence. Excitement for the technology has moved outside the realm of hardware providers who were trying to create a market for new revenue streams in a mature segment. Hosted IP Centrex enables customers to leverage their existing investment in telephony equipment and comfort level with Centrex service capabilities, while also delivering a platform for new productivity enhancing applications. All of these capabilities are available across the enterprise without regard to geography or location type, representing an evolutionary approach to service delivery. Additional Reading Be sure to consult related white papers recently published by Verizon Business and ADTRAN. These papers discuss helpful associated topics including Transitioning a Legacy Phone System to Voice over IP and Understanding Voice over IP Converged Trunking Alternatives. ADTRAN is an ISO 9001, ISO 14001, and a TL 9000 certified supplier ADTRAN About ADTRAN ADTRAN, Inc. is a leading global provider of networking and communications equipment, with a portfolio of more than 1,600 solutions for use in the last mile of today s telecommunications networks. Widely deployed by carriers and enterprises alike, ADTRAN solutions enable voice, data, video, and Internet communications across copper, fiber, and wireless network infrastructures. ADTRAN solutions are currently in use by every major U.S. service provider and many global ones, as well as by thousands of public, private and governmental organizations worldwide. About Verizon Verizon Communications Inc. (NYSE:VZ), headquartered in New York, is a leader in delivering broadband and other wireline and wireless communication innovations. to mass market, business, government. and wholesale customers. Verizon Wireless operates America s most reliable wireless network, serving 63.7 million customers nationwide. Verizon s Wireline operations include Verizon Business, which delivers innovative and seamless business solutions to customers around the world, and Verizon Telecom, which brings customers the benefits of converged communications, information and entertainment services over the nation s most advanced fiber-optic network. A Dow 30 company, Verizon has a diverse workforce of nearly 238,000 and last. year generated consolidated operating revenues of more than $88 billion. About Verizon Business Verizon Business, a unit of Verizon Communications (NYSE: VZ), is a leading provider of advanced communications and information technology (IT) solutions to large-business and government customers worldwide. Combining unsurpassed global network reach with advanced communications, security and other professional service capabilities, Verizon Business delivers innovative and seamless business solutions to customers around the world. For more information, visit verizon.com 2008 Verizon. All Rights Reserved. WP12754 BSG 01/08 The Verizon and Verizon Business names and logos and all other names, logos, and slogans identifying Verizon s products and services are trademarks and service marks or registered trademarks and service marks of Verizon Trademark Services LLC or its affiliates in the United States and/or other countries. All other trademarks and service marks are the property of their respective owners. 7