Mark Cortner Senior Analyst The Future of the IP PBX

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1 Mark Cortner Senior Analyst The Future of the IP PBX

2 The Future of the IP PBX UC is driving the convergence of the communications and collaborative application markets Telephony s competitive landscape is evolving and will increasingly include software centric UC vendors Enterprises are questioning and reexamining the longterm wisdom of deploying IP PBX systems Enterprises should plan for change as the industry is redefined and evolves But software centric solutions are unproven in the area of real time communications how is the new competition attacking the IP PBX?

3 Agenda The Future of the IP PBX The Competitive i Argument Software s Role Experience andexpertise User Experience Suitabilityto to Task What s the Business Case? More Observations/Perspective Recommendations

4 Software s Role Enterprises should look beyond standalone IP PBXs to a multi application UC service model that encompasses telephony Voice will continue to play a lead role in communications But will prove more efficient and cost effective when tightly integrated as a component of other communication and desktop applications A software centric approach is favored over purposebuilt hardware by virtually all UC applications Presence, IM, unified messaging, calendaring Telephony is core integration component to extending communications to line of business applications IP PBX vendors acknowledge the shift to software, they simply haven t fully evolved their business models and are reluctant to give upspecialty/proprietary hardwarein the interim

5 Experience and Expertise Lack of telephony experience will slow market entry of software, thoughthis this is not a long term obstacle The challenges/obstacles have been conquered before Cisco s s 10Year Roadmap

6 User Experience Software centric UC vendors have strong expertise in user interface design and have noself interest in endpoints Look and feel familiarity/usability, control of desktop experience Utilizes ecosystem of standards based handset vendors Tight integration with directory and e mail applications

7 Suitability to Task A software centric approach is actually more suitable for UC The enterprise can t continue to deploy silo solutions What technical gaps related to the call management function can t be overcome by purpose built p software? Is the IP PBX a software based solution or not? OCS and its Mediation Server are built for real time, multimodal communications not built just for voice like IP PBXs PBXs What motivations (conflicting) do IP PBX vendors have to enable users to dump proprietary IP PBX endpoints? IP PBX vendors have been slow to adopt open standards IP PBX vendors have a self interest in maintaining proprietary endpoint strategies

8 What s the Business Case? IP PBX vendors have strayed from an emphasis on TCO Migrations to IPT driven by infrastructure t refresh End of life/maintenance of digital PBX infrastructure Most enterprises don t experience OPEX decreases Embedded call management software modules will provide lower TCO than standalone voice appliances Example: Sametime Unified Telephony call routing technology The focal point now for ROI is entangled with UC Increased productivity, fast time to business soft benefits Extension of communications to line of business applications

9 Agenda The Future of the IP PBX The Competitive i Argument Software s Role Experience andexpertise User Experience Suitabilityto to Task What s the Business Case? General Observations/Perspective Recommendations

10 Observations/Perspective Many enterprises that leverage other Microsoft solutions anticipate leveraging OCS as a core UC platform OCS s acceptance as a collaborative platform is anchored by close integration with AD, Exchange, SharePoint OCS has achieved increased awareness with voice architects, though in the short term it is unlikely to challenge the IP PBXPBX OCS Release 2 addresses many of OCS s previous shortcomings related to voice application features and functions. But Microsoft must overcome widespread dskepticism of it role within enterprise voice if to succeed in displacing current IP PBXs

11 Observations/Perspective Cisco has aggressively pursued its collaboration product gaps and will increasingly overlap with Microsoft/IBM Key acquisitions include Orative, WebEx, PostPath, and Jabber Emphasis on SaaS based model via WebEx Connect But not ignoring the premises based platform model Cisco well positioned for underlying network enhancements required for VoIP, fixed mobile convergence, and the cloud Strategy not reliant on adoption of multi application UC platforms

12 Observations/Perspective IBM investing to maintain a dominant market position Lotus Sametime has largest installed base of UC platforms Product focus on collaboration and unifying the user experience Lotus Sametime platform focused on interoperability Integration with Microsoft Exchange, third party PBXs (via SUT) Recent launch of LotusLive signals belief in hybrid models

13 Observations/Perspective The cloud can provide a viable network based service alternatives to capital intensive, premises based solutions Many enterprise deploying IPT Enterprises deploying premises based IP PBX solutions Service providers have lagged with network based, alternative service offerings with ability to meet enterprise requirements Excellent opportunity now to leverage MPLS, SIP, and IMS networks Many enterprises now planning for UC Convergence of many communications/collaborative applications Integrated, ubiquitous access to broad range of IP based applications Multi application nature of UC requires new governance models The cloud, if accepted by enterprises (success story = salesforce.com), is viable

14 Observations/Perspective An enterprise s strategy should not be driven by specific products/services but rather an encompassing UC strategy The product capabilities should not drive strategy; influences such as mobile substitution and cloud based service delivery options should drive the strategy Given industry dynamics, enterprises should manage their tactical and long term enterprise telephony strategies in light (context) of UC The value of premises based UC solutions will be challenged by new cloud based collaboration services and enterprises should evaluate a product/services portfolio of premises only only, SaaS only, and hybrid options

15 Observations/Perspective Why is it important which approach ultimately wins? Impact on IP PBX PBX migration strategies t ~80% of enterprise endpoints are still served by digital PBXs A more conservative approach to IP PBX migrations The IP PBX competitive landscape and the role of call management will change significantly, who will survive?

16 Agenda The Future of the IP PBX The Competitive i Argument Software s Role Experience andexpertise User Experience Suitabilityto to Task What s the Business Case? General Observations/Perspective Recommendations

17 Recommendations The Future of the IP PBX Anticipate i t and adapt tto changes in the IP PBX PBX market kt Leverage the increased competition to your advantage Evaluate the trade offs between the vendor approaches IP PBX vendors will close the gap and evolve (or die) Microsoft will expand from a complementary to a substitute role Sl Select an approach that t has the appropriate it integration ti capabilities based upon your timelines Include subject matter experts in non telephony areas in the development of the enterprise telephony strategy Security, identity/directory, collaborative/desktop applications

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