Current State of Cloud Communications. Presentation to Dallas CVT-IEEE
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1 Current State of Cloud Communications Presentation to Dallas CVT-IEEE Tracy Venters Director, Technical Marketing, Cloud Communications April 2015
2 Agenda Introductions Definitions Obligatory slide Drivers/Inhibitors (with a twist!) What s next for CaaS? Oh and Let s keep it interactive..and have fun! 2
3 This is Mitel We specialize in Unified Communications & Collaboration OPERATING IN COUNTRIES 100+ OVER $1 BILLION IN REVENUE 2500 CHANNEL PARTNERS 100 MILLION IN CLOUD BUSINESS OVER #1 1,000,000 GLOBAL LEADERSHIP IN EMEA CLOUD SEATS 60 MILLION END-USER CUSTOMERS OVER 1,900 PATENTS BROADEST PORTFOLIO IN THE INDUSTRY 3
4 Mitel in the cloud POWERING 33 Million CLOUD CONNECTIONS PER DAY
5 What kind of aas do you have? IaaS - Infrastructure as a Service Servers, storage, networking PaaS Platform as a Service Middleware environments, development platforms IaaS/PaaS lines increasingly blurred SaaS Software as a Service Third party owns the software, customer pays for what they use Example app types: telecom, CRM, collaboration Example vendors: Google Apps, Office 365, Salesforce.com, Cisco Webex CaaS Communications as a Service SaaS specifically communications (e.g., telecom) software Example: Mitel, 8x8, RingCentral, Vonage
6 Who owns it? Public Software owned hosted by third party Likely adopted by SMBs Exception: also adoption by large institutions in US (Centrex replacement) Private Software owned by single institution Mid-large enterprises Most common PBX replacement in a cloud environment Could be subscription model licensing Hybrid Mixture of on-prem and cloud Mid-large enterprises Especially attractive to businesses with mixture of location types, sizes Businesses in transition
7 Components of a Cloud Comms Service Technology Components Software & Devices Telecom Provider (SIP, LD, DIDs) Data Center & Infrastructure Management and Integration Third-Party Tools (Billing and Provisioning) Installation and Configuration Customer Support Contract and Billing Service Delivery Components Sales & Marketing Customers 7 7
8 Architectures Multi-tenant One software instance with partitions per enterprise customer Cookie cutter approach Upgrades usually automatic, affect all customers Generally cheaper A good option to provide a low cost service to SMB Examples: Mitel Telepo, Mitel Clearspan, Broadsoft, Metaswitch, 8x8 Single instance Each enterprise customer has its own instance Customizations can be done for each Upgrades not automatic More flexibility, options per enterprise Usually more expensive Examples: Mitel MiCloud, Cisco, private cloud solutions
9 What the Analysts Say 9
10 Market Drivers and Inhibitors (Quiz Time) 10
11 IT Simplification Relatively speaking, how does moving to a public and/or managed cloud solution simplify telecom operations for an organization? A: Greatly simplified : the organization only needs vendor contract /procurement management B: Moderately simplified : the organization needs some staff trained in telecom to order changes such as user moves/deletes, changes to auto attendant trees, etc C: Minimally simplified: the organization still needs a staff trained in telecom to provision some features, deploy phones, support users and manage changes D: Depends 11
12 IT Simplification Answer: A to B Depending on size and expectations of users of organization some onsite tier one support may be needed Vendor tools, user sophistication and even media such as YouTube help immensely We don t want to be our own phone company CIO of major university 12
13 Change orders in the 21 st century 13
14 Mobility, UCC Which of the following is a benefit that can only be provided by moving to a cloud environment for communications: A: Provide the EXACT same feature set for workers at fixed sites as well as home and mobile workers B: Provide a complete fixed-mobile-convergence (FMC) solution, including the ability to reply to a text message revealing only the business (PBX) phone number C: Allows users to easily designate any phone - home, work, mobile, even hotel - as their work number and make/receive calls using that number D: B and C E: None of the Above Answer: E None of the above, all can be achieved with a more modern prem system, however a cloud system helps you get their faster 14
15 Customization In general, can cloud communications (CaaS) solutions be customized per enterprise? A: CaaS supports only limited customizations at a company level such as a company level Auto Attendant B: CaaS supports company level (e.g. Auto Attendant and Corporate Directory integration) as well as individual (e.g., speed dial and white/black list) customizations C: With CaaS, customizations are allowed similar to what would be allowed with an onsite PBX D: D it is vendor and architecture dependent Answer: D A single instance public cloud, or a private cloud architecture can support the same customizations as a privately owned on-premise PBX. 15
16 Security Which of the following statements best describes security considerations when it comes to cloud communications? A: Cloud communications are generally less secure than onsite solutions and security is often cited as a reason why some businesses stay with an onsite solution B: In reality, service providers are often better equipped to provide the necessary compliances than enterprises may be able to achieve on their own C: Privacy and data sovereignty are serious issues facing the roll out of global cloud communications solutions today D: All of the above Answer: D Security is a complex subject, however one should not assume that an onsite solution is always more secure 16
17 Business Continuity What is the best option to assure your business communications stay up in case of network or system disruption? A: An onsite system is actually most reliable; it does not depend on connection to a broader IP network B: A cloud solution is best; it is the only way to cost-effectively provide geographic redundancy C: It doesn't matter, we all have cell phones D: I want it all; just protect my aas Answer: D There are many options available, failover could be onsite survivability, 4G, failover to cell phones or maybe it doesn t matter 17
18 But sometimes it does 18
19 IT Focus CIOs/IT directors are reluctant to move to cloud communications because it threatens their budgets/staff TRUE FALSE Answer: FALSE IT struggles to show value is keeping dial tone on that well recognized? Let the cool kids work on something else! 19
20 TCO The single most important driver for enterprises moving to cloud communications is that it lowers their TCO TRUE FALSE Answer: idk 20
21 Case Study: Iowa State University Situation: Aging on premise system, lacked newer UC features, high annual maintenance costs Estimated cost savings by moving to cloud: $600,000 per year Savings comes from Eliminating PBX maintenance contract Eliminating dedicated PBX engineer Less expensive handsets (now SIP standard) SIP trunking
22 On-Prem vs Cloud Solutions 22
23 Cost considerations Software appications Telephony, UM, mobility, contact center, other apps Hardware Servers, media cards, gateways, phones Trunking and telecom SIP LD Local/PSTN Infrastructure Floor/rack space, power, cooling, insurance, etc Maintenance contracts Staff Support: onsite, tier 1/2/3 MACDs Vendor management Professional services
24 OPEX vs CAPEX Why does it matter? Only pay for what you need without having to overprovision Don't tie up large amount of funds up front/cash flow Ride the falling price downward Reductions due to Moore s law, falling prices with AWS, CaaS, etc. There may always be some CAPEX involved Although vendors happy to rent to you why? Buy vs Lease considerations
25 Changing Business Models Is "changing business models" a Driver or Inhibitor for adoption of a communications in the cloud? A: Driver B: Inhibitor C: Blank so we can have an option D D: It depends on whether you are the end customer or the vendor/channel Answer: D 25
26 Who benefits from cloud based models Customers Lots of benefits Model they are comfortable: Outsourcing , storage, CRM, marketing automation, etc why not telecom Dealers (vendor channel partners) Trading in a dollar today for $2 over 3 years not so appealing New breed of partners required? With the advent of the cloud, I can see 2/3 of my staff becoming irrelevant in the next 4 years. This is what keeps me up at night. VAR exec 26
27 Risk Which of the following is the most important benefit of a cloud based communications solution: A: Lower TCO B: Faster time to market for new features C: Shifts the burden of risk D: Isn t it obvious by the slide title Answer: D This is the biggest factor in my opinion Cloud is forever upgrade model As cloud vendors we have to earn your business every day! 27
28 What s Next? 28
29 Now and Upcoming Mobile First Nordics lead Technology and commercial issues More sophisticated customer portals/self service Continued integrations/cloud mash ups Globalization Data sovereignty issues Business Analytics The Netflix of telecom!!
30 THANK YOU!
31 #Mitel
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