Connected and Complete: Enterprise Unified Communications Strategies Tyler Bryson Microsoft Corporation

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1 Connected and Complete: Enterprise Unified Communications Strategies Tyler Bryson Microsoft Corporation

2 This year By which is more than the a third world s of the mobile world s worker workforce this will population grow will reach to nearly the one 1.2 billion people mark billion

3 Communications Are Being Transformed Convergence of Voice, Text and Data Communications are evolving from phone calls to include text, data and multimedia PC incorporates voice: Skype is the largest single international carrier with over 50B minutes per year Changing work and life style of people Work from home: 63 million will telecommute in U.S. by 2016 Virtual meetings on the rise: Videoconferencing technology could replace 20% of business travel WW SMB customers adopt conferencing rapidly (already 50% of market and growing faster than Enterprise) Shift from Wired to Wireless Number of long distance calls made over wireless network exceed those made via wireline in U.S Mobile devices are pervasive and becoming smarter: 4.8B WW subscribers, smartphones growing rapidly Sources: U.S. SMB Landline Displacement Forecast Wireless Replacement Accelerates : May 2010 Forrester, Inc., 2009 Workforce Techno Graphics survey

4 Common Communication Silos Unified Communications Instant Messaging (IM) Video Conferencing Voice Mail Telephony and Voice Mail Authentication Administration Web Conferencing Telephony and Calendaring Audio Conferencing Instant Messaging and Calendaring Unified Conferencing: Audio, Video, Web Authentication Authentication Administration Administration Authentication Administration Storage Storage Storage Storage Authentication Administration Authentication Authentication Administration Administration Authentication Administration Storage Storage Storage Storage Compliance On-Premises In the Cloud

5 So What s Holding Us Back? The CFO wants to keep the old phones to save money. The Sales VP wants his group (world-wide) to stay on PBX telephony until the UC system is tried and tested. The CIO wants to roll out UC on a schedule of 1,000 users per month to stay within his financial and staffing budgets. The employees give up on using communications that aren t intuitive and go back to old ways of work.

6 UC Needs To Solve Pains IT Pains Business Pains IT needs to: Simplify and reduce the cost of communications Maintain compliance and prevent information leakage Support many users with diverse needs Extend existing investments The business needs to: Manage communications overload Communicate with globally distributed customers and partners Maximize productivity and innovation Attract and retain talent

7 UC Strategy Pillars... Drive adoption through ease of use Instant Messaging and Presence Consistent experience across applications Consistent experience across devices Reduce costs and drive business outcomes Truly converged user experience Converged voice functionality Audio, Video, and Web Conferencing Simplify deployment and migration through interoperability Enterprise Voice and Telephony Interoperable and extensible platform Choice through interoperability IT resources maximized with the cloud

8 Driving Adoption through Converged User Experience Users can benefit from a single client experience for IM, voice, video, and data sharing 1. Connect with others through contact photos, activity feed and interactive contact card in Office 2. Move easily from instant messaging into ad-hoc online meetings, including audio, video and screen sharing 3. Conduct online presentations including audio, video, app sharing and a virtual whiteboard 4. Invite external contacts to easily join ad-hoc or scheduled meetings via a PC or web based client 5. Connect with customers and partners through IM, audio and video federation

9 Decrease Costs Lower Messaging Costs Save 50 80% Reduce Travel Expenses Save 20 40% Reduce Telephony and Audio Conferencing Charges Save 20 40% Lower Real Estate and Facility Costs Save 30 40% Reduce Cost of Communications Systems Save 40 60% Note: Results are based on customer evidence. Visit and to learn more.

10 For each 1000 employees, companies spend ~$100K per year for audio conferencing. Total CPM (Cost Per Minute) = 7.1 cents per minute CPM per end point = 6.1 Cents per minute* Access Cost of toll free # = 1 cent per minute Company Specific Information CPM per end point Access Cost for Toll free #? Cents/min? Cents/min On average, every employee spends 2 hrs per month on audio conferencing Usage of audio bridge for 1000 users per month = 2000 hrs or 120,000 min Total cost per month for 1000 employees = $8520 Total Cost per year for 1000 employees = $102,240 Avg. usage of conference per employee Total number of employees Total cost per month Total cost per year? Hrs/month??/month?/year Actual costs are higher when cell phone and long distance charges are included. *Frost & Sullivan Study N3DE -64, August 2008 Publication North American Audio Conferencing Markets

11 Companies can cut ~$88K per year on audio conferencing costs for each 1000 employees. With Lync/Lync like, CPM per end point = 1 cent per min Costs of using the audio bridge = 0 Access charges for # =1 cent per min. Total Usage of bridge = 2000 hrs/month or 120,000 min/month Average usage per employee = 2 hrs/month Total number of users = 1000** Total audio conferencing costs = $1200 per month Total audio conferencing costs per year = $14,400 per year** Companies can cut $88K on audio conference costs per year for each 1000 employees with Lync Server 2010.** *Cost savings are higher than $88K as cell phone & long distance charges for audio conferencing are ignored. ** Assuming 100% adoption

12 For each 1000 employees, companies spend ~$100K per year in web conferencing. Total CPM (Cost Per Minute) = 14 cents per minute* Company Specific Information CPM per end point? Cents/min On average, every employee spends 1 hr per month on web conferencing Usage of web conferencing for 1000 users per month = 1000 hrs or 60,000 min Avg. usage of web conference per employee Total number of employees? Hrs/month? Total web conferencing cost for each 1000 employees = $8400 per month Total cost per month?/month Total cost per year?/year Total web conferencing cost for each 1000 employees = $100,800 per year Web conferencing is often bundled with audio conferencing. However, we have ignored the audio conferencing costs in our calculation. *Frost & Sullivan Study N331-64, June 2008 Publication, North American Web Conferencing Services

13 Companies can cut ~$100K per year on web conferencing costs for each 1000 employees With Lync on-premises, CPM per end point = 0 cent per min Cost of web conference = 0 per user per month Total web/video conferencing costs per year = $0 per year Companies can cut $100,800 on web conferencing costs annually for each 1000 employees with Lync Server 2010** *Cost savings are higher than $88k as savings from audio conferencing conducted during web conferencing are not included. ** Assuming 100% adoption

14 Microsoft Internal Usage Driving Cost Savings Usage Business (June Value 2010) Instant Messaging per month from Online audio Meetings and conferencing Ad hoc collaboration unique service users - 97M per year in telephony support monthly messages costs per scheduled meetings month Facilitates per year reduction ad hoc in travel desktop sharing sessions per month Reservation-less Audio Conferencing monthly audio conferences Learning minutes of audio conferencing per month Enterprise Voice User education drives the experience people rely on OCS for all communications Cultural change required to maximize the return sites, calls and minutes /month Network planning essential to success Optimized devices improve user satisfaction Improved Productivity and Greater Flexibility for the Global Workforce Ad hoc collaboration Planning Meetings Customer Meetings Global Development Teams

15 Improve Business Outcomes Improve End-User and Team Productivity Up to 30 min/day Complete Projects Faster Up to 10% Shorten Sales Cycle Up to 20% Resolve Customer Issues Faster Up to 20% Attract and Retain Employees Varies by customer Note: Results are based on actual Microsoft customer evidence and a composite case study of a 4,000-person company developed from interviewing 15 companies. Please see the Total Economic Impact of Microsoft Unified Communications white paper issued by Forrester Research.

16 Instead of operating in a run to failure mode, we ve succeeded in capturing system knowledge in intelligent systems that allow us to identify problematic equipment before a failure. UC & Collaboration in Action: Condition Based Maintenance

17 Condition Based Maintenance Process Engineer SharePoint

18 Condition Based Maintenance SharePoint Search Results SEARCH Compressor Issue SharePoint

19 Condition Based Maintenance: SharePoint Search Results Lync Process engineer: My compressor is acting up Regional Manager: We re aware. Replace the bearings, here are details: link

20 Condition Based Maintenance: SharePoint Search Results Compressor Performance History

21 Condition Based Maintenance: SharePoint Search Results PI Compressor Data (RtWebParts)

22 Condition Based Maintenance: SharePoint Search Results Work Order Form Compressor Bearing SUBMIT

23 Condition Based Maintenance: SharePoint Search Results SharePoint Wiki Post 3/31/2009 Known Compressor Issue

24 Interoperate A Phased Migration for users, systems and devices Replace Full and Seamless UC Experience IM, Presence, Conferencing, Voice Highly Cost-effective to Purchase and Manage Enhance Full and Seamless UC Experience Allows Employees to Use PC or Phone for Voice Calls Add Eliminates Costs for Conferencing Services Can Use PC for Full Audio, Video, and Web Conferencing Experience Provides Rich Roster Controls

25 well as enabling FAX terminals; Interoperate A Phased Migration for users, systems and devices Challenges Integrating with the PSTN and SIP Trunks; Integrating with an array of legacy PBX systems; Integrating pre-existing telephony with the underlying UC platform to provide consistent routing; Deploying UC in the remote Branch office that will continue to operate in an IP outage; Protecting the enterprise network from intrusion and attack; Enabling a phased migration from legacy telephony to UC; Managing the impact of wide-band codecs on networks that were not designed for UC; Facilitating the re-use of costly legacy phones in the UC environment, as

26 One Customer s UC Journey Sprint

27 Before Deploying OCS

28 After Deploying OCS

29 Business Benefits The Cost Savings Results Transition from LEC services to Sprint MPLS w/ IP Trunking Savings = $6m per year in recurring LEC costs Centralized UC Architecture Savings = $1.25m per year in Kilowatt hrs Savings = $2m over 24 mos. In PBX MACs, Maintenance and Upgrades Savings = $300k/month in Audio Conferencing over IP (pay back immediate) Overall UC ROI - Payback 15 months Implement Mobile UC - Sprint Wireless Integration All mobile to corporate dial plan calls treated as On-net - traverses the MPLS network (Mobile over MPLS vs. Mobile over PSTN) Drives down mobile billable usage & LEC circuit costs

30 Next Steps on UC Journey 1. Define a business case Define your business goals and objectives create a detailed project plan 2. Check infrastructure readiness UC is a new service, make sure your infrastructure can support it through Network assessments / UC assessments hardware physical or virtual 3. Get user buy-in User training is key. Generate excitement and get them trained well ahead of the actual deployment 4. Stage a phased deployment Start with a pilot that includes your power users or highly collaborative teams. Start with a smaller test group, but lay the foundation for your global needs 5. Support / Training Make sure you are setup with tier-1 and tier-2 support. Give your users a mechanism to provide real-time feedback

31 Q&A Thank you!

32 2010 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

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