Prospects for Managed and Hosted Services

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1 Prospects for Managed and Hosted Services Patrick Matthews Senior Manager Lucent Managed Services August 22,

2 Complexity Leading to Decrease in IT/Network Innovation Complexity of evolving converged network environment Ever increasing bandwidth requirements Increasing number of remote workers and devices Leveraging next-generation technologies without service level disruption Securing against network security vulnerabilities Source: Yankee Group, Hosted and Managed Services enable Enterprises to better leverage their IT/Network staff

3 Enterprise Options for Leveraging IP Telephony Managed Service Hosted Service Enterprise Purchases Direct (Premise Based) Do-it-Yourself (DIY) Customer premises-based solution where the managed service provider manages the application solution stack Platform elements may be owned by a managed service provider, Carrier, or enterprise Network-based solution where the hosted service provider owns and manages all of the application solution stack Managed IP Telephony Managed Security Network Management Hosted IP Telephony Hosted Voic Hosted Content Low Ability to leverage fully-converged service offerings High 3 Hosted and Managed Services are high value and costeffective alternatives to premises-based solutions

4 Enterprises Have Multiple Options for Hosted and Managed Service Providers Traditional Service Providers Tier-1 s Tier-2/3 s MSO s Alternative Service Providers System and Network Integrators HW Vendors 4 Hosted IP Telephony solutions are an integral offer for meeting the requirement of today s Enterprise

5 Enterprise CIO s Metrics Driving Hosted IP Telephony Traction Percent of Respondents Which of the following statements best describes the type of IP Telephony system currently installed (or that you plan to install)? 35% 30% 25% 20% 15% 10% 5% 0% 33% 25% 25% 24% Hybrid (or IP enabled) PBX IP Centrex or hosted IP Telephony service 23% 15% IP Centrex and IP PBX systems 19% 18% Pure IP PBX on company premises 10% 7% Don't know Source: Yankee Group, 2005 U.S. Canada Past CIO Metrics: Bandwidth CPU Memory Database/System Availability Current/Future CIO Metrics: Productivity Revenue Cost Profitability Hosted VoIP is not just for early technology adopters as CIOs in all market sectors are recognizing the benefits 5

6 Benefits for Hosted IP Telephony Best of IP PBX IP-based software model Rich PBX + multimedia functions Web-based control, MACs Best of Centrex Scale, reliability Purchase incrementally Centralized control, mgmt. OPEN, STANDARDS-BASED Best of both worlds Reduced Expenses: -- Limited up-front CAPEX & On-going management, training and troubleshooting Future Proof : Access to ever evolving ecosystem of next-generation applications and converged services Reduced VoIP Staffing: Decreased need for VoIP expertise while allowing IT/Network staff to focus on revenue enhancing innovation Expedited Implementation: Reduced time for initial and incremental roll-outs Redundancy: Geographic redundant network and applications architecture Simplified Pricing Structure: Structure based upon per seat pricing Ubiquitous Features: Same look and feel across entire Enterprise environment Flexible Services: On demand a la carte features for specific user requirements 6

7 Criteria for Choosing a Hosted and Managed Services IP Telephony Provider Commitment to new services development and deployment Commitment to SIP Comprehensive service portfolio Committed to multi-vendor, multi-protocol solutions Breadth/ quality of application partners Carrier grade infrastructure/operational excellence Proven professional services/support capability Track record for delivery/customer satisfaction Telecom acumen/commitment to your success Ensure network management and security are embedded 7

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