Cisco Vs. Microsoft. Which to Choose? Brent Kelly, Principal Analyst KelCor, Inc

Transcription

1 Cisco Vs. Microsoft Which to Choose? Brent Kelly, Principal Analyst KelCor, Inc

2 About The Presenter Dr. E. Brent Kelly Dr. Brent Kelly is Principal Analyst at KelCor, Inc. where he focuses on the intersection of unified communications, social media, video, cloud services and mobility. Dr. Kelly provides strategy and counsel to Chief Information Officers, Chief Technology Officers, investment analysts, VCs, technology policy executives, sell side firms and technology buyers. Previously, Dr. Kelly served for two years as Vice President and Principal Analyst at Constellation Research, Inc., and for ten years as a partner at Wainhouse Research where he was the primary author of most of the firm s unified communications reports and forecasts. Brent has a Ph.D. in engineering and serves as an elected official in his community. 2

3 Agenda 1 Introduction-Product Comparison 2 Licensing and TCO 3 Decision Making Aids 3

4 The Market Reality Cisco Data Network 75% Microsoft Lync IM/Presence 60% Cisco Voice Network 25% - 35% Sources: Nemertes, Infonetics, MZA, PKE Estimates 4

5 The Challenge Cisco ~21% have both Cisco voice and Microsoft Lync Microsoft Sources: Nemertes, Infonetics, MZA, PKE Estimates 5

6 The Challenge Cisco ~45% of Cisco data Deployments could be considering Microsoft Lync for voice Microsoft This is why the Cisco vs Microsoft debate has become so important! Sources: Nemertes, Infonetics, MZA, PKE Estimates 6

7 Cisco vs Microsoft: The Collaboration Challenge 7

8 End User Organizations Switching Toward a Particular Communications Provider Avaya, 12.9% Cisco, 22.6% Unsure/Evaluating, 32.3% Microsoft, 12.9% Mitel, 3.2% Other/Multiple, 6.5% Cloud/Hosted, 3.2% ShoreTel, 3.2% Unity (Siemens), 3.2% Source: Nemertes Research at Enterprise Connect

9 Why Choosing is Difficult In many organizations both vendors are strategic Cisco Jabber for all (requires only one telephony license) Microsoft Lync for all (often comes bundled in an Enterprise Agreement) Political Intelligent, articulate proponents for both solutions Sometimes difficult to differentiate between them Someone will likely feel disenfranchised Approaches differ Cisco: from the data and PBX world Microsoft: from the enterprise software and back-end systems world Both offer a vision for the future Both approaches are valid and often resonate 9

10 The Interface is Changing From Touch-Tone Dial Single Channel 10

11 The Interface is Changing To Click-to-Call Click-to-Conference Multi-Modal 11

12 Architectures are Different Personal Productivity Applications Business Applications and Processes Personal Productivity Applications Business Applications and Processes Voice Apps Communications Platform Data Infrastructure Voice Apps Communications Platform Data Infrastructure What do you converge: Comms and network or Comms and Personal Productivity Apps? 12

13 Comparing Portfolio Capabilities Basic Telephony Services Desktop Phones PC Clients Mobile Clients Audio Conferencing Contact Center IM/Presence Web Conferencing Federation Services Outlook Integration Peer-to-Peer Video Multipoint Video Room System Integration With Partner Eco-System Source: PKE Consulting 13

14 A Closer Look: Giving the Nod Telephony Capabilities Basic Features Advanced Telephony Features Audio/Web Conferencing Video Portfolio Single Vendor versus Eco-System Desktop Applications Integration Exchange/Outlook Office Apps SharePoint Federation Line of Business App Integration Contact Center Source: Adapted from PKE Consulting Microsoft Lync Cisco UC/Jabber 14

15 The Partner Ecosystem Disadvantage or Advantage? Item UC Software Microsoft Cisco Servers Partner Cisco SBCs Partner Cisco Phones Partner Cisco Video Units Partner Cisco Contact Center Partner Cisco Cloud Microsoft* Partner Installation Partner Partner Operations Other Other Note: Even if Microsoft is chosen, it may be through a VAR; thus you may still have a single vendor doing the integration. 15

16 Where Does the Money Go? Contact Center and Video Were Added in this On-Premises Example Microsoft Cisco To Vendor* 8.4% 39.9% To Partners Only 17.8% 4.4% To Others 73.8% 55.8% Big opportunity for hosted/managed services 16

17 Four Strategic Options All Cisco One Vendor Full PBX Guaranteed Integration Both Elemental Cisco for PBX Microsoft for IM & presence Little integration Both in Parallel Location or departmental Support full UC stack for both All Microsoft Single Vendor (sort of) Eliminate PBX (if possible) 17

18 Deployment Implications To Get a Unified Communications Experience Deploy From A Single Vendor All Cisco One Vendor Full PBX Guaranteed Integration All Microsoft Single Vendor (sort of) Eliminate PBX (if possible) True, integrated multi-modal communications experience 18

19 Hybrid Deployment Cisco Voice, Microsoft IM/Presence There are several ways to deploy this. With any of them, you break the unified communications paradigm because your end users lose the UC experience Escalation from IM to voice to web conferencing to video is not possible 19

20 Hybrid Deployment CUCILync CUCILync is a plug-in for Lync When you click-to-call it launches a Cisco desktop client Use Cisco desktop client for softphone or for controlling a Cisco hard phone Frankly, results with CUCILync are mixed. Some find it hard to deploy (IT has to maintain two clients). It eliminates integrated conferencing. 20

21 Hybrid Deployment SIP Trunk IP Phones Cisco PBX PSTN Network SIP Trunk Lync Clients Lync Pool (s) Lync 2013 Lync Servers Lync users get UC. Others do not. 21

22 Hybrid Deployment SBC Implementation PSTN Network IP Phones SIP Trunks Session Border Controller Cisco PBX Lync Pool (s) Moves dial plan to SBC. Cisco and Lync users get respective system capabilities Lync Servers Lync Clients Lync

23 If Lync Gets in the Door It is kind of insidious! Lync for IM and Presence Lync Peer to Peer Audio and Video Web/Audio Conferencing through Lync Add an SBC and Voice Trunks Lync Mobile Clients Lync Federation Lync Enterprise Voice 23

24 The Licensing Conversation Cisco 24

25 Microsoft Lync 2013 Different License Types Lync Server Licenses Front End Server role Plus each Survivable Branch Appliance Client Access Licenses (CALs) User Subscription Licenses (USLs) Office 365 and Lync Online Client License Windows Server Licenses SQL Server Licenses Exchange Server Licenses { Don t Forget These Other Licenses Lync Licenses 25

26 Lync CALs Adds Conferencing Adds Enterprise Voice Adds Conferencing and Enterprise Voice Plus CAL Enterprise CAL Plus CAL Enterprise CAL Standard CAL (IM/Presence) The Lync 2013 Client license is often included with other products (Office Professional Plus, Office 365). Lync Mobile clients are free 26

27 Lync CALs (Per User) Plus CAL - $123 Enterprise CAL - $123 Standard CAL - $36 List Price for Full Stack = $282 27

28 Lync Server CALs 40+ Pages of Licensing Guide Core CAL Suite (CCAL) Enterprise CAL (ECAL) Enterprise Agreement Subscription (EAS) 28

29 Cisco Licensing Cisco Personal Multiparty WebEx Conferencing Unity Connection N/A N/A Expressway N/A N/A Jabber UC CPE & CPE & Jabber IM/P Hosted Hosted Prime Collaboration One One One/Two Multiple Multiple UCL Essential (Analog) UCL Basic $40 $125 UCL Enhanced/ Enhanced Plus $210/ $295 CUWL Standard CUWL Professional $325 $500 # of Devices Supported List Price 29

30 Cisco CUWL Pro (Per User) Cisco List Price for Full Stack = $500 30

31 Cisco Enterprise Agreement Cisco Software and service rights for entire organization in a single multi-year agreement Requires at least 2,000 knowledge workers Includes software, upgrade subscriptions (UCSS) and technical support (ESW) Considers previous investments in Cisco collaboration and support products Fixed cost for length of contract Unlimited organic growth and up to 20% of inorganic growth before true-up 31

32 Unified or Universal Communications? Vendor licensing forces us to think in terms of point solutions Video: Lync Enterprise UCL Enhanced Voice: CUWL Standard UCL Basic/Enhanced Lync Plus Conferencing: CUWL Pro Lync Enterprise 33

33 Modeling TCO 34

34 A User Profile Should Drive Any Solution Workload/Capability Profile Type: Manufacturing Executive Highly Mobile Collaborative Worker Support Worker Task Worker Percent by Category 3% 20% 30% 17% 30% IM/Presence 100% 100% 100% 100% 100% Federation 100% 100% 100% 100% 0% Deskphone 100% 15% 50% 70% 15% Softphone 100% 100% 100% 50% 30% Executive Video Unit 50% 0% 0% 0% 0% Mobile Smartphone Client 100% 100% 100% 50% 30% Mobile Tablet Client 100% 100% 100% 50% 30% Conferencing Hosts 50% 100% 100% 10% 10% Multi-Line, Multi-Line, Multi-Line, 2-Line Phone Type Speaker, Touch Speaker Speaker or Multi-Line Single-Line Busy Hour Conferencing 50% 20% 20% 2% 1% 35

35 A Look at the Licenses Required 5000 Users Executive Highly Mobile Collab. Worker Support Worker Task Worker Attendant Consoles Public Space Phones Analog Lines Video Rooms Lync Standard CAL Lync Enterprise CAL Lync Plus CAL UCL-Essential 200 UCL-Basic 200 UCL-Enhanced CUWL-Standard CUWL-Professional User Licenses and CALs Total Microsoft Lync Standard CAL 5438 Lync Enterprise CAL 2848 Lync Plus CAL 4600 Cisco UCL-Essential 200 UCL-Basic 200 UCL-Enhanced 1352 CUWL-Standard 851 CUWL-Professional 2835 Note that there are more than 5000 licenses required 36

36 TCO Components One time costs Total server software Total software CALs/Licenses Total hardware Total contact center Total videoconferencing hardware Total implementation costs Grand total one time costs 5-year total of annual support costs Server software maintenance / support Total CAL/License maintenance maintenance / support / support Total hardware support Total videoconferencing maintenance / support Total contact center annual support Grand total support costs Subtotal before support operating costs Operating costs Total rack space costs Total personnel costs Total power costs Total annual bandwidth cost Total SIP trunking cost Total operating costs Essential for Comparison of Premises vs. Hosted! 37

37 Where The Money Goes Case: 5,000 users. No Group Video. No Contact Center. EA Licensing One Time Costs Microsoft Percent Total Server Software $ 109, % Total Software CALs $ 1,558, % Total Hardware $ 511, % Total Contact Center $ - 0.0% Total Video Conferencing Hardware $ - 0.0% Total Implementation Costs $ 326, % Grand Total One Time Costs $ 2,506, % 5-Year Support and Maintenance Costs Annual Server Software Maintenance $ - 0.0% Total Annual Software CALs Maintenance $ - 0.0% Annual Server Software Support $ 147, % Total Annual Software CALs Support $ 2,099, % Total Hardware Support $ 109, % Total VideoConferencing Support/Maintenance $ - 0.0% Total Contact Center Annual Support $ - 0.0% Grand Total Support and Maintenance Costs $ 2,357, % Operating Costs Total Rack Space Costs $ 28, % Total Personnel Costs $ 6,600, % Total Power Costs $ 21, % Total Annual Bandwidth Cost $ 164, % Total SIP Trunking Cost $ 388, % Grand Total Operating Costs $ 7,202, % Grand Total $ 12,066, % One Time Costs Cisco Percent Total Server Software $ - 0.0% Total CUCM Software Licenses $ 895, % Total CUBE SBC Licenses $ 20, % Total Unity Connections Licenses $ 44, % Total Hardware $ 888, % Total Contact Center Express $ - 0.0% Total Video Conferencing Hardware $ - 0.0% Total Implementation Costs $ 369, % Total One Time Costs $ 2,219, % Support and Maintenance Costs Annual Server Software Maintenance $ - 0.0% Total CUCM Software License Maintenance $ 665, % Total CUCM Software License Support $ 520, % Total Hardware Support $ 25, % Total Contact Center Annual Support $ - 0.0% Total Unity Connections Support and Maintenance $ 88, % Total VideoConferencing Support/Maintenance $ - 0.0% Total Support and Maintenance Costs $ 1,298, % Operating Costs Total Rack Spack $ 30, % Total Personnel Costs $ 6,912, % Total Power $ 37, % Total Annual Bandwidth Cost $ 190, % Total SIP Trunking Cost $ 458, % Total Operating Costs $ 7,629, % Total $ 11,146, % 38

38 License Type Matters Case: Contact Center: No; Room Video: No; On-Premises Microsoft EA/SA vs EAS Licensing EAS = Enterprise Agreement Subscription Monthly or annual cost You don t own the software license Microsoft Enterprise Agreement with Maintenance (EA/SA Licensing) Microsoft Enterprise Agreement Subscription (EAS Licensing) Microsoft total: $12,066,668 EAS gives 23% Discount Microsoft total: $9,272,159 39

39 For the Undecided Some Strategic Approaches Do you ever feel like both solutions are good but missing just a little something? 40

40 Elimination Strategies 41

41 No Matter Which Solution You are Looking At Profile your users Workload/Capability Profile Type: Manufacturing Executive Highly Mobile Collaborative Worker Support Worker Task Worker Percent by Category 3% 20% 30% 17% 30% IM/Presence 100% 100% 100% 100% 100% Federation 100% 100% 100% 100% 0% Deskphone 100% 15% 50% 70% 15% Softphone 100% 100% 100% 50% 30% Executive Video Unit 50% 0% 0% 0% 0% Mobile Smartphone Client 100% 100% 100% 50% 30% Mobile Tablet Client 100% 100% 100% 50% 30% Conferencing Hosts 50% 100% 100% 10% 10% Multi-Line, Multi-Line, Multi-Line, 2-Line Phone Type Speaker, Touch Speaker Speaker or Multi-Line Single-Line Busy Hour Conferencing 50% 20% 20% 2% 1% 42

42 No Matter Which Solution You are Looking At Look for unique requirements or situations Special group functions? Advanced Trunking or dial plan functions? Unique assistant functions? These may point you toward the vendor you need to pursue. 43

43 No Matter Which Solution You are Looking At Determine if you have The 70% Solution Your organization may require multiple communications vendors to meet its needs! 44

44 No Matter Which Solution You are Looking At Consider your expertise Are you more of a Cisco shop than a Microsoft shop or vice versa? Don t forget that OPERATIONS will likely be half of your TCO over time. If you have significant expertise with one or the other vendor, you may save time and money pursuing that vendor. 45

45 Investigate TCO By Looking at Alternatives TCO is only part of the picture, but it is important Do some modeling or get someone else to do it A close look at TCO may move a director or manager toward compromise. 46

46 Evaluate Vendors Using a Weighting Process Define Criteria Weigh Criteria Compare Vendors Crunch Data Outcome 25% 5% 14% 10% 4% 25% Customers and Public Close Held Partners Inter-Business Windows 8 Smart Phones Open Smart Phones (Including Desktop Client) TCO 100 Active Directory SharePoint Business Applications Desktop Productivity Apps Video Conferencing Telephony 6% Windows 8 Tablets/Slates PC Desktops Open Tablets Jabber Lync 11% Source: PKE Consulting 47

47 Building Block Approach User Profiles are an input to TCO modeling. TCO modeling is an input to a weighted decision analysis tool. 48

48 A Quantitative Example Instructions Lync versus Jabber A Quantitative Decision Tool Enter in the Yellow Values Below - this will populate the models and create the presentation For Values, weight the most important value as 100, then de-rate from that point. Analysis Framework - Input Client Decision Solution Areas IT Systems Integration User Services Devices Federation TCO Notes: Lync versus Jabber Solution Interfaces Knowledge Worker Information Worker Total Jabber Lync Jabber Lync (Including Desktop Client) % 7% 8% Harder to use features for Info Workers in non-integrated Active Directory % 9% 8% Slight Lync Advantage - big for Policy with Exchange SharePoint % 3% 6% Big Lync Advantage with SharePoint/Exchange Business Applications % 9% 6% Slight Microsoft Edge Desktop Productivity Apps % 2% 5% Video Conferencing % 3% 5% Has Polycom video conferencing Telephony % 7% 7% CUCM for KW, Nortel for most IW sites PC Desktops % 9% 9% Other Tablets % 6% 5% Windows 8 Tablets/Slates % 3% 3% Other Smart Phones % 8% 8% Windows 8 Smart Phones % 9% 7% Inter-Business % 1% 4% Minimal value for Information Workers Close Held Partners % 6% 5% Lync Federation Advantage Customers and Public % 3% 3% % 12% 10% Customer dependent 1 For Value of Interface, highest value is 100, all others are set relative to that value. 2 For Vendor Comparison, Vendor with higher capability/coverage/value is given 100, the other is de-rated from there. 3 Yellow cells are data entry variables Value of Interface Knowledge Worker Information Worker Weighting Percentage of Total Assigned to each Variable Knowledge Worker Vendor Comparison Information Worker Comments Assume that Lync will be better on Microsoft Clients and Jabber on others. 49

49 Relative Capability Average Relative Capability Average Model Output Scenario 1 Scenario 2 Jabber - Lync Comparison by Worker Type - Zoom View Jabber - Lync Comparison by Worker Type - Zoom View Knowledge Worker Information Worker Total All Workers Jabber Lync Knowledge Worker Information Worker Total All Workers Jabber Lync Customers and Public Close Held Partners Inter-Business (Including Desktop Client) 100 TCO Active Directory SharePoint Business Applications Desktop Productivity Apps Windows 8 Smart Phones Video Conferencing Other Smart Phones Telephony Windows 8 Tablets/Slates PC Desktops Other Tablets Knowledge Worker - Jabber Knowledge Worker -Lync Information Worker - Jabber Information Worker -Lync 50

50 To get a *free* copy of the weighted decision analysis model, send an to Phil Edholm at pedholm@pkeconsulting.com 51

51 Coexistence Strategies 1 Deploy equally and maintain both You will do this intentionally, knowing that this is likely a more expensive option. Management does this knowing that the benefits outweigh the costs! 52

52 Coexistence Strategies 1 Deploy equally and maintain both Inbound call Session Border Controller with Active Directory Lookup You could also do SIP trunking between them 53

53 Coexistence Strategies 2 Mostly eliminate one For your core UC capabilities across broad job profiles, standardize on a single communications and collaboration solution. Only those with special requirements have the other system. This will lower some costs; costs for the special requirements solution will likely be quite high. 54

54 Coexistence Strategies 3 Run one in-house & one hosted Own the main UC solution and operate it yourself. For the special requirements solution move it to a hosted solution from a reputable service provider. 55

55 Enterprise Voice Coexistence Strategies 3 Run one in-house & one hosted ~70 providers 56

56 True Stories All Cisco One Vendor Full PBX Guaranteed Integration Major Pharmaceutical Global 85,000 Users Had Cisco Network Cisco Telepresence Cisco Phones in Europe Chose all Cisco for integration Both Elemental Cisco for PBX Microsoft for IM & presence Little integration Major Manufacturer Global 135,000 Users Opted for Cisco voice at major sites Deployed Lync throughout At small locations, Lync Voice Use Lync for 50+% of conferencing 57

57 Conclusions A true UC experience may be difficult in a hybrid Cisco/Microsoft environment Many organizations function fine with a hybrid deployment Often the very least costs are not the most important factor The user experience and personal productivity are what matter 58

58 Thank you Brent Kelly