UC Market Trends. Jeffrey Pearl VP Carrier Sales North America

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1 UC Market Trends Jeffrey Pearl VP Carrier Sales North America

2 Agenda! Unified Communications Market Overview! Benefit/Pitch to the end user community! Death of the PSTN

3 Unified Communications Market

4 Market Trends Accelerating Opportunities! Evolution of communications networks to IP and broadband rollout! Growing awareness, acceptance and adoption of cloud-based services by enterprises! Explosion of smart communication devices BroadSoft, Inc. 2013

5 Work Forces are Becoming Increasing Remote/ Mobile! Percentage of U.S. remote workers increased dramatically during the last decade! 4 in 10 U.S. employees spend time working remotely! 13.4 million employees work at home at least one day per week! 25% of all remote workers are in management, business or finance! Workers use over 3 devices to communicate with their colleagues (Gartner)

6 Communications is Becoming Much More Powerful Office Home Office Mobile

7 Unified Communications moves to the cloud Businesses of all sizes take advantage of accelerating factors! The $8B/year PBX business moving to the cloud! Smart devices! Ubiquitous broadband Revenue (US$ Billions) $12 $10 $8 $6 $4 $2 $0 infonetics Hosted IP PBX/UC Market Size and Forecast by Region CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16 CY17 North America EMEA Asia Pacific CALA

8 Market Conditions - $11B Annual Hosted UC Revenue What portion will you get? $12 Hosted IP PBX/UC Market Size and Forecast by Region 100 Business VoIP Service Seats $10 80 $8 $6 Millions $4 Revenue (US$ Billions) $2 $0 CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16 CY17 North America EMEA Asia Pacific CALA 20 0 CY08 CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16 CY17 Infonetics 13! By 2017 there will be 90M Hosted Subscribers spending $11B Annually! Someone is going get this revenue it should be you

9 Quantifying the Service Provider Opportunity UC Services make up greater percentage of ARPU Unified Communications Services 2014 Forecast Reaches $8.6B 000 ARPU Growth From Unified Communication Services Contact Center Mobility (FMC/mobile PBX) 000 Enterprise Social Networking Integrated/Team Collaboration 000 Video Conferencing Web Conferencing 000 Not from IP Centrex/Pure VoIP Messaging ( /im/um) $ Source: IDC IP Telephony

10 Enterprises evolution Moving from a bag of parts to seamless service CC! Technology Centered! Interworked! Multiple Tool sets! Reserved resources! Specialized Equipment! User Centered! Integrated! Ubiquitous tool set! Always available VoIP/ Video! BYOD and Web experience

11 Why are Companies Deploying UC? Source: Infonetics 2013

12 BroadSoft Unified Communications Capabilities A Complete Set of UC Services for all business needs and sizes Applications Xtended: Open APIs & Integration Connectors Calling Messaging Collaboration Hosted PBX Business Trunking Front Office ACD/Call Center Instant Messaging and Presence Text Messaging/ Fixed Line SMS Unified Messaging HD Audio Conferencing Video Meet Me Web Collaboration Xcelerate: Formal Go-To- Market Program BroadTouch User Experience Phones, Tablets, Smartphones, Laptops

13 How Can Hosted Services Benefit Your Business? What is the end-user pitch?

14 Comparing Hosted PBX to Premise Based Hosted Premise Based Scalability Unlimited Limited by size of device Flexibility to meet needs Increments of 1 user System scale adds cost Management Portal for entire system Multiple management systems Costs Rental per month Capital purchase or lease Technology risk With the service provider With the enterprise Disaster recovery Very strong capabilities Taken out by on-site issues Work anywhere All users have the same features Features will be limited at certain sites Feature set Hundreds Depends on the platform

15 Focus on Your Core Business! To increase their level of competitiveness, businesses are focusing their resources on the core business! Hosted communications allows businesses to move the capital cost of a PBX off the balance sheet while providing significant added value to the business

16 Lower Your Costs! With Hosted PBX you don t need to buy servers or other expensive system hardware! Other than phones there is no capital to depreciate*! Typically the 3 year TCO of a Hosted PBX is 30% lower than a premise based solution * Phones can also be rented

17 Work Anywhere and Boost Business Productivity! Hosted PBX users can access the same powerful set of features regardless of being in the office, at the airport or from home! Easier to control remote users communication costs using hosted services! Remote user productivity dramatically improves when accessing hosted PBX features

18 No Costly IT to Worry About! The days of configuring the box in the equipment room are over! Hosted allows simple configuration of the service from user friendly portals! Users and features can simply be added or removed at the click of a mouse with minimal training

19 Business Continuity Means Your Business is Never Down! What happens if a flood, fire or earthquake takes out your business premise?! With your phone service in the cloud you can start working from a different location easily! The cloud phone service is built on a highly resilient Telco architecture which will be unaffected by natural disasters

20 Scale Up or Scale Down as Required! Businesses are constantly changing adding new offices or growing out of old ones! Hosted provides the ultimate flexibility to change with the dynamics of your business! This flexibility lowers the cost of change for your telecoms systems and gets you up and running sooner

21 Gain Productivity from Unified Communications! Hosted provides unified communications features that increases staff productivity! Examples include voic to , clients that turn your PC or Mac into a phone, instant messaging and presence

22 Alleviates IT Worries with Automatic Updates! With Hosted PBX your service provider takes care of updating the features so you don t have to! There is no worry about technology obsolescence as you will always have access to the latest features from the cloud

23 Death of the PSTN!

24 Taglines and Industry Quotes! The Technical Advisory Council (TAC) estimates that only 6% of Americans will use the PSTN by TAC projects the sunset of PSTN no later than 2018.! In late 2012, ATT sent a petition to the FCC to swiftly retire the PSTN and move to a nationwide IP infrastructure! In % of respondents lived in mobile-only households. In 2012 the number grew to 39%! PSTN networks are outdated, too expensive to maintain and loaded with regulatory fees and surcharges.

25 Taglines and Industry Quotes! POTS revenue is on a swift decline going from $15B in 2010 to $11B in 2012 to an estimated $6B in 2018! Business adoption of VoIP has increased from 21% in 2009 to 35% in early 2012! Charles Darwin made a noteworthy point.if we are interested in evolving and prospering into the next decade, it is important to recognize the inevitable change that is coming and prepare accordingly.

26 Summary: UC-One Differentiators Alexander Graham Bell forms American Bell DNS (.com,.org,.edu ) established PSTN You Are Here

27 BroadSoft Support Initiatives Partnering for success Jim Ferguson VP Carrier Development

28 BroadSoft Support Initiatives! Marketing Event sponsorships Webinar series/guest speakers Participation at ILEC shows! Sales Support RLEC road show identified for Q1/Q2 Targeted sales calls Participation in innovation council meetings! Engineering Support Technical training as needed

29 BroadSoft Support Initiatives! Training Branding/Expansion of on-line training modules Certification Programs for ILEC Modular training program for small ILECs! Go to market program Perfect the top 10 keys to success Workshops to develop and compare metrics Data derived from 500 other service providers E.G. sales per rep, lead &demand gen, win % Utilize and brand extensive on-line content Resources available as needed

30 BroadSoft Support Initiatives! Channel Program stimulation Target top agents for some quick hits Webinars/road shows/channel events! Co-op programs Sales incentives/contests Lead generation programs

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