The Clear Choice for Voice: The Cloud Outsource Model for Carriers. Kevin Mitchell

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1 The Clear Choice for Voice: The Cloud Outsource Model for Carriers Kevin Mitchell

2 Voice is Important Part of the Service Bundle Huge Market FIXED VOICE SERVICES CANADA 2013 Triple-play Dominates REVENUE (MILLIONS) $4,888 $3,446 RESIDENTAL BUSINESS Source: Gartner (Q1 2013) 2

3 Challenging Dynamics 3

4 Voice Network Trends Costs are Rising Voice MOU Voice Operational Costs Per Unit OPEX + NETEX = Networks are aging Legacy TDM equipment VoIP 1.0 gear Defunct vendors EoL products 4

5 Next Gen Architectural Cost and Complexity Top 3 barriers to IMS are business case related IT projects in 2013: Spending averaged 159% of budget 5

6 Strategic Initiatives Beckon Superfast Broadband Can Directly Reduce Churn Offering superfast broadband speeds to all customers could reduce annual churn rates by 3 percentage points per year Source: The Connected Consumer Survey 2013: fixed broadband retention and upsell 6

7 The World Has Turned to the Cloud How can carriers leverage cloud for service delivery? Gartner: $200 Billion 7

8 Solution: Cloud Voice Platform Cloud Voice Platform Off-net origination & termination PSTN connections LEC services Carrier Services Cloud Voice Platform Turnkey voice network End-user features Management controls/integration Network operations Service Providers MNO ISP Telco Cable Broadband services Voice product definition Subscriber relationship 8

9 Cloud Voice Platform architecture 9

10 Heavy Lifting is Outsourced Service Provider Product definition Subscriber acquisition End-user invoicing Marketing Tier 1 and 2 customer support Tax collection & remittance Cloud Voice Platform Device certification & provisioning Inventory management Back office integration End-user feature set Tier 3 production support VoIP operations & monitoring Feature upgrades & enhancements TN management LNP management Regulatory management CNAM/DL/T.38, etc. CODEC/frame sizing LI & emergency services QoS management Voice capacity management Long distance LCR/ fail-over Wholesale Carrier Bring Your Own Carrier Local facilities (LEC) Long distance facilities Voice switches Signaling network Routing engine Collocation facilities Transport network IP backbone 10

11 Business Model Transformation Needed CAPEX CAPEX spike Revenue OPEX Fixed OPEX & shrinking margins 11

12 Cloud Provides A Clear Business Case for Voice Reduces risk by eliminating CAPEX Maximizes gross margins Aligns costs with subscribers Stronger cash generation Scalable solution without paying for it on day one 12

13 Time to Revenue Favors the Cloud More revenue throughout lifetime Faster time to revenue MONTH CVP model Build model 13

14 Positive Impacts Across the Organization Engineering Operations NOC/Support No equipment capex No maintenance opex No integration work Less vendor management No QA/upgrade cycles Refocused resources Automated processes Reduced power, space requirements Reduced training Offloaded monitoring & troubleshooting Faster TTR 14

15 Cloud Use Cases Greenfield Voice Market Expansion Circuit to Packet Migration VoIP 1.0 Replacement ISP Mobile Satellite Cable ISP Mobile Telco Cable Mobile Telco Cable ISP Telco New revenue Low risk Fast time to market New revenue Low risk Fast time to market Lower TCO Fast time to market Service agility Lower TCO Service agility End-of-Life migration 15

16 Key Requirements For Cloud Outsource Model Standards-based Horizontally integrated Back office integration Extensive and customizable end-user feature set Regulatory compliance Carrier services management Resilient and scalable architecture 16

17 Requirements for Streamlined Management Branded End-User Portal Turnkey, web portal for end user self-care Web-based Management Entire platform managed via web portal with rights-based access for all staff: Unified Platform Horizontal integration allows platform to be managed as a single integrated system and powers all management options End User Product Mgmt. Operations Care Provisioning Management End-User Portal Administrator Logic Layer API Data Feeds Back-office integration Selected functionality can be automated and integrated with back-office systems with APIs Service Provider Management End-User Portal OSS/BSS End User Operations Care Operations 17

18 Voice in the Cloud The Future is Flexible Crowd-sourced innovation and continuous improvement 18

19 Options for Voice Old Iron Buy equipment Build network Manage multi-vendor Whitelabel Resell 3 rd party service Cloud Voice Platform Outsource network and carrier services Turnkey Investments Highest Low Lowest Customization Limited None Full Operational Integration Difficult Limited Easy ROI??? 3-5 years Months 19

20 Cloud-Like vs Cloud-Based Building a Cloud Using the Cloud NFV Telco Software Virtualization layer Hardware/ Servers Cloud Voice Platform NFV Telco Software Virtualization layer Hardware/ Servers NFV Telco Software Virtualization layer Hardware/ Servers CAPEX OPEX Service provider or public cloud Operations NOC Zero CAPEX Lower OPEX Service provider No operations team Outsourced NOC 20

21 Challenges to Overcome Manual swivel chair Voice quality Disruption Migration Availability APIs & real-time validation QoS engineering Discovery Professional services Element, route & data center redundancy 21

22 Elastic Infrastructure and Business Model NFV core SaaS pricing Cloud Voice Platform Geo redundant Horizontally integrated 22

23 Summary Clear Choice for Voice Your customers get same high quality, feature-rich VoIP You get agile service delivery and superior business model You can unleash your potential 23

24 Thanks Let s Keep Talking Now It s Your Turn Keep In Touch 24

25 Alianza is Accelerating Voice Success Leading provider of cloud voice delivery solutions Turnkey wholesale solution SaaS-based model eliminates CAPEX and lowers OPEX Residential, business and mobile services Proven model Founded in 2009; Salt Lake City, UT HQ Fast growing: doubled revenue 4 of 5 years 1 billion minutes in 2012 and 2013 Market-focused innovation Alianza developed code and intellectual property Accelerate Voice partner program Mature API for back-office integration 25

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