The Value of Cloud Communications for the Enterprise. Mark Woollam ITPX / NCUG Canadian Conference October 2010
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1 The Value of Cloud Communications for the Enterprise Mark Woollam ITPX / NCUG Canadian Conference October 2010
2 The Reinvention of Centrex Market Trends Hosted Business Market is Growing IT Complexity Cloud Communications Simplify IT Reinvention of Centrex - Productivity Enhancements of Mobility, Unified Comms, Collaboration & More A Vision of More to Come Applications and Business Process Integration 2
3 Hosted Market Overview Hosted IP services are driving growth in the Centrex industry Analysts predicting renewed growth in Hosted IP Voice (35% growth ) More acceptance of outsourcing driven by cloud computing and SaaS Hosted UC expecting strong CAGR through the next five years UC is becoming table stakes We expect managed/hosted UC services to grow tremendously Brent Kelly, senior analyst and partner at Wainhouse Research. U.S. Hosted UC Services Source: TIA 2009 Source: Infonetics 2010 IP Based Hosted Business Communications is a Growing Industry 3
4 Survey of CIOs The Challenge of IT Complexity Which IT growth barriers are most relevant to you business? Challenges Workforce Efficiency Business Continuity Network Complexity Migration Network Efficiency Employees in multiple locations, geographies and time zones Maximizing employee collaboration despite travel restrictions Recovering from a major disaster or maintaining productivity during major weather events Multiple Islands for legacy TDM, VoIP, PBX and mobile networks with varying service capabilities Hesitance to rip and replace the existing network to get advanced business features Consolidation and Shared Services vs. decentralization Outsourcing versus in-house service delivery 4
5 Complexity vs. Application Richness The Modern Dilemma - IT Complexity 16x Glass's Law: A 25% increase in functionality increase complexity by 100% Complexity 8x 4x 2x Voice Call Centers Unified Communications Mobility Source: 2010, Dimensional Research 5
6 Key Values - Cloud based vs. Premise Approach Total Cost of Ownership Carrier Grade Reliability & Resiliency Flexibility & Scalability Internal IT skills and resources OA&M and SW Upgrades Scalable Call Centers TDM to IP Migration 80% lower capex, 25% lower TCO over 3 years Redundant hosted infrastructure shared across multiple enterprises lowering cost Hosted IP lines can be added one at a time up to 100Ks of lines to any location with IP access Resources and skills outsourced to service provider lowering opex costs by 63% Network management and SW upgrades outsourced to service provider lowering opex by 98% Call centers can rapidly consume premise capacity hosted approach lowers TCO by 29%* Gradual TDM to IP migration lowering capex and opex 6
7 The Business Case for Cloud Communications Employees: 1500 Sites: 1000 employees at HQ site, 4 Medium 50 employees, 15 Small 15 employees, 75 Work at Home employees Comparison: Existing Centrex customer moving to 1. Hosted IP service 2. IP PBX deployment each with UC capabilities as an option Hosted IP Communications Business Case Business Requirements: Improved employee to employee communications and staff productivity Low-risk and flexible migration to IP communications Reduced cost of long distance, conference calling, cellular and calling card Option for unified communications Key TCO Assumptions: Cost for LAN upgrades included (both scenarios) No charge for on-net local or long distance, 5.25 cents/min for off-net LD Survivable Remote Gateways used for Hosted IP scenario, all small & medium sites Productivity savings included for unified communications 7
8 Large Enterprise Solution End User Business Case Initial First Costs ($K) Annual Costs ($K) $1,500 $1,000 $500 79% lower IFC $1,000 $800 $600 $400 Only 8% premium Connectivity Maintenance, Insurance, Prop Tax Real Estate Labor, MACs $ IP PBX Hosted IP Voice Equipment LAN Upgrades Training $200 $ IP PBX Metered Voice Flat Rate Voice Initial Costs of Hosted VoIP are 79% less than IP PBX IP PBX annual costs are comparable to Hosted IP 8
9 Large Enterprise Solution End User Business Case 3 Year Total Cost of Ownership Hosted VoIP is 50% lower than Legacy Centrex $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $ Legacy Centrex IP PBX Hosted VoIP Voice Only Voice & UC Hosted VoIP has 25% lower TCO than IP PBX Productivity Benefits offset the costs of Hosted UC and lowers the TCO 9
10 The Reinvention of Centrex Evolution of Business Communications in the Cloud IP Networking Broadband everywhere WiFi, 3G and 4G Wireless Intelligent Devices IP Phones PC and Smartphone clients Directory & Call Logs Call routing / follow me Web services & APIs Business apps complex App Store momentum Developer communities Desktop integration Unified messaging IM and Presence ramp Media text, voice, video Reservation less Multimedia many variants Performance improving Ready to scale in volume 10
11 Real Business Voice at Your Speed Without Disruption Real Business Voice Centrex Transparency Business Group Features Pickup, Park/Retrieve Multi Line Consoles Boss/ Secretary Features Business or Individual Caller ID Call Recording, Hold or Reject Conference, Fax and VM Call Center At Your Speed & Without Disruption Limit Retraining to New Capabilities Unified Communications and Messaging, Mobility and Call Distribution Smooth Migration through the Process Non disruptive migration to IP allowing mixed TDM/IP service interworking Top 30 Centrex Features (Survey from NA Government Account) Customer Originated Trace Name Display Digitone (tones for analog sets) Three-Way Calling Multiple Appearance Directory Number CFWD Universal Speed Calling Short Call Fwd Do Not Answer (Business) CFWD Busy Ring Again 800 Calling Line ID Delivery 800 Dial Number ID Delivery Message Waiting Permanent Hold Call Park Last Number Redial Call Pickup Service Group Dialable Directory Number Calling Name Delivery Automatic Dial Speed Calling User Suppress Line Identification Information Cutoff on Disconnect CFWD Intragroup No Double Connect Station Controlled Conference Essential Line ACD Primary Carrier Selection 11
12 IP - Broadband Mobility Delivered to you Anywhere Centrex Lines Dedicated Lines Point to Point Analog Voice Specialized Signaling No Routing Change > Lay New Track IP Communications Uses the IP Highway Goes Everywhere Text, Mail, Voice, Video Common Language Routes ANYWHERE Change > Draw New Map 12
13 Wireless Mobility Mobile Communications Extend wireline business features to your mobile Enables single number for business and mobile phone with Presence, Federated IM, Call Logs, Corporate Directory and Call Routing from your cell Voice Call Continuity In-call handoff between cellular mobile and WiFi Mobile Office IP Communications over Wireless Broadband Voice service ubiquity and continuity between cellular voice and broadband. 3G/4G and IMS Solution Wireless Broadband allows SIP lines or soft clients the same feature set on the road as in the office The same service delivered to you over wired and wireless networks 13
14 Clients and Portals Desktop, PC & Mobile Devices Voice over IP Client Flexibility Desktop phones & Soft Clients for PC Mobile Device Clients Click to Call and Control of adjacent IP or TDM phone Call Management Call Routing Find me, follow me Call Logs Presence/Messaging Auto Presence including on the phone Secure IM and IM Federation (Yahoo, MSN, Google ) IM Federation with Yahoo, AOL, MSN and Google Enterprise / SMB Network Edge Gateways and Session Border Control / Security 14
15 Attendant Console Desktop Switchboard / Receptionist Active Call Screen My Workgroup Flexkeys Conference Call Scheduler Call Stacker Call Logs Directories Internal, External, Emergency, Outlook, Favorites 15
16 Unified Communications Desktop Integration Example Capability Integration of voice and messaging capabilities into Microsoft Outlook toolbar Contacts fully integrated into Outlook Business Value Access to Client functions from a pull-down menu Provides one-stop GENBAND UC integration into Microsoft Outlook environment Simple to implement via Microsoft Outlook plug-in Limited User training Click-to-call or IM - Message selected - Sender has a SIP address Contacts & Presence Access to the Personal Agent Make Call Rcv Call Toolbar 16
17 Business Collaboration Conferencing and Web Based Media Sharing Capability Multi-user web collaboration Application sharing Share document, application, or full desktop Document publishing Present MS Office documents Chat and Polling Record sessions Audio, video and IM integration Business Value Fully integrated simple to use, ad-hoc (no reservations or reservation overhead) Reduce conference call and collaboration waiting times Reduce travel Increase focus and effectiveness With a simple web to PC client, users initiate full web-collaboration without any pre-existing reservation 17
18 Productivity Savings Single Service Communications Bundle Presence IM Click-to-Call VoIP Collaboration Application Integration Mobility Enables 30 min/day by reaching coworkers on first attempt 68 min/week from IM/presence 1 hour/week by escalating IM chat to voice/video call 1 hour/week from ad-hoc audio/video/conferencing 30 min/day from unified message management 1 hour/day for tele-workers 18 18
19 Enterprise / SMB Business Case Productivity Savings 3.5 Minutes of increased productivity per day due to: Reaching co workers on first attempt and eliminating voice mail tag Ability to go from IM to voice On demand collaboration Support for teleworkers Incremental Cost of UC Feature $20/user/month Enterprise can realize more than $494 net savings per employee per year 19
20 Applications - Call Center Solution Attendant Console SIP Soft Client monitors over 300 user lines with Drag and drop call distribution Live Operator provides personal touch and live call handoff Auto Attendant Friendly recorded voice leads caller through menu Multi level tree menus and voice recordings controlled by the Business Automatic Call Distribution Powerful System supports multiple pools of Agents Queue management and monitoring Hunt Groups Simple operation places agents in single pool Agent selection on Priority, Next Available... Hosted Call Center Values Scalability: Greater than 10Ks of call agents Capacity: Large call centers can rapidly exhaust premise systems Shared resources: Centralized approach can extend agents even for small branch locations Multiple solutions: 4 options for HQ down to small branch office Hosted Call Center can be deployed at 29% lower TCO than premises based solution 20
21 Applications Customized Business Solutions Application Storefront Consumed by Enterprise IT and End Users & SIs Application Developers Application Developers Application Developers Everywhere focus on business verticals Development Toolkits Development Sandbox Provided within the App Industry e.g. Coral CEA Hosted Network APIs (Parlay X, REST, Soap/SOPI, Portlets, etc.) Provided by Vendors and Service Providers Follows the model of the Consumer Applications (Apple, Android and more) 21
22 Concluding Remarks - Vision of the Future Global applications ecosystems will grow from being consumer centric (Apple, Android) to deliver rich applications to business verticals Productivity enhancements of Unified Communications, Collaboration and true Mobility will change how we work The industry trend towards cloud computing and IT outsourcing will strengthen the position of Hosted Business Services 22
23 23
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