Wireless Solutions Sales Guide

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1 Wireless Solutions Sales Guide A complete portfolio of highly reliable workplace wireless telephony solutions, that interoperate with customers exisiting infrastructure to significantly improve employee mobility, responsiveness and productivity

2 Wireless Solutions Sales Guide Contents Opportunity Overview Why You Should Be Interested 1 Solution Overview 2 Why Your Customer Will Be Interested 5 The Customer Target Customers 8 Business Impact 10 Success Stories 12 The Solution Business Cases 15 The Competition 18 How To Beat The Competition 19 First Calls Getting Started 21 Creating The Vision 22 Qualification 24 Dealing With Objections 26 The Sales Cycle Typical Deals 28 A Typical Sales Cycle 29 Contacts And Resources 30 Wireless Solutions Sales Guide

3 Opportunity Overview Why You Should Be Interested Why is this opportunity worth my time? Value of a typical sale: Small deal Medium deal Large deal Typically, services $20K to $50K $50K to $100K $100K+ make up 10% of the initial deal (at List Price) Time to close: Initial deal with a new customer typically 6 to 9 months, but can be a year or longer Upgrades (in years 2, 3 etc) typically 2 to 3 months Other benefits: Often deals start out small but can rapidly be expanded to major deals Can cross-sell video, conference phones, sometimes VoIP: partners can pull through other products (e.g. contact center) Integration to critical business processes and applications opens up new opportunities, protects the customer base and can be developed into a high margin business Selling wireless solutions brings you into contact with the customer s data group, providing a wider selling experience Once you have locally referenceable customers (e.g. hospitals) you can leverage success into other regional facilities Several industries (e.g. retail, education and hospitality) utilize centralized decisionmaking followed by the solution being rolled out to all sites, generating a consistent revenue stream Why is it worth my customer s time? Regardless of the economic situation, businesses of all sizes and types have recognized the need to add workplace wireless telephony to their communications mix. When mobile employees have their own wireless handset they become more productive, are more satisfied in their jobs and their colleagues waste less time trying to reach them. Customers can be responded to more efficiently and are more satisfied with the service they receive. When implementing wireless telephony solutions, organizations seek to leverage their existing investments. They need reliable solutions that integrate to their existing communications platforms, procedures and applications. Because of the mission-critical nature of voice communications, these systems require 24x7 availability and site-wide coverage, while maintaining security and a high quality of service (QoS). What are our key strengths? Polycom is the only vendor offering a full portfolio of workplace wireless solutions. Polycom s key strengths are: Full portfolio of workplace wireless solutions Deep application integration Broad infrastructure interoperability Full suite of services High system reliability Proven horizontal and vertical market experience Durable devices The Opportunity In Brief Application area Workplace wireless telephony systems. Target markets Enterprises in Healthcare, Manufacturing, Hospitality, Retail and Education SMBs (e.g. carpeted office) Products Wireless network infrastructure, handsets and accessories Proprietary (SpectraLink 6000) Wi-Fi (SpectraLink 8000) DECT (KIRK) Applications Third-party horizontal (functional) and vertical (industry-specific) application integration, examples include: Manufacturing and Event management Healthcare Systems Integration Real Time Location Services (RTLS) Voice recognition Services Site surveys Network design Wireless system implementation Training System maintenance and support Confidential for internal use only Opportunity Overview 1

4 Solution Overview Polycom wireless solutions Polycom workplace wireless telephony solutions allow on-site mobile employees to roam freely throughout the workplace while delivering continuously reliable and available voice communications. These solutions interoperate with customers existing traditional timedivision multiplexing (TDM) analog or digital private branch exchange (PBX) systems or Internet Protocol (IP)-based call control systems, providing business telephone functionality to a wireless device. Unlike cellular systems, workplace wireless systems provide ubiquitous on-site coverage and support a full range of call control functions. Thus, incoming calls can be directed to the appropriate handset or transferred to another number by the mobile worker. For outgoing calls, individuals can make calls from their handsets, either to off-site locations or to other workers on site, making effective use of existing wireline tariff plans. Additionally, workplace wireless systems integrate to other on-premises applications, such as location services, nurse call systems and voice recognition systems, leveraging customers existing investments in wireline infrastructure and enabling their mobile employees to be more productive throughout the day while delivering improved levels of customer service. Product lines There are three distinct Polycom wireless solution product lines, each with its own advantages and specific applicability to different customer requirements. The product lines have similar basic technology components, as shown in the diagram; handsets, wireless infrastructure, telephony interfaces and application integration. Each is described below. SpectraLink 6000 System [North America only] Delivers rich PBX functionality over a dedicated in-building Polycom proprietary wireless network. The solution consists of: Handsets SpectraLink 6020 Wireless Telephones, support a variety of customizable user functions (e.g. hot keys, speed dialing) and are designed to withstand the rigors of the toughest workspace environments. Wireless Infrastructure small, easy-to-install base stations from Polycom cover transmission areas up to 45,000 sq. ft. Telephony Interface Master Control Units (MCUs) and interface modules connect the wireless system to an analog or digital TDM PBX, supporting up to 3,200 users. Application integration An Open Application Interface (OAI) allows real-time, two-way communication between wireless handsets and third-party applications. Polycom Polycom Wireless Wireless Solutions Solutions Basic Basic Technology Components components Telephony Interfaces Wireless Infrastructure Handsets Application Interface Middleware On-Premises Applications Location Services, Paging Nurse Call, CRM Systems, Alarms, Voice recognition etc SpectraLink 8000 System For Large Enterprises: a Wi-Fi Telephony solution that integrates with legacy circuit-switched PBX systems as well as IP telephony call servers. The solution consists of: Handsets SpectraLink 8020/8030 Wireless Telephones communicate with the customer s call control platform over the wireless network. They are designed to withstand the rigors of the toughest workplace environments while providing all the feature functionality of a desk phone. Wireless Infrastructure Third-party enterprise-grade access points provide unlimited coverage throughout the facility. These access points must be certified though the SpectraLink Voice Interoperability for Enterprise Wireless (VIEW) program. A SpectraLink Voice Priority (SVP) Server is used to manage prioritization of voice packets and provide the required QoS on the wireless network. If supported by the wireless infrastructure and handset software, the customer may choose to run other supported QoS options, such as Wi-Fi standard QoS or Cisco CCXv4, instead of SVP. Telephony Interface For legacy PBXs, a SpectraLink 8000 Telephony Gateway converts the IP traffic from the wireless telephones to digital or analog signals, which connect directly to PBX line cards. For IP PBXs no gateway is necessary; the handsets integrate directly via Session Initiation Protocol (SIP) or a proprietary IP interface. Application Integration An Open Application Interface (OAI) allows real-time, two-way communication between wireless handsets and third-party applications. 2 Wireless Solutions Sales Guide

5 SpectraLink 8000 System For small to medium-sized businesses (SMBs): a Wi-Fi Telephony solution that integrates with SIP-based, IP telephony call servers. The solution consists of: Handsets/Telephony Interface The entry level SpectraLink 8002 Wireless Telephones communicate with the customer s call control platform over the wireless network. They withstand the rigors of the toughest workplace environments and provide the most important features of a desk phone. They interface directly with premises-based IP PBXs using SIP. Wireless Infrastructure WMM enabled, third-party access points provide unlimited coverage throughout the facility. The 8002 handset employs standards-based Wi-Fi Multimedia (WMM) quality of service in place of SVP. This eliminates the need for an SVP server in each installation, simplifying deployment and providing cost savings. It also enables interoperability with most consumer- or SMB-grade access points configured to use WMM i.e. no VIEW certification is required. Application Integration An Open Application Interface (OAI) allows real-time, two-way communication between wireless handsets and third-party applications. KIRK DECT System Operates to the Digital Enhanced Cordless Telecommunications (DECT) standard, delivering cost-effective wireless telephony over a dedicated voice network. The modular nature of the KIRK Solution allows customers to easily expand coverage, voice traffic and number of users making it ideal for small to large businesses. A DECT solution consists of: Handsets Built for demanding users with a focus on usability, functionality, design and quality, the KIRK Handset portfolio consists of a wide range of reliable and durable handsets for use in general office applications to intrinsically safe environments. All KIRK Handsets are interoperable with all server types, thus a single KIRK DECT solution can consist of a mix of all KIRK Handsets. Telephony Interface/ Wireless Infrastructure KIRK Wireless Servers. There is a wide range of servers, supporting solutions from small businesses to enterprise systems with 4096 handsets. Polycom DECT systems offer a wide range of PBX interfaces including analog, ISDN and IP. Various frequency options (1.8 GHz and 1.9GHz) are available for different markets throughout the globe. KIRK Base Stations control the traffic channels in the air and work as the link between the KIRK Handset and the KIRK Wireless Server. Along with the KIRK Wireless Server, the KIRK base station provides call capacity and coverage in a physical area. KIRK Repeaters provide additional coverage without the need to be physically wired back to a KIRK Wireless Server. Application Integration: Serial input output (SIO) allows for twoway text messaging integration to third-party applications and makes the KIRK DECT solution ideal for a number of verticals. Selecting the right solution Unlike our competitors, Polycom offers a range of technologies that ensures we can supply the most appropriate solution to address the customer s needs. Factors to take into account include: Required considerations Market region there are international frequency restrictions and channel differences. For example, SpectraLink 6000, which operates in the unlicensed 900 MHz band, can only be supplied in North America. Customer size this is critical not only for the number of users that the system initially needs to support, but also for how large the site may grow over time. For sites expected to grow rapidly, consider a larger server/mcu to support future growth. PBX interfaces to be supported analog, digital, IP. It is also important to determine which specific PBX vendor the system will connect to in order to know which Polycom channel partner to engage. Converged vs. dedicated infrastructure while many customers are deploying converged Wi-Fi infrastructures to save on administration costs and leverage their existing investments, DECT or proprietary wireless voice is often chosen for a cost-effective and guaranteed reliable and secure long term investment. Additional considerations End-user needs handset characteristics (durability, size, weight, liquid resistance, speakerphone, vibrating alert, color screen etc). Building construction longer wavelengths/lower frequencies (i.e. 900 MHz SpectraLink 6000 and 1.8/1.9 GHz KIRK DECT) deliver better propagation in cluttered environments and require fewer access points. Price Polycom offers a wide range of price options from low cost Wi-Fi (8002) and DECT solutions (KWS300) in the $350- $400 per handset range, up to enterprise-grade systems in the $1000+ range. Note also that the customer may already have an installed infrastructure (DECT or Wireless LAN), or may have taken the decision to implement a new infrastructure. Confidential for internal use only Opportunity Overview 3

6 Added value Applications The SpectraLink Open Application Interface (OAI) and KIRK Serial Input/Output (SIO) enable software applications running on thirdparty middleware to communicate with Polycom wireless telephones. This open architecture allows each handset to send and receive information from external systems. Many applications already support OAI and SIO, while others are continually being developed. We supply a Developers Package that enables third-parties to integrate and test their applications with Polycom handsets. Functional OAI/SIO-compliant third-party applications include: Text messaging and alerts and middleware solutions from Commtech Wireless, GlobeStar Systems and Emergin Nurse Call integration to Jeron, Dukane, Wescom, Philips Manufacturing system integration with InTech Retail call box integration with Indyme Complementary applications that don t require either OAI or SIO functionality include: Speech recognition for voice dialing from Parlance and Amcom Software Real-Time Location System (RTLS) for location tracking from Ekahau Services To ensure customers maximize the benefits obtained from our wireless solutions we provide a range of Professional Services. These are delivered either directly by Polycom staff or through a partner, and include: Site Surveys and Site Analysis Network performance, wireless interference reduction, coverage assessment, network design etc Project Management and consulting Infrastructure and application deployment Implementation turn-key installation, system verification and deployment Training End user, system administrators, installation Partner certification for support, installation and wireless technologies Maintenance Premier, Advance, Priority and Assured Level, with telephone hotline support available 24x7, or during business hours for Assured Level Making and saving you money Main Customer Benefits Interoperability Polycom wireless telephones operate on 95% of the leading IP, TDM, and SIP-based PBX systems on the market today. Our Voice Interoperability for Enterprise Wireless (VIEW) certification program extensively tests enterprise-class access points, ensuring full compatibility between SpectraLink Wireless Telephones and Wi-Fi infrastructures. This commitment to interoperability ensures Polycom s customers can be confident that their wireless solution will work correctly with existing infrastructure and provide optimal functionality into the future. Performance All Polycom wireless solutions share a common set of values, including rugged handset design, multi-cell coverage and excellent QoS, delivering excellent service availability and a high-quality user experience. Reliability The durability and liquid resistance of our handsets, coupled with failover mechanisms designed into our network components, deliver solutions that are highly reliable and dependable, and which require fewer spares, repairs and replacements. Integrated applications An extensive selection of integrated applications enables organizations to leverage their investment in Polycom Wireless Solutions to achieve major productivity gains and improve customer service. 4 Wireless Solutions Sales Guide

7 Why Your Customer Will Be Interested The need for workplace wireless telephony All workers spend some of their time away from their desks or main place of work whether in or on their way to meetings, attending to customers, seeking out colleagues or simply taking a break. Studies have shown that with a wireline phone system many valuable hours of work time are lost each day simply attending or walking to a fixed phone, or finding someone to take a call. So companies and organizations in many different industries have recognized they need a system that can deliver on-site mobile communication. In a small number of workplace situations, such as security patrols at warehouses, simple two-way radio may suffice. Occasionally, a business might choose to use cellular phones, with all the additional costs and risk of non-availability from poor coverage that this option implies. But any of the following requirements is a key indicator of a customer need for workplace wireless telephony: Cost-effective, information-rich communication Reliable, highly available and secure connections Access to the full range of features offered by the company s PBX or IP-based call control A solution that will not interfere with other electronic equipment or otherwise be unsafe to use in the working environment A growing demand Consumers have long become used to having cordless technology in their homes for wireless telephony. Consequently there is an expectation amongst employees and customers that similar on-site roaming capabilities should be available at the workplace. Increased productivity When mobile employees have their own wireless handset they become more productive, are more satisfied in their jobs and their colleagues waste less time trying to reach them. In manufacturing, for example, operators are no longer distracted by loudspeaker announcements. Operational efficiency improves, and in some cases, such as in hospitals and process industries, emergencies can be dealt with more effectively, enhancing overall safety. Example statistics: Nurses spend around 1 hour per day traveling to answer the phone Clerical staff spend 90 minutes each day locating nurses Retail managers spend 75% of their time on the shop floor General office managers spend 4 hours per day away from their desks The diagram below illustrates typical user profiles of enterprise workers, showing how much time they typically spend each day away from their desk or work station. Enterprise communication profiles Enterprise Communication Profiles At their desk Somewhere on-site Somewhere off-site Desk bound 90% 10% 0% Knowledge Worker 70% 30% 0% On-site mobile 10% 90% 0% Road Warrior 10% 10% 80% Confidential for internal use only Opportunity Overview 5

8 Improved customer satisfaction Customers can be offered a better service, as the person who should deal with their need can be readily contacted or located. Further, with a workplace wireless telephony solution that person retains the ability to bring co-workers into the conversation, using the full range of wired extension call control features. As more organizations implement and gain the business benefits of on-site wireless voice, it is becoming increasingly necessary to install a workplace wireless telephony solution in order to remain competitive and to continue to provide good customer service. Chart 1 below shows how worldwide annual sales of Enterprise VoWLAN handsets are forecast to grow to over $265 million by Chart 2 below shows how worldwide annual sales of DECT handsets are forecast to grow to over $300 million in value and 175 million units by Infrastructure implementation When implementing wireless systems customers seek to leverage their existing investments. They need systems that will integrate with applications and interoperate effectively with their current call control and wireless infrastructures. While the adoption of IP-based call control and converged data networks is driving the market for Wireless LANs (WLANs) and VoWLAN technology, there are still viable reasons to select any of the three primary Polycom wireless offerings (proprietary, Wi-Fi, or DECT). A choice of technologies All workplace wireless telephony solutions operate in unlicensed spectrum bands. In North America the 900 MHz band has been in use for many years, pre-dating any international standards. Consequently, there are numerous existing installations based on proprietary technology, many of them Polycom SpectraLink 6000 customers. In EMEA an established and well supported standard operating in the 1.8 GHz band called Digital Enhanced Cordless Technology (DECT) has become the main workplace wireless voice technology with a greater than 90% share of the market. DECT is also widely used in Asia and Australia. In North America the 1.9 GHz band has been opened up for unlicensed use. In this band DECT has secured a 20% share of consumer use (i.e. for cordless phones in the home), and is an emerging option for commercial applications. Polycom KIRK DECT wireless solutions operate in both the 1.8 GHz and 1.9 GHz bands. More recently the Wi-Fi Alliance has developed a set of standards for WLANs, operating at 5.8 GHz (802.11a) and 2.4 GHz (802.11b/g). Polycom SpectraLink 8000 wireless solutions support all three Wi-Fi options. Chart 1: Enterprise VoWLAN Handsets Worldwide Forecast Revenues Enterprise VoWLAN Handsets Worldwide Forecast Revenues Chart 2: Enterprise DECT Phone Market: Unit (Handsets) Shipment and Revenues Enterprise DECT Phone Market: Unit (Handsets) Shipment and Revenues Forecasts Forecasts (World), (World), $ Revenues ($ Million) Units (Million) 2.00 Revenues $US Millions $250 $200 $150 $100 $50 $0 $171 $190 $246 $265 $ Source: Infonetics Research,Wireless LAN Equipment and Phones Market Share and Forecasts,1Q08 Revenues ($ Million) Source: Frost & Sullivan, MZA, 2008 Units (Million) 6 Wireless Solutions Sales Guide

9 Why This Market Is Hot NOW! With increased competition, businesses of all sizes must work smarter, reduce costs, and support their customers more efficiently. Market opportunities Improving our customers business in... Education Healthcare Hospitals and clinics need to streamline communication so they can respond quickly to patient needs, improving patient satisfaction. Staff efficiency gains help address a shortage of trained health workers. Specialist applications improve working conditions and help to attract and retain nurses. Manufacturing Wireless handsets eliminate paging delays, improve operations and enable faster responses to problems and emergencies, thus reducing downtime and production slippage. Push-to-talk (PTT) technology replaces walkie-talkie systems with similar functionality. Hospitality Workplace systems are an alternative to using expensive cellular phones, enabling organizations to offer a high level of customer care much more efficiently. Retail Managers and shop floor staff can be mobile, visible and able to spend more time in front of customers, offering better customer service with stock, product or promotional enquiries and responding more quickly to in-store incidents, such as spillages and theft. Hence organizations need improved communications, and faster access to relevant people and information. Given the pervasiveness of cordless, cellular and wireless data access in the home, employees also expect to have access to mobile communications at the workplace, so that they can quickly respond to customer demands. Organizations are increasingly recognizing the value of wireless communications and want to maximize their existing investments in these technologies. Cellular technology is too expensive and unreliable, while two-way radio cannot provide the rich communication features required so workplace wireless telephony is the natural solution. Horizontal markets In the general office market, employees such as project managers, administrative assistants and IT professionals use wireless telephones to minimize telephone tag, increasing productivity for workers that are frequently in meetings or otherwise away from their desks. Organizations with security teams often use the PTT functionality or integration with location services to rapidly assemble emergency teams in response to crisis situations. SMBs are increasingly using wireless telephony solutions as a replacement for wired services, owing to the relatively small incremental investment yet significant return in overall productivity gains. Confidential for internal use only Opportunity Overview 7

10 The Customer Target Customers Target markets Healthcare hospitals and hospital groups, large group practices, assisted living Manufacturing aerospace, electronics, pharmaceuticals, In EU only process manufacturers requiring handsets with intrinsic safety (e.g. chemical plants, refineries, oil rigs) Hospitality hotels, arenas and events management, casinos Retail department stores, specialty retailers, drug stores Education (schools for students aged 5 to 18) SMBs legal practices, small technology firms, warehousing, maintenance repair shops, multi-tenanted buildings Small and Medium Sized Businesses Which of my customers shall I target? Mostly Yes means this customer is a good prospect J 1. Is the prospect a hospital, manufacturer, hotel, retail store, school district or SMB? r r 2. Have they just moved to or are they about to move to a new location? r r 3. Have they just opened or are they about to open a new office? r r 4. Is the customer making an investment in new call control? r r 5. Does the customer focus on customer service and customer satisfaction levels? r r 6. Do they have a high number of incoming telephone calls that need to be directed to experts? r r 7. Is there a significant proportion of the workforce who are mobile on site (i.e. corridor warriors ) or who have no permanent desk? r r 8. Is the working environment noisy? r r 9. Does the customer operate an automated manufacturing or other process that has cost or safety implications if it stops running? r r 10. Are they currently using an overhead paging solution to communicate with employees? r r Yes No L 8 Wireless Solutions Sales Guide

11 How To Spot A Good Opportunity Manufacturing Who do I talk to and what do they need? Line of Business Head (Internal customer) Wants to enhance workflows and improve productivity of staff. Has to maintain or improve customer satisfaction. Seeks a solution that is easy to use and which requires minimal user training. Has to justify the spend through Return on Investment (ROI). CFO (Financial buyer) Needs a valid business case to authorize the spend. Seeks to reduce or mitigate the risk of investment. IT Director (Technical buyer) Has to make the solution work. Must roll out and maintain the system. Wants to resource expertise from the vendor. CIO/VP Networks (Executive Buyer) Is concerned about interoperability with existing and future systems. Wants to minimize the cost of integration. Wants a solution that fits with the organization s long term technology, applications and business strategies. Director of Operations (Executive Technical Buyer) Wants to work with a vendor who can help to identify the right solution. Is concerned about the total cost of ownership (TCO). Must avoid implementing a system that breaks down or doesn t work properly. Look for these characteristics to identify a winnable opportunity The prospect needs a high durability handset. The prospect is an existing Polycom wireless customer. The customer already has a DECT infrastructure or is committed to sharing voice and data on their wireless network. The customer has a TDM PBX and wants to add wireless. The customer has an existing wireless implementation that they are not happy with (e.g. using cellular, paging or two-way radios for on-site communications). Avoid deals that exhibit these characteristics There are high risk interoperability issues (e.g. the customer has an access point that is not VIEW certified). We can t make a good case for supporting the customer s existing or required applications in their workplace environment. The customer is highly committed to using cellular telephones. Price is a key driver, and we fail to make the total cost of ownership (TCO) argument. To see how a Polycom Wireless Solution addresses each individuals needs as described above look for the corresponding text in the Business Issues column of the tables on page 10 and 11 Confidential for internal use only The Customer 9

12 Business Impact Business issue How the impact is measured How the impact is achieved Wants to enhance workflows and improve productivity of staff Wants to work with a vendor who can help to identify the right solution Effective hours worked per day or shift Access to a full range of call control features Access to work applications while on the move Polycom s wireless solutions provide two-way access to employees while they are away from their desks/stations, increasing their efficiency throughout the day Our handsets have programmable keys and large graphical displays, and support all of the customer s call control functions, enabling staff to be more productive Our solutions support a wide range of specialized functional and industryspecific applications Vendor knowledge and experience Has to maintain or improve customer satisfaction Has to justify the spend through Return on Investment (ROI) Needs a valid business case to authorize the spend Seeks to reduce or mitigate the risk of investment Wants a solution that fits with the organization s long term technology, applications and business strategies Speed and clarity of communication Access to work applications while on the move Ability to know where staff are currently located Customer satisfaction metrics Customer re-purchase/ referral rates Time taken to service customer requests Improvements in the customer environment Payback Overall budget CAPEX/ OPEX Evidence that financial benefits will be realized Relevant references Appropriate technology and system to meet customer requirements Polycom wireless systems and handsets deliver corded/wireline voice quality, even in noisy surroundings Employees can immediately respond to customer requests no matter where they are located throughout the facility Our wireless solutions support all of the customer s call control functions, enabling staff to provide a better customer service Our solutions support a wide range of specialized functional and vertical applications, including real-time location services (RTLS), text messaging and alerts, and nurse call integration Our wireless solutions reduce the need to use noisy and intrusive overhead paging systems The diversity of our solutions gives customers choice they pay for what they need, where they need it and we have business models that illustrate the achievable ROI across industries Payback typically ranges from less than one year to eighteen months We have over 45 customer case studies and testimonials that illustrate the financial impact of Polycom Wireless Solutions Yearly operating and maintenance costs are low, with most systems outliving their standard depreciation time spans We provide a/b/g, DECT and 900 MHz systems, so can recommend and offer the technology that best suits the customer s requirements We can supply solutions for only a few up to 8000 handsets 10 Wireless Solutions Sales Guide

13 Business issue How the impact is measured How the impact is achieved Must roll out and maintain the system Is concerned about the total cost of ownership (TCO) Must avoid implementing a system that breaks down or doesn t work properly Is concerned about interoperability with existing and future systems Has to make the solution work Must avoid implementing a system that breaks down or doesn t work properly Is concerned about interoperability with existing and future systems Wants to minimize the cost of integration Seeks a solution that is easy to use and which requires minimal user training Wants to resource expertise from the vendor Wants to work with a vendor who can help to identify the right solution Ease of operation and use Ease of integration Administration and end user training costs Interoperability with existing and planned infrastructure, including SIP-based call control, IP-PBX systems and Wi-Fi networks Interoperability with existing and future applications and business critical processes Lifetime costs of purchasing, installing, rolling out, running and maintaining the system Performance of solution and vendor to service level agreements (SLAs) Quality of Service (QoS) Reliability of the system Vendor support Ease of integration Ease of operation and use Administration and end user training costs Vendor knowledge and experience Commitment to R&D Relevant references Polycom handsets incorporate the feature-richness of a deskphone with the simplicity of a cellphone, reducing on-going training costs Our VIEW program, PBX, OAI and SIO interfaces, along with Polycom professional services, ensure that system installation, integration and deployment go smoothly, and that we are able to support an increasing range of Access Points, SIP and PBX platforms and market leading vertical applications We provide comprehensive library of supporting documentation to make our solutions simple to administer and maintain Polycom Wireless Solutions are certified as being interoperable with 95% of TDM and IP PBXs on the market today Our handsets and infrastructure are durable and reliable, lowering the cost of spares and replacements and decreasing the risk of expensive downtime We ensure that new equipment and handsets are backwards compatible with older versions of the system We enter into and deliver to contractual SLAs for warranty, repairs and replacements Our commitment to access point interoperability through our VIEW program ensures that stated QoS metrics will be achieved Our support for the WiFi standards QoS solution and those of vendors like Cisco allow our solutions to deliver the required QoS without additional infrastructure costs Polycom Wireless Solutions are certified as being interoperable with 95% of TDM and IP PBXs on the market today We have fully-trained and certified partners who can assist with network design and implementation if required Our solutions are highly reliable: but in addition, through our extensive partner network we offer 24x7 technical support and will fix any problems fast Our VIEW program, PBX, OAI and SIO interfaces, along with Polycom professional services, ensure that system installation, integration and deployment go smoothly, with no unforeseen problems Polycom handsets incorporate the feature-richness of a deskphone with the simplicity of a cellphone, reducing on-going training costs Polycom systems are simple to administer and maintain, and we provide a comprehensive library of supporting documentation Through our SpectraLink and KIRK heritages we have unrivalled expertise and experience in developing, designing, installing and supporting workplace wireless telephony systems We spend 15-20% of wireless revenues each year on R&D, and have a 5-year roadmap that can be shared with customers under NDA Our knowledge of vertical market requirements delivers functionality that drives specific improvements in productivity and customer experience for example, our OAI and SIO functionalities were initially developed in response to specific customer demand for integration to patient monitoring and nurse call systems Confidential for internal use only The Customer 11

14 Success Stories Use these stories to generate interest during the first meeting or phone call SpectraLink 8000 helps Hyatt Place win top guest satisfaction award The challenge After purchasing the 143-unit AmeriSuites hotel chain and investing a further $150M, Hyatt Corporation created the Hyatt Place brand. Although classified as offering a full-scale service, each Hyatt Place has few customer-facing staff. The brand utilizes on-premises technology to enable customers to make requests, including ordering cooked food. Hyatt needed to find a way for the staff at each hotel to communicate with one another, while continuing to offer excellent service. The response At each hotel Polycom supplied a SpectraLink 8000 system connected to the on-premises Mitel IP PBX, consisting of a SpectraLink Voice Priority (SVP) server and up to 10 handsets. The result The Mitel-installed systems have enabled hotel staff, including housekeeping and engineering, to be located whenever they are needed. The result is that customer requests for assistance are dealt with quickly and effectively, and any problems rectified as soon as they are reported. So successful has this approach been, that in its first year of consideration Hyatt Place was ranked highest among mid-scale hotel chains with full service in the J.D. Power and Associates 2008 North America Hotel Guest Satisfaction Index SM. KIRK DECT makes it easier for O Brien Automotive to close sales The challenge O Brien Automotive runs 10 mega-site car dealerships across the United States. In this highly competitive market sales success requires easy access to the sales-rep, simply put if the customer cannot speak with the sales-rep they take their business elsewhere. O Brien knew that equipping each sales-rep with a wireless telephone would let them retire their intrusive overhead paging system, improve the customer experience and positively impact sales. They invested in a Wi-Fi based solution using handsets from a Polycom competitor and their own IT staff to roll out the required access points. However their implementation failed to meet expectations and they looked to their Digium PBX supplier to find a replacement solution and technology. The response Digium met Polycom at a trade show, where they learned KIRK DECT was as a viable alternative to Wi-Fi. As a result Digium introduced O Brien to Polycom. At the first meeting it became apparent that a KIRK DECT solution could meet their needs and that it was considerably less expensive to purchase and operate over a 3-year period. In parallel Polycom released their Digium interface, which created an opportunity for O Brien to meet their price expectations by agreeing to become an early adopter. Polycom s proposal provided for a 60-day trial, with defined success criteria, that if met would commit O Brien to invest. The result The trial proved that the KIRK DECT met the coverage and quality criteria and O Brien placed an order worth $45,000. Following the success of the Wi-Fi replacement and O Brien s belief that they have met their customer service goals a combined solution of Polycom fixed end-points and KIRK DECT products has been rolled out at a further two sites. Though affected by the economic situation O Brien plan to equip their other seven sites as soon as practically possible. Hospitality 12 Wireless Solutions Sales Guide

15 SpectraLink 6000 and 8000 solutions improve customer service at Lowe s The challenge Lowe s operates more than 1,575 home improvement stores in North America. Increasing competition led the company to focus on the customer experience. It discovered that overhead paging annoyed customers, who consequently spent less time and money in the store. Customers in store or calling in would walk away or hang up if the person they needed to talk to could not quickly be located. Healthcare Hospital staff more motivated and productive with a SpectraLink 8000 solution The challenge Sunnybrook Health Sciences Centre in Toronto has more than 10,000 staff members, physicians and volunteers. It has evolved from its early beginnings as a hospital for Canadian Veterans to grow and flourish as a fully affiliated teaching hospital of the University of Toronto. The center deals with over 40,000 emergency visits a year and has more than 1,275 beds, of which 500 are veterans beds. As the facility continued to expand across the site, Sunnybrook discovered it needed to improve communication between staff. The response The hospital has installed a SpectraLink 8000 system linked to its Nortel IP-based call control. By mid-2008 Polycom had supplied 430 handsets, each equipped with Push-to-Talk capability to mimic the walkie-talkie functionality that staff were used to. A GlobeStar Systems application enables text messages to be sent to and from handsets, while a location-based function enables staff to be easily found and handsets tracked for security. The response SpectraLink wireless telephony systems were installed in Lowe s technology lab and a pilot store. We provided comprehensive training to end users on how to operate the handsets and use the telephone system more effectively including how to transfer calls, pick-up calls on hold and access alternate lines. Lowes is a customer that uses both SpectraLink 6000 equipment as well as SpectraLink 8000 equipment. Over time the company is making the transition to SpectraLink 8000 equipment as it opens new stores. This is a good example of how different technology can be deployed yielding similar results, and also shows how the market is gradually transitioning to Wi-Fi. The result The average number of overhead pages per day was reduced by more than 70%. Store managers and department heads were called directly rather than paged. Hold times for outside callers were nearly eliminated, with almost no calls abandoned. Lowe s found the store trial to be so compelling it went on to standardize on wireless telephones in every store. Lowe s success with improving customer service led to wireless telephony being trialed and deployed by many other retailers in home improvement and other sectors. The result There is now much better contact between doctors and hospital reception, with greatly improved responsiveness to patients needs. Staff are more satisfied in their jobs, and there are plans to increase the number of handsets to 500. The Polycom Wireless solution is now viewed by Sunnybrook as an essential Healthcare tool that has enabled its staff to be much more productive and efficient. Confidential for internal use only The Customer 13

16 KIRK DECT delivers excellent wireless performance and coverage for VoIP solutions provider Wildix Retail SpectraLink 6000 displaces existing supplier for replacement hospital wireless voice solution The challenge Fountain Valley Regional Hospital and Medical Center in California had an existing wireless voice system from Ascom that it wished to expand and integrate into the two separate Nurse Call systems it was using. However, the hospital had been having trouble with coverage and handset batteries for some time. When it discovered that the Ascom base stations it was using had been discontinued, it became open to suggestions that it might replace the whole system. The response The Polycom sales team, assisted by system engineering and other technical staff, ran a campaign to explain to the customer how the benefits of a Polycom wireless solution far exceeded what Ascom could deliver. Fountain Valley had a wireless LAN, but it was not capable of supporting a Wi-Fi-based system, so we proposed an installation of our proprietary 900 MHz SpectraLink 6000 solution connected to their Nurse Call systems. After receiving assurances from the Polycom product group that the product range was not obsolescent and would continue to be supported, Fountain Valley awarded Polycom the business. The challenge Headquartered in Trento, Italy, and with branch offices in Turin (Italy), Odessa (Ukraine) and London (UK), Wildix is a Value Added Distributor of Voice over IP (VoIP) solutions for the business segment. The company develops business solutions based on Asterisk, an open source toolkit for producing IP-based PBX, telephony engine and telephony applications. Wildix employs its own solutions for communicating between offices, and has long been using Session Initiated Protocol (SIP)-based phones throughout its organization. So when the company decided it wanted to increase flexibility for its Italy-based staff with a workplace wireless telephony solution, it was important not only that the system was SIP-compliant, but that it could also be fully integrated into the Asterisk-based Wildix PBXs. The response We supplied a DECT solution based on the KIRK Wireless Server KWS600v3, repeaters and KIRK 4020 and 4040 handsets. KWS600v3 was fully tested in the Wildix labs with the Asterisk solutions, and we were able to demonstrate that the KIRK DECT system was compliant with the Wildix multi-site environment. Services we provided include interactive voice response (IVR), queue management, and internal and external call management via IP. The result The solution we designed for Wildix delivers excellent wireless performance, with the KIRK handsets supporting seamless handover as staff move around each site. As Diego Gosmar of Wildix explained: We are really satisfied with the KIRK solution because it supports professional services such as attended transfer, music on hold and dtmf management, and provides our staff with a truly extended wireless coverage, so we can use the VoIP services both indoors and outdoors on our premises. The result Key to our success was our ability to come up with a design that reuses 85% of the existing cabling, using the superior propagation of the 900 MHz waveband to cost-effectively provide coverage across the whole site. We were also able to demonstrate how our solution could readily be integrated into the hospital s Nurse Call and Patient Monitoring systems through our Open Application Interface (OAI). Fountain Valley is an excellent example of where we can still win business with our pre-standards product range, even where there is an incumbent supplier in place. 14 Wireless Solutions Sales Guide

17 The Solution Business Cases Business case 1 TCO vs. competitors and cellular Total cost of ownership (TCO) savings are worth tens of thousands of dollars over 3 years with a Polycom Wireless Solution Main assumptions A customer with an IP-based call control wishes to implement an on-site wireless solution. The company is considering wireless systems from Polycom, Cisco, Vocera and cellular services. In Year 1, 100 staff members require handsets. Planned expansion (in application users/handsets) is 20% year-over-year. Industry average breakage rate for handsets is 25% each year needing to be replaced. For Polycom, handset breakage is covered under our warranty program. Polycom batteries and chargers are included in the bundle prices. Vocera administration costs are 40% of an administrator s time if there are fewer than 75 users, and 60% of an administrator s time for more than 75 users. Administration of a Polycom or Cisco system takes up 20% of an administrator s time. Total cost of employment of an administrator is $80K a year. Should the customer select a wireless system (i.e. not cellular), then the required WLAN access points will be provided by Cisco. Costs shown below are based on list prices current in Q Polycom Cisco Vocera Cellular $ $ $ $ TCO Year 1 Infrastructure (server/access points) Infrastructure SW (licenses/core software) Handsets/Accessories Professional services Other services Handset Warranty/Maintenance Administration Year 1 Total cost of ownership TCO Year 2 Year 2 Extra access points Year 2 Extra licenses Year 2 Handsets/Accessories Year 2 Other services Year 2 Handset Warranty/Maintenance Year 2 Administration Year 2 Total cost of ownership TCO Year 3 Year 3 Extra access points Year 3 Extra licenses Year 3 Handsets/Accessories Year 3 Other services Year 3 Handset Warranty/Maintenance Year 3 Administration Year 3 Total cost of ownership Total cost of ownership (TCO) Year 1 Year 2 Year 3 Total $K $K $K $K Polycom Cisco Vocera Cellular The Bottom Line Over three years, TCO of a Polycom Wireless Solution is: $37.0K less than Cisco $112.2K less than Vocera $201.2K less than cellular The Net Present Value (NPV) at 12% of 3 year savings: $30.3K over a Cisco solution $91.6K over a Vocera solution $148.4K over a cellular solution In addition, the guaranteed coverage of a Polycom Wireless Solution reduces time spent by staff trying to find a good signal, and time wasted trying to contact someone who is out of range. Confidential for internal use only The Solution 15

18 Business case 2 The case for the wireless office Installing an on-site wireless communications solution generates employee time savings for SMB worth tens of thousands of dollars Scenario 1: Providing wireless handsets to mobile staff Main assumptions: A small- to medium-sized business (SMB) with 100 employees is considering whether to install a Polycom Wireless Solution, in order to provide its mobile staff with improved communications. If a wireless system is installed, 10% of the employees would be issued with a SpectraLink 8002 handset at a cost of $350 each. To install a wireless system, 2 cables (1 for every 6 users) would need to be run at a cost of $150 per cable. Case studies and customer experience have shown that employee groups using a wireless communication system waste less time each day trying to make contact with their colleagues. This is because users take their handset with them wherever they go which means they can be found quicker by people trying to contact them, and they don t need to get to a hard-wired phone whenever they need to call someone. Typically, a company installing a wireless communications system for their mobile staff can expect every mobile employee with a handset to save on average 15 minutes each working day. For the SMB, the average total cost of employment for each mobile worker is $100K per year. Each employee works an 8-hour day for an average of 200 days a year, at a current efficiency rating of 85%. The company expects the system to last 5 years. Each year (after the initial free warranty year), handset replacement costs are expected to amount to 5% of the initial costs of the handsets. Each handset also costs an extra $50 a year to replace batteries. Value of employee time savings Cost to SMB of each mobile employee day = $500 Effective hours currently worked each day = 6.8 Value to SMB of each extra hour worked = $62.50 Year 1 Year 2 Year 3 Year 4 Year 5 $ $ $ $ $ Installation costs (cables) 300 Handsets + batteries Total cost Value of employee time savings Net savings achieved each year The Bottom Line Installing the wireless solution delivers total employee time savings with a Net Present Value (NPV) at 12% over 5 years of $112.6K. Net savings have a Net Present Value (NPV) at 12% over 5 years of $107.4K. Payback on the total cost of installation is achieved in 2 months. 16 Wireless Solutions Sales Guide

19 Business case 2 The case for the wireless office (continued) Installing an on-site wireless communications solution generates employee time savings for SMB worth tens of thousands of dollars Scenario 2: Providing mobile staff with wireless handsets Main assumptions: In a different scenario, an SMB with an IP-based wireline system is expanding its workforce by 20 extra staff. The company is trying to decide whether to install a Polycom Wireless Solution and equip these additional staff with wireless handsets, or to extend the existing wireline system. To extend the wireline system would entail a cable drop to each employee, at a cost of $150 per cable, plus additional wires and Ethernet switch ports costing $2K. The new employees would be issued with standard handsets, each costing $150. One additional standard handset would be installed in a meeting room. To provide a wireless system would have the same cost structure as in the scenario above. Not all the new employees will be mobile. Typically, a company installing an on-site wireless communications system for the general workforce can expect that 20% of the staff will save on average 15 minutes each working day. For the SMB, the average total cost of employment, effective hours worked each day and the value of each employee hour saved are as in the scenario above. Year 1 Year 2 Year 3 Year 4 Year 5 Total $ $ $ $ $ $ Providing extra staff with wireline handsets a) Installation costs (cables, ports etc) 5000 b) Handsets 3150 c) Total cost of installing wireline handsets (a+b) Providing extra staff with wireless handsets d) Installation costs (cables) 600 e) Handsets + batteries f) Total cost of installing wireless handsets (d+e) Summary g) Cost difference: wireline vs. wireless (c-f) h) Employee time savings from increased wireless productivity i) Net difference wireless vs. wireline (g+h) The Bottom Line Although the total cost of the wireless solution over 5 years is 60% more than that of the wireline option, it generates total net savings of $57.7K. The Net Present Value (NPV) of these net savings at 12% over 5 years is $41.9K. Installing the wireless solution delivers total employee time savings with an NPV of $45.1K. Additional financial benefits accrue from the new staff being more productive and more motivated in their jobs. Confidential for internal use only The solution 17

20 The Competition Who are the competition and how do they rate? What are our silver bullets and strengths? Position relative to the competition no capability very weak weak moderate strong exceptionally strong Capability Importance to customer Polycom Cisco Ascom Vocera Communications Aastra Cellular/GSM vendors Silver Bullets Wi-Fi DECT 900 MHz Interoperability H SB Reliability of system H SB Total cost of ownership H S Support H Corded/wireline voice quality H S Application integration L-H S Service availability M SB Feature completeness M S H = High, M = Medium, L = Low, L-H = Low to High SB = Silver Bullet, S = Strength Our silver bullets are... > Interoperability > Reliability of system > Service availability Stress these points to win! 18 Wireless Solutions Sales Guide

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