Demystifying Unified Communications: Best Practices for Maximum ROI
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1 50 Years of Growth, Innovation and Leadership Demystifying Unified Communications: Best Practices for Maximum ROI A Frost & Sullivan White Paper www.
2 Frost & Sullivan Demystifying UC... 4 UC is a Migration... 4 Operational Efficiencies... 5 Business Enhancement and User Productivity... 6 Conclusion... 7 CONTENTS
3 Demystifying Unified Communications: Best Practices for Maximum ROI DEMYSTIFYING UC In the past five years there has been a tremendous amount of marketing buzz around the concept of unified communications (UC). Most enterprise communications solution and service providers have added their own spin to the concept, adding to the noise in the market. As a result, many business decisionmakers and end-users are understandably confused about what UC is. Put simply, UC is about integration: The objective of UC is to make it easier for users to communicate from wherever needed, by the most appropriate communications channel on any device, and aided by contextual access to information. UC is concerned with integration of communications software (voice, video and textbased) that can be accessed from a common interface or end point, and the integration of communications applications with productivity and business software (e.g., desktop office, , calendar, CRM, back office systems, etc.) to provide seamless access to information and communications services from a common environment. Comprehensive, fully integrated UC solutions must integrate the following capabilities: PC-based presence (online or offline); telephony presence (on the phone or available for a call); point-to-point voice calling and PBX call handling; chat (i.e., instant messaging); audio conferencing; Web collaboration (application, file, and desktop sharing); PC-based video; find-me/follow-me capabilities (for call routing); and unified messaging (integrated voic , and fax). UC solutions may optionally include: mobile clients; APIs for integration with other applications; social networking capabilities; wikis/blogs; integration with room-based video conferencing; contact center functionality; GPS or other location information; and integration with business software (CRM, ERP, , calendar, desktop office). UC IS A MIGRATION Comprehensive UC solutions that incorporate all the foundational elements in the UC stack are available from only a few major vendors. Widespread adoption is constrained by the overall cost, complexity and the relatively small pool of users that would absolutely require access to the full range of integrated voice, video and rich text-based communications capabilities. 3
4 Frost & Sullivan It is common for customers to selectively implement functionality for specific projects, job tasks or lines of business. Compared to a wholesale rollout of comprehensive UC solutions, staged UC deployments can be more budget friendly, help mitigate risk, and allow businesses to adjust their strategies and priorities along the migration path. These characteristics make staged UC solutions more prevalent today and will make them increasingly popular in the future. A staged UC solution can either be purchased as a single-vendor stack of components or as integrated components from vendors providing the best-ofbreed solution or the best fit to your organization s particular needs. Most singlevendor stacks will have to be purchased and rolled out in a single deployment exercise, increasing the complexity and disruption of implementing UC. The trade off for a best-of-breed solution is that the pieces must easily and effectively integrate tools, communications, and access points. Without extraneous features and associated costs, staged UC solutions can provide a wealth of integrated capabilities that effectively satisfy diverse user environments, needs and preferences. For example, desktop access to unified messaging or multimedia conferencing may be a priority for knowledge workers, yet the call control platform supporting these applications may deliver only basic telephony and voic features to other users in the same company. The move to unified communications is an evolutionary transition for most businesses. Customers typically embark on their UC journeys from either a telephony-centric or IT-centric perspective. Either approach can leverage existing vendor relationships, expertise and technology investments. For example, customers may choose to use their existing PBX or platform as the anchor point with which additional applications such as IM/presence and conferencing are integrated according to their priorities and timelines. A phased, modular approach to building UC solutions can eventually lead to full-blown, comprehensive UC implementations that incorporate all of the elements in the UC applications stack. OPERATIONAL EFFICIENCIES Of the many value propositions for UC, the operational efficiencies it enables often show the clearest ROI. Using a single network infrastructure for IP telephony, conferencing and IM/presence offers inherent TCO benefits over separate, dedicated voice and data infrastructure. In many aspects, hosted services (often referred to as cloud services) are proving to give businesses even greater operational efficiencies than Customer Premise Equipment (CPE) UC solutions: 4
5 Demystifying Unified Communications: Best Practices for Maximum ROI Hosted services allow businesses to outsource the complexity and expertise needed to support sophisticated UC applications. Hosted options can provide customers a path to UC without having to train or hire staff to support it. Hosted solutions greatly reduce the upfront investment needed to implement UC, thereby mitigating risk. Hosted solutions reduce a customer s facilities requirements (e.g., real estate, power and insurance). These benefits are exemplified when redundancy requirements are factored in. Rollout is faster, less expensive and less disruptive. Available APIs on standardsbased hosted platforms reduce the time and cost required for integration with customer-owned components. Service costs are recurring and predictable. Customers do not have to account for unexpected charges associated with maintenance fees or upgrades. Hosted services provide the flexible scalability to cost-effectively accommodate seasonal or abrupt swings in usage. BUSINESS ENHANCEMENT AND USER PRODUCTIVITY Accelerate Decision-Making. UC features such as presence, instant messaging, advanced mobility, multimedia conferencing, and personal call routing make it easier for users to reach one another and share information, thereby reducing latency and accelerating decision-making and business processes. The more efficient and streamlined workflows can improve business agility, time-to-market, accuracy and customer satisfaction. Increase Individual Efficiency. UC improves user productivity by making various communications tools more accessible and intuitive to use. UC enables users to access several modes of communication from a unified client. From an integrated directory that is accessed from a unified client, users can intuitively launch voice, video or text-based communications sessions. Time savings for individual users may not be impressive, but when employed across a large group, the savings can accumulate in some cases reaching the equivalent of several full-time employee days per month. But it is contextual communications that truly foster user productivity by connecting users to relevant information and people at the right time. The ability to prioritize interactions through rules-based call routing, to share content in real time, and to access communications capabilities while working in business software such as CRM lets users work smarter and be more productive. 5
6 Frost & Sullivan Effective from Any Location. User-centric UC solutions can provide access to a consistent set of features from a range of devices. Making conferencing, telephony, messaging and other UC applications available from a selection of devices can untether users from fixed locations. Users can go where they are needed and remain fully connected to colleagues, customers and partners. Companies supporting virtual workers are ideally positioned to attract and retain top talent, reduce travel and real estate expenses, and remain less vulnerable to the negative impact of political, social and environmental events. What Customers Should Look for in UC Solutions IT managers should focus on the potential benefits that integrated solutions can deliver. Businesses should embrace solutions that leverage existing technology investments and expertise, and allow migration to UC at their own pace. Companies should select applications from the UC stack that can show a clear ROI. For example, VoIP and unified conferencing are proven to help rein in operational costs. Decision-makers should demand UC technologies that are based on open standards to help future-proof their investments, protect against vendor lock-in and expand customization opportunities for competitive advantage. Buyers should investigate hosted services as means to outsource complexity, reduce capital expenses and mitigate the risks involved with ownership. CONCLUSION UC is capable of improving the way organizations do business, but positive results require making the right choices for operations and for users. Attaining significant ROI for most businesses means implementing solutions that reduce expenses such as travel or training, or address specific business pain points such as information sharing and collaboration with branch or remote office staff. To be successful, UC solutions need to be implemented in a staged approach, with priority given to applications that have the clearest ROI. For most businesses, realizing a reasonable ROI becomes more realistic when they select solutions that protect and leverage existing technology investments without increasing support cost or complexity. It is becoming common that this is more effectively accomplished with well-integrated, best-of-breed solutions than monolithic stacks of applications from a single vendor. 6
7 Silicon Valley 331 E. Evelyn Ave. Suite 100 Mountain View, CA Tel Fax San Antonio 7550 West Interstate 10, Suite 400, San Antonio, Texas Tel Fax London 4, Grosvenor Gardens, London SWIW ODH,UK Tel 44(0) Fax 44(0) GoFrost ABOUT FROST & SULLIVAN Frost & Sullivan, the Growth Partnership Company, partners with clients to accelerate their growth.the company's TEAM Research, Growth Consulting, and Growth Team Membership empower clients to create a growth-focused culture that generates, evaluates, and implements effective growth strategies. Frost & Sullivan employs over 50 years of experience in partnering with Global 1000 companies, emerging businesses, and the investment community from more than 40 offices on six continents. For more information about Frost & Sullivan s Growth Partnership Services, visit For information regarding permission, write: Frost & Sullivan 331 E. Evelyn Ave. Suite 100 Mountain View, CA Auckland Dubai Mumbai Sophia Antipolis Bangkok Frankfurt Manhattan Sydney Beijing Hong Kong Oxford Taipei Bengaluru Istanbul Paris Tel Aviv Bogotá Jakarta Rockville Centre Tokyo Buenos Aires Kolkata San Antonio Toronto Cape Town Kuala Lumpur São Paulo Warsaw Chennai London Seoul Washington, DC Colombo Mexico City Shanghai Delhi / NCR Milan Silicon Valley Dhaka Moscow Singapore
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