Changing Landscape. TDM to IP. Matthew Townend
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1 Changing Landscape TDM to IP Matthew Townend
2 Matthew Townend MD illume Consulting Biography MD illume last 5 years. Judge on Channel Awards & ITSPA awards Marketing and Channels Director Inclarity Senior Director Indirect Channels Verizon European Product Director UUNET Marketing Manager first ISP Pipex illume UK Carrier & channel customers including; BT, Gamma, NTL, Spiritel Major consultancy engagements in UK, Europe, Africa The main source for research in new market; VoIP, CDN, etc
3 What s changing? 1Hosted IP Telephony 2SIP Trunking 3Hosted IP PBX
4 Data Health Check! Hosted IP Telephony Our Definition A Public IP voice service provided from a multi-tenanted centralised voice switch providing handset extensions to Customers Premises Our Approach Anonymous survey of over 30 of the main providers of business services in the UK in its 4 th Year
5 Rate of Change Hosted IP Telephony Hosted IP telephony reaches 422,000 Nov 2009 Quarter on Quarter growth returns to 11% Q Early figures show similar growth in Q1 2010
6 Which customers have bought Substitution & Organic Market Over 1 million TDM Centrex customers between BT, Virgin and Kingston
7 Why customers buy Sectors Professional services Public Sector Retail Hospitality Managed Offices Proposition Flexibility Productivity Homeworking Low Capex! Space & Power Features Businesses that have multiple sites, or are looking at reducing costs through introducing more flexible working arrangements are prime targets
8 Up and to the right chart! illume forecast market rising from 422,000 to 2.16m seats 2013
9 Channels to Market Currently 20% of the market sold through channels PBX resellers initially reticent as competing directly with hardware but recession & lack of customer Capex has lead PBX channels to focus on hosted Key Current Suppliers Gradwell, Voicenet, Inclarity, Gamma, Virgin, Spiritel, Verizon 48 providers who have a switch New entrants include Vodafone, C&W All mobile, fixed & ISPs will have or be considering a strategy
10 Drivers & Barriers to Growth 2010 X X X Migration of traditional TDM Centrex base Requirement for flexible working and low Capex solution Acceptance of Hosted/Cloud Application Salesforce effect Reliability of providers Reliability of Bandwidth availability Getting the basics right number portability etc Significant market entrants Vodafone one net, BT! Bandwidth stability Proposition tailored to customer requirement Cost of Acquisition & installation in SME
11 SIP Trunking The Perfect Storm
12 Forces of Nature SIP Trunking Enterprise Reduce ISDN costs Desire for unified coms Client/Server infrastructure attractive PBX Vendors Move to become software vendors! Push to renew base with IP/Hybrid service ITSPs Clear substitution market for ISDN Not a complex as Hosted to sell Complimentary to the channel Customer PULL & MARKET push
13 SIP Trunking Forecast The market is set to grow dramatically in 2010
14 A Segmented market approach Large Enterprise Already have MPLS VPN network/ip PBX Desire potentially for Cloud environment Multinational ISDN 30 delivery Trusted MPLS/Data provider Small Business PBX with limited features Have ISDN 2 or similar delivery Channels will look to launch MPLS services
15 Focus of market proposition
16 Market Key Service Providers Voice flex Only focused on Trunking Gamma Channel Verizon Multinational replacement of ISDN 30 BNS Daisy Smart box approach Market Splitting into two: Large customers ISDN replacement with corporate networks Small customer Providing features to supplement old PBX & Key systems Mid Market Pricing does not always work
17 Channel Drivers Delivering SIP trunking can tie in Voice & Data revenues Extends life of existing PBX Maybe a natural progression for ISPs & data resellers Move to hosted solutions such as Mitel MICD will drive channels to sell SIP trunks
18 Summary Hosted Proposition perfect in current Economic situation SIP Trunking A perfect storm Your customers are considering a strategy today Customers want flexibility Customers want low cost It s a straight substitution market for ISDN PBX Manufacturers, ITSPs & Enterprises all want your channels to sell SIP Trunking Whether you are talking to a Mobile, Fixed or ISP they are all looking at a strategy
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