VoIP Success Promise vs Reality

1. VoIP SuccessPromise vs Reality Brian Title October, 2006

2. VoIP Success: Promise vs Reality Brian Metherell Vice President/General Manager Toshiba America Information Systems Telecommunication Systems Division October 10, 2006

3. Agenda • Toshiba Dealer Survey Findings • VoIP Promise vs. Reality: Real Life Case Studies • What Really Matters: Technology, Cost Savings or Productivity Improvements • What Constitutes Success of a VoIP Solution Today • What we see as the prominent drivers and trends for VoIP

4. VoIP Success: Promise vs Reality Audience Survey • How many of you have heard of VoIP? • How many of you are using VoIP at home for some of your communications? • How many of you are using VoIP at work for some of your communications? • How many of you are using VoIP exclusively for all of your communications?

5. VoIP Success: Promise vs Reality Dealer Survey • Surveyed our dealer network of 400 dealers in 800 locations nationwide • Majority of dealers carry products from multiple manufacturers including all market share leaders • Survey conducted September 2006

6. VoIP Success: Promise vs Reality Dealer Survey Findings: Today’s VoIP Installs • In the past year, what percentage of all your installs (all manufacturers) has included a VoIP component? • 95% of dealers surveyed installed VoIP components last year • 31% said it was in less than 10% of their installs • 28% said it was in 10-25% of their installs

7. VoIP Success: Promise vs Reality Dealer Survey Findings: VoIP-Only Installs • In the past year, what percentage of your installs has been 100 percent VoIP? • Only 1% said all their installs were VoIP only • 39% said none of their installs were VoIP only • 60% were somewhere in between

8. VoIP Success: Promise vs Reality Dealer Survey Findings: Next Year’s Predictions • Over the next year, what percentage of your installs do you predict will contain some VoIP component? • 99% predict they will install some VoIP components in the next year • 33% expect it to be up to half of systems installed • 26% expect it to be less than a quarter of systems installed

9. VoIP Success: Promise vs Reality Dealer Survey Findings: VoIP-only in 2007 • Over the next year, what percentage of your installs do you expect to be 100 percent VoIP? • 76% said less than a quarterof installs will be VoIP only

10. VoIP Success: Promise vs Reality Dealer Survey Findings: Future VoIP Acceptance • By what year do you think only VoIP solutions will be sold? • 27% predict by 2009 or 2010 • 30% predict further out • 25% predict never!

11. VoIP Success: Promise vs Reality Dealer Survey Findings: Key VoIP Motivators • Today, when a potential customer requests a VoIP solution, what do they say is the key motivator? • 56% said mobile and/or remote user applications • 21% don’t want to get left behind the technology curve

12. VoIP Success: Promise vs Reality Dealer Survey Findings: VoIP ROI • After the installation, what do you think your customers found to be the most important ROI benefit of VoIP? • 62% said the ability to add mobile and remote users

13. Strata CIX Industry Success Stories Customer Case Studies: Real VoIP Successes • Real customers tell the story

14. Strata CIX Industry Success Stories Niagara Bottling LLC Toshiba Makes a Splash at Niagara • Leading bottled drinking water company with more than 300 employees • Networked three locations together with Toshiba Strata Net Networking • Toshiba Strata CIX systems at headquarters and bottling facility • Call Center in Irvine is all VoIP using Toshiba IP telephones • Improved communications with centralized voice mail and direct extension dialing • Migration cost savings re-using digital telephones and interface cards • Long distance cost savings of $1,350 per month • Eliminated 80 phone lines gaining cost savings of $6,000 per month

15. Strata Net Strata Net Strata CIX Industry Success Stories Niagara Bottling LLC

16. Strata CIX Industry Success Stories Niagara Bottling LLC Estimated Savings

17. Strata CIX Industry Success Stories Manhattan Beachwear Toshiba VoIP Delivers a Wave of Success • VoIP connects all locations • California HQ, New York showroom • Manufacturing plants Indonesia, Vietnam, Mexico • Centralized communication • Improves internal communications • Improves external communication with customers and vendors • Road warrior CEO uses SoftIPT soft phone on his laptop to stay connected when away from the office • Migrated from Toshiba DK96 to CIX670 saving money by re-using some interface cards • Cost savings of $3,000 per month in long distance and international conference calling costs

18. Strata CIX Industry Success Stories Manhattan Beachwear Cypress, California Headquarters Traveling CEO Laptop Soft IPT Remote Home Office Workers CIX670 Digital Telephones IP Telephones Internet Mexico Vietnam New York Showroom Indonesia IP Telephones IP Telephones IP Telephones IP Telephones

19. Strata CIX Industry Success Stories Toshiba Telecommunication Systems Division We don’t just talk about VoIP – We use it ourselves! • Multiple Strata CIX670 systems networked at headquarters combine the flexibility of VoIP with reliability of digital • WLAN provides local users mobility with wireless phones and soft phones • Traveling Regional Sales Managers stay connected everywhere they go • SoftIPT soft phone on laptops when traveling • IP desk telephone at home office • Significant productivity improvement • Improved internal and external communications • Cost savings of $1,500 per month long distance costs

20. Internet Reg. Sales Mgrs. Home Office Traveling Reg. Sales Mgrs. Laptop Soft IPT IP Telephone Irvine, CA Headquarters PSTN Wireless LAN PDA & PC Soft Phones IP Telephones Wireless IP Telephones Digital Telephones Strata CIX Industry Success Stories Toshiba Telecommunication Systems Division

21. Conclusions Today’s Primary Market Drivers • Mobility • Remote connectivity Fast Emerging Market Drivers • Unified communications • Business process integration • Outlook, Contact Manager and CRM applications • Sales Administration and tracking • Call statistics, employee productivity tracking, Workforce Management • Business applications beyond telephony related functions

22. Strata CIX MAS/ACD SQL Database Business Process Integration Example Mortgage company loan application/approval • SQL database integrated with telephone system ACD application • Links loan application/approval process with recording of calls

23. Strata CIX MAS/ACD SQL Database Business Process Integration Example Mortgage company loan application/approval • Incoming calls to call center answered by pre-qualifying agents, tagged for tracking and categorization • Pre-qualifying Agent • Gather information • Create customer file • Record phone call • File updated Initial Call

24. Strata CIX MAS/ACD SQL Database Business Process Integration Example Mortgage company loan application/approval • Call transferred to loan officer and screen pop provides customer information upon answering • Incoming calls are recorded and imbedded into electronic loan application documentation • Stores accurate information, assists approval processing, and provides dispute resolution • Pre-qualifying Agent • Gather information • Create customer file • Record phone call • File updated • Loan Officer • Screen pop the file • More information • Record phone call • File updated • Give DID for subsequent calls Initial Call

25. Strata CIX MAS/ACD SQL Database Business Process Integration Example Mortgage company loan application/approval • Customer given direct dial number for subsequent calls, but if they forget and dial the main number, system routes call directly to the loan officer by CLID stored in database • Overall Result: Shorter phone calls, less follow-up required, faster loan processing, better service, happier customers • With VoIP agents can be local or remote. • Pre-qualifying Agent • Gather information • Create customer file • Record phone call • File updated • Loan Officer • Screen pop the file • More information • Record phone call • File updated • Give DID for subsequent calls Initial Call Subsequent Call

26. Thank you for your participation!