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“Hosted Voice Services: Are They Right for You?”

“Hosted Voice Services: Are They Right for You?”. Andy Morrow Executive Director-VoIP Product Management, SBC Communications. www.sbc.com. IP Telephony Offers Great Benefits. Reduced Expenses (Admin, LD, Toll) Less Network Complexity Increase Employee Flexibility Anywhere-Anytime Access

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“Hosted Voice Services: Are They Right for You?”

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  1. “Hosted Voice Services: Are They Right for You?” Andy Morrow Executive Director-VoIP Product Management, SBC Communications www.sbc.com

  2. IP Telephony Offers Great Benefits • Reduced Expenses (Admin, LD, Toll) • Less Network Complexity • Increase Employee Flexibility • Anywhere-Anytime Access • Increased Employee Productivity • More Collaboration Options • New MultiMedia Offerings • Improved Customer Service

  3. But Also Presents Significant Questions • What technology platform should I implement? • Will I need to throw out my existing investment? • Will I really save money over my existing TDM solution? • Can I operate in a hybrid environment? • Do I have the staff to operate a VoIP network? • Will my new VoIP investment become obsolete too soon? • Will my selected platform be able to support new applications? • Do converged networks really work? • Will my business really recognize the promise of VoIP?

  4. Customers Have Multiple VoIP Options Hosted High Outsourced VoIP PBX Reliance on Managed-ServiceProvider Managed VoIP PBX Owned VoIP PBX Low Economies Low High Owned/Leased Option Outsourced/Hosted Option

  5. SBC PremierSERVSM Solutions Hosted IP Communications Service High Managed Care Reliance on Managed-ServiceProvider IP Telephony Advantage IPT Support Services Low Economies Low High Owned/Leased Option Outsourced/Hosted Option SBC PremierSERVSM Consulting Services

  6. PacketNetwork Feature Server Feature Server Feature Server Feature Server Hosted Architectures Offer Economies of Scale • Call processing • Connection management PSTN Media Gateway Controller (Softswitch) • Advanced features • GUI Service Creation Gateway Can reside as part of the hosted network Gateway Gateway Media Gateway • Core Packet Network Interface • Interfaces to trunks or lines • Centrex or PBX Interworking LAN IP Phones Architecture based on standards such as SIP & MGCP. Customers have choice of phones and can interwork traditional and IP PBXs into the network Your Business Network

  7. IP NVPNs Can Provide The Infrastructure For A True Converged Network Wireless – PDA, Laptop, Cell Phone DSL – SOHO HostedBranch 1DS-1/FR Private IP Backbone (MPLS Core) HostedBranch 2DS-1/FR VoIP PBX Branch 5 OC-3/ IP Frame/ATM Access Gateway Metro Optical HQ Site 1 Opt-E-Man HostedBranch 3DS-1/FR PSTN VoIP PBX Branch 4 DS-3/IP

  8. A TCO Analysis Will Point You To The Right Solution For Your Business TCO Items To Be Considered • Cost of Required Equipment • Infrastructure Upgrade Expenses • Toll and LD Expenses • Administrative/IT Support Expenses • Power/Space Expenses • Lifecycle Upgrade Expenses • New Application Benefits

  9. Hosted Solutions Often Win On A TCO Basis Illustrative Customer Examples Monthly Total Cost per Station Monthly Total Cost per Station $93 $69 $55 $53 $37 $35 100-Station Customer Monthly Total Cost of Ownership per Station 1000-Station Customer Monthly Total Cost of Ownership per Station Hosted VoIP Solution Managed VoIP PBX Solution Managed TDM PBX Solution

  10. Factors Favorable to Hosted Multiple sites, geographically dispersed High percent interlocation/on-Net calling Customer wants to migrate to VoIP over time. Hosted is economically very scalable Customer has a mixture of telecom platforms (i.e., Centrex, VoIP PBX, PBX) – requires interoperability Customer does not want or have capital dollars to spend on a system Customer prefers a fully managed solution Factors Favorable to VoIP PBX Fewer sites, geographic concentration Low volume of on-Net calling Availability of existing WAN Bandwidth. No need for incremental upgrades Willingness to perform a flash cut Desire for single global/national telecom platform Willingness to spend capital dollars Preference for do it yourself management Need for customized vertical applications Do I Go With A Hosted or VoIP PBX Solution?

  11. Customers Have Many Service Provider Types To Choose From • ILECs • CLECs • IXCs • Virtual Network Operators • System Integrators

  12. Assuring Service Provider Accountability • Understand exactly what you are contracting for and what you will get • Make sure that your vendor provides an End To End SLAs and holds ultimate accountability • Understand all of your costs - including short and long term upgrades • Understand your provider’s underlying network infrastructure, security capabilities, and reliability • Understand your provider’s after sales support capabilities - user training-help desk-problem resolution • Talk with reference customers to make sure their experience has been positive

  13. Issues to Consider When Choosing a VoIP Managed Services Provider 1. Can the Managed-Services provider help me evaluate all of my options, or are they biased? 2. Does the Managed-Services provider have the skills to design, deliver and maintain a complex IP network? 3. Can the Managed-Services provider assist me in developing a migration plan from my current platform? 4. Does the Managed-Services provider have a product evolution plan? 5. Will the Managed-Services provider be able to deliver the true potential of VoIP?

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