October 10-13, 2006 San Diego Convention Center, San Diego California VoIP Success Promise vs Reality Brian Title October, 2006

October 10-13, 2006 San Diego Convention Center, San Diego California VoIP Success: Promise vs Reality Brian Metherell Vice President/General Manager Toshiba America Information Systems Telecommunication Systems Division October 10, 2006

3 October 10-13, 2006 San Diego Convention Center, San Diego California 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 October 10-13, 2006 San Diego Convention Center, San Diego California 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? VoIP Success: Promise vs Reality

5 October 10-13, 2006 San Diego Convention Center, San Diego California 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 VoIP Success: Promise vs Reality

6 October 10-13, 2006 San Diego Convention Center, San Diego California 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 VoIP Success: Promise vs Reality

7 October 10-13, 2006 San Diego Convention Center, San Diego California 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 VoIP Success: Promise vs Reality

8 October 10-13, 2006 San Diego Convention Center, San Diego California 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 VoIP Success: Promise vs Reality

9 October 10-13, 2006 San Diego Convention Center, San Diego California 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 quarter of installs will be VoIP only VoIP Success: Promise vs Reality

10 October 10-13, 2006 San Diego Convention Center, San Diego California 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! VoIP Success: Promise vs Reality

11 October 10-13, 2006 San Diego Convention Center, San Diego California 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 VoIP Success: Promise vs Reality

12 October 10-13, 2006 San Diego Convention Center, San Diego California 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 VoIP Success: Promise vs Reality

13 October 10-13, 2006 San Diego Convention Center, San Diego California Customer Case Studies: Real VoIP Successes Real customers tell the story Strata CIX Industry Success Stories

14 October 10-13, 2006 San Diego Convention Center, San Diego California 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 Strata CIX Industry Success Stories

15 October 10-13, 2006 San Diego Convention Center, San Diego California Niagara Bottling LLC Strata CIX Industry Success Stories Strata Net

16 October 10-13, 2006 San Diego Convention Center, San Diego California Niagara Bottling LLC Estimated Savings Strata CIX Industry Success Stories Financial ReturnsHardSoftMonthly1 Year5 Year Long Distance Services√ $1,350$16,200$81,000 System Consolidation - replaced 2 systems with 1√ $15,000 Improved CO Line Usage (consolidation)√ $6,000$72,000$360,000 Share Centralized Voice Mail√ $8,000 Reuse existing equipment (migration)√ $4,000 IT Staff Productivity √$1,000$12,000$60,000 Total Monthly Savings $8,350 Total Annual Savings $127,200$528,000 Purchase Price of New System or Upgrade $35,000 ROI Breakeven Time4.2Months

17 October 10-13, 2006 San Diego Convention Center, San Diego California 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 Strata CIX Industry Success Stories

18 October 10-13, 2006 San Diego Convention Center, San Diego California Manhattan Beachwear Strata CIX Industry Success Stories Internet Digital Telephones IP Telephones Cypress, California Headquarters Remote Home Office Workers IP Telephones Traveling CEO Laptop Soft IPT Vietnam Indonesia New York Showroom Mexico IP Telephones CIX670

19 October 10-13, 2006 San Diego Convention Center, San Diego California 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 Strata CIX Industry Success Stories

20 October 10-13, 2006 San Diego Convention Center, San Diego California Toshiba Telecommunication Systems Division Strata CIX Industry Success Stories Internet Digital Telephones IP Telephones Wireless IP Telephones PDA & PC Soft Phones Wireless LAN Irvine, CA Headquarters Reg. Sales Mgrs. Home Office IP Telephone Traveling Reg. Sales Mgrs. Laptop Soft IPT PSTN PSTN

21 October 10-13, 2006 San Diego Convention Center, San Diego California 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 October 10-13, 2006 San Diego Convention Center, San Diego California Mortgage company loan application/approval SQL database integrated with telephone system ACD application Links loan application/approval process with recording of calls Business Process Integration Example SQL Database Strata CIX MAS/ACD

23 October 10-13, 2006 San Diego Convention Center, San Diego California Mortgage company loan application/approval Incoming calls to call center answered by pre-qualifying agents, tagged for tracking and categorization Business Process Integration Example SQL Database Strata CIX MAS/ACD Pre-qualifying Agent Gather information Create customer file Record phone call File updated Initial Call

24 October 10-13, 2006 San Diego Convention Center, San Diego California 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 Business Process Integration Example SQL Database Strata CIX MAS/ACD Pre-qualifying Agent Gather information Create customer file Record phone call File updated Initial Call Loan Officer Screen pop the file More information Record phone call File updated Give DID for subsequent calls

25 October 10-13, 2006 San Diego Convention Center, San Diego California 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. Business Process Integration Example SQL Database Strata CIX MAS/ACD Pre-qualifying Agent Gather information Create customer file Record phone call File updated Subsequent Call Initial Call Loan Officer Screen pop the file More information Record phone call File updated Give DID for subsequent calls

26 October 10-13, 2006 San Diego Convention Center, San Diego California Thank you for your participation!