Megatrends and New Paradigms A Look at Hosted VoIP Megatrends and New Paradigms Speaker: Frank Grillo, EVP Marketing for Cypress Communications

Megatrends and New Paradigms Making technology a tangible differentiator is a privilege to be won or lost by IT. Technology ownership is no longer a sure thing. IT asset ownership is a choice, not an obligation. Enterprises are embracing hosted delivery models—software as a service (SaaS), LAN/WAN services, desktop management, and business continuity and hosted VoIP. Hosted VoIP market will increase from $375 million in 2006 to $3,165 million in 2011. Source: Gartner, Inc.

Hosted VoIP Market Segments Hosted IP PBXs IP Centrex Communications as a Service (Similar to SaaS where customers pay for usage rather than for ownership) “Communications as a Service is the most recent and innovative of the hosted VoIP delivery models.” Gartner, Inc. Hosted VoIP Market Trends Report of North America 2006-2011 Daniel O’Connell and Eric Goodness, Authors

IP PBX Located at your site or vendor’s location It’s still connected to the same old telephone network People who build it may not be the people who support it Benefits Highly customizable Lower capital and operational costs Drawbacks Multiple providers to manage LAN/WAN management typically separate You get what you want – but at a price $$ Poor geographical redundancy – unless you’re paying big $$ You’re still on the hook for upgrades and maintenance

IP Centrex Infrastructure located at provider site Switch owned and managed by the provider Switch shared among multiple customers Benefits You don’t have to buy and deploy a switch Potential lower operational costs Drawbacks Immature service providers Very limited service set Limited geographic span Unmanaged LAN/WAN Lack of end-to-end solution Lack of national network limits business continuity protection

Communications as a Service Complete integrated solution—phones, voice/data access, voicemail, PBX functionality, unified communications and collaboration applications. High-touch service with full LAN/WAN management, remote monitoring, MACs and managed QoS. Off-premises hosting with POP and circuit diversity, CPE redundancy and WAN failover. Benefits Highly customizable Inherent business continuity No equipment capital outlay Nationwide coverage Single vendor for everything Drawbacks You don’t “own” anything You’re not “in control”

What to Keep in Mind End-to-End Solution Quality of Service guaranteed from desktop throughout the network Full LAN/WAN integration Advanced multimedia, collaboration and traditional calling features Vendor with a legacy of providing excellent products and support Highly scalable Superior Network Engineered for 99.999% availability Voice calls prioritized over data and no single point of failure Purpose-built to deliver VoIP services Real-time proactive network monitoring Fully redundant for maximum availability Self-correcting Calls don’t touch the public Internet

What to Keep in Mind (continued) Minimize your total cost of ownership No capital expense Eliminate risk and obsolescence Flexibility—scale as your business grows and changes Inherent business continuity Geographical and network redundancy POP and circuit diversity Equipment redundancy Make it Easy Turnkey solution One vendor for voice, data and LAN integration Off-load ancillary functions