Delivering on the Promise of Hosted VoIP Mark Castleman President

Outline What is Hosted VoIP? Three Provider Models What is the Promise? Three Provider Models Model Ups and Downs Pure Hosted VoIP Benefits Pure Hosted VoIP Burdens – Client Pure Hosted VoIP Burdens – Carrier Products Clients Buy Products Clients Don’t Buy (yet) Premium Products: Extra $$$ Warnings and advice!!! How to make it work and stay in business!

What Is Hosted VoIP? Provider Based Service Offering Platforms Voice Equipment Gateways SBCs Proxies Application Servers Network Equipment Routers Switches Interconnections Limited Customer Premise Equipment Phones, routers or gateways

What is the Promise? Cheaper Faster Better Easier What is it really? Robust Adjustable Complex Cost-effective…in some situations “Not all dial tone is created equal”

Three Provider Models “Pure Hosted” Managed Hosted BYOB: Bring your own broadband Only Phones are required Managed Hosted Provider brings network (ie T1) Provider brings CPE Router, T1 and phones SIP Trunking Provider Client uses existing phone system Provider ONLY provides dial-tone

Model Ups and Downs “Pure Hosted” Managed Hosted SIP Trunking Provider Limitations on market size Managed Hosted Significant infrastructure cost Significant SGA SIP Trunking Provider Limited market Lacks “sizzle” Invites competition to customer prem.

Pure Hosted VoIP Benefits Concentration of Expertise Provider is expert Client is user Provider manages carriers Client is removed from carrier discussion Provider manages capital equipment investment Client spend converts from “capital” to “expense” Simplicity of Customer Experience “Only requires user phones” Minimal admin burden No dedicated staff Multi-Location Solutions Dramatic costs savings here

Hosted VoIP Burdens: Client Client Networks NAT Traversal! Improperly configured networks DNS and “double NATs” Poor data provider SLAs Weak data connections Weak network gear Weak network expertise Client Requirements 500 seats per location (very difficult for pure hosted) Possible for managed hosted but on-site only

Hosted VoIP Burdens: Provider Carrier Failures Single point of failure Impacts ALL clients on that carrier Platform Failures LNP Portability is complicated No Standard procedures Carrier network may limit rate center coverage DID Management Large number databases with multiple carriers requires constant attention

Products Clients Buy Auto-attendant/IVR Desktop phone service LD Transfer Voice Mail Find Me Unified Messaging Notification services Voice or Email Fax-to-email Desktop Fax ACD, Call Queuing Music On Hold Schedule based functionality Web Administration Attendant Console Web Based User Call Management Consoles Site to Site Transferring

Product Clients Don’t Buy: yet Customer Profile SMB 2-25 users 1-5 sites Not Valuing, or paying for…yet Video (hardly used even when available) Voice to text (typically expects it to be included) Overhead Paging (likes it included but will not pay extra)

Premium Products: Extra $$$ Additional Capacity More calls in queue to prevent “busies” Simultaneous Ringing Hunt Groups Professional recording Professional MOH “Dual Ring” accounts Account will ring to more than one site Extended Greeting Length Example: 30 min greeting Network management

Warnings Pick Excellent Carriers You get what you pay for is true! Avoid “aggregators” Pick a Platform that Matches your target market Not all platforms perform well for different users Make sure the platform addresses the “billable” features Test Drive the Services of your competition Invest in quality Customer Service Reps. Your clients will bring your next customer Train your customer Don’t underestimate the weakness of your customers data provider

Provider Guide Know your target market Investigate the Platforms Pick a client profile SMB? Multi-location? Single-user Executive Suite Investigate the Platforms Do research on many platforms Talk to users Talk to at least 30 client companies and ask them plus observe! Investigate Carriers Do not be afraid to negotiate Understand carrier cost models How do carriers make money? Be willing to LEARN fast!