Market Strategy and Analytics Partners, LLC Copyright © 2011 Page 1 February, BECAUSE IN BUSINESS, SOMETIMES THE WINDOW OF OPPORTUNITY IS LIMITED RUN! prepared for: UC and Service Providers Ingate’s SIP – Unified Communications Summit

Market Strategy and Analytics Partners, LLC Copyright © 2011 Page 2

Market Strategy and Analytics Partners, LLC Copyright © 2011 Page 3 S

Market Strategy and Analytics Partners, LLC Topics Before we Start UC Definitions and Description and Vendor Evolution Some UC Research Types of UC Architectures SPs – SIP and UC What to do … Discussion Copyright © 2011 Page 4

Market Strategy and Analytics Partners, LLC So, Who Are You? Audience Demographics Poll  End-User Enterprise>500 employees  End-User Small Business<500 employees  Service ProviderTraditional  Service ProviderNon-Traditional  Route-to-Market  Vendor  Other Copyright © 2011 Page 5

Market Strategy and Analytics Partners, LLC Copyright © 2011 Page 6 Unified Communications from UCStrategies.com UC integrates real-time and non-real time communications with business processes and requirements. Uses presence capabilities for coordination, and presents a consistent unified user interface and experience across multiple devices and media types

Market Strategy and Analytics Partners, LLC What is Unified Communications Copyright © 2011 Page 7

Market Strategy and Analytics Partners, LLC Copyright © 2011 Page 8

Market Strategy and Analytics Partners, LLC Copyright © 2011 Page 9 And UC Comes From 2 Bases

Market Strategy and Analytics Partners, LLC Copyright © 2011 Page 10

Market Strategy and Analytics Partners, LLC Copyright © 2011 Page 11

Market Strategy and Analytics Partners, LLC Copyright © 2011 Page 12 Some UC Research

Market Strategy and Analytics Partners, LLC New Research About SIP Adoption/Applications Shows Tight Coupling with UC Copyright © 2011 Page 13 Source:

Market Strategy and Analytics Partners, LLC VoIP Penetration Forecast to Reach 79% of US Businesses by 2013 Copyright © 2011 Page 14 VoIP penetration among US businesses will increase rapidly over the next few years, reaching 79% by 2013, compared to 42% at the end of 2009, reports In-Stat ( This penetration reflects companies having a VoIP solution deployed in at least one location.( Hosted IP Centrex has now surpassed Broadband IP Telephony as the leading revenue-generating, carrier-based business VoIP solution. 33% of businesses that have already deployed VoIP solutions report that recent economic conditions have caused them to slow additional deployment plans, compared to 30% reporting no change in plans. Broadband IP Telephony revenues continue to grow and will more than double by 2013, compared to This growth will be fueled by single-user applications among increasingly distributed and mobile workforces. This Market Alert is drawn from the In-Stat research, U S Business VoIP Overview: Optimization Trumps ExpansionU S Business VoIP Overview: Optimization Trumps Expansion

Market Strategy and Analytics Partners, LLC Gartner’s Views of Corporate Telephony and UC Differ Significantly Copyright © 2011 Page 15

Market Strategy and Analytics Partners, LLC Gartner’s 2010 UCaaS MQ for North America, Again Named No Players to Leaders Quadrant Large Telephone Companies  AT&T, Verizon, BT, Bell Canada Large UC Vendors  Cisco, Microsoft, IBM UCaaS Specialists  CallTower, Cypress Communications, PanTerra Networks, Thinking Phone Networks, LightEdge Solutions Wildcards  Google, Skype Copyright © 2011 Page 16

Market Strategy and Analytics Partners, LLC What of UC: UC Capabilities by User Interest Copyright © 2011 Page 17 Source: CIO Magazine, 2009

Market Strategy and Analytics Partners, LLC When of UC: UC Deployment Plans Copyright © 2011 Page 18 Source: CIO Magazine, 2009

Market Strategy and Analytics Partners, LLC Why of UC: Perceptions of UC Benefits Copyright © 2011 Page 19 Source: CIO Magazine, 2009

Market Strategy and Analytics Partners, LLC UC Decision Factors Copyright © 2011 Page 20 How important are the following factors in your decision to implement unified communications solutions? Very important Somewhat important Not very important Not at all importantNot sure Ease of implementation49.90%36.60%5.60%1.90%6.10% Ease of use78.70%13.60%1.20%0.70%5.80% End user/customer demand47.70%35.60%6.80%1.70%8.20% Level of service54.20%34.60%3.90%1.00%6.30% Price51.30%37.00%4.60%1.00%6.10% Product features42.40%42.60%7.50%1.20%6.30% ROI56.90%29.50%5.60%1.50%6.50% Technical support47.50%40.70%4.80%1.20%5.80% Source: CIO Magazine, 2009

Market Strategy and Analytics Partners, LLC Copyright © 2011 Page 21 Types of UC Architectures but NO Diagrams

Market Strategy and Analytics Partners, LLC Datacenter Platform Model Centralize UC platforms in customer or SP (MSP-hosted) datacenter  Becomes a Private or Public “Cloud” Service New Architecture/Topology standard  Supported by “virtually” all UC vendors Common to all Models  Deploy SIP Trunks to deliver services to corporate locations with some degree of survivability in each location Gateways/SBCs and Failover to PSTN  Support Mobility/Teleworking in evolving methods FMC VPN or not Copyright © 2011 Page 22

Market Strategy and Analytics Partners, LLC Distributed on Premises Model Essential UC component assets deployed in all company locations  Ownership/financing models evolving – some “Utility Pricing” emerging  Networking/integration complex and provides opportunities for professional services Primary situation today – includes lots of legacy and non-SIP- enabled equipment – and multi-vendor Common to all Models  Deploy SIP Trunks to deliver services to corporate locations with some degree of survivability in each location Gateways/SBCs and Failover to PSTN  Support Mobility/Teleworking in evolving methods FMC VPN or not Copyright © 2011 Page 23

Market Strategy and Analytics Partners, LLC Hybrid Model Some locations served out of centralized private or public (hosted) datacenter platform Balance of locations/users either served with on-prem or cloud/hosted solutions Most companies will face this through migration period, if not “end-state” Common to all Models  Deploy SIP Trunks to deliver services to corporate locations with some degree of survivability in each location Gateways/SBCs and Failover to PSTN  Support Mobility/Teleworking in evolving methods FMC VPN or not Copyright © 2011 Page 24

Market Strategy and Analytics Partners, LLC Delivery Models – Lots of Confusion Managed vs. Hosted  Not just “On-Prem” vs. “Cloud”  What is done by the provider and customer or third-party The financial model  Mix of Capital and Operating financial arrangements  Perhaps moving to “Utility” pricing Who Delivers?  Vendors  VARs/VADs/SIs  SPs  OTTs  Other? Copyright © 2011 Page 25

Market Strategy and Analytics Partners, LLC How Does SIP and UC Get to These 27M US Businesses (RTMs)? Copyright © 2011 Page employees The mean SMB employer (0-999 employees) had one location and 11 employees Among just the medium sized firms ( employees) the average business has 5 locations and 239 employees Large businesses (1000+ employees), on the other hand, had 62 locations and 3,300 employees The median employer size was about 2 employees for SMB firms and 1,900 employees for large firms

Market Strategy and Analytics Partners, LLC Copyright © 2011 Page 27 SPs – SIP and UC

Market Strategy and Analytics Partners, LLC UC Relevant SP Types and Characteristics Traditional Telcos  Historical Network Services Focus – but at odds with SIP (although diminishing)  Long Voice Heritage – Centrex, PBX and Key Systems  Extensive Customer Base and “Channels”  Mobility Big Driver  Wrestling with Hosted/Cloud and On-Prem models  Legacy migration/transformation is major issue  Triple/Quad play migrates from Consumer to Business, generally from small to large Likely to Deploy Multiple Vendors’ Solutions – often driven by Customer Choice Copyright © 2011 Page 28

Market Strategy and Analytics Partners, LLC UC Relevant SP Types and Characteristics Competitive Telcos  Created to compete with traditional SPs  Faster to adopt new technologies to deliver services Easier to transition the UC and SIP as less legacy  May deploy multiple UC solutions from multiple vendors  Major competition is services, price and customer care  Ubiquity is a challenge  Channel coverage is also challenging … Partnering models evolving for expertise and geographic coverage Copyright © 2011 Page 29

Market Strategy and Analytics Partners, LLC UC Relevant SP Types and Characteristics CableCos  Just entering business markets with, generally, hosted VoIP voice Offers, channels and models being developed  Start at small end and evolve upward  Initially a price competition vs. incumbent  UC may be a way off, as are SIP trunks, especially on owned networks  May be distracted by desire to add mobility to keep consumer presence Copyright © 2011 Page 30

Market Strategy and Analytics Partners, LLC UC Relevant SP Types and Characteristics ITSPs/MSPs  Built to provide hosted IPT  Many spawned locally/regionally across country Use technology from several players or internally developed  Generally target specific customer segment demographics Size Multi-location Verticals  Often Provide other “Managed Services” Web site hosting Desktop support  Adding UC capabilities  Often use other SPs’ SIP trunks Copyright © 2011 Page 31

Market Strategy and Analytics Partners, LLC UC Relevant SP Types and Characteristics OTTs/Wild Cards  Skype and Google are models here  Business/Enterprise segment is a new market for them  Providing infrastructure, like SIP trunks, will require partnering  Business models vastly different than traditional SPs Advertising and “Free” Are they/will they ever be true SPs?  Do they become regulated?  What customer segment focus? Copyright © 2011 Page 32

Market Strategy and Analytics Partners, LLC Copyright © 2011 Page 33 What to Do …

Market Strategy and Analytics Partners, LLC What to Do … Focus on the Business Process Develop a Plan – Where does UC fit in IT Prioritization?  What to accomplish  Build a team Business IT Finance Maybe select an advisor/consultant Do RFI/RFP Choose Partner(s)  SPs  Vendors  Other partners Decide where to Start and How-to-Measure Copyright © 2011 Page 34

Market Strategy and Analytics Partners, LLC About the Speaker and Additional Resources Market Strategy and Analytics Partners custom designs marketing and sales strategies that are consistent with client core competencies, market focus and competitive environment, and coupled with operationalized go-to-market plans across the value chain to ensure elimination of bottlenecks and complete consideration of end-to-end financials. Our clients include equipment and software providers, service providers and information intense enterprises. Founding Partners  David Yedwab  Paul Robinson, PhD Find UCStrategies.com Use Case Study library at library.aspx library.aspx Copyright © 2011 Page 35

Market Strategy and Analytics Partners, LLC Copyright © 2011 Page 36 Discussion