All Contents © 2006 Burton Group. All rights reserved. VoiceCon Spring 2006: SIP And Today’s IP-Telephone Market 8 March, 2006 Irwin Lazar Senior Analyst SIP:

2 Agenda SIP Today Communications Convergence SIP-Based Services Enterprise Recommendations

3 The Future Is SIP…But what about the present? Consumer Reality: SIP is widely used by almost every vendor of IP telephony services Vonage, CallVantage, Lingo, etc. are all SIP-based services Direct peering among providers is increasing, bypassing the PSTN Free SIP-based telephony services emerging (Earthlink, Gizmo Project) Peering among these services is creating a growing fabric of interconnected SIP-based user agents CableLabs Distributed Call Signaling (DOCSIS) standard based on SIP SIP is basis for signaling in all future 3G IP wireless networks (IMS)

4 The Future Is SIP…But what about the present? Enterprise Reality: Hosted services almost always based on SIP Leading platforms from Broadsoft and others are based on SIP Enterprise IP telephony vendors have a SIP story But capabilities differ Most only support SIP for system interconnection, not for end-device signaling on their core platforms H.323 or its variants (Cisco “Skinny”, Siemens “CorNet”, Mitel “MiNet”, Nortel “UniStim”) still dominate Why? Lack of agreement for SIP feature implementation A desire to protect phone system revenues??? ;-) Enterprise impact Lack of end-point choice - proprietary solutions

5 Arguments Against SIP It isn’t mature SIP is over six years old, core standards are mature It doesn’t support traditional telephony features SIP primitives and feature packs support widely used telephony features in a standardized manner Implementations still vary, often proprietary extensions are used It isn’t secure SIP supports per-hop and end-to-end security models including encryption and user authentication But - several tests have discovered implementation-specific vulnerabilities It doesn’t work over NAT Numerous NAT mitigation techniques have been well defined and widely deployed

6 SIP IP-PBXs You can buy a SIP-based IP-PBX today! Commercial Examples: 3Com VCX 7000 Siemens HiPath 8000 Broadsoft Broadworks Mitel 3300 Open Source Examples: Pingtel SIPxchange SIPfoundry sipX Asterisk SIP-base converged communications servers Nortel MCS 5100, Avaya Converged Communications Server

7 Agenda SIP Today Communications Convergence SIP-based Services Enterprise Recommendations

8 How Do I Contact Someone? How can I contact them? IM, voice, cell, , video? Can my system talk to their system? Are they available? Are they on the phone or in a meeting? Are they the right person for the inquiry? How do I arrange a conference call? What if they don’t dial into the teleconference? How do I share information? The Communications Detective

9 The Big Picture Goal: a single communications infrastructure unifying collaboration, real-time communications, and presence Convergence not of voice & data, but rather convergence all forms of real-time communications into a unified application Combined with collaboration tools Integrated into business applications & processes Extensible beyond organizational boundaries Delivering measurable business benefit by streamlining and improving the ability for individuals and groups to communicate Converge non-real time communications ( ) Voice but just one component of a converged communications & collaboration infrastructure

10 An Example Converged communications in action: April 1st new product launch April 2nd :00 AM, warehouse reports inventory shortage Inventory control application sends an IM to product manager alerting her of the problem Product manager calls a teleconference via presence portal System calls team members preferred devices Team members collaborate with real-time application information in current environments All done via a single click through a unified user interface

11 Digital Phone IP Phone SIP / SIMPLE Presence Services Soft-phone IM Client PC w/ USB Camera Converged Presence- Based Client Mobile Phone Collaborative Applications SIP and Presence SIMPLE extends SIP to create a “glue” for converged communications

12 SIP and Collaboration Vendors are rapidly delivering solutions in this space, but forces are colliding: In the VoIP Corner: Siemens HiPath OpenScape Nortel Multimedia Communications Server 5100 Avaya Converged Communications Server Mitel “Your Assistant” In the IM Corner: Microsoft Office Live Communication Server 2005 w/ Office Communicator client IBM Lotus “Hanover” client Public services (e.g. Skype) Who Owns the Interface????

13 SIP and Web Services SIP will be increasingly extended beyond traditional voice systems SIP capabilities in CRM, ERP applications Example: BEA WebLogic SIP Server for extending SIP applications via J2EE Web services capabilities in IP-PBXs (e.g. support for SOAP/SAML/XML) Goals Enable application-to-application as well as application to person communications

14 Agenda SIP Today Communications Convergence SIP-based Services Enterprise Recommendations

15 Peering and Federation Instant Messaging, VoIP, and Presence SIP/SIMPLE-based federation of real-time applications Both within and outside of an organization Example: Microsoft Live Communications Server using SIMPLE to interface with Yahoo IM and AIM Lotus SameTime interfacing with Jabber among departments or business partners “Direct peering” versus “clearinghouse” models

16 Federation Example Clearinghouse Enterprise BEnterprise C Enterprise DEnterprise A Direct Federation Connection

17 SIP Trunking Services Eliminating local loops Enterprise sends calls to service provider via SIP Service provider routes calls to PSTN gateway nearest destination End result: Reduction in toll charges Elimination of local loops Service evolution IETF defining common interface standards SIP Forum defining policy standards Numerous vendor/carrier certification programs

18 SIP Trunking Example IP-PBX Enterprise Location Provider Network SIP Provider Gateway NY New York PBX Customer Location Los Angeles SIP Provider Gateway LA PSTN PRI

19 Agenda SIP Today Communications Convergence SIP-based Services Enterprise Recommendations

20 Enterprise Recommendations Pressure your vendors Improved SIP support broadens your choices of endpoints & systems Require SIP network interfaces on all communications products & services Open-standards based systems imply greater interoperability With each other, as well as emerging SIP trunking services Follow standards development Much work still being done in IETF SIP, SIPPING, SIMPLE WGs and SIP Forum

21 More Enterprise Recommendations Determine an “owner” for collaboration & communications Typically a cross-functional group from voice, messaging, instant messaging groups Prepare for network management challenges Determine business case benefits Can you establish a tangible benefit to converged communications? Make converged communications part of your long-term plans Improved communications = lower costs and greater efficiency May lead to easier regulatory compliance