Deploying Enterprise-class VoIP with SMB Resources (E-06) David Schenkel Senior Technical Analyst ADTRAN Every small business wants to look big. But, they have traditionally been hindered by the old adage that you get what you pay for where communications technology was concerned. If you wanted big business capabilities, you needed a big business IT budget and staff. But IP technology, innovative software, and integration work by vendors have dispelled that notion. Today, SMBs have access to a wide range of communications solutions that provide the same features and capabilities as large enterprise solutions, without the large enterprise price tag. This session will uncover how the expansive SMB market can take advantage of the ease of deployment, use, and management that vendors have built into their IP PBX solutions, allowing SMBs to leverage VoIP and unified communications solutions to reduce their telecom costs and increase their communications and collaboration capabilities to enhance business operations.

Who is ADTRAN? Leading Provider of Networking and Communications Equipment – ADTRAN solutions enable voice, data, video, and Internet communications – Widely deployed by carriers, SMBs and enterprises worldwide – Nearly every T1 in the nation delivered via ADTRAN equipment – Market leadership position in Integrated Access Devices and #2 in Branch Office Access Routers 25 Years of Experience Building Innovative Solutions Supporting Next- Generation Technologies Fast Facts: Founded in 1985 Publicly traded on NASDAQ: ADTN 2008 revenue - $501 million 1,700 employees worldwide 50 countries Broad portfolio – 1,700 products Fast Facts: Founded in 1985 Publicly traded on NASDAQ: ADTN 2008 revenue - $501 million 1,700 employees worldwide 50 countries Broad portfolio – 1,700 products ADTRAN Headquarters, Huntsville, AL

Strong Stable Company Financially Stable – History of profitability – History of success during challenging times Forbes “200 Best Small Companies” Fortune “40 Stocks to Retire On” Featured in “The Breakthrough Company”

ADTRAN − End-to-End Connectivity Central Office Business & Residential Customers Provider’s Access Infrastructure

Carrier Networks Division Improve Service Provider Access Infrastructure Increase Services for Business & Residential Customers – Broadband – Optical access – Carrier Ethernet – IPTV – VoIP – Mobile Backhaul Central Office Business & Residential Customers Provider’s Access Infrastructure

Enterprise Networks Division Voice, UC and Data Networking Solutions for SMB and Distributed Enterprises “Demarc to the Desktop” ADTRAN Solutions Enable: – Internet Access – Branch Office Connectivity – LAN Switching – Wireless Access – IP Telephony/VoIP – Multimedia - Video/Fax – Unified Communications Increase Services for Business Customers

Enterprise Networks Division Offers High-Performance Products Builds Carrier-Class Quality and Reliability into Our Products Delivers Exceptional Value in Acquisition and Support Costs Simplifies Management Via Integrated Devices and Common OS Sells 100% Through the Channel Supports our Partners Rather Than Competing Provides a Business Relationship That is Easy for Our Partners Award-Winning Pre- and Post-Sales Support o No Cost, Unlimited for the Life of the Product

ADTRAN VoIP/UC Solutions Portfolio Voice Data IPT Platform – NetVanta 7100 IP PBX – NetVanta 7060 IP Business Gateways Switches, Routers NetVanta UC

NetVanta 7100 Platform All in One “Office in a Box”

All-In-Many Solution

NetVanta Unified Communications NetVanta Unified Communications Server – Adds UC to existing PBXs, IP-PBXs NetVanta Business Communications System – Bundled NetVanta 7000 Series + UC Server (+conf server, click to dial) NetVanta Enterprise Communications Server – Soft IP PBX Plus full UC Server features + Conf, Paging Server, etc.. NetVanta Business Application Server – Inbound and Outbound IVR, CEBP, and point solutions

Feature Matrix by Product BRAND NetVantaNetVanta UC PRODUCT Enterprise Comm. Server Business Comm. Server (7060) Business Comm. Server (7100) NetVanta UC (7000 IPT Series) NetVant a UC (3 rd party PBXs) Business Application Server FEATURECommunications ServicesAdd UC to PBXsApplications PBX Embedded Trunks VPN Imbedded router PoE Switch Voic Auto attendantBasic Advanced UM Fax Click to Dial IVR Database Integration Optional Outbound Notification Optional Conference Server Possible Paging ServerOptional PossibleOptional

Defining the SMB This Session is focused on VoIP and UC for Small and Medium Business So It’s Worth Mentioning How ADTRAN Defines This Market Segment, Since It Is Our Primary Market Focus and Since Other Players in This Market All Define It Differently For ADTRAN, SMB’s Deploy VoIP and UC Solutions for Between 5 and 2,000 Users Our Solutions Tend to Be Clustered for Deployments Between 15 and 400 Users However We Have Installations With as Few as Five Users and as Many as Several Thousand Users Also, Since Most SMBs Have Low Penetrations of UC Features, Almost Any UC Features Used By SMBs Can Be Considered to Be a Large Enterprise Feature

Defining UC and the Basis for ROI ADTRAN subscribes to the UC Strategies definition of UC which is: “Communications Integrated to Optimize Business Processes” A Simple definition, but it does address the primary driver for any form of UC, since it sets the ground for understanding why any business is interested in UC. If you can invest in and get an improvement in a business process that results in either an operational cost reduction, increase in revenues, or allows re- allocation of human resources, then you can get a Return on Investment. In the past telephony was considered to be a cost center rather than an opportunity, so TCO was the important measure of performance for PBXs. But UC provides opportunities for increasing the performance of a business, so it is an opportunity center that requires an ROI rather than simply a TCO. ADTRAN’s goal is to provide UC solutions that improve business processes for SMBs that are easily deployable, usable, flexible, evolvable, and affordable.

A Wealth of ROI Opportunities There are a wealth of ROI opportunities for VoIP and UC that aren’t currently being exploited by SMBs and their resellers Features like UM, Conferencing, Fax, Auto-attendants, CEBP, Inbound and Outbound IVR, Call Screening, Redirection and Notifications, Personal Agents, FMC, SIP Trunking, SIP Phones, Soft phones, Soft Operator Consoles, Presence, Collaboration and more. These opportunities will only increase in the future. If you are an SMB, then ADTRAN believes that some form of UC can be used to positively affect your business, independent of your size, business needs and business model. We believe that you can do it NOW rather than later; and that there is an industry vendor out there that has a solution that will fit your needs. The solution may be premises based, service provider based, in the Cloud/SaaS, or a combination. It may be a vendor such as ADTRAN, Allworx, Epygi or others but there will be a solution out there that you can use. The key message for SMBs and the channel is that UC solutions are here now and they will improve your business processes and your bottom line.

SMB Buying Criteria for VoIP and UC While purse strings will loosen up a bit in 2010, we know that businesses, especially SMBs, will be looking for value—no matter what they are buying. We found that to be the case in 2009 when UC workforce productivity features with “soft” ROIs such as unified messaging, presence, and call redirection weren’t reasons for buying. Soft ROI’s just don’t generally work for SMBs especially in hard times. In 2009 the impetus for an SMB to buy a UC solution was that it have a short, identifiable ROI – usually within one to two quarters. The ease with which a UC vendor could define an ROI in “hard” operating dollars, and the shorter the ROI, the more likely that vendor was to make a sale. VoIP and UC features that allowed SMBs to reduce operating costs, do more with less, or brought better customer service were high on the SMBs’ agenda last year and are likely, in my estimation, to remain so in 2010 and probably The trick for SMBs and their resellers is to find the “hard” ROI opportunities with UC that are lurking, just waiting to be discovered in a business. You just have to know how to find them.

VoIP/UC Capabilities SMBs Will Buy into 2010 Here is my list of the top VoIP and UC features with “hard” ROIs for SMBs in 2010: – Fax – Business Process Automation – Notification – Conference Server – SIP Trunking Can these capabilities “drag along” UC features that have softer ROIs like UM, call redirection, call screening, personal assistants, presence, and IM ? YES! – Choose a flexible UC solution that lets you add capabilities as you need them. – Justifying additional UC ROI’s later will become easier as you gain experience. – Desirable UC features that are more difficult to justify up front due to softer ROIs come at a lower marginal cost and become easier to justify once you have a system deployed.

Business Process Automation BPA generates an ROI by receiving calls using automated agents to take or provide information to callers that is located in corporate LOB application databases. It reduces the need for call takers, while providing services to customers and employees 7x24. BPA allows you to build services to provide customers with information about their orders, status and accounts using an IVR service. You can also, determine which callers are routed to live and automated agents depending on the caller, time of day etc.

Notification Notification generates an ROI by initiating calls using automated agents to provide information to customers that is already in corporate LOB application databases. It reduces the need for call makers, and pro-actively provides information to your customers or users. Notification allows you to call or notify customers with appointment reminders, promotional offers, thank-you calls, surveys, or send emergency notifications. Just reducing the number of no-shows for appointments generates a fast ROI for many SMBs. With NetVanta UC you can also build centralized voice paging solutions combined with notifications.

Fax Most SMBs don’t have a fax server. You can get an immediate hard RIO by eliminating fax machines and their maintenance contracts, supplies, power, and phone lines. You also get some softer ROI’s based on efficiency by reducing the time for employees to deal with faxes. – When you combine receiving faxes in UM or integrated messaging, and the ability to send faxes from any desktop application, you can eliminate time that employees spend moving paper faxes around and increase fax security. – You can archive all your inbound and outbound faxes, eliminating lost time retrieving and filing paper faxes. – You can add fax to existing DID numbers so faxes get delivered via one number to employees, or add DID numbers to get one number delivery for individuals or departmental distribution.

Conference Server If you are using a service provider conference service and many of your conference participants are internal to your organization, you can reduce costs and generate an ROI by using the conferencing capabilities in a PBX or UC system. You may also be able to produce an ROI for outside conference participants using internal conferencing in conjunction with reduced networking costs associated with SIP Trunking.

SIP Trunking If your location has access to broadband services, you can reduce your costs to access the PSTN, long distance and 800 number service charges by using a SIP Trunking provider to realize an ROI. SIP Trunking also helps you leverage the benefits for all the previous four suggestions.

Other Important SMB Considerations for VoIP and UC Time and Skill Level to Deploy and Configure the Solution Ongoing Ease of Management, Adds, Moves and Changes Manage Users Via IT Management System (e.g. Active Directory) Automated Phone Detection and Configuration Open Standards Interoperability Multi-Vendor Interoperability for Sets, Messaging, Networking, SIP Trunks, PBXs, Databases, etc. Desktop Clients, Click to Dial Personal Assistants Operator Consoles

Thank you! David Schenkel Senior Technical Analyst ADTRAN Enterprise Networks Division tel: +1 (256) e: w: