Confidential 2 The Productivity Effect: A Survey of IP PBX Customers Prepared for Cisco Systems The Productivity Effect: A Survey of IP PBX Customers Prepared for Cisco Systems January 2003

Confidential 3 Key Findings

Confidential 4 Measuring IT Staff Benefits For example, 72% report that IPT has resulted in faster MACs. Of these customers, the average benefit is 1.5 hour saved per event.For example, 72% report that IPT has resulted in faster MACs. Of these customers, the average benefit is 1.5 hour saved per event. Realized IT Benefit Percent of Population Receiving the Benefit Average Benefit Level Experienced Faster moves, adds, or changes72%1.5 hrs per move New office opening completed quicker55% 3.8 weeks per new office opening Improved productivity within the IT dept.45%5.4 hrs/wk, or 35 days per year IT staff time saved as end users can use telephony features without help 43% 5.5 hrs/wk/IT employee involved with phone support Reduced need for IT staff to travel42% 13 hrs/mo/IT employee, or 19 days per year

Confidential 5 Measuring Non-IT User Benefits Realized Non–IT Benefit Percent of Population Receiving the Benefit Average Benefit Level Experienced Easier move, add, or change process allows employees to move workspaces more often 71%3 more moves per year Improved corporate headquarters employee productivity 51% Saves 4 hrs per HQ employee per week, or 26 days a year Less telephone tag for all employees 50% 3.9 hours week per employee, or 25 days per year Improved remote office employee productivity 48% 4.3 hours per remote office employee per week, or 28 days per year Improved telecommuter productivity 47%5 hrs per week, or 33 days per year

Confidential 6 The Continuum: IPT & End User Productivity Most people who realize a benefit at all, realize it within 6 monthsMost people who realize a benefit at all, realize it within 6 months Q21: For each of the end user benefits you have realized as a result of implementing IP telephony solutions, when did you begin to realize these benefits? Note: Chart does not include respondents who selected “Do not know.”

Confidential 7 The Continuum: IPT & IT Productivity Q20: For each of the IT benefits you have realized as a result of implementing IP telephony solutions, when did you begin to realize these benefits? Note: Chart does not include respondents who selected “Do not know.”

Confidential 8 Drivers & Deterrents

Confidential 9 IP Telephony Deployment Drivers (1) IPT drivers are quite diverseIPT drivers are quite diverse Both productivity and non- productivity items are widely citedBoth productivity and non- productivity items are widely cited “Other” productivity benefits mentioned include compatibility with existing systems and applications, simplified management, and ease of installation in remote offices“Other” productivity benefits mentioned include compatibility with existing systems and applications, simplified management, and ease of installation in remote offices “Other” factors mentioned include ease of use and administration“Other” factors mentioned include ease of use and administration Q9: What factors motivated your company’s decision to deploy an IP telephony solution? N=100 except for “other productivity benefit” N=28 and “other factor” N=20. Options: Very unimportant, somewhat unimportant, neutral, somewhat important, very important.

Confidential 10 IP Telephony Provides Competitive Advantage Two-thirds agree that IP telephony provides their company with a competitive advantageTwo-thirds agree that IP telephony provides their company with a competitive advantage Q11: Please rate your agreement with the following statement. IP telephony provides my company with a competitive advantage over other companies in our industry. N=100

Confidential 11 IP Telephony IT Benefits: Productivity

Confidential 12 IT Time Saved: Faster Moves, Adds and Changes One-third save two hours or more each time an employee is movedOne-third save two hours or more each time an employee is moved Q22: How much time is saved in IT staff time per move as a result of a faster move, add, change process? N=66 Note: Chart does not include respondents who selected “Do not know” or “Don’t measure this benefit.”

Confidential 13 IT Time Saved: New Office Opening More than 60% save two weeks or more when they open a new officeMore than 60% save two weeks or more when they open a new office Q36: How many fewer weeks does it take to set up a new office building with IP telephony as compared to without IP telephony? (Measure timeline from the day IT staff begin to install IT infrastructure in the new building to the day the IT infrastructure is ready to go live.) N=51 Note: Chart does not include respondents who selected “Do not know” or “Don’t measure this benefit.”

Confidential 14 IT Time Saved: End User Support More than half report saving five or more hours because end users complete tasks without assistanceMore than half report saving five or more hours because end users complete tasks without assistance Q34: How much time per IT employee per week is saved because end users can complete tasks without assistance from the help desk? N=37 Note: Chart does not include respondents who selected “Do not know” or “Don’t measure this benefit.”

Confidential 15 IT Time Saved: Within the IT Organization Half report the IT dept. saves five or more hours per week because of IP telephony implementationHalf report the IT dept. saves five or more hours per week because of IP telephony implementation Q35: How much time is saved per week within the IT organization as a result of IP telephony implementation? N=38 Note: Chart does not include respondents who selected “Do not know” or “Don’t measure this benefit.”

Confidential 16 IT Time Saved: Reduced Travel More than half report saving 8 hours or more per month because of the IT staff’s reduced need to travelMore than half report saving 8 hours or more per month because of the IT staff’s reduced need to travel Q30: How much time is saved per IT employee per month as a result of the reduced need to travel? N=36 Note: Chart does not include respondents who selected “Do not know” or “Don’t measure this benefit.”

Confidential 17 IP Telephony IT Benefits: Non-Productivity

Confidential 18 Money Saved: Less Cabling Required Almost two-thirds report saving $5,000 or more per year on cabling expensesAlmost two-thirds report saving $5,000 or more per year on cabling expenses “Other” response included up to “50%” of cabling expense“Other” response included up to “50%” of cabling expense Q25: By how much has cabling expense decreased per year as a result of implementing IP telephony? N=42 Note: Chart does not include respondents who selected “Do not know” or “Don’t measure this benefit.”

Confidential 19 Money Saved: Decreased Equipment Expenses More than half report saving $10,000 per year or more on equipment expenses*More than half report saving $10,000 per year or more on equipment expenses* “Other” respondents had difficulty quantifying the amount of money saved“Other” respondents had difficulty quantifying the amount of money saved Q24: By how much has equipment expense decreased per year as a result of implementing IP telephony? N=30 Note: Chart does not include respondents who selected “Do not know” or “Don’t measure this benefit.” *Due to small sample size, results are considered directional only.

Confidential 20 Money Saved: Decreased Reliance on External Vendors More than half report saving $5,000 or more per month on external vendors’ support and servicesMore than half report saving $5,000 or more per month on external vendors’ support and services Increases with company size*Increases with company size* “Other” responses indicated this benefit was non-monetary“Other” responses indicated this benefit was non-monetary Q31: How much money is saved per month due to decreased reliance on external vendors for support, services? N=32 Note: Chart does not include respondents who selected “Do not know” or “Don’t measure this benefit.” *Due to small sample size, results are considered directional only.

Confidential 21 Money Saved: Decreased Office Rental Expenses Three-quarters report saving $5,000 or more per month on office rental expenses*Three-quarters report saving $5,000 or more per month on office rental expenses* Q32: By how much has office rental expense decreased per month as a result of more employees being able to work from home? N=23 Note: Chart does not include respondents who selected “Do not know” or “Don’t measure this benefit.” *Due to small sample size, results are considered directional only.

Confidential 22 IP Telephony End-User Benefits: Productivity

Confidential 23 End-User Time Saved: Changing Workspaces Faster MACs are often thought of as an IT staff benefit; this research shows that non-IT employees also benefit by moving workspaces more oftenFaster MACs are often thought of as an IT staff benefit; this research shows that non-IT employees also benefit by moving workspaces more often This was a benefit we heard about in the Phase 1 focus groups; the survey confirms that it is a relevant benefit to manyThis was a benefit we heard about in the Phase 1 focus groups; the survey confirms that it is a relevant benefit to many Q39: How much more frequently does each employee move workspaces per year with an IP telephony solution compared to without an IP telephony solution? N=38 Note: Chart does not include respondents who selected “Do not know” or “Don’t measure this benefit.”

Confidential 24 End-User Time Saved: Corporate Headquarters More than half of corporate headquarters employees saves 3 or more hours per week because of increased use of telephony featuresMore than half of corporate headquarters employees saves 3 or more hours per week because of increased use of telephony features Q44: How much time is saved per employee at corporate headquarters per week as a result of improved use of telephony features? N=39 Note: Chart does not include respondents who selected “Do not know” or “Don’t measure this benefit.”

Confidential 25 End-User Time Saved: Less Telephone Tag More than half of employees save three or more hours per week because of less telephone tagMore than half of employees save three or more hours per week because of less telephone tag That’s more than 150 hours per employee per yearThat’s more than 150 hours per employee per year Q42: How much time is saved per employee per week as a result of less telephone tag? N=37 Note: Chart does not include respondents who selected “Do not know” or “Don’t measure this benefit.” 57%!

Confidential 26 End-User Time Saved: Remote Office Employees More than 60% of remote office employees save 3 or more hours per week with improved access to telephony featuresMore than 60% of remote office employees save 3 or more hours per week with improved access to telephony features Q45: How much time is saved per employee at remote offices per week as a result of improved access to telephony features? N=40 Note: Chart does not include respondents who selected “Do not know” or “Don’t measure this benefit.”

Confidential 27 End-User Time Saved: Telecommuters More than half of telecommuting employees save 5 or more hours a week with remote access to IP telephony featuresMore than half of telecommuting employees save 5 or more hours a week with remote access to IP telephony features “Other” responses indicated this benefit was not measured in time savings“Other” responses indicated this benefit was not measured in time savings Q43: How much time is saved per telecommuting employee per week as a result of remote access to IP telephony features? N=38 Note: Chart does not include respondents who selected “Do not know” or “Don’t measure this benefit.”

Confidential 28 End-User Time Saved: Internal Dialing Plans One third report that employees save three or more hours a week with internal dialing plans for nationwide officesOne third report that employees save three or more hours a week with internal dialing plans for nationwide offices “Other” responses indicated this benefit was not measured in time savings“Other” responses indicated this benefit was not measured in time savings Q53: How much time is saved per employee per week as a result of internal dialing plans for nationwide offices? N=36 Note: Chart does not include respondents who selected “Do not know” or “Don’t measure this benefit.” 33%!