October 10-13, 2006 San Diego Convention Center, San Diego California TMC University’s Introduction to the IP-PBX Reaping the Benefits of the IP PBX Leigh Fatzinger, VP Marketing Citel. The VoIP Migration Company. citel.com

October 10-13, 2006 San Diego Convention Center, San Diego California Agenda In this session: What is an IP PBX (and what isn’t)? What are the Benefits? Lease versus Buy Deployment Considerations What we won’t cover in this session: –Telling you what to buy –Technical details in depth

October 10-13, 2006 San Diego Convention Center, San Diego California What is an IP PBX? A software application on an server. The directory service and traffic controller between “endpoints”. –An endpoint can be a telephone (of many kinds), a handset gateway, device (e.g. PSTN trunk gateways), or another application (I.e: voice mail). –Critical distinction ⇨ the media stream (the voice) does not flow through an IP PBX.

October 10-13, 2006 San Diego Convention Center, San Diego California What is a PBX? TDM PBX Challenges: Not open. Little room for innovation. Not driven by software. Trunk Cards Station Cards Software Media Network TDM PBX PSTN Trunks

October 10-13, 2006 San Diego Convention Center, San Diego California What is an IP PBX? PST N IP PBX Trunk Gateway Trunks IP PBX Software (w/ Applications) LAN 1010 Trunk Cards Station Cards Software Media Network TDM PBX PSTN Trunks TDM PBX Open it up! Innovate! Set the software free! 1010

October 10-13, 2006 San Diego Convention Center, San Diego California What is an IP PBX? Trunk Cards Station Cards Software Media Network TDM PBX PSTN Trunks TDM PBX 1010 Open it up! Innovate! Set the software free! IP PBX Trunk Gateway Trunks IP PBX Software (w/ Applications) PSTN LAN 1010 Media Network Handset Gateway

October 10-13, 2006 San Diego Convention Center, San Diego California What an IP PBX is not. VoIP ≠ IP PBX “PC PBX” (Cards in a Server) ≠ IP PBX TDM PBX with IP Trunk Cards ≠ IP PBX TDM PBX with IP Station Cards ≠ IP PBX

October 10-13, 2006 San Diego Convention Center, San Diego California What an IP PBX is not. VoIP ≠ IP PBX “PC PBX” (Cards in a Server) ≠ IP PBX TDM PBX with IP Trunk Cards ≠ IP PBX TDM PBX with IP Station Cards ≠ IP PBX An IP PBX is a software application on a server. Critical distinction ⇨ the media stream (the voice) does not flow through an IP PBX.

October 10-13, 2006 San Diego Convention Center, San Diego California Agenda In this session: What is an IP PBX (and what isn’t)? What are the Benefits? Lease versus Buy Deployment Considerations What we won’t cover in this session: –Telling you what to buy –Technical details in depth

October 10-13, 2006 San Diego Convention Center, San Diego California What are the Benefits? Lower Operating Cost Scalability and Disaster Recovery Geographic Flexibility Next-Generation Features

October 10-13, 2006 San Diego Convention Center, San Diego California What are the Benefits? Lower Operating Costs Reduced LD Opex Pass calls over Internet or WAN between sites Route traffic over WAN to area of lowest rates Get cheap LD from an IP Carrier

October 10-13, 2006 San Diego Convention Center, San Diego California What are the Benefits? Lower Operating Costs Reduced LD Opex Pass calls over Internet or WAN between sites Route traffic over WAN to area of lowest rates Get cheap LD from an IP Carrier Reduce number of business lines Share trunks among sites (or centralize them) Pay for a full T-1 plus 2 backup trunks per site (instead of 6-8 trucks per site)

October 10-13, 2006 San Diego Convention Center, San Diego California What are the Benefits? Lower Operating Costs Cheap long distance Pass calls over Internet or WAN between sites Route traffic over WAN to area of lowest rates Get cheap LD from an IP Carrier Reduce number of business lines Share trunks among sites (or centralize them) Pay for a full T-1 plus 2 backup trunks per site (instead of 6-8 trucks per site) Lower administration cost (esp. MAC) Web-based administration means less training cost Allows remote and centralized administration Enables user self-administration

October 10-13, 2006 San Diego Convention Center, San Diego California What are the Benefits? Scalability and Disaster Recovery Software inherently more scalable Not limited by cabinet size for lines and trunks More devices can be added as needed Not limited by PBX processor capacity Clustered servers can add scale (like web sites )

October 10-13, 2006 San Diego Convention Center, San Diego California What are the Benefits? Scalability and Disaster Recovery Software is inherently more scalable! Not limited by cabinet size for lines and trunks More devices can be added as needed Not limited by PBX processor capacity Clustered servers can add scale (like web sites) Mirrored servers can be miles apart Same technology used for www and FTP If one server goes down, devices “scramble” to another server and overall service stays up

October 10-13, 2006 San Diego Convention Center, San Diego California What are the Benefits? Geographic Flexibility No 2500 foot wire length limit Both signaling (“features”) and media (voice) are passed over IP at any distance Phones and other devices all over the city and around the world can work as a single network Single dialing plan, central administration, shared resources and applications, etc.

October 10-13, 2006 San Diego Convention Center, San Diego California What are the Benefits? Geographic Flexibility No 2500 foot wire length limit Both signaling (“features”) and media (voice) are passed over IP at any distance Phones and other devices all over the city and around the world can work as a single network Single dialing plan, central administration, shared resources and applications, etc. This enables several other benefits: Reduced LD opex Mobility and Telecommuter Support Disaster recovery Hosting becomes a viable option

October 10-13, 2006 San Diego Convention Center, San Diego California What are the Benefits? Improved Features Definition of a “Feature” Dial tone, Make/Take Calls (DID/DOD) Music-on-hold, Paging, DND Caller ID, MWI, Multiple Line Appearances Call Forwarding, Bridged Lines, BLF ☞ Traditional PBXs Stuck Here

October 10-13, 2006 San Diego Convention Center, San Diego California What are the Benefits? Improved Features Hold, Transfer, Conference Music-on-hold, Paging, DND Caller ID, MWI, Multiple Line Appearances Call Forwarding, Bridged Lines, BLF ☞ Traditional PBX Stuck Here Next-Generation Features Call Logs, Directory Dialing Instant Messaging Telecommuting, Simul-Ring Computer - Telephone Integration (CTI - a bundle) Unified Messaging (an application) ☞ IP Telephony Enables All These

October 10-13, 2006 San Diego Convention Center, San Diego California Computer Telephony Integration Desktop, Laptop and Handset Work In Tandem: Click-to-Dial Call Logging Call recording Incoming Call Pop Visual Call Control

October 10-13, 2006 San Diego Convention Center, San Diego California Unified Messaging Single System for Voice, Fax and See All Mail in One In-Box Listen to Voice Mail via PC Hear via Phone Respond to Voice Mail with and vice versa (reduce call-backs!) Forward and Folder Voice Mail with

October 10-13, 2006 San Diego Convention Center, San Diego California Web-Based Administration PBX Administration Can Be Opened to Broader Group Reduce Training for PBX Administration Customer Self-Administration for Moves, Adds, Changes. User Self-Administration (speed dial programming, call routing capabilities) Combined Administration of PBX, LAN, …

October 10-13, 2006 San Diego Convention Center, San Diego California Citel Gateway Web Administration System configuration options via web browser Easily configure telephones with pull down menus

October 10-13, 2006 San Diego Convention Center, San Diego California Home Office/Branch Support Enable PBX stations to be deployed over IP WAN or Internet. Part or Full-Time Telecommuters Small Branch Office to Metro Hub Distributed Call Center Toll By-Pass Coordinated Dialing Plan

October 10-13, 2006 San Diego Convention Center, San Diego California Eventually, you’ll want all these: Computer Telephone Integration (CTI) Unified Messaging Telecommuter / Branch Office Support Web-based Administration You can do all these on a TDM PBX… …at a price

October 10-13, 2006 San Diego Convention Center, San Diego California Next-Gen Features on TDM TDM PBX PSTN Circuit Trunks 1010

October 10-13, 2006 San Diego Convention Center, San Diego California Next-Gen Features on TDM TDM PBX PSTN CTI Adaptor Circuit Trunks 1010 Add CTI: $250-$500 per user

October 10-13, 2006 San Diego Convention Center, San Diego California Voice Adaptors UM Server Next-Gen Features on TDM TDM PBX PSTN CTI Adaptor Circuit Trunks 1010 Add UM: $200-$400 per user

October 10-13, 2006 San Diego Convention Center, San Diego California Next-Gen Features on TDM TDM PBX WAN or VPN WAN or VPN IP Trunk Adaptor Branch PBX / KTS PSTN Voice Adaptors UM Server CTI Adaptor IP T. A. Circuit Trunks 1010 Add VoIP Toll Bypass: $xxK

October 10-13, 2006 San Diego Convention Center, San Diego California Next-Gen Features on TDM TDM PBX WAN or VPN WAN or VPN IP IP Trunk Adaptor RAA Branch PBX / KTS PSTN Voice Adaptors UM Server CTI Adaptor IP T. A. Circuit Trunks Remote Access 1010 Add Telecommuter Support

October 10-13, 2006 San Diego Convention Center, San Diego California Next-Gen Features on TDM TDM PBX WAN or VPN WAN or VPN IP IP Trunk Adaptor RAA Branch PBX / KTS Admin Server PSTN Voice Adaptors UM Server CTI Adaptor Circuit Trunks Admin Link Remote Access 1010 Add Web-based Admin IP T. A.

October 10-13, 2006 San Diego Convention Center, San Diego California Next-Gen Features on TDM TDM PBX What’s wrong with this picture? Will this work? WAN or VPN WAN or VPN IP IP Trunk Adaptor RAA Branch PBX / KTS Admin Server PSTN Voice Adaptors UM Server CTI Adaptor IP T. A. Circuit Trunks Admin Link Remote Access 1010

October 10-13, 2006 San Diego Convention Center, San Diego California Trunk Gateway Trunks IP PBX Plus Applications PSTN LAN WAN or VPN WAN or VPN 1010 Next-Gen Features in IP Software can be spread across many devices. One Company doesn’t have to make all the elements. Different elements can be places anywhere. PC soft phone from Microsoft, Handset Gateway from Citel phones from new IP PBX vendor, plus your old phones.

October 10-13, 2006 San Diego Convention Center, San Diego California What are the Benefits? Lower operating cost Scalability and disaster recovery Geographic flexibility Next-generation features These all stem from Software Enabling the PBX Compare the pace of PBX feature development to the pace of Internet feature development. An IP PBX is a software application on a server.

October 10-13, 2006 San Diego Convention Center, San Diego California If Local LAN Deployment is an Issue: User experience maintained Less customer training Mix in IP phones as needed Re-use of phone focuses attention on IP applications Existing PBX work force can be leveraged A Handset Gateway converts your existing PBX telephones into IP phones without doing a LAN upgrade or buying new phones. Get the benefits of IP telephony at $100/seat instead of $600. L A N IP Phone Citel SIP Gateway for Nortel Meridian 1 and Norstar Handsets Re-use PBX Wiring CITELlink SIP Gateway for Lucent Definity or NEC Handsets LAN Server R

October 10-13, 2006 San Diego Convention Center, San Diego California Agenda In this session: What is an IP PBX (and what isn’t)? What are the Benefits? Lease versus Buy Deployment Considerations

October 10-13, 2006 San Diego Convention Center, San Diego California Lease versus Buy An IP PBX is a software application on a server. You can buy and operate the service yourself… IP PBX Trunks PSTN 1010 LAN IP PBX Software & Applications PSTN Gateway

October 10-13, 2006 San Diego Convention Center, San Diego California Lease versus Buy An IP PBX is a software application on a server. You can buy and operate the service yourself… or you can “rent” service from an service provider. Trunks PSTN 1010 LAN IP PBX Software & Applications PSTN Gateway WAN

October 10-13, 2006 San Diego Convention Center, San Diego California Rent versus Buy An IP PBX is a software application on a server. You can buy and operate the service yourself… or you can “rent” service from an service provider. Rent Lower Capex Lower Risk of Obsolescence No Server Maintenance Geographic Reach SLA Guarantees Uptime Combined Billing (Voice/Data) Eliminate PSTN Charges Buy Higher Capex Higher Risk of Obsolescence More Direct Control Multiple Vendor Selection Uptime is Up-to-You Multiple Carriers (Voice/Data) Shop for PSTN Deals

October 10-13, 2006 San Diego Convention Center, San Diego California Traditional Centrex Service Dedicated wired service from Central Office Limited functionality with Analog or proprietary Centrax feature telephones All Applications derived from C.O. (Voice Mail, etc.) L A N R.B.O.C Central Office R My Centrex

October 10-13, 2006 San Diego Convention Center, San Diego California Hosted IP L A N Service Provider or Central Office Hosted Applications from Softswitch makers, providing: Hosted IP using SIP Unified Messaging Voice Recognition Single Number Service, Etc. Calls can be re-routed to mobiles IP Phones Softswitch Citel SIP Handset Gateway for PBX Telephones Traditional PBX Telephones using existing level 3 cable R IP Phones Remote Serving Location

October 10-13, 2006 San Diego Convention Center, San Diego California Lease versus Buy Centrex Limitations Relatively expensive compared to PBX Limited features compared to PBX Difficult to provision, long lead times for MAC Mainly attractive to 2000 users Only has 10% - 14% market share vs. PBX

October 10-13, 2006 San Diego Convention Center, San Diego California Lease versus Buy Centrex Limitations Relatively expensive compared to PBX Limited features compared to PBX Difficult to provision, long lead times for moves, adds, changes. Mainly attractive to 2000 users Only has 10% - 14% market share vs. PBX Hosted IP Telephony Costs are leveled (no wires, no class 5 switch) Features are the same (it’s the same software) Provisioning and administration are web-based Expected to win 25% to 50% market share Do you host your own web servers?

October 10-13, 2006 San Diego Convention Center, San Diego California Lease versus Buy Centrex Limitations Relatively expensive compared to PBX Limited features compared to PBX Difficult to provision, long lead times for MAC Mainly attractive to 2000 users Only has 10% - 14% market share vs. PBX Hosted IP Telephony Costs are leveled (no wires, no class 5 switch) Features are the same (it’s the same software) Provisioning and administration are web-based Expected to win 25% to 50% market share Do you host your own web servers?

October 10-13, 2006 San Diego Convention Center, San Diego California Agenda In this session: What is an IP PBX (and what isn’t)? What are the Benefits? Lease versus Buy Deployment Considerations

October 10-13, 2006 San Diego Convention Center, San Diego California Considerations in Choosing What are you trying to achieve? –What benefits are driving your decision? How will you get there? –Does the solution offer a migration path? –Can you protect your sunk costs? Watch out for hidden costs. –LAN upgrade for QoS and PoE can be costly. –Make sure the total cost is accounted for. Should you buy or rent? –Don’t make a knee-jerk decision on this. –Hosted IP telephony is a real option.

October 10-13, 2006 San Diego Convention Center, San Diego California Summary IP telephony is compelling telephony because of the benefits it brings. Don’t be confused by VoIP noise. Features and applications are the real drivers behind all PBX telephony. Be clear about what your want in your solution. Consider the rent versus buy option, and look for a good migration option.

October 10-13, 2006 San Diego Convention Center, San Diego California For more information, or to speak with a Citel VoIP Migration Consultants: Free White Paper: Toll Free: