2. Megatrends and New Paradigms
A Look at Hosted VoIP
Megatrends and New Paradigms
Speaker: Frank Grillo, EVP Marketing for Cypress Communications

3. Megatrends and New Paradigms
Making technology a tangible differentiator is a privilege to be won or lost by IT.
Technology ownership is no longer a sure thing. IT asset ownership is a choice, not an obligation.
Enterprises are embracing hosted delivery models—software as a service (SaaS), LAN/WAN services, desktop management, and business continuity and hosted VoIP.
Hosted VoIP market will increase from $375 million in 2006 to $3,165 million in 2011.
Source: Gartner, Inc.

4. Hosted VoIP Market Segments
Hosted IP PBXs
IP Centrex
Communications as a Service (Similar to SaaS where customers pay for usage rather than for ownership)
“Communications as a Service is the most recent and innovative of the hosted VoIP delivery models.”
Gartner, Inc.
Hosted VoIP Market Trends Report of North America
Daniel O’Connell and Eric Goodness, Authors

5. IP PBX Located at your site or vendor’s location
It’s still connected to the same old telephone network
People who build it may not be the people who support it
Benefits
Highly customizable
Lower capital and operational costs
Drawbacks
Multiple providers to manage
LAN/WAN management typically separate
You get what you want – but at a price $$
Poor geographical redundancy – unless you’re paying big $$
You’re still on the hook for upgrades and maintenance

6. IP Centrex Infrastructure located at provider site
Switch owned and managed by the provider
Switch shared among multiple customers
Benefits
You don’t have to buy and deploy a switch
Potential lower operational costs
Drawbacks
Immature service providers
Very limited service set
Limited geographic span
Unmanaged LAN/WAN
Lack of end-to-end solution
Lack of national network limits business continuity protection

7. Communications as a Service
Complete integrated solution—phones, voice/data access, voic , PBX functionality, unified communications and collaboration applications.
High-touch service with full LAN/WAN management, remote monitoring, MACs and managed QoS.
Off-premises hosting with POP and circuit diversity, CPE redundancy and WAN failover.
Benefits
Highly customizable
Inherent business continuity
No equipment capital outlay
Nationwide coverage
Single vendor for everything
Drawbacks
You don’t “own” anything
You’re not “in control”

8. What to Keep in Mind End-to-End Solution
Quality of Service guaranteed from desktop throughout the network
Full LAN/WAN integration
Advanced multimedia, collaboration and traditional calling features
Vendor with a legacy of providing excellent products and support
Highly scalable
Superior Network
Engineered for % availability
Voice calls prioritized over data and no single point of failure
Purpose-built to deliver VoIP services
Real-time proactive network monitoring
Fully redundant for maximum availability
Self-correcting
Calls don’t touch the public Internet

9. What to Keep in Mind (continued)
Minimize your total cost of ownership
No capital expense
Eliminate risk and obsolescence
Flexibility—scale as your business grows and changes
Inherent business continuity
Geographical and network redundancy
POP and circuit diversity
Equipment redundancy
Make it Easy
Turnkey solution
One vendor for voice, data and LAN integration
Off-load ancillary functions