1. Hosted UC Alternatives for the SMB
How to get more functionality and reduce your IT spend.
Speaker: Frank Grillo, EVP of Marketing
Cypress Communications

2. Cypress Communications: Leading provider of hosted UC Solutions
Snapshot
Headquarters: Atlanta, GA
Sales and operational coverage throughout North America
20+ years of experience managing enterprise communications
Product Portfolio
Fully managed to desktop, Voice and Internet Services
Managed Data Network Services
Advanced IP Telephony Services
Hosted unified communications (UC)
Operates private network optimized for hosted UC
Give some background on yourself and segue into background on Cypress. Building your credibility.
Customers
6,000 customers and 60,000 handsets
Over 12,000 hosted UC seats installed; projected to exceed 25,000 by end of 2009
Customers include SMBs and SMEs in technology, legal, commercial real estate, financial services, insurance, among others.
© 2007 CYPRESS COMMUNICATIONS, INC. 2
© 2007 CYPRESS COMMUNICATIONS, INC. 2

3. Cypress Awards TMCNet Unified Communications Solution of the Year
VON Innovator Award
Frost & Sullivan Product Innovation Award for VoIP Business Continuity
TMC Labs Innovation Award
VAR Business 500
Technology Marketing Executive of the Year
Communications Solution 2007 Product of the Year
Excalibur Award for Technology Excellence
INTERNET TELEPHONY Excellence Award
Unified Communications Excellence Award
Internet Telephony Magazine Product of the Year
Frost & Sullivan Product Innovation Award for Hosted UC
EVP of Marketing wins Voip-Biz.News' Person of the Year
Association for Corporate Growth (ACG) Phoenix Award
Unified Communications Magazine 2008 Product Of The Year Award
TMC Next Generation Network Innovation Award
Communications Solutions 2008 Product Of The Year Award
2009 Unified Communications TMC Labs Innovation Award
2009 Internet Telephony Magazine TMC Labs Innovation Award

4. New Paradigms for Communications
Technology ownership is no longer a sure thing. IT asset ownership is a choice, not an obligation.
Enterprises are embracing hosted delivery models — SaaS, cloud computing, LAN/WAN services, desktop management, business continuity and hosted UC.
Wireline handsets will increasingly become historical relics facing a similar fate as fax machines and ashtrays.
Wireless and soft phone functionality will be mainstream by 2010.
Hosted IP voice services market will increase from $505 million in to $1.2 billion in 2012.
Source: Gartner, Inc. and IDC

5. Unified Communications
Integrated Communications
voice, data & Internet
voic , and messaging
video and application sharing
audio, web and video conferencing
ACD and contact center
Phone, mobile and PC
Enterprise Convergence
networks and systems
software and applications
processes
Real-time
presence, VoIP and IM
Collaboration
team spaces, share files and desktops
Centralized Control and Management
Quick definition of unified communications.

6. Hosted Unified Communications
All of the features of unified communications, plus…
End-to-end solution: network, access, LAN, WAN, phones, routers, soft client, integration
Custom-designed solution
Network and equipment owned and managed by one provider
Guaranteed voice quality, network availability
Voice traffic prioritization
Business continuity assurance with data failover and redundancy
Project management
User training and support

7. Key Drivers of Hosted UC
Lower Costs
No capital expense
No ongoing maintenance costs
Technology risk avoidance
Lower operational expenses
Economies of scaling
Technology Management
Business Continuity

8. Hosted UC Driver #1: No CapEx
No capital purchase
OpEx model
Pay for only what you use now
Predictable monthly expense
Reallocate capital for strategic projects
“.. users benefit from a predictable cost structure that relieves them from supporting an internal VoIP and UC team; a flexible contract arrangement that enables them to add and subtract end-points on an as-needed basis, and stronger customer service with more flexible contract terms.”
Source: Gartner, Inc.
250-employee firm would typically have to spend $60-70K in capital to purchase a UC solution and then continue to pay another $150K in maintenance fees over the next 3 years. Not to mention the 100,000+ salary for the certified engineer. And if your company has multiple locations or more employees, you can expect those costs to increase—if not double—for a do-it-yourself approach.
Reallocation of capital—both employees and cash—can make an immediate impact to your bottom line when funneled into projects that support your enterprise’s core strategic initiatives.

9. Hosted UC Driver #2: No Maintenance Expense
Equipment maintained by provider
Network maintained by provider
No maintenance contracts
IT employees can focus on other business-centric projects
“We considered buying and maintaining a phone system…but the total cost of ownership was way too high. The annual maintenance alone was cost prohibitive at $48,000 a year.”
--IT Manager at Mid-Sized Firm

10. Hosted UC Driver #3: Avoid Technology Risk
You don’t own anything
Service Provider absorbs the technology risk
Leasing equipment protects enterprise from obsolescence
By 2013, 40% of workers will have abandoned desk phones.
Wireless or soft phones will be mainstream by 2010.
Source: Gartner, Inc.
With hosted UC, firms lease handsets & soft phones, eliminating risk of obsolescence.

11. Hosted UC Driver #4: Lower Operational Costs
Common dialing plan for geographically distributed offices (4-digit dialing and no long distance costs between corporate locations.)
Real-time employee collaboration reduces need for travel
Support for mobile workforce enables greater operational efficiencies
Distributed call center for maximum flexibility and business value
Leverage provider’s extensive resources for lower TCO
“By 2012, the use of collaboration will divert $3.5 billion in annual revenue from the travel and hospitality industry.”
Source: Gartner, Inc.

12. Hosted UC Driver #5: Economies of Scaling
Leverage provider resources that would be cost prohibitive to do on your own
Secure climate-controlled data center with fire suppression
Robust and resilient network operations center
24/7 management
Redundancy: geographical and physical
Easily scale up or down as needs change
Deployment of additional locations or new features don’t require installation of a whole new platform
Greener--Power demands are shared across enterprises

13. Hosted UC Driver #6: Technology Management
Service Provider:
Does the complex integration.
Manages the phones, LAN/WAN, QoS and carrier-grade network.
Handles problem resolution and user support.
Can leverage best-of-breed providers like Cisco, Microsoft and Nortel much more economically.
Demand for UCaaS will increase because many enterprises view internally supported unified communications as being too complex and expensive
Rated #1 benefit by SMBs

14. Hosted UC Driver #7: Business Continuity
Unlike a premises-based PBX, multiple levels of redundancy are built into the solution
Hardened carrier sites
Geographically diverse data centers
Resilient IP network with many points of egress and access
Redundant switching and network elements
CPE redundancy
WAN failover with diverse access paths
Inherent collaboration and mobility features ensure
Can realize a level of redundancy that is difficult—if not impossible—to obtain for a mid-sized enterprise.

15. Case Study: Global Firm
Business Highlights:
Global law firm with 11 U.S. locations
2,800 handsets, 1,800 employees and partners
One of the largest hosted UC deployments
Conducted extensive UC research
Came to the realization that hosted UC was best approach
Selected for reliability, improved productivity and lowered costs
Hosted UC user for 2 years
Cypress solution included desktop phones, soft phones, collaboration, unified messaging, conferencing, real-time presence, unified dialing plans, ACD, customized business continuity plan, etc.

16. Case Study: Mid-Size Firm
Business Highlights:
60+ employees at 1 U.S. locations
Required Unified Communications features
Required installation within 60 days
Needed uninterrupted voice and data communications
Needed flexibility for future growth
Considered buying and maintaining a phone system, but the total cost of ownership was too high. Just the annual maintenance was cost prohibitive at $48,000+ a year.
Cypress solution included converged desktop and soft phones, collaboration, file sharing, Web conferencing, real-time presence, business continuity.

17. Enterprise Checklist for Implementing Hosted Unified Communications
Low Implementation and Operational Costs: Low or no CapEx. Minimal OpEx with outsourced management.
Advanced, Fully Integrated IP-based Communications: Communication tools in a unified interface should encourage collaboration. These tools can help create competitive advantage and efficient operations in a global workspace.
Portable Connectivity: The ability to effectively collaborate from any location is a “must” in today’s dynamic and increasingly globalized work environment.
Guaranteed Business Continuity: Look for carrier-grade % reliability and assurance of continuous business operations.
Flexible, Upgradable Capacity and Capability: The selected system should readily adapt as needs, resources and technologies evolve.
Legacy Service Integration: The system should offer new capabilities without abandoning conventional telecom features you've come to rely on.

18. Questions?
Frank Grillo, EVP of Marketing Cypress Communications