2. www.itexpo.com Making the Case for Hosted IP-PBX It’s the economy…and it’s not stupid Walter Snell

3. www.itexpo.com What is a Hosted PBX? Misconception –A PBX sitting in a data center –Vonage or Skype –A inbound virtual PBX (e.g. Angel.com)

4. www.itexpo.com What is a Hosted PBX? Reality – it’s software –One virtual platform for many companies –Web based administration –User dashboards –QoS management service –New provisioning methods –Complete telecom services –New features/unified communications

5. www.itexpo.com Example Architecture Key Concepts Hardware Redundancy Network Redundancy QoS Management Data Security

6. www.itexpo.com Hosted PBX is for the SMB Market SMBs invest where challenges dictate –Many PBX and key systems are near retirement –Cost is the number one consideration –Lack of IT resources restricts advanced premise solutions –“Best of Breed” is traded for “Ease of Use” –Ideal for the 10-100 size business

7. www.itexpo.com Resource/Commitment Less Onsite IT Costs Easier to Deploy/Change Services Low Capital Investment Reference: Yankee Group SMB State of the Market Report According to Yankee over 30% of 2 million SMBs are in the market for hosted VoIP (aka the unfortunate 2 million)

8. www.itexpo.com Hosted PBX Adoption Rates SMBs adopt rapidly when the needs are highest and the solution is clear – Hosted PBX is nearing that inflection point Reference: Yankee Group SMB State of the Market Report Only 30,000 business use Hosted PBX today Out of 2.4 million

9. www.itexpo.com Benefit #1 - ROI Cost Comparison for 50 person business Startup Cost 50 phones $ 12,500 ($250 per phone) Setup $ 1,500 (30 per user) QoS Router $ 1,000 (Router) iQ Manage $ 1,000 (QoS Mgmt) Labor $ 2,000 (20 hours @ 100 hour) $18,000 Monthly Operations Cost 30 Employees $ 1,250 mo. 25,000 VoIP minutes$ 625 mo. 24/7 Support$ 0 IT On Site$ 0 Software Maint.$ 0 T1 Service$ 450 mo. $ 2,325 mo. Startup Cost 50 phones $18,000 ($350 per phone) IP-PBX $50,000 (Cisco Call Manager Express) Assessment $ 3,000 (Network Assessment) Labor $ 8,000 (80 hours @ $100 hour) $79,000 Monthly Operations Cost 30 Employees $ 0 25,000 minutes $ 1,250 mo. (.05 average) 24/7 Support $ n/a IT On Site $ 500 mo. (consulting fees) Software Maint. $ 1000 mo. (15% annualized) PRI Service $ 450 mo. $ 3,200 mo. Hosted Premise

10. www.itexpo.com Benefits #2 - Freedom Work Anywhere –Local and remote users –No WAN congestion problem that IP-PBX suffers –Mobile users – soft phone, cell phone, etc. –Home users – completely connected On-net Extension Calling –Dial an extension whether its in San Diego or Japan –No cost calling

11. www.itexpo.com Benefit #3 – Self Control MACD –Self manage Moves, Adds, Changes, Deletes (MACD) –No Consultants needed Add new numbers –Order new phone numbers online –Local, US, even international numbers Order new services –No truck rolls – provision instantly –E.g. email-fax, video, collaboration, ACD

12. www.itexpo.com Challenge #1 - Quality Quality is number one concern –If it doesn’t sound good, then it’s not good enough –It must never drop calls or jitter Reasons –Overloaded LAN – can’t handle VoIP –Poor ISP service provider network Solutions –QoS Management Tools –Managed WAN circuits (MPLS-DSL, dedicated T1)

13. www.itexpo.com Challenge #2 - Reliability It has to work all the time –Premise equipment aims for 99.999% –Not there yet for hosted but close 99.99% Reasons –Network and Power Outages –Software/Hardware Problems Solutions –Routing Masks (inbounds move to cell, legacy) –Local failover to PSTN in critical business apps –POE (power over ethernet) + battery backup

14. www.itexpo.com Hosted PBX to UCX (unified communications exchange) Mobile Communications Mobile Communications Video/Web Conferencing Video/Web Conferencing Enterprise IM Services Enterprise IM Services Unified Messaging Collaboration Predictive Dialing Predictive Dialing Unified Communications Architecture Multimedia Communications Video Conferencing Mobile Services Unified Messaging Workflow API Workflow API Hosted PBX Telephony Easy to add new features as businesses move up the technology value chain

15. www.itexpo.com Enhanced VoIP Example – Hosted Auto Dialing Sales Team Location: Anywhere Size: 1 to 100 Salesforce Data Center Location: Upload call data to Hosted PBX Smartcast begins predictive calling Leaves voicemail on no answer Pops live called party to agent screen Routes live calls to sales agent Starts/Stops based on Agent Activity 1 2 3a 3b 3c 4 Upload data Outbound dials Send live callers Pop SF Record 1 2 3a 3b Save up to $2000 per month per sales person in labor costs

16. www.itexpo.com Review Hosted PBX services are ideal for SMBs Low CAPEX and OPEX are primary drivers Flexibility, mobility, and ease of use are other advantages Challenges are QoS and reliability Enhanced features enable businesses to reduce costs much further Hosted PBX is nearing the inflection point