2. Why Hosted VoIP Will Make Big Business out of Small Business

3. September 10-12, 2007 Los Angeles Convention Center Los Angeles, California www.ITEXPO.com 3 Why Hosted VoIP Will Make Big Business out of Small Business Introduction For the first time in history, technology, timing and economics are converging to make a viable market for non-traditional service providers to offer high-quality, hosted VoIP to the massive and underserved small business market. We will explore these factors and why will you miss the mark if you fail to address the key to this market segment – the channel.

4. September 10-12, 2007 Los Angeles Convention Center Los Angeles, California www.ITEXPO.com 4 Why Hosted VoIP Will Make Big Business out of Small Business Factor 1: Timing

5. September 10-12, 2007 Los Angeles Convention Center Los Angeles, California www.ITEXPO.com 5 Why Hosted VoIP Will Make Big Business out of Small Business Broadband changes everything. Factor 2: Technology Product Evolution.

6. September 10-12, 2007 Los Angeles Convention Center Los Angeles, California www.ITEXPO.com 6 The small business: They are used to buying their services from multiple vendors. Hosted VoIP provider’s can provide all of these services, bundled together, for a lower total cost. Why Hosted VoIP Will Make Big Business out of Small Business Factor 3: Economics The service provider/VAR, etc.: To profitably service small business, the service provider must keep OPEX down. A hosted solution, where the IP phone is the extent of the CPE footprint, is a good start.

7. September 10-12, 2007 Los Angeles Convention Center Los Angeles, California www.ITEXPO.com 7 Having the technology, economics and timing aligned won’t guarantee success into the small business. The service provider must also understand and appropriately market to the small business channel. Why Hosted VoIP Will Make Big Business out of Small Business Most have no IT staff on-site They want simplicity and familiarity Most use network-based e-mail, website, CRM, etc. They already value hosted solutions 75% have their LANs serviced by VARs They already have trusted partners 85% prefer to bundle their IT and Voice services They are looking for value

8. September 10-12, 2007 Los Angeles Convention Center Los Angeles, California www.ITEXPO.com 8 The small business market is unique and therefore the channel to reach the small business is also unique. A winning channel program must drive growth, must be repeatable and simple to deploy, and it must be cost - effective. Why Hosted VoIP Will Make Big Business out of Small Business The ideal model is to unite the service provider — who is good at hosting and delivering services — with the VARS — who care for small businesses on a day- to-day basis.

9. September 10-12, 2007 Los Angeles Convention Center Los Angeles, California www.ITEXPO.com 9 Conclusion Analyst firm International Data Corp. referred to information from a survey they conducted that led them to predict that “hosted VoIP will rapidly grow into a multi-billion dollar market over the next few years …” After examining the state of technology, the appealing economics, and the aging state of key systems, it is easy to see why hosted VoIP will make big business out of small business. Why Hosted VoIP Will Make Big Business out of Small Business

10. September 10-12, 2007 Los Angeles Convention Center Los Angeles, California www.ITEXPO.com 10 Thank you David Cork Chief Executive Officer david.cork@naturalconvergence.com Why Hosted VoIP Will Make Big Business out of Small Business