1. Huw Rees 8x8, Inc. huwr@8x8.com Hosted iPBX / IP Centrex

2. New Telecommunications Landscape Rapid adoption of broadband connections and IP technology are being made Broadband and IP can be used to provide IP Centrex / Hosted PBX services PBX becomes a piece of software embedded in the Network

3. New Service Provider Models Enables new service provider models. Adding voice to data and data to voice. No PBX hardware investment for the enterprise – voice control (hardware and software) resides at Service Provider’s premise –Cost savings –No hassles for small companies –Single bill for phone and Internet

4. Hosted iPBX vs IP Centrex Is there a difference? –Maybe, but somewhat semantics –IP Centrex is a common set of services usually without much in the way of customization –Hosted iPBX offers a “virtual PBX” with customized services unique to each end enterprise customer.

5. Targeted Enterprise Customers Potentially, virtually any type of enterprise SMEs (10 -200 extensions) Larger enterprises with multiple sites Multi-tenant buildings Branch Offices High value proposition for distributed enterprise customers Vertical Markets – Hotels, Healthcare, Professional Services, etc.

6. Typical Solution

7. Unified Corporate Network Hosted iPBX or IP Centrex also creates ability for larger enterprises to consolidate multiple separate office data and telephone networks into a single unified corporate network

8. Market Requirements Carrier grade reliability/availability Provides features that significantly surpass current Centrex Integrated applications environment that allows for the development of user defined custom features (is this really true)? QOS

9. Reliability/Availability Operating environment –Most Service providers seem to prefer Solaris or (moving to) Linux. Windows is generally not accepted (always exceptions) –Scalability - must scale to thousands of companies –Reliability - everybody wants five “9s”, but do they really need this?

10. Typical Feature Set Voice Mail Auto Attendant 3-way Conferencing and conference bridge (n-way conferencing) Call Forwarding (Find Me, Follow Me) Do Not Disturb Call Waiting Caller ID Call Waiting Caller ID Call Transfer (1 step, 2 step: announcement), Call Hold Hunt Groups, ring groups Fax Support Plus new CTI features such as remote receptionist and (web based) user control, including Microsoft Outlook integration Voice Mail Auto Attendant 3-way Conferencing and conference bridge (n-way conferencing) Call Forwarding (Find Me, Follow Me) Do Not Disturb Call Waiting Caller ID Call Waiting Caller ID Call Transfer (1 step, 2 step: announcement), Call Hold Hunt Groups, ring groups Fax Support Plus new CTI features such as remote receptionist and (web based) user control, including Microsoft Outlook integration

11. QOS If there is a point to point IP connection, QOS can be implemented If the service is entirely over the Internet, QOS is really a “best effort” –Use compressed codecs (poor man’s QOS) –Compensate at the end point with packet loss concealment and adaptive jitter buffers –Compensate with a better business value?

12. Benefits over traditional PBX For Service Providers Additional and recurring revenues with new service offering Retain customers as company grows Minimal capital investments Improved margins For Service Providers Additional and recurring revenues with new service offering Retain customers as company grows Minimal capital investments Improved margins For End Users Single broadband connection for voice and data eliminates costs of PSTN link Low capital investment Service scales with the company Highly customizable Moves, adds & changes quick, easy and inexpensive For End Users Single broadband connection for voice and data eliminates costs of PSTN link Low capital investment Service scales with the company Highly customizable Moves, adds & changes quick, easy and inexpensive

13. CPE Customer Premises Equipment (CPE) Support: Many excellent IP phones now available Media Gateways (useful for fax) Soft Clients Customer Premises Equipment (CPE) Support: Many excellent IP phones now available Media Gateways (useful for fax) Soft Clients

14. Protocols SIP is king, but for a virtual PBX maybe a master slave protocol is more suitable (MGCP, SCCP) Does the end user care - no. Does the service provider care - maybe Answer - support multiple protocols?

15. PSTN gateway SIP and MGCP SIP proxy Media Switch Web Services API (XML) Support Billing Store front Customer Admin LDAP Database System Management SoftSwitch (LINUX servers, JVM 1.4) Front end (Windows 2000, SQL) Service Architecture Overview Endpoints Hosted iPBX IP Centrex Feature Server

16. Feature Server Architecture External Applications (billing, email, …) CTI Applications Web Browser OAM&P Applications Tcl Service Customization XML, LDAP, SNMP TNM LDAP Applications Servers (VM,UM,…) VM AAIVR SLEE RTPMS API Media Server SCCP (Skinny ) Gateway /Softswitch MGCP SIP H.323 Core iPBX Configuration Manager JTAPI for OA&M JTAPI PhoneletsServlets IP Phones, SIP Phones & Media Hubs H.323, GW, GKs iPBX Server Software Device Manager

17. Administration Any solution needs to include at least 3 tiered administration functions –Service provider interface (allows complete control over all virtual iPBXs or Centrex groups) –Business owner interface - allows control of a virtual group- can set global preferences of users and dynamic MAC –End User interface - allows self provisioning and local preferences

18. Enhanced Services IP Centrex / Hosted iPBX can offer new services like TV quality video calls –Broadband videophones with 30fps, full motion video –Need 256Kbps+ to look “good” –Has to be plug and play –Too expensive today?

19. Keys to success –How to deploy in volume –Needs to meet previous market requirements plus plug and play installation. Dial tone in seconds. Firewall/NAT traversal. –Need distribution channel –Also, don’t forget 911