1. AVAYA CLOUD SOLUTIONS DELIVERED BY BT WHOLESALE SUMMARY SLIDES

2. Content Market and opportunity
The BTW Avaya Cloud Solutions foundation
Solutions opportunity
Key success elements
Commercial and delivery model
Engagement model
Slide build: Sky high backdrop?
Remove headings?

3. “ ” Avaya Cloud solutions is part of Hosted Communication Services
Contact Centre and Unified Communications
Enterprise grade functionality, scalability and service
Because our Hosted Communications Services are embedded within our dedicated next-generation network, we offer built-in quality of service, security and resilience. It has all the advantages of the cloud, only better… “ ”

4. The market and drivers New Growth opportunities
End Customer Market:
Lack of systems flexibility
Inability to respond to new market needs
Reduce unexpected costs
Constraints on capital
Increasing business risk
Reliance on scarce skills
Concerns about resilience and security
Cloud-based contact centre seats are expected to grow at 24% compound annual growth rate from 2013 to 2016
DMG Consulting
New Growth opportunities
56% of survey respondents currently use or plan to use collaboration through a software as a service (SaaS) deployment model
Forrester
Channel Partner
Declining returns
Competition for maintenance
Commoditisation of support activity
Growth constraints
Constraints on capital, risk and time
Current market static/ declining
25% of surveyed companies utilise hosted services; of non-users,
47% are likely to use hosted services within the next 12 months
Frost and Sullivan
End customer
Capex based systems designed for peak capacity offer no flexibility, every change is a new PS project
Lack of flexibility and responsiveness means inability to respond to market requirements, and thus becoming uncompetitive
Upgrades or equipment failures can created unbudgeted expenditure
Reseller
End customers capital constraints flows through to declining returns fro resellers unless they have an opex model
Declining pool of highly contested maintenance contracts
Declining margins on provisioning and basic service activities
Growth is constrained by people intensive PS activity and scarce skills

5. 8,000 UK business & government customers with >250 employees
The Enterprise market for hosted UC and Contact Centre is large and growing rapidly
The UK target market
UK Contact Centre Market
On premise
Hosted
8,000 UK business & government customers with >250 employees
Hosted market growth
Limited Ethernet penetration
Mid-Market & Enterprise
8000 target businesses
Enterprise SLA
Enterprise Reseller Channel
Reseller differentiation
Remote/ mobile workers access via enterprise VPN
Market Segmentation
< >250
Employees per customer
Network Access
Broadband Ethernet
SME
4.8m target businesses
SME service proposition
Volume Reseller Channel
Standardised bundled offer
2017
700K contact centre agents in the target segment
5m PBX/ UC seats in the target segment
On premise
Hosted
CC market
There are about 700K agents in the mid-market/enterprise/gov’t segment
Analysts estimate c.10% cloud penetration, growing to 20% over the next 3 years
UC market
There are about 5m seats in the mid-market/enterprise/gov’t segment
Analysts estimate c.30% cloud penetration, growing to 60% over the next 3 years
CC ambition
The hosted market will grow from around 60K to 140K, and we will take 35%-40% of that market
UC ambition
The hosted market will grow from around 1.5m to 2.9m, and we will take 25% of that market, which is more fragmented and highly contested
2017
Avaya Cloud Solutions service is built on an Ethernet platform for an enterprise class e2e SLA
UK Unified Communications Market

6. How do we bring this together for you?
Slide build: Sky high backdrop?
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7. The BTW and Avaya Cloud Solutions Foundation
Designed for Channel Partners
Follows Avaya 2 tier distribution model
Aligned to Avaya Connect program
Supports service and commercial differentiation by Channel Partners
Avaya Cloud Reference Architecture
Based on Avaya Cloud Reference Architecture.
Avaya Aura® Enterprise feature set supporting UC and Contact Centre capabilities
Always current – alignment with GA calendar
Simplicity, Resilience and Security
Portal based ordering reduces order time to 30 minutes
Avaya Control Manager transforms MAC management
Avaya Aura® HA architecture and integration within BT strategic voice platform delivers carrier grade security and resilience
Transformational commercial model
True utility model – not based on licenses
Unique charging model reduces user costs by >50%
Channel Partners can manage utilization to optimize margin
Speaker notes:
Keep current
Built foundation, with core infrastructure, UC and CC
Goal is to bring all elements of the Avaya enterprise portfolio onto the core infrastructure
Cloud Ref Arch roadmap is not nailed down. Currently an indicative plan.
New functionality will be added under a series of Feature Packs to speak time to market.
Introduction of new functionality under the Cloud Ref Arch is principally a function of test, and not net new application development. Testing existing Avaya enterprise functionality under the Control Manager (management and billing framework).
However, this an open architecture, which can support variants. Functionality outside of the core Reference Architecture, supported on site, under Capex or Opex terms. Design validation and interoperability with the core Reference Architecture supported performed under formal technical review process.

8. Avaya Cloud Solutions enables the partner value-add opportunity
Partners
Handsets/ ancillaries
Access Network
Network CPE
Inbound Services
CR Archive Storage
Applications (CRM, PCI, etc.)
Business Consultancy
LAN Assessment
Managed Services
Ethernet services
BTW
Avaya Cloud Services
Inbound services
Avaya
CPE
Outbound minutes
BTW service
3rd party solutions TR

9. ACS is a corporate cloud solution
ACS is a corporate cloud solution. Partner skills, capabilities, accreditation and commitment are key:
Commitment:
Agree joint volume/ financial objectives and a joint plan to achieve
Minimum spend per new customer: £500 per month
Spend under this contract will count towards Channel Partner accreditation under the Avaya Connect partner program
Contract Term: The later of 1 year from the contract date and the conclusion of the last services for your last End Customer
Skills & Capabilities:
Compliance with the competency model and credentials requirements for the service
Undertake mandatory training
Support
Channel Partners must undertake 1st line helpdesk (handle all Severity 4 requests)
Channel Partners must undertake customer MACDs
Outsource to approved providers possible

10. The ACS 2-Tier Model empowers partners to commercially and functionally address the market
Hosted Channel End End
Avaya Partner Customers Users
Distributor
Channel Partner
End Customer
Avaya
Distributor
Channel Partner
End Customer
BTW Cloud Provider
End Customer
Channel Partner
PUPM
£ £
PUPM
£ £
Tailored proposition for the Mid Market, Enterprise & Gov’t
Aligned to Avaya distribution
Support from Avaya Hi-Touch teams
Fully aligned with Avaya Connect program
Commercial model is based on PUPM charging fees through the channel to the end customer
NO capex for the channel partner – minimal onboarding costs for end customer
A complete utility model
12 month commitment per new end customer
UC volumes - based on the number of provisioned users
CC volumes - based on a unique Average High Watermark model – this is UNIQUE!

11. ACS will deliver a best in class customer experience, streamlining and reducing costs to provision and manage
Ordering the service is initially via a simple CRF and from summer 2015 via an online portal
Ordering time is reduced to <30 minutes and can be undertaken by an administrator
Configuring and MACs is undertaken via Avaya Control Manager through a single web interface
This releases scarce Avaya skilled practitioners to focus on revenue generating activities

12. The Avaya Cloud Solutions service model assumes a material role for channel partners
On-board Service Provider
Customer requirements capture
Pre-provision customer
Configure and enable customer
Provision
In-Life
Hosted Avaya break/fix
WAN/LAN break/fix
1st Line Triage
1st line Help Desk & MACs SO
NB: BTW will not accept Severity 4 calls
BTW/Avaya responsibility
Service Provider responsibility

13. Our structured programme to bring partners on board is in place
Engage Partner
Understand proposition
Enable partner
Forecast and joint plan agreed
Contract signed
Establish partner ACS
Submitted CRF
Accredited
partner
Confirmed commitment
Training-Sales Proposition/ in-depth
Training – Technical Sales
Product training
Establishment BTW ACS and CPE
Sales
Proposition
USP
Pricing strategies
How to complete customer solution
Technical Sales
UC & CC in detail
Numbering
CPE, Network & Infrastructure
CTI Interfaces
Billing & Reporting
Avaya Control Manager (ACM) training
ACM Service Provider platform
Add & configure users
Delegate responsibility
Reports
Partner in-life and sales
Partner Operational readiness
Establish partner – Inbound
Establish partner – Ethernet
Provision and on-board customers
Slide build:
Build 1 – top half
Build 2 – bottom half
Speaker notes:
Reference potential to leverage Delivery Partner for config and Service Desk
Sales
Campaigns
Operational enablement: Provision, configuration, 1st line support, fault management, process, resources, contacts
Establishment and On-board Inbound
Establishment and On-board BTW Ethernet

14. Cloud transforms the opportunity value and Total Cost of Ownership
Traditional Sale
Outbound calls
PSTN
ISDN
Inbound
Premises PBX
Most elements usually out of scope
PBX Sale ££
Cloud Sale
Outbound calls
SIPT
Ethernet
BTW Inbound
ACS
CALLS: Inbound and outbound calls on IP can be cheaper
CLOUD: Hosted solution can improve resilience and flexibility
Cloud solution cost includes hosting
ACCESS: Flat monthly price for Ethernet, no more ISDN..
Premises LAN and phones, no more Premises PBX
Cloud Sale £££