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The leader

in session border control

for trusted, first class interactive communications

SIP trunking – Overcoming the obstacles

and enjoying the benefits

Michael Leo Director, Enterprise & Contact Center

Solutions Marketing

FutureNet APKT SIP Trunking May 2010

How Do Your Children Communicate?

Email

IM / Video

Cellular

FutureNet APKT SIP Trunking May 2010 4

Agenda

What is SIP trunking

Challenges facing SIP trunking deployment

Benefits of deploying SIP trunking

Why you need a Session Border Controller when deploying SIP trunking

SIP trunking example

Case studies

Net-Net

About Acme Packet


What is SIP trunking?

Direct IP peering between SIP-enabled IP PBXs and Service Provider SIP-enabled networksConverts TDM trunks on-site to SIP-based media streams to the carrier network Based on mature SIP standards

Based on reference architecture defined by SIPConnect ForumReplacement of TDM-based trunking (PRI and CAS trunks)Logical SIP trunk overlaying IP network


Positive outlook for SIP trunking

Still in early stages

– CY08, $130M in revenue, 208.5K SIP trunks

North America driving SIP trunking

– 74% total trunk shipments in CY08

Infonetics: June 2009

$0

$1

$1

$2

$2

$3

$3

$4

CY08 CY09 CY10 CY11 CY12 CY13

Reven

ue (

US

$B

)

0

1

2

3

4

5

6

Tru

nks (

M)

Revenue Trunks

SIP Trunking

2008-2013 CAGR of 91%


Challenges facing SIP trunking

Adoption– Under 3% of current trunk installations,

but growth is rapid (300%+/year)

Availability– Limited pool of providers, but expanding rapidly

Standards– Service Providers’ offers diverge greatly

Interoperability– Legacy TDM platform must be converted to SIP

through voice enabled router

SIP signaling implementations can hamper performance/security

– Some vendors only implement specific SIP signaling mechanisms

Security– IP communications and UC networks require

security, just like data network


Benefits of SIP trunking

Lower telecom costs by 30-70%

Improve stability by moving all technology into centralized data centers

Business continuity/disaster recovery

Answer all calls all the time no matter which number a customer calls on (local or toll free)

Improve productivity by further integrating communication with people, process, and information

100% call recording for industry compliance, quality monitoring, and speech analytics

Foundation for UC deployments (audio/video conferencing, presence, chat)


SIP trunking driving rapid adoption for

UC applications

Irwin Lazar, Nemertes Research VoiceCon SF, 11/4/09


Industry observations

―SIP trunking services have been commercially available since 2005, but only now are enterprises grasping the business case, which can be very

compelling within certain enterprise segments‖Brian Partridge, Yankee Group analyst

―SIP trunking revenues will be about twice as large a revenue stream as hosted PBX services by 2012, possibly representing about $10 billion

worth of annual revenue.‖Frost & Sullivan

―There are some technical hurdles to overcome when deploying SIP trunks, but most of them were related to the fact that most firewalls and other traditional security cannot handle the bidirectional nature of voice and other communications— most of which can be overcome through the

use of a session border controller.‖Zeus Kerravala, The Yankee Group


Session – real-time, interactive communications—voice, video & multimedia—using SIP, H.323, MGCP/NCS, H.248, RTSP

Border – IP-IP network borders

1. Interconnect/peering: between service providers

2. Subscriber access:enterprise, residential or mobile services

3. Data center: retail or wholesale services

4. Enterprise: intra- &extra-enterprise

Control

1. Security

2. Service reach maximization

3. SLA assurance

4. Revenue & cost optimization

5. Regulatory compliance

What is a session border controller?

Largeenterprise

Mobileservices

PSTN

PSTN origination & termination

Directory servicesIP transit

PSTN termination

IP contact center

Residential & business

services


VoIP & UC security

SIP trunking

SIP & H.323 interoperability

Data center disaster recovery

Remote site survivability

Contact center virtualization

Remote site & worker connectivity via the Internet

Regulatory compliance – recording & privacy

SBC solution controls four IP network borders

Data centers

Contact center, audio/video conferencing,

IP Centrex, etc.PSTN

Serviceproviders

SIP

IPsubscribers

Internet

Tele-worker

Nomadic/

mobile user

H.323

Regional

site

SIP

Remote

site

Private network

1. SIP trunking border 4. Hosted services border

2. Private network border 3. Internet border

HQ/

campus

Remote

site

IP PBX UC


Example case study

Fortune 1,000 healthcare organization

5,000 employees

500 agent call center

Challenge – reduce costs by consolidating trunking into a centralized data center


Current trunk costs

15

Trunk Type Access Trunks Usage Usage Features Sub TotalT1/PRI Inter-State Intra-State Basic

Toll Free 33 750 4250000 750000 750Default $300 0 0.02 0.05 $50

Sub Total $9,783 $0 $85,000 $37,500 $37,500 $169,783

Long Distance 22 500 3750000 1250000 500

Default $300 0 0.02 0.05 $3

Sub Total $6,522 $0 $75,000 $62,500 $1,500 $145,522

Local 43 1000 0 2500000 1000

Default $300 $35 0 0.01 $5

Sub Total $13,043 $35,000 $0 $25,000 $5,000 $78,043

Support 2.5 people $20,000

Taxes 10% $39,335

Monthly Total $452,683

Yearly Total $5,432,196

TD

M t

run

ks


New SIP trunk costs

16

Trunk Type Access Trunks Usage Usage Features Sub TotalT1/PRI Inter-State Intra-State Basic

Toll Free 33 750 4250000 750000 750Default $300 0 0.02 0.05 $50

Sub Total $9,783 $0 $85,000 $37,500 $37,500 $169,783

Long Distance 22 500 3750000 1250000 500

Default $300 0 0.02 0.05 $3

Sub Total $6,522 $0 $75,000 $62,500 $1,500 $145,522

Local 43 1000 0 2500000 1000

Default $300 $35 0 0.01 $5

Sub Total $13,043 $35,000 $0 $25,000 $5,000 $78,043


Taxes 10% $39,335

Monthly Total 2,250 $160,000 $44,000 $452,683

Yearly Total $5,432,196

Trunk Type Access Trunks Usage Usage Features Sub TotalEthernet Inter-State Intra-State Basic

SIP Trunks 4 1500 0 0 0

Default $5,000 $25 0 0 $5

Sub Total $20,000 $37,500 $0 $0 $7,500 $65,000


Taxes 5% $3,750

Monthly Total $78,750

Yearly Total $945,000

TD

M t

run

ks

SIP

tru

nk

s


Savings using SIP trunks

Reduction of telecom costs of $4.4 million dollars a year

Savings summary– Access - 4 Ethernet/MPLS vs.

98 T1/PRIs– Trunk aggregation - From

2,250 voice trunks to 1,500 SIP trunks

– Flat rate usage - $25/month per trunk including 1,000 minutes LD

– Tariff/Rate Reductions - Less advanced feature costs like transfers, no intrastate or local usage charges

17


SIP trunking

case study - TruGreen

Application– SIP trunking (VzB) for IP- PBXs to reduce

PSTN costs– Net-Net SBC at trusted access and

interconnect borders support approximately 225 locations

Problems overcome– High costs and inefficient PRIs and FX lines

for 225 individual TruGreen locations– Protect data center from attacks– Call routing & load balancing– Need for high VoIP call quality– Centralized routing table admin

Acme Packet advantage– Interoperability with service

provider Acme Packet SBCs– Net-SAFE security features – Policy-based routing and load balancing– Strong recommendations from other large

enterprises– Better than Cisco!

Solution overview– Acme Packet Net-Net 2600-SD

Data centers

PSTN

Regional

site

SIP

Remote

site

SIP trunking border

Private network border

HQ/

campus

IP PBX CC

Private network

SIPSIP

http://images.google.com/imgres?imgurl=http://www.merrymaids.co.uk/cm_sitedata/page_images/673811227540723_trugreen-logo.gif&imgrefurl=http://www.merrymaids.co.uk/family-of-brands/&usg=__f-U1HlTDUbAn2jp0w7Yi3IS_dSQ=&h=100&w=210&sz=4&hl=en&start=3&sig2=AAjDCnneyQrRwgdcPAUUPg&um=1&tbnid=QD_ykeU57lW4wM:&tbnh=50&tbnw=106&prev=/images?q=trugreen+logo&hl=en&rls=com.microsoft:en-us&um=1&ei=qZLoSouxE4viNZWD2fEH


Net-Net

TDM-to-IP transition well underway– Reduce costs, improve communications efficiency – Mobility, collaboration, presence and

video drive IP transition and complexity– Compliance – call recording, emergency services,

domain separation– IP PBX extensively deployed but exist as islands

Unified Communications (UC) is the new focus– Migrate mission critical applications onto IP network – Integrate chat, voice and video into contact center

and business applications– Introduce presence and mobility into application delivery process– Transition call centers to multimedia customer care centers

SIP trunking can reduce voice trunking cost for an organization by 50% of more– Most implementations have a positive ROI in less than one year

SIP Trunking is not an all or nothing endeavor– Start with moving outbound voice traffic to SIP trunks to get a quick

ROI with little risk and keep the existing PSTN trunks as a backup


Acme Packet at a glance

Session Border Control (SBC) category creator and leader with 50-60% market share

980 customers in 104 countries, many with multiple applications/projects

Over 790 service providers– Wireline, wireless & cable – 183 tier 1 service providers– 90 of top 100– 13 of top 15 North American MSOs

Over 185 enterprise & contact centers– 11 of Fortune 25

Premier distribution & integration partners - 100+ worldwide

Experienced, long-standing leadership team

450 employees in 31 countries, Burlington, MA headquarters

Public company (NASDAQ: APKT) with strong financials

Founding team

$116

$142

$184

2008 2009 2010

$0.27

$0.35

$0.46

2008 2009 2010

Revenue ($M) EPS (non-GAAP)

guidance guidance

Q&A

Visit www.acmepacket.com for more informationFollow us on Twitter @ Acme_Packet

or at www.sip-enterprise.com

Documents

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