Changing the VoIP ParadigmCreating Value From Convergence

Stef van Aarle, Vice President of Marketing & StrategyLucent Technologies

Competition

Technology

Regulation

End-User Dynamics

Convergence of Market and End-User Forces

Prosumer

Market Trends For the Enterprise - Seamless Communications! Users want access to their communications

and entertainment services from many places… Home, office, on-the-go

…using several different devices… PC, telephone, mobile phone

…without having separate accounts Single sign-on, common contacts, information/content

delivery

New family of intelligent, interactive, location-based broadband services

Anytime, anywhere access to messages, contact lists, calendars and conferencing

Live video to handheld devices Mobile access to speech-enabled web services

The seamless blending of services and applications will grow the The seamless blending of services and applications will grow the “telecom wallet”“telecom wallet”

The seamless blending of services and applications will grow the The seamless blending of services and applications will grow the “telecom wallet”“telecom wallet”

Bringing Together the Best of Yesterday’s and Tomorrow’s Technology

DATADATA

•Price efficient•High speed•Application development•Bandwidth•Leverage IP network•Rapid innovation

VOICEVOICE

•99.999% Reliability•Feature rich•Application rich•Scalable•Easy to Manage•Ease of use

Enterprise Needs Have ChangedEnterprise Needs Have ChangedEnterprise Needs Have ChangedEnterprise Needs Have Changed

Best of Both Worlds

•Business-driven

•Scalable•Flexible &

open•Multi service•Multi location

•Low TCO•Reliable &

Secure•Easy to manage

Convergence Market Trends for the Service Provider

Value Over IP™ Is the Ultimate Differentiator for Value Over IP™ Is the Ultimate Differentiator for Service ProvidersService Providers

Value Over IP™ Is the Ultimate Differentiator for Value Over IP™ Is the Ultimate Differentiator for Service ProvidersService Providers

Complete network and organizational convergence End User Controls seamless network experience

• Bringing the Network to You !

• Blended LifestyleNew revenue and service stickiness

VA

LU

E

EXISTING NETWORKS NEXT GEN CONVERGENCE

Convergence of network elementsCap-ex and op-ex controlMPLS enabled networkLeverage existing networks

End user demand for one stop shopTop-line growth via brand extensionB/Office IntegrationDependent on access, network, and device

Virtual Virtual BundlingBundling

Virtual Virtual BundlingBundling

Network “IP”Network “IP” Network “IP”Network “IP”

Value over IPValue over IP™™ Value over IPValue over IP™™

Next Gen Convergence Model

Seamlessly Bringing the Network to YouSeamlessly Bringing the Network to YouSeamlessly Bringing the Network to YouSeamlessly Bringing the Network to You

• Access Independent• Device Independent• “Always-On”• Profile-Aware

Making It Relevant – Interactive Services Watching Bloomberg TV news

items via high-speed data access

Conference on a colleague via VoIP or IM to see the news

Discuss investment opportunities linked to news while researching segment companies

Send video clip with an email or voice message to colleagues who couldn’t conference on

Later, click to set up and dial conference call with colleagues, researchers, et. al.

Susan (HQ VP)Mark (Branch Office staffer) answers Susan’s IM/voice call

Tim & Linda (Branch Office staffers) are

unavailable

Making it Relevant – “presence-Powered” Instant Person-to-Workgroup Communications Interaction In a Nationwide Retail Store

The Business Case is Changing

“The increased availability of both (IP-PBX and Hosted IP PBX) will cause Enterprise customers to take a hard look at their needs and requirements to evaluate when and how they should make the transition to VoIP”

IDC, Study #28803

“the decision is not whether to implement IP telephony, but how--whether to pursue a premises convergence or a services convergence strategy”Yankee Group, Enterprise Computing and Networking

The New CIO Mandate Source: The Yankee Group, 2003

Large Initial Capital OutlayGreater Control

Minimal Capital OutlayOutsourced

Customer Owned – IP PBX owned, operated and maintained by enterprise.

Hosted IP PBX – Hosting partner owns and manages the IP PBX at its facility.

Managed IP PBX – IP PBX owned, operated and maintained by the service provider at enterprise site

Large Initial Capital OutlayReduced Operational Cost

Evaluate the features and future you are expecting from Evaluate the features and future you are expecting from your investmentyour investment

Evaluate the features and future you are expecting from Evaluate the features and future you are expecting from your investmentyour investment

VoIP 2.0 Challenges – Beyond the Business Case User & Network Migration

Streamlined User Migrations From Legacy to Next Gen VoIP (Bulk Migrations)

Minimize Downtime During Network Cutover Network Security

Traditional Threats + New Vulnerabilities Must Address Each Security Layer as Part

of an Overarching Security Design• Confidentiality, Authentication, Access Control,

Availability, Non-repudiation, Privacy, Integrity

Service Quality Packet Loss, Latency, Jitter, Delay All Need

to Be Measured BEFORE and AFTER Deployment

Use Multiple Benchmarks to Measure VoIP Quality For an Enhanced End-User Experience

Evolution Strategy Maintaining High Quality in

ALL Data and Voice Applications

Ensuring Traffic Prioritization for Business Critical Applications

Network Resiliency, Reliability & Availability

VoWiFi Implementations E911/CALEA Power Requirements

…and many more

IP/MPLS Core

Internet

IP Network

Media ResourceServer

ApplicationServers

Softswitch

MiLife™ ISG

MediaGateway

SDHLR

Cable

ProgramManagement

Knowledge Management

Single point for coordination and accountabilityUnderstanding of total project lifecycle

IPNetwork

2G/3G

PacketMobile

Network

802.xxAccess

CircuitMobile Network

Multivendor Integration Expertise:One Consistent, Comprehensive Approach

BusinessStrategy

BusinessStrategy

SolutionArchitecture

SolutionArchitecture

SolutionSolutionImplementationImplementation

SolutionSolutionImplementationImplementation

Operate & Maintain

Operate & Maintain

Innovations

Complete NGN Eco-System

Demand Generation

Trusted Advisor

Summary

End User Demand Is in the Drivers Seat and Its Changing

VoIP = Low Cost Voice

Next-Generation Convergence based on:

“Value over IP” For the Enterprise and the Industry

Always-On

Access & Device Independent

Presence-Aware

Stop By To Learn More

Booth # 203

VoIP Readiness

Convergence Security

Mobilizing IP