Market Strategy and Analytics Partners, LLC Copyright © 2011 Page 1 February, 2011... BECAUSE IN BUSINESS, SOMETIMES THE WINDOW OF OPPORTUNITY IS LIMITED

Market Strategyand AnalyticsPartners, LLC

Copyright © 2011 Page 1

February, 2011

. . . BECAUSE IN BUSINESS, SOMETIMES THE WINDOW OF OPPORTUNITY IS LIMITED

RUN!

prepared for:

UC and Service Providers

Ingate’s SIP – Unified Communications

Summit





S


TopicsBefore we Start

UC Definitions and Description and Vendor Evolution

Some UC Research

Types of UC Architectures

SPs – SIP and UC

What to do …

Discussion



So, Who Are You?Audience Demographics Poll End-User Enterprise >500 employees

End-User Small Business <500 employees

Service Provider Traditional

Service Provider Non-Traditional

Route-to-Market

Vendor

Other




Unified Communications

from UCStrategies.com

Unified Communications

from UCStrategies.com

UC integrates real-time and non-real time communications with business processes and requirements. Uses presence capabilities for

coordination, and presents a consistent unified user interface and experience across

multiple devices and media types


What is Unified Communications






And UC Comes From 2 BasesAnd UC Comes From 2 Bases







Some UC Research Some UC Research


New Research About SIP Adoption/Applications Shows Tight

Coupling with UC


Source:


VoIP Penetration Forecast to Reach 79% of US Businesses by 2013


VoIP penetration among US businesses will increase rapidly over the next few years, reaching 79% by 2013, compared to 42% at the end of 2009, reports In-Stat (http://www.in-stat.com). This penetration reflects companies having a VoIP solution deployed in at least one location.

Hosted IP Centrex has now surpassed Broadband IP Telephony as the leading revenue-generating, carrier-based business VoIP solution.

33% of businesses that have already deployed VoIP solutions report that recent economic conditions have caused them to slow additional deployment plans, compared to 30% reporting no change in plans.

Broadband IP Telephony revenues continue to grow and will more than double by 2013, compared to 2008. This growth will be fueled by single-user applications among increasingly distributed and mobile workforces.

This Market Alert is drawn from the In-Stat research, U S Business VoIP Overview: Optimization Trumps Expansion

http://www.instat.com/(http:/www.in-stat.com)

http://www.instat.com/catalog/pcatalogue.asp?id=18#IN1004350CT

http://www.instat.com/catalog/pcatalogue.asp?id=18#IN1004350CT


Gartner’s Views of Corporate Telephony and UC

Differ Significantly



Gartner’s 2010 UCaaS MQ for North America,

Again Named No Players to Leaders Quadrant Large Telephone

Companies AT&T, Verizon, BT,

Bell Canada

Large UC Vendors Cisco, Microsoft, IBM

UCaaS Specialists CallTower, Cypress

Communications, PanTerra Networks, Thinking Phone Networks, LightEdge Solutions

Wildcards Google, Skype



What of UC: UC Capabilities by User Interest


Unified messaging (e.g., email/voice-

mail/instant messag-ing integration)

13%

Desktop videocon-ferencing

13%

Telepresence technology

13%Cellular/Wi-Fi integration 12%

Corporate videocon-ferencing

11%

Speech recognition 10%

IP Telephony 10%

VoIP 9%

Smart phones 9%

Unified Communications Technologies of Interest

Source: CIO Magazine, 2009


When of UC: UC Deployment Plans


Currently using/running

32%

Planning to imple-ment within one year

20%Planning to imple-ment within 1-3 years

11%

Planning to imple-ment within 3-5 years

4%

No plans to implement

20%

Not sure 13%

Is your organization currently using or planning to implement uni-fied communications solutions (e.g., a set of products providing the same user interface and experience across various types of devices

and media)?



Why of UC: Perceptions of UC Benefits


Increased produc-tivity 26%

Faster response time/delivery of

information 21%

Improved customer service 13%

Reduced travel costs 16%

Faster decision-making 12%

Better work/life balance

6%

Reduction in carbon footprint 3%

Not sure 2%

Which of the following do you consider the greatest benefits of unified communications? (select up to three) (base: among those

running unified communications solutions)



UC Decision Factors


How important are the following factors in your decision to implement unified communications solutions?

Very important

Somewhat important

Not very important

Not at all important Not sure

Ease of implementation 49.90% 36.60% 5.60% 1.90% 6.10%

Ease of use 78.70% 13.60% 1.20% 0.70% 5.80%

End user/customer demand 47.70% 35.60% 6.80% 1.70% 8.20%

Level of service 54.20% 34.60% 3.90% 1.00% 6.30%

Price 51.30% 37.00% 4.60% 1.00% 6.10%

Product features 42.40% 42.60% 7.50% 1.20% 6.30%

ROI 56.90% 29.50% 5.60% 1.50% 6.50%

Technical support 47.50% 40.70% 4.80% 1.20% 5.80%




Types of UC ArchitecturesTypes of UC Architectures

but NO Diagrams


Datacenter Platform ModelCentralize UC platforms in customer or SP (MSP-hosted) datacenter Becomes a Private or Public “Cloud” Service

New Architecture/Topology standard Supported by “virtually” all UC vendors

Common to all Models Deploy SIP Trunks to deliver services to corporate locations

with some degree of survivability in each location Gateways/SBCs and Failover to PSTN

Support Mobility/Teleworking in evolving methods FMC

VPN or not



Distributed on Premises ModelEssential UC component assets deployed in all company locations Ownership/financing models evolving – some “Utility

Pricing” emerging

Networking/integration complex and provides opportunities for professional services

Primary situation today – includes lots of legacy and non-SIP-enabled equipment – and multi-vendor




VPN or not



Hybrid ModelSome locations served out of centralized private or public (hosted) datacenter platform

Balance of locations/users either served with on-prem or cloud/hosted solutions

Most companies will face this through migration period, if not “end-state”




VPN or not



Delivery Models – Lots of ConfusionManaged vs. Hosted Not just “On-Prem” vs. “Cloud”

What is done by the provider and customer or third-party

The financial model Mix of Capital and Operating financial arrangements

Perhaps moving to “Utility” pricing

Who Delivers? Vendors

VARs/VADs/SIs

SPs

OTTs

Other?



How Does SIP and UC Get to These 27M US Businesses (RTMs)?


<250,000 businesses have >50 employees

The mean SMB employer (0-999 employees) had one location and 11 employees

Among just the medium sized firms (100-999 employees) the average business has 5 locations and 239 employees

Large businesses (1000+ employees), on the other hand, had 62 locations and 3,300 employees

The median employer size was about 2 employees for SMB firms and 1,900 employees for large firms



SPs – SIP and UCSPs – SIP and UC


UC Relevant SP Types and CharacteristicsTraditional Telcos Historical Network Services Focus – but at odds with SIP

(although diminishing)

Long Voice Heritage – Centrex, PBX and Key Systems

Extensive Customer Base and “Channels”

Mobility Big Driver

Wrestling with Hosted/Cloud and On-Prem models

Legacy migration/transformation is major issue

Triple/Quad play migrates from Consumer to Business, generally from small to large

Likely to Deploy Multiple Vendors’ Solutions – often driven by Customer Choice



UC Relevant SP Types and CharacteristicsCompetitive Telcos Created to compete with traditional SPs

Faster to adopt new technologies to deliver services Easier to transition the UC and SIP as less legacy

May deploy multiple UC solutions from multiple vendors

Major competition is services, price and customer care

Ubiquity is a challenge

Channel coverage is also challenging … Partnering models evolving for expertise and geographic

coverage



UC Relevant SP Types and CharacteristicsCableCos Just entering business markets with, generally, hosted VoIP

voice Offers, channels and models being developed

Start at small end and evolve upward

Initially a price competition vs. incumbent

UC may be a way off, as are SIP trunks, especially on owned networks

May be distracted by desire to add mobility to keep consumer presence



UC Relevant SP Types and CharacteristicsITSPs/MSPs Built to provide hosted IPT

Many spawned locally/regionally across country Use technology from several players or internally developed

Generally target specific customer segment demographics Size

Multi-location

Verticals

Often Provide other “Managed Services” E-mail

Web site hosting

Desktop support

Adding UC capabilities

Often use other SPs’ SIP trunks



UC Relevant SP Types and CharacteristicsOTTs/Wild Cards Skype and Google are models here

Business/Enterprise segment is a new market for them

Providing infrastructure, like SIP trunks, will require partnering

Business models vastly different than traditional SPs Advertising and “Free”

Are they/will they ever be true SPs? Do they become regulated?

What customer segment focus?




What to Do …What to Do …


What to Do … Focus on the Business Process

Develop a Plan – Where does UC fit in IT Prioritization? What to accomplish

Build a team Business

IT

Finance

Maybe select an advisor/consultant

Do RFI/RFP

Choose Partner(s) SPs

Vendors

Other partners

Decide where to Start and How-to-Measure



About the Speaker and Additional Resources

Market Strategy and Analytics Partners custom designs marketing and sales strategies that are consistent with client core competencies, market focus and competitive environment, and coupled with operationalized go-to-market plans across the value chain to ensure elimination of bottlenecks and complete consideration of end-to-end financials. Our clients include equipment and software providers, service providers and information intense enterprises.

Founding Partners David Yedwab

[email protected]

Paul Robinson, PhD [email protected]

Find UCStrategies.com Use Case Study library at www.ucstrategies.com/unified-communications-case-study-library.aspx


mailto:[email protected]

mailto:[email protected]

http://www.ucstrategies.com/unified-communications-case-study-library.aspx

http://www.ucstrategies.com/unified-communications-case-study-library.aspx



DiscussionDiscussion

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Market Strategy and Analytics Partners, LLC Copyright © 2011 Page 1 February, 2011... BECAUSE IN BUSINESS, SOMETIMES THE WINDOW OF OPPORTUNITY IS LIMITED