Unified Communications: Unlock the Full Potential of Collaboration
Avaya Unified Communications & Collaboration...Unified Communications and Collaboration (UCC) for...
Transcript of Avaya Unified Communications & Collaboration...Unified Communications and Collaboration (UCC) for...
NemertesResearchGroupInc.www.nemertes.com1-888-241-2685
EnterpriseBusinessValueMatrix
Q417
08Fall
ByRobinGareissPresident&FounderNemertesResearch
Nemertes’BusinessValueMatrixisdesignedtohelpITprofessionalsevaluatingvarioustechnologiesandproviders.ThisreportanalyzesAvaya’sperformanceinUnifiedCommunicationsandCollaboration(UCC)forenterpriseimplementations—thosewith1,000ormoreendpoints.Ourresearchincludesreal-worldcapital,implementation,andoperationalcostsforUCC.WealsoaskITprofessionalstoratetheirprovidersincustomerserviceandsupport,technicalinnovation,andotherkeycharacteristics,toprovideagaugeofoverallquality.Finally,weincludetheNemertesBusinessValueMatrix,whichprovidesanat-a-glanceviewofhowthevendorsstackup,comparatively.
AvayaUnifiedCommunications&Collaboration
TABLEOFCONTENTS
AboutTheBusinessValueMatrixResearch..................................................................................3EnterpriseUCCValueMatrixFindings..........................................................................................3
ProvidersIncluded...........................................................................................................................3Avaya’sPerformance...................................................................................................................4
EnterpriseCustomerRatings...........................................................................................................4EnterpriseCosts...............................................................................................................................5IndustryFindings.............................................................................................................................7ManagementTools.........................................................................................................................7
ArchitectureTrends.....................................................................................................................8Conclusion...................................................................................................................................9ResearchMethodology...............................................................................................................10Demographics.............................................................................................................................10
ByNumberofEmployees..............................................................................................................10ByIndustry.....................................................................................................................................11
TABLEOFFIGURESFIGURE1:ENTERPRISEUCCVALUEMATRIX..................................................................................................................3FIGURE2:USERSENTIMENTTABLE,ENTERPRISEUCC.....................................................................................................5FIGURE3:UCTCOFIGURES,AVAYAVS.AVERAGE.........................................................................................................6FIGURE4:WHYMOVETOTHECLOUD?........................................................................................................................8FIGURE5:SIZE,BYNUMBEROFEMPLOYEES................................................................................................................10FIGURE6:RESEARCHPARTICIPANTS,BYINDUSTRY........................................................................................................11
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AboutTheBusinessValueMatrixResearchNemertesconductedresearchonUnifiedCommunicationsandCollaborationplansandcostsduringthefirstquarterof2017.Weinterviewedorsurveyed723companiesfromvariousindustries,andranginginsizefrom50employeestohundredsofthousandsofemployees.(Pleaseseetheaddendumformoredetails.)Nemerteshasconductedthisresearchindependentlyfor12years;noonesponsorsit.InadditiontoaskingITprofessionalsdetailedquestionsabouttheircosts,wealsoaskedthemtoratetheirprovidersinsixcoreareas.Wethenplottedtheiraveragefirst-yearcostsontheY-axisofamatrix,andtheiraverageratingontheX-axis.Inthisreport,weexploreAvaya’sperformanceintheEnterpriseUCCValuematrix.(PleaseseeFigure1.)
Figure1:EnterpriseUCCValueMatrix
EnterpriseUCCValueMatrixFindingsProvidersIncludedITproviderscitedafewdozenvendorswhoprovideUCCcapabilities;sevenofthemreceivedenoughratingstobecountedindividually.Thoseincludedareamixofplatform
Alcatel'Lucent'
AT&T'
Avaya'Cisco' IBM'
Microso7'
Verizon'
High
%%Cost
%%Low
%
Low % % %Customer%Ra2ngs % % %High%
Enterprise%UCC%Value%Matrix%
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providers(AlcatelLucent,nowALE,Avaya,Cisco,IBM,andMicrosoft)andcommunicationsserviceproviders(AT&TandVerizon).NotallprovidersofferthesameUCCcapabilities.Thepointoftheresearch,however,wastomeasurewhomenterpriseITleadersconsidertheirUCCprovidersandhowtheyratethem—regardlessofwhatcombinationofservicestheyuse.
• Allprovidecollaborationcapabilities,suchasinstantmessaging,presence,web/audio/videoconferencing.
• TheCSPsofferhostedservices,andAT&TprovidesitsownBroadsoft-basedUCaaS.• IBMandMicrosoftalsoprovideemail/calendarplatforms.AllbutIBMprovidevoice
capabilities.• Alcatel-Lucent,AvayaandCiscoaretheonlyproviderswiththeirowncontact
centerplatforms.
Althoughwedidnotaskcompaniestoratetheircontact-centerprovidersinthisresearch,theirabilitytooffercontact-centercapabilitiesisrelevanttotheirUCCdecisions.ManyorganizationswanttointegratetheircorporateUCCsystemorservicewiththeircontactcenters.Thedriverismakinganyemployeeapotentialcustomer-serviceagent.WiththeappropriateUCCintegration,truecontact-centeragentscanfindpresencestatusonanyemployee,andjointheminacall,screenshare,videoconference,orothertypeofcollaborativecall.ITleaderssaytheycanreducethestaffingrequirementsbyleveragingtechnologyfromasingleprovider,vs.usingmultipleproviders.Indeed,37%alreadyusethesameprovider,apracticethatcorrelateswithcontact-centersuccessinourresearch.Avaya’sPerformanceAvaya’scustomersarepleasedwiththetechnology,responsetime,reliabilityandinteractionacrosstheboard.TheyalsohavelowTotalCostofOperations(TCO).Amongenterpriseorganizations,AvayaperformsbestwhenevaluatingbothcostandcustomerratingsamongUCCprovidersthatoffervoiceandcollaborationcapabilities—regardlessofarchitecture.Thisanalysisincludescloud,on-premises,andhybriddeployments.EnterpriseCustomerRatingsAvaya’stop-ratedareaamongenterprisesisreliability;thatratingisalsohighestamongallotherprovidersratedbyenterprises.Avayaalsoscoresaboveaverageintechnologyfeatures,responsetime,andaccountteaminteraction.(PleaseseeFigure2.)
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Figure2:UserSentimentTable,EnterpriseUCC
ReliabilityisanunderpinningofanyproductorserviceintheITspace.Afterall,whatvaluearesolidtechnologyfeatures,fastresponsetime,orinnovationiftheirproductsandservicesarenotreliable?Duringinterviews,ITleaderssaidAvaya’sUCCandcontact-centerplatformsaresolidintermsofreliability—keytodecreasingoperationalcostsbyreducingthestaffhoursrequiredtotroubleshootoutages.EnterpriseCostsAvayahasperformedwellhistoricallyinNemertes’UCCTotalCostofOperationsresearch,and2017isnoexception.Nemertesmeasurescapital,implementation,andoperationalcosts,andAvaya’scostsarelowerthanaverageineachofthoseareas.Wealsototalthefirst-yearcosts(sumofcapital,implementation,andoneyearofoperationalcostsperendpoint);at$473perendpoint,Avaya’soverallfirst-yearcostsalsoarelowerthanaverage,by16%.(PleaseseeFigure3.)
ProviderTechnology/Features
Response/Time Reliability Interaction Innovation
Digital/Transformation AVERAGE
IBM 3.57 3.43 3.43 3.57 3.29 3.43 3.45Avaya 3.41 3.06 3.44 3.06 3.00 2.81 3.12Cisco 3.25 2.98 3.25 3.00 3.06 2.90 3.08Alcatel;Lucent 2.78 2.89 3.11 3.00 3.33 3.33 3.07Microsoft 3.40 3.00 3.25 3.00 3.00 2.75 3.07AT&T 3.03 2.90 3.03 3.06 3.06 2.90 3.00Verizon 3.00 3.00 3.21 3.00 3.00 2.92 3.00AVERAGE 3.18 2.96 3.22 3.01 3.04 2.88 3.05
Nemertes/UCC/Management/User/Sentiment/Table
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Figure3:UCTCOFigures,Avayavs.Average
Nemertesgathersseveraldatapointstocalculatethecostsineachmetric.Hereishowwecalculatethenumbers:
• Capitalcostperendpoint:IncludesPBX,endpointdevicesandlicenses,servers,otherhardware.Insomecases,bundledlicensesincludecertainUCapps
o =Capitalcosts/numberofendpoints(handsets,softphones,etc.)• Implementationcostperendpoint:Includesstafftimeandthird-party
consultantsandintegratorso =((Stafftime*loadedhourlyrate)+third-partycosts)/numberof
endpoints• Operationalcostperendpoint:IncludesstafftimemeasuredasFullTime
Equivalents(FTEs),equipmentmaintenance,third-partymanagedservices,trainingandcertification(seedescriptionsbelow)
o =((NumberofFTEs*averageannualloadedsalary)+equipmentmaintenance+managedservices+training/certification)/numberofendpoints
$88
$213 $173
$473
$135
$225 $205
$565
$-
$100
$200
$300
$400
$500
$600
Implementation Capital Operational First Year Total
Avaya UCC Costs 1,000+ Endpoints
Avaya Average
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Extendingthefiguresoutforatraditionalthree-yearTCO,Avaya’senterpriseUCCrollouts(typicallywithAura)costitscustomers$818perendpoint,whichisthesecondlowestofallenterpriseprovidersmeasured.Operationalcostsarethemostimportantbecause,unliketheone-timecapitalandimplementationcosts,theycontinueyearoveryear.Avaya’soperationalcostsare15.6%lessthanaverage,whichisakeyreasonitsthree-yearTCOisimpressive.UCCoperationalcostsincludethefollowing:
• InternalStaffTime–Includesthefullyloaded(overheadforbenefitsandtaxes)salariesoffull-timeequivalentemployeesmanagingUCC.
• Third-PartyManagedServices–Includestotalcostsforthird-partymanagedservices.Thisdoesnotincludeinitialconsultingorsystemsintegrationassociatedwiththeimplementation.
• ITStaffTrainingandCertification–Includesinstructorfees,travel,coursematerials,andcertificationfees.
• UserTraining–Includesthird-partytrainingcostsand/orthefullyloadedsalariesforinternalstaffthattrainemployeesonUCC.
• EquipmentMaintenance–Includesannualcostsforequipmentmaintenance.Thiscanapplytoon-premisesorclouddeployments,asclouddeploymentstypicallystillincludemaintenanceonhandsetsandservers.
• CloudSubscription–IncludesmonthlysubscriptioncostsforcloudUCCserviceswhererelevant.
IndustryFindingsInevaluatingfindingsbyindustry,wedidnothaveenoughdatatoanalyzeeachproviderineachindustry.InAvaya’scase,wehadenoughcostdataforfinancialservices,healthcare,education,andmanufacturing.Avaya’sfirst-yearcostswerelowerthanaverageinmanufacturing,andataverageforhealthcare.Itsoperationalcostsarelowerthanaverageineducationandmanufacturing.ManagementToolsAnothernotableresultfromtheresearchisthatAvaya’sUCCmanagementtoolslandinthetoprightsectionoftheEnterpriseandMidmarketUCCManagementValueMatrix,meaningITleadersratethemanagementtoolsamongthebest.Otherprovidertoolsratedincludeadministration/operationsmanagement(Riverbed,Voss,andUnimax),performancemanagement(IR,Nectar,Riverbed),andUCCplatform(Avaya,Cisco).
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Additionally,Avaya’smanagementtoolsreduceoverallUCCoperationalcosts,primarilybyprovidinginsightthatreducesITstaffingrequirements.ThecostcomponentoftheUCCManagementValueMatrixdoesnotrepresentthecostofthetoolitself.Rather,itistheassociatedoperationalcostfortheUCCsolutionundermanagement.ManagementtoolsarearelativelysmallpartofoverallUCCcosts.What’smorerelevanttoorganizationsistheextenttowhichmanagementtoolscanreduceoveralloperationalcosts.ArchitectureTrendsMostorganizationsareevaluatingorplanningtomoveatleastsomeUCCappstothecloud.However,agrowingpercentage(15%,upfrom9%in2016)hasdecidedagainstcloudandplanstostayonpremises.(PleaseseeFigure4.)LargeenterprisesarenotaslikelyassmallandmidsizebusinessestomoveallofUCCtothecloud.ManyaregettingatasteofcloudthroughtheuseofusePlatformasaServiceandInfrastructureasaServiceforavarietyoffunctions.WithUCC,though,manylargeenterprisesremainhesitanttoputeverythinginthecloudimmediately,optingtomoveslowlywithappslikeemailandwebconferencingfirst.
Figure4:WhyMovetotheCloud?
Indeed,manyITleaderswhoparticipatedintheresearchsaidtheywereconcernedabouttheexclusivepushtowardcloudbyseveralUCCvendors.Theyexpressedinterestinworkingwithproviderswhodeliverviablesolutionsforon-premises,hybrid,andcloudarchitectures,vs.forcingcustomerstotheclouddespitepoliciesordecisionsthatpreventthemfromdoingso.Costreductionoftenisadriverformovingtothecloud,andindeed,companiesofallsizesrealizecostsavingswithIaaSandPaaS.Companieswithfewerthan500employeesrealize
4%
6%
10%
12%
12%
15%
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18%
18%
21%
29%
33%
Other
Acquired right tools/services to help with cloud migration
Can't get budget for IT staff, but can for services
Providers investing more in cloud than on-prem
Executive mandate
Not considering cloud at all
Must free IT staff for strategic initiatives
Can roll out services faster from the cloud
More features available in cloud services
Security concerns now addressed
Improved agility for IT
Perceived cost reduction
Why have you moved/are considering a move to the cloud?
Down from 49% in 2016. Cost savings not driving
companies to the cloud, as we find costs actually
increase!
Up from 9% in 2016. IT leaders more cautious
about moving to the cloud.
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savingswithUCaaS.However,ourresearchshowsthatlargerorganizationsactuallyincreasecostswithUCaaSbecauseofnewsubscriptioncosts,andthefactthattheyarenotreducingstaff.Rather,they’resimplyreassigningthemtootherpositions(cloudpartnerrelationshipmanagement,technologyintegration,UserAwarenessandAdoption,andbusinessliaisonroles).It’simportantforITleaderstomovetocloudUCformorecompellingreasons,includingagility,availabilityoffeatures,speedofrollouts,andfreeingITstaffsformorestrategicinitiatives.ConclusionWhenevaluatingoptionsforUCCproviders,considerthefollowing:
• Assessimplementation,capital,andoperationalcosts.Ofcourse,costisonlyoneofmanycriteriaforproviderselection,andthelowestcostisn’tnecessarilythebestchoice.But,makingsurethecostisbelowaverageshouldbeagoal—andparticularly,makingsureoperationalcostsarebelowaverage.
• Relyuponinputfromexistingcustomers,whetherthroughdiscussionswithreferralsorthoughresearchlikethisthattracksusersentiments.Alignthemostimportantcriteriaforyourorganizationwiththosewhoscorehighinthosemetrics.
• EvaluatethebenefitsofintegratingUCCwithcontactcenter.Improvingcustomerexperienceisoneofthetopbusinessgoalsofdigitaltransformationinitiatives.Byexpandingthepoolofpeoplewhocanservecustomers,organizationswillincreasethelikelihoodofmeetingtheirdigitaltransformationgoals.
• Managementtoolsmatter.Often,theyareafter-thoughtstoaUCCproviderdecision,buttherighttoolscanprovidequickinsighttotherootcauseofanyproblems.Thatreducesthemanual(andcostly)humaninterventionrequired.
• Workwithaproviderthatoffersthearchitectureflexibilitytheorganizationrequires.Manyenterpriseswanttocontinueusingon-premisessolutions,orperhapshybridastheycontemplateamovetothecloud.Don’tforcefitacloudsolutionbecausetheprovidernolongerinvestsinon-premises.
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ResearchMethodologyNemertesconductedits12thannualUnifiedCommunicationsandCollaborationTotalCostofOperationsfromJanuarythroughMarch2017.Weinterviewed14ITleadersandreceivedresponsesinelectronicsurveyformatfromanadditional709individuals,whocomefromNemertesinternallymanageddatabaseandaresearchpartner’s.WeaskedresearchparticipantsnumerousquestionsabouttheirUCCprovidersandassociatedcosts.Inordertobecountedindividually,eachproviderneededaminimumofapproximately10responsesor5%ofthetotal(whicheverwasless)ineachsizebandmeasured.Therefore,somehadenoughamongmidmarketorganizationsbutnotinenterpriseorganizations,orviceversa.DemographicsByNumberofEmployees
Figure5:Size,byNumberofEmployees
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Theresearchparticipantsspanarangeofindustriesandorganizationsizes.About43.7%oforganizationsaresmall,22.5%aremidsize,and33.7%arelarge.Nemertessegmentsthedatabycompanysizeand/orrolloutsizetonormalizedataortoillustratedifferencesbetweencompanysizes.Figure8showsthebreakdownofthesizeoforganizationsthatparticipatedintheresearch.ThisreportfocusesonthosewithUCCrolloutsof1,000endpoints,whichmaybroadlyalignwithemployees,thoughsomeorganizationshavemoreUCCendpointsthantheydoemployees,whileothershavesignificantlyfewerendpointsthantheydoemployees.ByIndustryTheresearchalsoincludesrepresentationfromseveralindustries,asshowninFigure9.Nemerteshasmoredetailedbreakdownsoflargerindustries.Forexample,infinancialservices,wehavedatafrombanking,investmentfirms,andinsurancecompanies.Professionalservicesbreaksdownintoseveralsub-industries,suchasaccounting,legal,consulting,realestate,etc.
Figure6:ResearchParticipants,byIndustry
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Energy & Utilities Real Estate
Aerospace & Defense Telecommunications
Media & Entertainment Transportation
Hospitality Not-for-Profit Construction
Retail Healthcare
Government Software & High Tech
Other Education
Financial Services Professional Services
Manufacturing
Industry