Hosted Vs Premise Modified6

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Anup M. ManchandaVP, [email protected]"Connecting Technology to People Worldwide“

1305 Wiley Road, Suite 102Schaumburg, IL 60173 USAUS number : 847-252-7100X50SIP: [email protected] Number: (040) -24222238 Ext. 36

Josh Robbins, Managing PartnerGeckotech, LLCwww.geckotechllc.com(312) 948-2996(312) 491-7399 fax

Geckotech, LLC Corporate Headquarters300 N. Elizabeth StreetSuite 510-CChicago, IL 60607(312) 948-2995

Face Off: Hosted vs. Premise Based IP_PBX Face Off: Hosted vs. Premise Based IP_PBX solution. Which is better for my company?solution. Which is better for my company?

Copyright © 2007 - Teleprime Inc. all rights reserved

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About TeleprimeAbout Teleprime

• In Business since 1992. Offices in IL, TX, GA, CA, NJ, India.In Business since 1992. Offices in IL, TX, GA, CA, NJ, India.

• Partners with Encore, Patton, Epygi, Cbeyond and othersPartners with Encore, Patton, Epygi, Cbeyond and others

• Telecom Expertise in Networks, Test Measurement, Telecom Expertise in Networks, Test Measurement, Legacy to IP Legacy to IP Migration.Migration.

• Partners with IIT in providing training on VoIPPartners with IIT in providing training on VoIP

• Active Member, VPAC Council. Assisted in set up of VoIP Lab at IIT by Active Member, VPAC Council. Assisted in set up of VoIP Lab at IIT by donating VoIP equipment. Provided Internship Projects to Students of donating VoIP equipment. Provided Internship Projects to Students of VoIP on VoIP related equipment and services, to VoIP on VoIP related equipment and services, to Evaluate, test and Evaluate, test and validate new products/services before bringing to market.validate new products/services before bringing to market.

Face Off: Hosted vs. Premise Based IP_PBX solution. Which is better for my company?Copyright © 2007 - Teleprime Inc. all rights reserved

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About GeckotechAbout Geckotech

• Founded in 2003Founded in 2003• Based in Chicago –nationwide VoIP footprintBased in Chicago –nationwide VoIP footprint• Provides fully managed VoIP for SMB marketProvides fully managed VoIP for SMB market• Cisco Premier partner + Cisco Powered NetworkCisco Premier partner + Cisco Powered Network• Focused efforts – 1 major product line onlyFocused efforts – 1 major product line only


Geckotech LLCGeckotech LLCManaged IP Phone SolutionManaged IP Phone Solution

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What is VoIP?What is VoIP?

Voice-over-IP (VoIP) routes Voice-over-IP (VoIP) routes

phone calls over an IP network, phone calls over an IP network,

including private WANs as well as including private WANs as well as

the public Internet. VoIP to VoIP the public Internet. VoIP to VoIP

calls can bypass the traditional calls can bypass the traditional

public-switched telephone public-switched telephone

network (PSTN), resulting in cost network (PSTN), resulting in cost

savings and efficiency.savings and efficiency.


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Benefits of VoIP:Benefits of VoIP:

Eliminate or reduce intra-office toll charges. Reduce or Eliminate Eliminate or reduce intra-office toll charges. Reduce or Eliminate LD charges.LD charges.

Avoid service/ support contracts on existing PBX hardwareAvoid service/ support contracts on existing PBX hardware

Reduce expansion costs via lower costs for MACsReduce expansion costs via lower costs for MACs

Provide productivity benefits for remote and traveling workers Provide productivity benefits for remote and traveling workers who can be empowered with the same integrated capabilities as who can be empowered with the same integrated capabilities as office workersoffice workers


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Cost Considerations of VoIP:Cost Considerations of VoIP:

- - VoIP telecommunication hardware and software eg. IP phonesVoIP telecommunication hardware and software eg. IP phones

- Network upgrades for possible quality of service and - Network upgrades for possible quality of service and performance performance upgrades upgrades

- Implementation labor and professional services- Implementation labor and professional services

- On-going support and administration labor- On-going support and administration labor


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Potential Risks of VoIP:Potential Risks of VoIP:

Quality of service/performanceQuality of service/performance

User training and adoptionUser training and adoption

Administration and support skill levels and resourcesAdministration and support skill levels and resources

Proprietary vs. open systems interoperabilityProprietary vs. open systems interoperability


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Why VoIP? Why VoIP? Current Communication Systems have:Current Communication Systems have:

• Features hidden and difficult to useFeatures hidden and difficult to use

• No Control over MACNo Control over MAC

• No support for remote workersNo support for remote workers

• Multiple locations costly and hard to manageMultiple locations costly and hard to manage

• Upgrades and expansions too costly and unpredictableUpgrades and expansions too costly and unpredictable

• Can’t justify retaining phone system expert on staffCan’t justify retaining phone system expert on staff

• Difficult maintaining communication between branch officesDifficult maintaining communication between branch offices

• Difficult to manage multiple phone numbers and voicemailsDifficult to manage multiple phone numbers and voicemails

• Too many messages all over the place – voice, cell, emailToo many messages all over the place – voice, cell, email

• Multiple vendors make it difficult to manage invoicingMultiple vendors make it difficult to manage invoicing


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Premise-based PBX( Private Branch Exchange)Premise-based PBX( Private Branch Exchange)

• Onsite Phone Switch device that connects office telephones in a business Onsite Phone Switch device that connects office telephones in a business with the public telephone network. with the public telephone network.

• Route incoming calls to the appropriate extension in an office, and to Route incoming calls to the appropriate extension in an office, and to share phone lines between extensions. share phone lines between extensions.

• Over time, many functions have been added, such as automated greetings Over time, many functions have been added, such as automated greetings for callers using recorded messages, dialing menus, connections to for callers using recorded messages, dialing menus, connections to voicemail, automatic call distribution (ACD), teleconferencing, and more.voicemail, automatic call distribution (ACD), teleconferencing, and more.

Hosted PBXHosted PBX

• Delivers PBX functionality as a service, delivered over a private network Delivers PBX functionality as a service, delivered over a private network and/or the internet. The first hosted PBX was introduced to the market in and/or the internet. The first hosted PBX was introduced to the market in late 1997 by Virtual PBX. Instead of buying PBX equipment, users contract late 1997 by Virtual PBX. Instead of buying PBX equipment, users contract for PBX services from a hosted service.for PBX services from a hosted service.


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Service Element Hosted Premise Based

Capital ExpenseIP Phones, Router, No System or Infrastructure System Purchase $$

Upgrades or New Features

No new capital investment, Browser based

New investment, Installation required

Remote User Features

No special Equipment, No new Capital Investment

Custom network design, Special Equipment

Facilities/Reach U.S. is on-netCustomer premises management

TelephonesIP, analog IP, analog

Operational Expenses* Estimate based on 25 employee company

Office Admin tool for MAC In house staff or Remote


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Attribute Hosted PBX IP-PBXScalability Essentially unlimited Typically 1-10K users

Multisite Networking Uniform Dialing Plans Hard to Manage Dial Plans

Full Feature Set

Total Cost of Ownership Lower Cost of Outsourcing Higher Costs Overall: key+

Staff and support, Ltd. CPE choices

Access(PRI vs. T1)

Reliability, resiliency, Carrier-Grade Platforms Five 9s Reliable

Cost borne by service provider Cost borne by enterprise

Robust IP networking, including Use of Windows and other less-hardened

geographic redundancy elements

Estimate based on 25 employee company

Source: Delphi Inc.


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Hosted or Premise Based – Which is the better choice?Hosted or Premise Based – Which is the better choice?

Hosted Hosted

Employees Telecommute Employees Telecommute Virtual office vs. Main officeVirtual office vs. Main officeHigh up-front costs are not acceptable High up-front costs are not acceptable On-Going CostsOn-Going CostsNeeds of company may change Needs of company may change Incoming call capacity is highIncoming call capacity is highNo need for outside support for dedicated employees for PBX No need for outside support for dedicated employees for PBX

support.support.Need a complete set of features.Need a complete set of features.

Premise Based Premise Based

Employees physically in same office Employees physically in same office Higher Up-Front costs and lower or no monthly costsHigher Up-Front costs and lower or no monthly costsLittle likelihood of change in company size Little likelihood of change in company size SecuritySecurity


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Example: Premise Based IP-PBX

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Example: Hosted VoIP System

20 Phones w/unlimited usage plans

Setup Fees: $2500Monthly Service Fees: $1500* ($75/seat)Fax line from LEC: $30

*Includes routers, switches, T1 internet w/QoS, all PBX features, unlimited calling, VM, web portal, conference bridge, all hardware is managed and replaced within 24 hours on failure.Also includes full installation, project management, training and 24/7 customer support.

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Questions to PanelistsQuestions to Panelists

Do you need technical expertise to administer a hosted phone Do you need technical expertise to administer a hosted phone

system?system?

Can you guarantee voice quality? How?Can you guarantee voice quality? How?

How do you address disaster recovery?How do you address disaster recovery?

Can remote workers get same features?Can remote workers get same features?

How do you address Moves, Adds and Changes?How do you address Moves, Adds and Changes?

What about future features and upgrades?What about future features and upgrades?

How many people can be “instantly” conference called?How many people can be “instantly” conference called?


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Can users integrate Outlook Contacts and calling features?Can users integrate Outlook Contacts and calling features?

What are your options if you lose dial tone at a location? Where does the What are your options if you lose dial tone at a location? Where does the

dial tone originate?dial tone originate?

What happens to a site if connection to the IP network is lost? What happens to a site if connection to the IP network is lost?

Challenges and Experiences with customers in migrating over to your Challenges and Experiences with customers in migrating over to your

solution?solution?

What about putting all your eggs in one basket with a Hosted Solution?What about putting all your eggs in one basket with a Hosted Solution?

E911 related issues with Hosted?E911 related issues with Hosted?

What are the security risks of web based administration?What are the security risks of web based administration?


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What are my choices of IP endpoints?What are my choices of IP endpoints?

these truly open, standards-based endpoints?these truly open, standards-based endpoints?

What are my options for mobility solutions?What are my options for mobility solutions?

How is e911 handled for a multi-site distributed organization?How is e911 handled for a multi-site distributed organization?

Beyond traditional PBX features, what enhanced communications Beyond traditional PBX features, what enhanced communications

features can I expect?features can I expect?

How are features such as: Audio Conferencing, Video Telephony, How are features such as: Audio Conferencing, Video Telephony,

Unified Messaging, and Presence priced and delivered to the end Unified Messaging, and Presence priced and delivered to the end

user?user?

How is reliability addressed: Power failure, Network failure, How is reliability addressed: Power failure, Network failure,

Bandwidth Constraints, and Denial of Service attacks?Bandwidth Constraints, and Denial of Service attacks?


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Questions to clients Questions to clients

How closely tied to your business do you consider your communications How closely tied to your business do you consider your communications

systems?systems?

Do you consider communications to be a competitive advantage or a Do you consider communications to be a competitive advantage or a

commodity?commodity?

What will your application needs be? Basic contact center or speech What will your application needs be? Basic contact center or speech

enabled self service applications? Basic voice mail or unified messaging enabled self service applications? Basic voice mail or unified messaging

integrated with your email systems?integrated with your email systems?

Who calls the particular site that you’re considering hosting? Internal Who calls the particular site that you’re considering hosting? Internal

customers or external customers?customers or external customers?

Have you outsourced other applications before or is this your first Have you outsourced other applications before or is this your first

application that you’ll source?application that you’ll source?


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Questions to clientsQuestions to clients

What are the skills of your team? Are you growing or shrinking your What are the skills of your team? Are you growing or shrinking your

IT staff? IT staff?

How is your team funded?How is your team funded?

How important is security to your business? Are you regulated or How important is security to your business? Are you regulated or

under unique requirements due to SOX, etc.under unique requirements due to SOX, etc.

What is the age of your equipment? Can it be IP-enabled?What is the age of your equipment? Can it be IP-enabled?

What are the drivers to consider a change in your telephony system?What are the drivers to consider a change in your telephony system?

What is the age/condition of the data network? What is the age/condition of the data network?

Are you doing any IP Telephony today or is your network not yet Are you doing any IP Telephony today or is your network not yet

ready? Who are your data carriers?ready? Who are your data carriers?


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Example Example

Company XYZ – Corporate in Chicago, 2 remote workers in Chicago, Tech. Company XYZ – Corporate in Chicago, 2 remote workers in Chicago, Tech. Support office in Atlanta, GA. Sales and Marketing office in Austin, TX. Support office in Atlanta, GA. Sales and Marketing office in Austin, TX. Admin Support office in India. Calls are routed through a Premise Based Admin Support office in India. Calls are routed through a Premise Based IP_PBX located in Chicago.IP_PBX located in Chicago.

Internal Company Calls.Internal Company Calls.

Bill from office in Austin, TX picks up his VoIP device and dials extension for Bill from office in Austin, TX picks up his VoIP device and dials extension for Heather in Corporate office in Chicago. The VoIP PBX server searches and Heather in Corporate office in Chicago. The VoIP PBX server searches and obtains call routing information and routes call to extension at desk or any obtains call routing information and routes call to extension at desk or any other phone designated by Heather.other phone designated by Heather.


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External Company Calls.External Company Calls.

Bill from office in Austin, TX uses his cell phone, and dials Corporate Bill from office in Austin, TX uses his cell phone, and dials Corporate office in Chicago. The VoIP PBX server searches and obtains call office in Chicago. The VoIP PBX server searches and obtains call routing information and routes call to customer in New York, who sees routing information and routes call to customer in New York, who sees the company’s central number on his Caller ID on his phone.the company’s central number on his Caller ID on his phone.


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Inbound Company Calls.Inbound Company Calls.

Customer from New York dials company’s central number. Customer from New York dials company’s central number.

To speak to Technical Assistance, he dials extension, and call is routed To speak to Technical Assistance, he dials extension, and call is routed to office or cell phone in Atlanta, GA. During the conversation, Customer to office or cell phone in Atlanta, GA. During the conversation, Customer wants information about pricing and products. Call is then transferred wants information about pricing and products. Call is then transferred by office in Atlanta to office in Texas.by office in Atlanta to office in Texas.


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Some Tips – Applies to premise-based only

Set up a broadband connection with enough bandwidth to handle Set up a broadband connection with enough bandwidth to handle outgoing calls at peak traffic times. A rule of thumb: Each call will use outgoing calls at peak traffic times. A rule of thumb: Each call will use 100K bit/sec. of bandwidth. 100K bit/sec. of bandwidth.

IP router should also have a quality of service feature that can IP router should also have a quality of service feature that can prioritize VoIP transmissions during heavy traffic conditions. prioritize VoIP transmissions during heavy traffic conditions.

Ask your ISP for a static IP address. Ask your ISP for a static IP address.

Choose a VoIP switching device that can work with both IP-based and Choose a VoIP switching device that can work with both IP-based and circuit-switched phone devices. This allows you to migrate gradually circuit-switched phone devices. This allows you to migrate gradually without interrupting users' phone services.without interrupting users' phone services.

Source: Nemertes Research


Hosted Vs Premise Modified6

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