January 23-26, 2007• Ft. Lauderdale, Florida

Cost Justifying the UpgradeCost Justifying the Upgrade(TMCU1-02)

Tuesday - 1/23/07,  1:15-2:00pm

Presented By:Brandon Weilbacher

AastraSenior Director of PLM and R&D

January 23-26, 2007• Ft. Lauderdale, Florida

Cost Justifying the Upgrade

• Why should I upgrade?• Is the time right?• Is the technology ready?• What will the upgrade cost me?• What will the new system save me?• How will the new system make my

company more productive?

January 23-26, 2007• Ft. Lauderdale, Florida

4 Models of SMB VoIP

Hosted: Users access the IP PBX remotely via IP. The hosted PBX is off-site, and managed by a service provider

Managed: The IP PBX resides at the company but is managed remotely by a service provider

Do-it-yourself: The SMB takes complete control, buying the VoIP system itself, or through resellers, and managing the system.

Broadband VoIP: SMB takes the consumer approach, using an analog telephone adapter to access VoIP through a broadband Internet connection.

January 23-26, 2007• Ft. Lauderdale, Florida

Why Should I Upgrade to an IP PBX?

• In the current economic climate, customers migrate to new technology because they need to, not because their favorite vendor, consultant or writer tells them to.

Worldwide IP PBX Market and SIP Penetration ForecastWorldwide IP PBX Market and SIP Penetration Forecast(Excludes Phones)

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

2002 2003 2004 2005 2006 2007 2008

0%5%10%15%20%

25%30%35%40%45%

SIP Penetration

IP PBX Revenues

Source: IDC; Gartner

The NEED is to stay competitive by improving employee efficiency, reducing costs, and simplifying operations

January 23-26, 2007• Ft. Lauderdale, Florida

Is the time right?

• Low priced IP PBX systems– Simple to configure appliance systems– Fewer feature activation keys (all inclusive feature sets)

• Take advantage of Internet Telephony Service Providers– Many ITSPs are available for very low cost LD around the world

• Combine the functions of multiple products– PBX, IP Router, VPN, VoIP Gateway– Technology Miniaturization

• The feature set of IP PBX systems increases employee efficiency over the traditional PBX

• You can keep your analog phones or upgrade to highly functional SIP phones– Expensive and proprietary digital sets are no longer required– New phones are standards based (SIP), so they are not thrown away when a new

system is purchased

IP PBXs have changed the SMB PBX Market

Price, Functionality, and Investment ProtectionPrice, Functionality, and Investment Protection

January 23-26, 2007• Ft. Lauderdale, Florida

Is the Technology Ready?

• Broadband connectivity is available in most all businesses today

• SIP standards continue to evolve but have stabilized allowing product interoperability

– SIPconnect- Industry standard way of connecting IP PBXs and Internet Telephony Service Providers

• IP PBX systems are currently deployed in countries around the world

• IP PBX products have moved past the “beta” phase and are used in many major corporations

– 6,000 extensions on Asterisk at Sam Houston State University

• Hybrid systems (VoIP and TDM) can be deployed in applications with extremely high QoS requirements

– Public safety departments, such as fire, police and hotlines

January 23-26, 2007• Ft. Lauderdale, Florida

What will the Upgrade Cost Me?

• Purchase the new PBX– Usually less than the cost of traditional PBX systems

– Fewer feature keys to get functionality means more features and simpler configuration

– Many vendors competing for SMB business

• Purchase the new phones– Often can reuse existing analog phones

– Can purchase industry standard reusable SIP phones

– No more expensive proprietary digital sets

• Subscribe to carrier services– ITSPs use IP for transport and offer a much cheaper solution to

traditional long distance carriers

– Fewer local lines/trunks are required from Ma Bell when using VoIP- most calls will be carried over IP

January 23-26, 2007• Ft. Lauderdale, Florida

What will the Upgrade Cost Me?

• Other communications equipment can be eliminated since it is built into many IP PBX systems

– IP Router and Firewall– Hold music radio– External Voicemail system– VPN

• Buyback credit for the old PBX– In many cases, the legacy PBX can be sold to a second-hand

equipment dealer

• Installation– Appliance devices install quickly and easily– In some cases, the customer can plug in the cables and the reseller

can configure it remotely– Phones are automatically configured once connected to the network– Should lead to a faster and lower cost installation

January 23-26, 2007• Ft. Lauderdale, Florida

What will the IP PBX Save Me?

• Ongoing Costs for Moves, Adds, and Changes– Moves- IP phones can be moved simply by unplugging from one

location and plugging in at another- as simple as moving a computer, no rewiring required

– Adds/Changes- New users can be added easily by the administrator using browser based GUIs. Can be completed locally or remotely

– No more line cards- the IP PBX uses the existing Ethernet switch for connectivity

• IT/Telecom staff consolidation in the SMB• Upgrading to Enhanced Capabilities

– Using standard protocols, 3rd parties can develop applications that interoperate with IP PBX systems

– With competition comes more options and a lower price– Not proprietary

January 23-26, 2007• Ft. Lauderdale, Florida

What will the IP PBX Save Me?

• In new construction, only 1 Ethernet drop is required per office– Most IP phones have a built in Ethernet switch port for connecting a

PC

– Fewer ports required at the Ethernet switch

• Lower long distance costs, especially for international calls– Using an ITSP, costs are a few pennies per minute

– Using a direct SIP connection, there is only the cost of the internet connection

• Centralized management for remote sites– Truck roll costs are eliminated when making minor changes at

remote sites

• Physically smaller systems consume less power and require less space

January 23-26, 2007• Ft. Lauderdale, Florida

Productivity Gains

• Simplified administration results in less down time for employees- faster moves/adds/changes

• Presence applications can direct calls to the most likely communications device that you will answer. You control how you are reached and by whom

• IP phones can be installed in remote locations enabling teleworking applications

• Unified Messaging provides easy access to voice messages and faxes via email

• IP PBX systems can be integrated with the computer desktop– Soft phones– Microsoft OCS

• Hot desking

January 23-26, 2007• Ft. Lauderdale, Florida

Productivity Gains

• IP phones can be programmed to interact with web servers and display downloaded information

– Corporate Communications

– Weather, News, Stock Quotes

– CRM Application integration

– Vertical Applications

January 23-26, 2007• Ft. Lauderdale, Florida

Productivity Gains

Use a softphone from your laptop while in a WiFi hot-spot

VoIP turns calls into packet data that can be distributed anywhere on the Internet The possibilities are limitless.VoIP turns calls into packet data that can be distributed anywhere on the Internet The possibilities are limitless.

WiFi Hot spotInternet

PSTN

January 23-26, 2007• Ft. Lauderdale, Florida

Questions?Questions?

Presented By:Brandon Weilbacher

AastraSenior Director of PLM and R&D