A1261044006HaBlo

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Making the Case for Hosted IP-PBX

• Its the economyand its not stupid

Walter Snell
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What is a Hosted PBX?

• Misconception
• A PBX sitting in a data center
• Vonage or Skype
• A inbound virtual PBX (e.g. Angel.com)

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What is a Hosted PBX?

• Reality its software
• One virtual platform for many companies
• Web based administration
• User dashboards
• QoS management service
• New provisioning methods
• Complete telecom services
• New features/unified communications

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Example Architecture

• Key Concepts
• Hardware Redundancy
• Network Redundancy
• QoS Management
• Data Security

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Hosted PBX is for the SMB Market

• SMBs invest where challenges dictate
• Many PBX and key systems are near retirement
• Cost is the number one consideration
• Lack of IT resources restricts advanced premise
  solutions
• Best of Breed is traded for Ease of Use
• Ideal for the 10-100 size business

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Resource/Commitment
According to Yankee over 30 of 2 million SMBs
are in the market for hosted VoIP (aka the
unfortunate 2 million)

• Less Onsite IT Costs
• Easier to Deploy/Change Services
• Low Capital Investment

Reference Yankee Group SMB State of the Market
Report
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Hosted PBX Adoption Rates

SMBs adopt rapidly when the needs are highest and
the solution is clear Hosted PBX is nearing
that inflection point
Reference Yankee Group SMB State of the Market
Report
Only 30,000 business use Hosted PBX today Out of
2.4 million
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Benefit 1 - ROI

• Cost Comparison for 50 person business

Premise
Hosted
Startup Cost 50 phones 18,000 (350 per
phone) IP-PBX 50,000 (Cisco Call Manager
Express) Assessment 3,000 (Network
Assessment) Labor 8,000 (80 hours _at_ 100
hour) 79,000 Monthly Operations Cost 30
Employees 0 25,000 minutes 1,250
mo. (.05 average) 24/7 Support n/a IT On
Site 500 mo. (consulting fees) Software
Maint. 1000 mo. (15 annualized) PRI
Service 450 mo. 3,200 mo.

• Startup Cost
• 50 phones 12,500 (250 per phone)
• Setup 1,500 (30 per user)
• QoS Router 1,000 (Router)
• iQ Manage 1,000 (QoS Mgmt)
• Labor 2,000 (20 hours _at_ 100 hour)
• 18,000
• Monthly Operations Cost
• 30 Employees 1,250 mo.
• 25,000 VoIP minutes 625 mo.
• 24/7 Support 0
• IT On Site 0
• Software Maint. 0
• T1 Service 450 mo.
• 2,325 mo.

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Benefits 2 - Freedom

• Work Anywhere
• Local and remote users
• No WAN congestion problem that IP-PBX suffers
• Mobile users soft phone, cell phone, etc.
• Home users completely connected
• On-net Extension Calling
• Dial an extension whether its in San Diego or
  Japan
• No cost calling

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Benefit 3 Self Control

• MACD
• Self manage Moves, Adds, Changes, Deletes (MACD)
• No Consultants needed
• Add new numbers
• Order new phone numbers online
• Local, US, even international numbers
• Order new services
• No truck rolls provision instantly
• E.g. email-fax, video, collaboration, ACD

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Challenge 1 - Quality

• Quality is number one concern
• If it doesnt sound good, then its not good
  enough
• It must never drop calls or jitter
• Reasons
• Overloaded LAN cant handle VoIP
• Poor ISP service provider network
• Solutions
• QoS Management Tools
• Managed WAN circuits (MPLS-DSL, dedicated T1)

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Challenge 2 - Reliability

• It has to work all the time
• Premise equipment aims for 99.999
• Not there yet for hosted but close 99.99
• Reasons
• Network and Power Outages
• Software/Hardware Problems
• Solutions
• Routing Masks (inbounds move to cell, legacy)
• Local failover to PSTN in critical business apps
• POE (power over ethernet) battery backup

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Hosted PBX to UCX (unified communications
exchange)

Mobile Services
Unified Messaging
Telephony
Multimedia Communications
Video Conferencing
Mobile Communications
Video/Web Conferencing
Enterprise IM Services
Hosted PBX
Unified Communications Architecture
Unified Messaging
Collaboration
Predictive Dialing
Workflow API
Easy to add new features as businesses move up
the technology value chain

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Enhanced VoIP Example Hosted Auto Dialing

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Send live callers

• Upload call data to Hosted PBX
• Smartcast begins predictive calling
• Leaves voicemail on no answer
• Pops live called party to agent screen
• Routes live calls to sales agent
• Starts/Stops based on Agent Activity

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Outbound dials
3b
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Upload data
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Pop SF Record
Sales Team Location Anywhere Size 1 to 100
Salesforce Data Center Location
Save up to 2000 per month per sales person in
labor costs
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Review

• Hosted PBX services are ideal for SMBs
• Low CAPEX and OPEX are primary drivers
• Flexibility, mobility, and ease of use are other
  advantages
• Challenges are QoS and reliability
• Enhanced features enable businesses to reduce
  costs much further
• Hosted PBX is nearing the inflection point