UC Market Trends

Jeffrey PearlVP Carrier Sales North America

Agenda

Unified Communications Market Overview

Benefit/Pitch to the end user community

“Death of the PSTN”

Unified Communications Market

Market Trends Accelerating Opportunities

Growing awareness, acceptance and adoption of cloud-based services by enterprises

Evolution of communications networks to IP and broadband rollout

Explosion of smart communication devices

BroadSoft ®, Inc. 2013

Work Forces are Becoming Increasing Remote/Mobile

Percentage of U.S. remote workers increased dramatically during the last decade

4 in 10 U.S. employees spend time working remotely

13.4 million employees work at home at least one day per week

25% of all remote workers are in management, business or finance

Workers use over 3 devices to communicate with their colleagues (Gartner)

Communications is Becoming Much More Powerful

Office

Home Office Mobile

Unified Communications moves to the cloudBusinesses of all sizes take advantage of accelerating factors

The $8B/year PBX business moving to the cloud

Smart devices

Ubiquitous broadband

infonetics

Market Conditions - $11B Annual Hosted UC RevenueWhat portion will you get?

By 2017 there will be 90M Hosted Subscribers spending $11B Annually

Someone is going get this revenue – it should be you

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10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

90,000,000

100,000,000Business VoIP Service Seats

Infonetics ‘13

Quantifying the Service Provider OpportunityUC Services make up greater percentage of ARPU

Source: IDC

Unified Communications Services 2014 Forecast Reaches $8.6B

ARPU Growth From Unified Communication Services

Not from IP Centrex/Pure VoIP

Enterprises evolution Moving from a ‘bag of parts’ to seamless service

Technology Centered

“Interworked”

Multiple Tool sets

Reserved resources

Specialized Equipment

User Centered

Integrated

Ubiquitous tool set

Always available

BYOD and Web experience

VoIP/Video

CC

Why are Companies Deploying UC?

Source: Infonetics 2013

BroadSoft Unified Communications Capabilities A Complete Set of UC Services for all business needs and sizes

Calling Messaging Collaboration

Hosted PBX

Business Trunking

ACD/Call Center

Instant Messaging and Presence

Text Messaging/ Fixed Line SMS

Unified Messaging

HD Audio Conferencing

Video Meet Me

Web Collaboration

Xtended: Open APIs & Integration Connectors

BroadTouch User Experience

Applications

Phones, Tablets, Smartphones, Laptops

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Front Office

How Can Hosted Services Benefit Your Business?

What is the end-user pitch?

Comparing Hosted PBX to Premise Based

Hosted Premise Based

Scalability Unlimited Limited by size of device

Flexibility to meet needs Increments of 1 user System scale adds cost

Management Portal for entire system Multiple management systems

Costs Rental per month Capital purchase or lease

Technology risk With the service provider With the enterprise

Disaster recovery Very strong capabilities Taken out by on-site issues

Work anywhere All users have the same features

Features will be limited at certain sites

Feature set Hundreds Depends on the platform

Focus on Your Core Business

To increase their level of competitiveness, businesses are focusing their resources on the core business

Hosted communications allows businesses to move the capital cost of a PBX off the balance sheet while providing significant added value to the business

Lower Your Costs

With Hosted PBX you don’t need to buy servers or other expensive system hardware

Other than phones there is no capital to depreciate*

Typically the 3 year TCO of a Hosted PBX is 30% lower than a premise based solution

* Phones can also be rented

Work Anywhere and Boost Business Productivity

Hosted PBX users can access the same powerful set of features regardless of being in the office, at the airport or from home

Easier to control remote users communication costs using hosted services

Remote user productivity dramatically improves when accessing hosted PBX features

No Costly IT to Worry About

The days of configuring the box in the equipment room are over

Hosted allows simple configuration of the service from user friendly portals

Users and features can simply be added or removed at the click of a mouse with minimal training

Business Continuity Means Your Business is Never Down

What happens if a flood, fire or earthquake takes out your business premise?

With your phone service in the cloud you can start working from a different location easily

The cloud phone service is built on a highly resilient Telco architecture which will be unaffected by natural disasters

Scale Up or Scale Down as Required

Businesses are constantly changing – adding new offices or growing out of old ones

Hosted provides the ultimate flexibility to change with the dynamics of your business

This flexibility lowers the cost of change for your telecoms systems and gets you up and running sooner

Gain Productivity from Unified Communications

Hosted provides unified communications features that increases staff productivity

Examples include voicemail to email, clients that turn your PC or Mac into a phone, instant messaging and presence

Alleviates IT Worries with Automatic Updates

With Hosted PBX your service provider takes care of updating the features so you don’t have to

There is no worry about technology obsolescence as you will always have access to the latest features from the cloud

“Death of the PSTN…!”

Taglines and Industry Quotes

The Technical Advisory Council (TAC) estimates that only 6% of Americans will use the PSTN by 2018. TAC projects the sunset of PSTN no later than 2018.

In late 2012, ATT sent a petition to the FCC to swiftly retire the PSTN and move to a nationwide IP infrastructure

In 2009 17% of respondents lived in mobile-only households. In 2012 the number grew to 39%

PSTN networks are outdated, too expensive to maintain and loaded with regulatory fees and surcharges.

Taglines and Industry Quotes

POTS revenue is on a swift decline going from $15B in 2010 to $11B in 2012 to an estimated $6B in 2018

Business adoption of VoIP has increased from 21% in 2009 to 35% in early 2012

Charles Darwin made a noteworthy point….if we are interested in evolving and prospering into the next decade, it is important to recognize the inevitable change that is coming and prepare accordingly.

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Summary: UC-One Differentiators

1875 2020

Alexander Graham Bell

forms American Bell

PSTNDNS (.com, .org, .edu

) established

2014

YouAreHere

BroadSoft Support Initiatives

Partnering for success

Jim Ferguson

VP Carrier Development

BroadSoft Support Initiatives

Marketing• Event sponsorships

• Webinar series/Guest speakers

• Participation at ILEC shows

Sales Support• RLEC road show identified for Q1/Q2

• Targeted sales calls

• Participation in innovation council meetings

Engineering Support• Technical training as needed

BroadSoft Support Initiatives

Training• Branding/Expansion of on-line training modules

• Certification Programs for ILEC

• Modular training program for small ILECs

Go to market program• “Perfect the top 10 keys to success”

• Workshops to develop and compare metrics

• Data derived from 500 other service providers

• E.G. sales per rep, lead &demand gen, win %

• Utilize and brand extensive on-line content

• Resources available as needed

BroadSoft Support Initiatives

Channel Program stimulation• Target top agents for some quick hits

• Webinars/road shows/channel events

Co-op programs• Sales incentives/contests

• Lead generation programs