UC Agenda

Opening Remarks - Greg Zweig of GENBAND

Introductions - All

Market Review – Matt Townend of Cavell Group Customer Experience – Dan Legge of Bell Aliant Customer Experience – Trefor Davies of Trefor.net (formerly

of Timico)

Product/Solution Q&A – Swapan Nandi & Arjun Cholkar of GENBAND

Q&A is encouraged at all times

UC MARKET REVIEW

Matt Townend of Cavell Group

Introduction to Cavell Group

Cavell is a specialist Consulting, Research and Professional Services business, who have worked for the last decade advising service providers, enterprises and government on emerging technologies. Particular focus on (UC & VoIP, Content, WIFI & Wireless, SDN)

Cavell has a wholly owned research business illume research which has been tracking the Hosted UC/VoIP & SIP Market since 2005

Matt Townend is Board Director of Cavell and founder of illume research and has been providing advice to providers on the IP Voice and UC market for over a decade

Matt has a carrier background having held Senior Director roles in the PIPEX/UUNET businesses and was Product & Marketing Director of one of the first VOIP Companies in Europe Inclarity.

Cavell provides research and consulting to both some of the largest providers and the new kids on the block, customers include

UC DefinitionUC was originally defined as whatever the PBX 

manufacturers were selling at the time, and for the Enterprise to benefit they just had to replace there whole 

infrastructure

“Communications integrated to optimize business processes" 

There are many definitions but put simply: 

“UC will mean different things to every customer as their process and communications differ which is the 

challenge for many service providers ”

What leading Service Providers say their UC offers bring companies

“Transforming business through better communication”

“Better Communication, Better Business, Turbocharge your company’s competitiveness and simplify business 

operations” 

“Helping you realize your business Goals by driving greater employee effectiveness productivity while Reducing cost and complexity”

“Revolutionize your business productivity by better connecting your people at the office, in the field or at 

home”

“Communications that unify” Collaboratemore efficiently using unified communications with your 

employees, suppliers, customers and business partners

“Communicate and Collaborate in a Work Anywhere World”

Big tasks and Big promises from Service Providers

Work Anywhere Enabling Communications

& Collaboration Driving Productivity Transform your business Integration of services &

applications Cost not mentioned as key

Driver??

Can service providers deliver on this promise without a Fundamental change to their organization?

Technology drivers adding to the challenges of UC

Hyper‐convergence 

Shadow IT & BYOD

Flexible Working & Mobility

Continued globalization

Cautious economic environment

Multi Screen World

Flexible Working Flex working makes

employees 39% more productive

However utilization of office space as low as 50% in the UK and other markets

A third of small employers say that the associated costs of extending flexible working to all employees are too high

Mobile Communication In UK Ofcom reported that

over 51% of all business calls were now from mobile

Smartphone penetration 60-90% in developed countries

ARPUs generally falling Mobile broadband outnumbers

fixed broadband 3:1

Polycom survey/Redshift Research – 2013CIPD – Flexible working provision and uptake – 2012

Ofcom Communications Report – 2013Global mobile statistics 2014 – Mobile subscribers; handset market share, mobile operators.

Flexible Working & Mobility

Mobile has to be at the core of UC strategy !

89% of IT professionals support employees using ‘personally-owned mobile devices for work.’

Only 51% of IT managers said their companies had a strategy in place to manage personally-owned devices

53% of information users use/install unsupported software & Applications they use for work.

The Mobility Edge: CDW’s 2012 Small Business Mobility Report”Forrester Report 2013

BOYD & Shadow key consideration in UC strategy

You may have to enable integration to user applications

We are seeing providers like Vodafone, 8x8, Ringcentral and BT with global platform capabilities.

We are aware of other Providers setting up international relationships and pops to serve both Medium & Large Enterprise requirements

Global requirements are not limited to very large enterprises, as we see more and more mid sized companies

“UK Companies exporting grew from 32% ‐39% in 2013”

British Chamber of Commerce Survey 

Customers require international solutions

How can I extend the service beyond my traditional Geographic boundaries !

WebRTC appears to becoming an enabling technology for UC

Most users are currently using WebRTC for its video and audio functions together, not just for voice

Many people see its biggest usage in customer services where a customer will be able to directly speak to someone in a contact center.

This will increase the potential for customer support, sales and made other functions

TokBox asked 1,000+ professionals from around the world about their experience with WebRTC and their plans to use it in the future.http://webrtcstats.com/webrtcs‐bright‐future/

To assess the UC opportunity it is key to understand the core enabling services

Fibre access & LTE/4 G proven  key drivers to growth of UC Market 

The UC market was being driven by IP PBX

Now SIP Trunking, Hosted PBX & Smartphone playing key enabler role

Application often linked to enablers to date 

Fibre access & LTE/4 G proven to key drivers in US & ASIA markets 

AccessMobile & Fixed 

AccessMobile & Fixed 

Enablers

SIP Trunking

SIP Trunking signaling the death to ISDN & Key Enabler

The UK has over 1 million SIP trunks in the market.

In 2012, Ofcom saw ISDN channels decrease by 300k, approx. the same number of SIP Trunks were added in this time.

Fibre access will allow many medium sized companies to move to SIP as they take advantage of FttC and EFM technologies.

Growth rates will slow down towards the end of 2016 as ISDN replacement reaches saturation.

26% 29%

32% 35%

38% 41%

45% 48%

52% 55%

57% 60%

62% 64%

66% 68%

70% 71% 73% 74%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2014 2015 2016 2017 2018

IP/SIP Penetra on of Available Market

‐

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

Jun‐12 Dec‐12 Jun‐13 Dec‐13

UK Hosted VoIP Users December 2013

Hosted VoIP/UC already significant in key global markets

In many markets Cloud voice services are not new

In some key markets Hosted UC/Voice are really starting to gain significant market share

But increasing number of player entering those markets UK – 80 providers

PBX Vendors fighting back causing confusion to the customer

Illume research – Hosted VoIP report 2014WhichVoIP statistics – 2013Synergy Research Group ‐ 2014

VoIP providers will have to change market approach as products mature

Introduction Growth  Maturity   Decline  

Competing with alternatives Competing with competitors

Marketing focus:Basic ProductPR ‐ EducateFirst supplier

Marketing focus: New FeaturesAdvertising

New suppliersMore channels

Marketing focus:  Price decline

Few new suppliersFocus on loyalty

Marketing focus:ConsolidationSuppliers Exit

SIP‐A

SIP‐CHosted UCC

Core Hosted 

PBX

• Core Hosted slowing in rate growth

• Providers focussed on competing with PBX/ISDN

• Little advertising and marketing is undertaken

• SIP C still growing strongly  

• PBX fighting back by repositioning around UC & offering Hosted benefits

• New suppliers entering the market 

• More and more channels being established. 

Kotler Product Lifecycle 

ISDN

So where is the value for Service Providers in Selling UC services

More than direct SIP & Seat Revenues

Applications drive incremental value but Presence & Messaging almost table stakes

New revenue lines Professional Service & Consulting revenue

Locking core revenues in VPN, Data,Voice,Mobile

Driving a different customer relationship

Key Challenges we are engaged on are often not technical in nature

How do I ensure my business case reflects the value of the service 

How can we change our sales organizations to sell these solutions 

How should I Integrate into mobile

Do I need to build a consulting and professional service capability

My Service and Support organisation is focused on supporting individual products 

What about Microsoft & Google 

Summary

To unify communications is the fundamental challenge that all Service providers are going to have to address 

in the coming years

It will involve new approaches to selling & supporting customers but it will be a journey that all must take! 

BELL ALIANTUC CUSTOMER EXPERIENCE

Daniel Legge, P. Eng. MBASenior Manger – Voice Services and OSS Engineering

About Bell Aliant• One of North America's

largest regional communications providers

• Serve customers in six Canadian provinces

• Population served: 5.3 million

• NAS: 2.9 million• IPTV customers: 200k• Annual revenues: $3

billion• 7,000 employees

ABBC

YT NT

NL

NBONMBSK

NU

PEINS

QC

20

UC Market in Atlantic Canada High Centrex penetration

• 70% business NAS is Centrex• Customers saying they don’t want to run the voice

network Increasing competitive pressures

• PBX Resellers (Cisco, Avaya), CableCo, other Cloud providers (8X8, Ring Central)

Fibre-to-the-premise: “FibreOP” key enabler for UC• $500M investment, 800k premises passed, 200k

customers• Will reach 1M prems passed by the end of 2014

2013 01 22|   CONFIDENTIAL 21

Industry leading Centrex and FTTP penetration make the Bell Aliant marketplace somewhat unique.

Bell Aliant’s Vision: Linkage to UCTo be the leading communications provider in the markets we serve by pursuing five key strategic objectives:

• Improve the customer experience • Retain our customers • Grow broadband • Reset our cost structure • Engage employees

22

Although Unified Communications touches all five of Bell Aliant’s strategic objectives, it is most closely meshed with

the retention of our Centrex customers.

23

Bell Aliant’s Unified Communications service is the power of IP phone, providing enhanced collaboration and anywhere connectivity, without the capital cost or business disruption.

• Enhanced Collaboration. Anywhere Connectivity.

• Most Flexible. Least Disruptive.

• Reliable. Fully Managed.

• Lowest Total Cost of Ownership

Unified Communications is NOW

Bell Aliant has invested in providing key UC building blocks. Need more assertive providers in the market to drive technology advancement.

Key Challenge / Lessons Learned #1:

Operational Scalability

Many touch points…• Line provisioning, data provisioning, number porting, voicemail, UC features, routers,

firewalls, customer LAN, Internet, VPN, sets, legacy interworking. Lack of investment in provisioning automation, self serve, OSS tools will put

providers at a competitive disadvantage

2013 01 22|   CONFIDENTIAL 24

Given UC complexity … Product standardization, provisioning automation, customer self serve, and OSS tools required for Tier 1/2 trouble resolution need

to be part of the UC strategy

CustomerLANData Access

Customer Edge Router

CS2k Complex

CICMSPM

F/W

CS2K

PVG

Internet

VPN

BusinessSystems LNP

SS7Traditional Phones

IP Phones

Soft Phones

A2

Key Challenge / Lessons Learned #2:Getting Ahead of Customer Feature Demand

2013-2014: Enhancements Microsoft integration Mobile clients Next Gen IP Sets Collaboration Tools

2013 01 22|   CONFIDENTIAL 25

Customer expectation of high quality functional product and solid roadmap are table stakes to joining the UC conversation.

2005-2012: The Basics IP Sets PC Client MeetMe Conferencing Presence/Messaging Voicemail / Voicemail-to-email /

Fax-to-email

Growing customer feature expectations

Key Challenge / Lessons Learned #3:

Customer Expectation of Quality

Example: PC Client experience• Calling Line ID Display• Headset configuration retention• Call set up delay• Installation freezing

Lessons learned• Eat your own dog food• Rigorously address issues found internally

2013 01 22|   CONFIDENTIAL 26

Bell Aliant’s experience with Enterprise customer deployments indicate quality excellence is still essential.

Low occurrence, annoyance issues

Where do we need to go next? Contact Centre integration Video conferencing integration UC client consolidation (More) Microsoft integration Security The new UC set: Highly functional / low

cost

2013 01 22|   CONFIDENTIAL 27

Customers are saying they cannot implement another “island of technology”. Unified Communications needs to deliver on its

inherent promise.

Voice Video

Collaboration

HTML5 & Web RTC Apps

TIMICOUC CUSTOMER EXPERIENCE

Trefor Davies

Timico in 2004

Or more to the point

Vision - Become Converged SP

In 2005 we bought an ISP - Atlas Internet• £800k sales • Circa 1,000 broadband tails

Subsequently bought KeConnect, twang.net, NewNet, Redwood, PowerNet By 2013 Timico had 255 staff with £43m

turnover

VoIP Play

Looked at a number of VoIP options• Sylantro - not SIP and no presence in UK• Broadsoft - needed an engineering team• Cisco - no multi-tenant solution• Nortel - ticked all the boxes & could provide

turnkey solution

The conferencing and collaboration market is built on SIP

Session Initiation Protocol Built on internet principles

• DNS• Highly scalable• Open standard & makes use of standard platforms

Particularly interesting because whole world is moving to SIP – Microsoft, 3GPP, major SIP product intros and acquisitions by Nortel, Cisco, Avaya et al…

Will change the way people communicate• tref@work.co.uk• tref@home.co.uk• coach@minirugby.co.uk• zargon@battlenet.org

Basic Collaboration is Based on Consumer UI

Basic entry level ad-hoc conferencing

Higher-end “Meet Me” Business Collaboration Tools Have More Functionality

Pin code entry Own personal conference bridge High end collaboration on word and powerpoint Moderator control over users Recording of Web and Voice Conference Recording Audiocasting Outlook® Integration Conference lock Audio dial-out File transfer Remote control Event management

No download requirements Ability to start meetings instantly Integrated voice and web allows all aspects of voice conference

to be managed via browser Document sharing Application/desktop sharing Pointer Annotation Polling Hand raising Chat Roster controls SSL Multiple presenters

First services rolled out 2006

Basic VoIP service - essentially a telephone line

Full up featureset PC client, presence

Initial Issues

Nobody had heard of VoIP We were trying to sell VoIP based on

technology Salesforce training

• Sales director didn’t even realise cable had to be plugged in

• Alpha trial sold as full blown service

Post Sale Problems

Firewalls PC clients Homeworker routers Bandwidth - both on LAN & WAN/internet

connection

Each sale was a struggle (esp group pickup)

Tech Support is Always a Big Issue

Not plug and play Hands-on design needed for architecture Fortunate in finding one of BT Global’s top

VoIP pre-sales engineers living locally

What has Changed?

FTTC Ethernet Everybody uses VoIP at home SIP trunks big driver

Highly profitable product line

Are There Still Issues?

PBX feature set• most of sales into SMB• call centre requires 3rd party integration

Still not plug and play so needs engineering support

PRODUCT - SOLUTION Q & A