voip and the cisco smart business … the cisco smart business communications system (sbcs) ......
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1© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1
VOIPand the Cisco Smart Business Communications System (SBCS)
ED MARSH - CISCO Small Business Sales
Communication Solutions-VOICE & DATA
Phone Systems, IP Applications
-----------------------------------------------
Orange County/Southern LA County
direct: (949) 823-1298 (Ed)
2© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1
Voip … IP Telephony … Unified Communications… Convergence of Technology
• A little History of Telephony
• Cisco’s place in IP Telephony
• Small Business Solutions
• Where is this technology going?
• Myths about IP
3© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1
It Started with Voice
• Once Upon a Time…
• Circa 1960’s
• First voice networks built to solve communications needs
• Proprietary and single purpose network
4© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1
Phone Network
PBX
PSTN
Switching
Routing
Users
VoiceMail
Application
Convergence – Two Networks vs. One
Router/GW
Client/Server
Applications
Internet
Switching
Users
Data Network
5© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1
VOIP
• Analog Phone (i.e. your home phone) connects to the internet via a converter (Vonage, Skype, Packet 8etc.)
• Compression
G729 = 28 – 30K per call or down to 13-14K per call
• Voice over the Internet, not IP telephony
PSTN
Gateway
Limited or NO
Applications
Internet
Converter
Users
Limited or NO
Applications
PBX over the network
6© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1
VOIP
• QOS
• Can you make a phone call and send a 5MB file and continue your conversation clearly
Profession Business
• How much is your conversation compressed?
• Are you sharing bandwidth from the company or office next door? Are you sharing bandwidth within your company?
• Have we accepted cell phone quality phone calls?
No QOS—Can you make a phone call and send a 5 MB file and continue your conversation clearly.
PBX over the network
7© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1
Convergence – Two Networks vs. One
Unified Network w/ open architecture vs. VOIP
PSTN
Unified
Router
Call
Processing,
VoiceMail
Client/Server
Applications
Internet
Switching
Users
Unified
Applications
Circuit Carrying Voice (Traditional) vs. Prioritized Packets via IP
network (Voice as an application…not a PBX over the network).
- Bandwidth is not the main consideration
- Prioritization/QOS is.
You CAN make a phone call and send a 5 MB file and continue your conversation without quality interruption
8© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1
Source: Synergy Nov, 2003 & Infotech Q3 2003
―By the end of 2007, traditional enterprise telephony system manufacturers will have ceased development …and announced their intention to discontinue support for their TDM-based PBX and contact center systems within five years (0.8 probability)”
Gartner, March 2003
IP Communications Is Mainstream
0102030405060708090
100
Pe
ne
tra
tio
n P
erc
en
tag
e
Year
IP to TDM Displacement Forecasted Share
IP
TDM
IP-PBX Line Shipments Surpassed Traditional CPE in 2005
9© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1
System Consolidation - Traditional
• Multiple Vendor Network Drives Complexity
Average 5-7 vendor’s products in SMB network
• Multiple Support/Maintenance Contracts
• Multiple Warranties
• High maintenance costs
• Multiple (800) numbers
• Low level of integration
10© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1
Moves, Adds and Changes – Converged Communications
• No technician required
• Extension tied to IP phone
• Simply unplug, move replug
• Changes are browser based
• Simple Graphical User Interface (GUI) for management
• Zero Cost MAC
• IP phone has built in two-port switch
• Only need one network cable per station
• Significant hard cost savings in wiring
New construction, leasehold improvements, growth
Example: 50 users, $125 per drop, $6,250 cost avoided
11© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1
IPT Benefit Savings
Improved remote office employee productivity
4.3 hrs per remote worker per week or 28 days per year
Improved telecommuter productivity 5 hours per week, or 33 days per year
Reduced travel expenses for IT 13 hrs / month / IT employee; 19 days per year
Faster moves adds changes (MACs) 1.5 Hours per move.
IT and end-user productivity benefits because features are easier to use
5.5 hours per week per IT employee involved with phone support
Easier MAC process for employees 3 more moves per year
Less telephone tag for all employees 3.9 hrs / week / employee or 25 days per year
From a survey of 100 organizations using IP Telephony,Sage Research & BCR
Unified Communications: EfficiencyQuantifiable Proven Benefits
12© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1
Data Networking - Yes
Network Security - Yes
IP Communications?
1996 1998 1999 2000 2001 2002 20031997 2004
Cisco Enters the IP
Communications MarketTraditional Voice Vendors
Enter the IP Communications Market
How does Cisco fit into IP Telephony (VOIP)
13© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1
Quick Guide to Cisco’s SMB Strategy
• The majority of Cisco’s current customer base resides in the mid market to enterprise market
• Cisco is strategically focused now on the SMB market
• Cisco is investing over $2 Billion in this market
• Cisco is launching 110 new products in FY ’06/07 targeted to the SMB market
• Cisco is providing financial incentives, marketing, training, sales and support services for SMB customers
―SMB is the fastest growing market segment. Industry surveys indicate that 40–60% of future IT spending over the next5–10 years will come from SMB customers‖
—CEO, John Chambers
131313
14© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1
R&D spending
Total Corporate Research and Development ExpenseSource: Company Annual Reports
0
1
2
3
4
2002 2003 2004 2005
$ Billions
Fiscal Year
Cisco
NEC
Nortel
Alcatel
Avaya
3Com
15© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1
WW IP Phone Shipments: Units (Market Share)
Q1 CY2007Source: Synergy Research - total 2.5M units
Other
9%
3Com
2%
Siemens
2%
NEC
2%
Mitel
5%
Alcatel-Lucent
8%
Nortel
10%
Avaya
18%
Cisco
44%
IP Phone Shipments
per Synergy Research Group – Q1 CY07
An IP phone is a clear, hard measure of true IP telephony
Cisco is the clear leader in IP phone shipments; we are deploying 2-5x as many IP phones as any other competitor
16© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1
But why Small to Medium Sized businesses?
• IP PBXs are slowly making inroads into the SMB market with most traction in the MB segment
• Most firms with <20 employees lack formal phone systems
• Results map well to other studies
Which of the following telephone equipment does your organization have?
Source: The Yankee Group 2003 SMB Infrastructure Survey (United States)
Percent of Respondents
22
21
28
8
64 27
5348
13
4
1
11
0
10
20
30
40
50
60
70
80
90
100
Very Small Small Medium
PBX
Key System
IP PBX
No Phone System
Almost non-existent IP penetration in small business market
PBXs Dominate the Small and Medium Segments of the Market
17© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1
Innovation has created complexity
…Results inDelays and
Missed Deadlines
…Unable to Reach
Coworkers on First
Try…
…Have to UseMultiple
Methods of Reaching
Coworkers…
Communication Devices and Apps
Proliferating…
EmployeesIncreasingly Mobile…
Daily 52%
Daily 36%
Monthly 22%
6.4 Types of Devices
27% Traveling 1X Month Avg.
Source: Sage Research
Are other vendors decreasing your complexity (Ex. E911, connecting to your desktop applications & mobile devices, Secure Voice, Quality of Service, CRM)
18© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1
Small Businesses are looking for a More Effective Way to Communicate With Location Independence
In your Office
At your Home
With your Client
And anywhere In between
• Public Wireless
• Hotel
Rich IP features allows Small Businesses to present a big business image
19© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1
Small Businesses Want a Single Vendor
Total
n=452
69%
31%
Yes, same person
No, 2 people/departments
Purchased by the
same person
Gartner IPC Study
IP telephony
n=102
47%
32%
21%
Both of them occur at the same time
Routers/switches
Telephony products/system
…and at the same time
14%
10%
13%
11%
8%
33%
32%
31%
35%
49%
0 20 40 60 80 100
% of respondents
Routers, n=88
Switches, n=88
Wireless LAN, n=86
Security, n=88
IP telephony, n=102
Mean
4.7
4.8
4.6
4.8
5.1
1 to 2: Not important
6 to 7: Very important
Importance of single product vendor
for integrated solutions
20© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1
Some examples of Vendors who deliver the different Components of your communication solution?
SwitchingUnified
Communications
Mobility—Wireless LAN
Routing Security
CISCO CISCO CISCO CISCO CISCO
HP Avaya Aruba Juniper Juniper
3COM Shoretel 3COM Huawei Sonic Wall
Nortel Mitel Adtran
Nortel BCM
NEC
…it is nice to have a Single Tool to Deploy and Manage your solution
21© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1
What exactly does CISCO have to offer in this Market?
True Efficiency
True Simplicity
True Mobility +
Security
For a small to medium sized business
22© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1
MusicOn
Hold
Unified Communications 500 Series
10.5‖ wide, 11.05‖ deep, 1.5 RU tall (2.625‖)
Wi-Fi (optional)
ConsolePOE
(8)WANPort
EXPPort
2 x BRI FXS (4)
VIC Slot(field expansion)
FXO (4)
• VIC3-2FXS/DID• VIC-4FXS/DID• VIC3-4FXS/DID• VIC2-2FXO• VIC2-4FXO• VIC2-2BRI-NT/TE
Expansion Modules:
23© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1
System Consolidation – Converged Communications
• Single, High Quality Vendor
SMB Designed, Purpose-Built System
• Single Warranty
• Single Support Contract
• Single (800) number
• Lower maintenancecosts
• Tightly integrated toenable advanced business features
–Full featured Voice over IP capability using H323 and SIP protocols
Voice Mail, Auto Attendant… Full Key/PBX Feature Set
–Industry’s First Complete SMB Network Solution with Switching, VPN, Encryption, Cisco Data Routing, and optional Wireless LAN
24© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1
The Sales Rep
•Stay Connected on the go•Manage Customer Relationships•Centrally Manage Customer Messages
•E-Mail, V-Mail, and Fax•Click to Dial out of Common Applications
•SalesForce.com or MS CRM•Outlook•Internet Explorer (Extension: 203)
CRM ConnectorsSalesforce.com or MS CRM
Public Internet(WIFI Hot sports, Hotel,
Mobile Broadband)
Corp Office
Airport
Integrated Messaging Cisco Secure Remote Worker
HomeHome
IP PhonesIPCelerateHome
25© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1
The Communication Closet
•One Device •Centrally Controls all communications•Delivers Network Security
•Snap-on Appliances extend capabilities•Lower total cost of IT Infrastructure
Converged Services RoutersISR 2800 or UC 500
Business Class Switch WLAN
HomeHome
IP PhonesIPCelerateHome
26© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1
High Resolution Color Touch ScreenApplication Enabled
Cisco Unified IP Phone7985G
Cisco Unified Video Advantage
Cisco IP Communicator
Cisco Unified Wireless IP Phone 7920
High Density Fax or Phone Connector
Dual Fax or Phone Connector
Full Range of IP Phones -
High Resolution BW 6 Button
Application Enabled
High Resolution BW 2 ButtonApplication Enabled
BW Soft key or Blank Screen
Value Price
IP PhonesIPCelerateHome
27© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1
Example: Open a Webpage on Computer
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UCC-Click to Dial MAGIC WAND
29© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1
Hold
Outgoing call—United Domestic
1-800-864-8331
End Call Transfer Park More
You are Calling United Domestic.
Oops! You meant to call UnitedInternational.
You now have an outgoing call from your desk phone!
30© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1
MOBILITY—Walk around the office, Work from Home or Starbucks or a Hotel, Be at your desk
• 802.11a, b, and g supported wireless IP phone
• Built-in speakerphone capabilities
• Dedicated mute and volume keys
• 100 hours standby time or 12 hours talk time
• Diversity antenna for better RF coverage
• Color high res display
Cisco Unified Wireless IP Phone 7921G
Soft Phone on Computer
• Executive Business Phone
• Color Display with Touchscreen
• Large Pixel Display with Eight Lines
• Five Dynamic ―Soft Keys‖
• High-quality Speaker Phone
• Integrated Ethernet Switch
Cisco IP Desk PhoneThese 3 phones can have the same extension
Forward your Softphone extension to your cell phoneExample: LED-works; Find me, Follow me feature
31© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1
Network Integration – Video Telephony
Video Advantage
• Audio on the Phone
• Video on PC
Cisco IP Phone
7960G
Voice
• Easy as a phone call.
• No additional training needed
Cisco IP Phone
7970G
32© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1
Network Integration – Video Telephony
VT Advantage
• Audio on the Phone
• Video on PCAssociation
Cisco IP Phone
7960G
Voice
Cisco IP Phone
7970G
33© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1
Network Integration – Video Telephony
Association
Cisco IP Phone
7960G
Video
Voice
Cisco IP Phone
7970G
34© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1
Network Integration – Video Telephony
Association
Cisco IP Phone
7960G
Video
Voice
Cisco IP Phone
7970G
Sales Companies
Construction
Parts Companies
(Service Comp—Computer Repair)
35© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1
Value of Integrated Security SystemSecurity Is No Longer an Option… It’s a Necessity
Security as an Option
• Security is an add-on
• Challenging integration
• Not cost-effective
• Cannot focus on core priority
Security as INTEGRAL to a System
• Security is built-in
• Intelligent collaboration
• Appropriate security
• Direct focus on core priority
Add On Built In
36© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1
IP Network
The Cisco BusinessCommunications Solution
E-MailCollaboration Calendar
VideoConferencing
Web ApplicationAudio-Conferencing
Instant Messaging
VoiceMessaging
ContactCenter
TelephoneServices
TelephoneServices
SECURITY
ProductivityBusiness Process
Business
Transformation
Follow the link below to learn more about Cisco Business Communications Solution…where Voice, Video and Data Meet http://www.cisco.com/cdc_content_elements/flash/bcs/bcs.html
37© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1
The Human Network
The Network as the Platform
…where is this VOIP thing going?
WEB 2.OSONA
SOA CISCO 3.0
38© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1
The Human Network
The Network as the Platform
less noise…its converging and unifying
WEB 2.OSONA
SOA CISCO 3.0
39© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1
Small Business Solutions and the Future of Convergence
• Extension Mobility
Your profile travels with you
• All your voicemail in one location
• Mobility Connect
Click to transfer mobile device to desk
• Dual mode phones
• Find me, Follow me
• Cisco Unified Personal Communicator
Presence on your mobile device
40© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1
Myths about IP communications
• Myth 1: If the public internet goes down, I won’t be able to make phone calls
• Myth 2: IP (or Cisco) is too complex
• Myth 3: IP communications are too expensive
• Myth 4: The capability of IP communications is more than I need
• Myth 5: My system will be more vulnerable if I have Unified Communications
41© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1
Myths about IP communications
• Myth 1: If the public internet goes down, I won’t be able to make phone calls
You can still make phone calls…just like the old days when the power went out in your house
• Myth 2: IP (or Cisco) is too complex
6 years ago…the answer might have been yes. IP Communications are simple and easy to manage. You no longer have to call someone to do simple telephone tasks such as Moves/Adds/Changes
• Myth 3: IP communications are too expensive
IP Communications CAN be less expensive initially than traditional telephony. IP Communications ARE less expensive than traditional telephone over the long run (Return on Investment goes UP and Total Cost of Ownership goes DOWN)
• Myth 4: The capability of IP communications is more than I need
The capabilities of IP communications can be as simple as your traditional telephone. The enhanced capabilities are exactly what enable your business to be more effiecient and have better customer intimacy and enable companies to stay competitive.
• Myth 5: My system will be more vulnerable if I have Unified Communications
The protective measures one can put on their IP communications are far stronger than and protective measures that were once on your traditional system. Whichever phone system one goes with, it is imperative that the security capbabilities of the system are robust. Cisco has industry leading security for IP communications.
42© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1
Cisco Key Differentiators
• Single Vendor, 1 Solution, Future Protection
Lower Total Cost of Ownership for customer when deploying a single vendor for communications and data - Sage Research
• R & D. $2B towards SMB. Future Protection.
• Features, Security, Applications Future Protection
Approximately 8 years ago, we realized that people communicate in many ways…verbal, non-verbal, inflection in voice, video, in person, remote, conference and point to point, e-mail, phone, wireless. We specialize in bringing these technologies together securely…providing convergence and collaboration.