Copyright© 2004 Avaya Inc. All rights reserved Customer Choice Through Service Provider Hosted...

Copyright© 2004 Avaya Inc. All rights reserved

Customer Choice ThroughService Provider Hosted Solutions

Denzil SamuelsVice President & General Manager, Service Provider Division

October 12, 2004

On NDA Until Announcement

2Copyright© 2004 Avaya Inc. All rights reserved

Agenda

• The News

• Target Market

• Market Opportunity

• Hosted Solutions for Service Providers

– IP Telephony

– Contact Center

• Customer Case Study

• Complete Support Programs for Service Providers

• Product Roadmap


What’s NewSP Delivered Solutions Expand Customer Choice

• New product portfolio for network service providers, outsourcers, and system integrators

– Market-leading Contact Center and IP Telephony solutions

– Messaging solutions (coming ’05)

• Industry-standard bladed server as hosted platform

• New business model (Build, Finance, Manage & Market)

• Unique ‘pay-as-you-go’ usage based pricing model

• Best-of-breed solutions targeted at mid market

• Service provider customers Include Sprint, France Telecom, Telecom Italia, PLDT, TeleTech, Allstream, Sitel

• Available now in North America, Western Europe, A/P

Offering customers path, pace and choice


Market Opportunity

Hosted IPT, CC and Messaging Markets

Regional View

2004 2007

North America 43% 41%

EMEA 35% 29%

Asia-Pacific 18% 25%

LA/RoW 4% 5%

64%Total HIPT, HCC, HM

28%Hosted Messaging

78%Hosted Contact Center

107%Hosted IP Telephony

04-07 CAGRSegment

0

1000

2000

3000

4000

5000

6000

HM Vendor 718 740 869 1086 1523

HCC Vendor 73 157 376 666 881

HT Vendor 104 335 1205 2263 2992

2003 2004 2005 2006 2007

$ M

illi

on

s

Source: Avaya analysis based on various industry reports


Service Provider Business DriversFocus on Global Tier 1 Service Providers

Engender CustomerLoyalty/Retention

ReduceRisk

Drive Net NewRevenues

Utilize ExistingBandwidth and Infrastructure

Maximize Revenue/SquareFt of Data Center Space


End Customer Target

TargetCustomers

TargetCustomers

BusinessDrivers

BusinessDrivers

Benefits ofSP Hosted Solutions

Benefits ofSP Hosted Solutions

Mid-Market Enterprises

($200M - $1B in Revenues)

Large Enterprises With Multiple Branch Locations

Mid-Market Enterprises

($200M - $1B in Revenues)

Large Enterprises With Multiple Branch Locations

Increasingly Distributed

Workforce

Need to Improve

Employee and Agent

Productivity

Over-Burdened

IT Staff

Need to MinimizeCapital Spend

Predictable Monthly IT

Costs

Speed to Market

Increasingly Distributed

Workforce

Need to Improve

Employee and Agent

Productivity

Over-Burdened

IT Staff

Need to MinimizeCapital Spend

Predictable Monthly IT

Costs

Speed to Market

Turn-key Market

Leading Solutions

‘Pay-as-you-use’

No Major Capital Outlay

Rapid Deployment

No Technology

Obsolescence

Disaster / Recovery, Redundancy & Security

Seamless Functionality

To Multiple Locations

Turn-key Market

Leading Solutions

‘Pay-as-you-use’

No Major Capital Outlay

Rapid Deployment

No Technology

Obsolescence

Disaster / Recovery, Redundancy & Security

Seamless Functionality

To Multiple Locations


Service Provider Hosted IP Telephony

IP “Cloud”For Voice and Data

PSTN

AvayaIntelligentEnd-UserDevices

MobileWorkerMobileWorker

RemoteWorkerRemoteWorker

Service Provider IPNetwork Services

BranchOffice

BranchOffice

HeadquartersHeadquarters

PSTNPhone

AvayaConferencing

AvayaConferencing

AvayaTelephony

AvayaTelephony

AvayaMessaging

AvayaMessaging

Avaya Brings• IP Telephony applications• Carrier engineered and

tested configurations• Management, Maintenance

& Provisioning Services

SP Brings• WAN services• Hosting facilities• Hosting services (optional)• Billing for services

ServiceProvider

Distributed Workers & Locations on same Platform

Network Infrastructureand Services

Hosted IP Telephony Infrastructure


Service Provider Hosted Contact Center

“The Cloud”

8xx Voice Services

IP Transport Service

GlobalInternet

EnterpriseCustomer #1

BranchOffice

BranchOffice


AgentsAgents


AgentsAgents

EnterpriseCustomer #2

Distributed Agents RemainEmployees of the Business

Network Infrastructureand Services

Hosted ContactCenter Infrastructure

DataCenter

Avaya Brings• Multi-channel contact center

& telephony applications• Engineered and tested

configurations

SP Brings• Broadband and Voice

services• Professional services• Billing for services

ServiceProvider


France Telecom and Avaya HCC Maximize Customer Service

France Telecom’s customer:• Multi-national catalog retailer

Goals:• Create a virtual call center by consolidating two in-house and two outsourced

sites, all geographically dispersed within and outside of France• Investment protection and flexibility for growth

Solution• Avaya Hosted Contact Center solution from France Telecom

Results• Reported decrease in customer waiting time• 40% decrease in lost calls rate• Dynamic call dispatching for more efficient call management• Better allocation of agent resources • High security level• Easy to link new sites and develop new products


• Strategic Go-To-Market Planning

• Train SP Sales and Engineers• Joint Demand Generation &

Selling• Bundled with Avaya Global

Services• Assess-Design-Implement-

Maintain• Managed Services

are Optional• Equipment Installed

at SP Data Center• Usage-Based Pricing• Priced for Mid-Market• Constructed in SP Labs• Avaya Labs-Certified for

Interoperability• Service Provider Deployment

Tools

• Construct Solution in SP Labs

• Avaya Labs-Certified for Interoperability

• Service Provider Deployment Tools

BUILD

• Minimal Capital Expenditure

• Usage-Based Pricing• Priced for Mid-Market• Constructed in SP

Labs• Avaya Labs-Certified

for Interoperability• Service Provider

Deployment Tools

• Bundled with Avaya Global Services

• Assess-Design-Implement- Maintain

• Managed Servicesare Optional

• Equipment Installedat SP Data Center

• Usage-Based Pricing• Priced for Mid-Market• Constructed in SP Labs• Avaya Labs-Certified for

Interoperability• Service Provider

Deployment Tools

Complete Support Programs

Enabling a NetNew Business forService Providers


SP Delivered Solutions Product Roadmap

Network ElementManagement Automation

Techniques

Seamless Networking Across NAT

Shared Server Platform

Usage Mediation

End UserSelf -Administration

ProvisioningManagement

Hosted Web IVR Portals

Carrier GradeMedia Management

Shared MediaProcessing Services

Feature ServerApplications Extensions

OSS/BSSManagement Platform

Hosted Messaging

Hosted IP Telephony

Hosted Contact Center

OSS/BSSManagement Platform ph 1

Carrier GradeNetwork Routing

Vertical Applications


In Summary

• Avaya is taking its market-leading Contact Center and IP Telephony solutions to a new market, in a new way

– Solving business challenges and enabling a net new revenue stream for service providers

– Introducing a unique business model for the service provider

– Delivering enterprise-class solutions to the mid-market

• A significant channel for Avaya

– Driving global growth for Avaya

– Penetrating the mid-market


Official Convergence Communication Providerfor the 2002 and 2006 FIFA World Cup™

FIFA Women’s World Cup USA 2003


Hosted IP TelephonyTelephony Applications as a Network-Based Service

• Avaya IP Telephony Solution at the SP Data Center– Avaya Communication Manager

– Avaya Media Servers (S8700) for customers with more than 500 users

– IBM Blade Server for customers with less than 500 users

• Avaya IP Telephony Solution at the SP Data Center and/or on theCustomer Premises

– Avaya Gateways (G350, G650, G700)

– Avaya IP Phones

• Bundled with Avaya Assessment, Implementation and Maintenance Services

– Option of adding managed services (Move, Add, Change; Performance Management; Capacity Management and Reporting)

• Provides Phased Migration, Highest Level of QoS, Robust Reliability and Security, Rich Functionality


Hosted Contact CenterContact Center Solution as a Network-Based Service

• Avaya Hosted Contact Center Solution at the SP data center offers full Avaya call center functionality

– Avaya Communication Manager (700+ features)

– Avaya Servers (S8700), Media Gateways (G650, G700), and IBM blade server

– Avaya Call Center Elite

– Optional Functionality: IVR, Call Recording, Multi-Channel Contact, CRM application, Network Peering Point

• Bundled with Avaya Global Services– Network Assessment (VoIP), Implementation, Maintenance Services, & software

upgrades

– Option of adding Managed Services (move, add, change; performance management; capacity management and reporting)

• Agents remain employees of the enterprise and can be located anywhere – Ability to integrate outsourced agents into the call flow

• Provides phased migration, highest level of QoS, complete reliability and security, rich functionality


BuildTested for the Service Provider Environment

• Avaya Labs-Certified Solution Set for Interoperability– Scalable, pre-provisioned, and licensed

– Easily repeatable for rapid deployment

– Engineered for capacity on demand

– Fast way to get to the market = rapid ROI

• All Solutions Are Certified for Service Provider Environment– WAN testing

– IP addressing and domain interoperability

– Interoperability testing with third party components

– Documentation made available to the service provider

– Engineering and third-party products ensure carrier-gradereliability, security

• Service Provider Deployment Tools– Bandwidth calculations

– Operational services and tools for efficienciesto serve multiple customers


FinanceUnique Usage-Based Pricing Model

• Avaya Solution Equipment Installed at SP Data Center

– Minimal up-front cost to the Service Provider

• Usage-Based Pricing

– Pay for usage

– Pay for functionality

– Minimums apply

– Service Provider flexibility for pricing to customers

• Flat monthly fee or usage-based pricing

– 5-year terms standard, 3 years optional

• Solutions Priced for Mid-Market

– Allowing SPs to offer high-end enterprisefunctionality at mid-market pricing


ManageService Levels Provide Choice

• Infrastructure readinessfor IP communication apps

Assess

• Design dial plans, vectors, skills, applications

Design

• Project management • Site preparation• Solution deployment• End user materials

Implement

Maintain• Coverage 24/7• Remote tech support • Same day parts

replacement• Software

maintenance & fixes

Avaya ManagedServices Optional


MarketComplete Go-To-Market Support

• Dedicated Marketing and Sales Resources To HelpService Providers Market and Sell to New Customers

• Strategy, Training and Execution

• Marketing

– Develop complete Go-to-Market Plans with Service Providers

– Implement joint demand generation programs

– Sales tools and collateral development

• Lead Generation

– For Service Providers

• Training and Enablement of Sales Forces

– For Service Provider’s sales and technical staff

– For Avaya sales forces

Copyright© 2004 Avaya Inc. All rights reserved Customer Choice Through Service Provider Hosted...

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