The Evolution and Impact of Business VoIP: A Carrier’s View Mark Fishler Vice President –...
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Transcript of The Evolution and Impact of Business VoIP: A Carrier’s View Mark Fishler Vice President –...
The Evolution and Impact of Business VoIP: A Carrier’s View
Mark Fishler
Vice President – Product Management, Voice and Data Business Services
“Although the consumer market has attracted the most attention from the press, the fastest growing VoIP market is hosted IP voice services for business customers.”
– IDC, September 2004
Source: IDC U.S. Hosted IP Voice Services 2004-2008 Forecast, September 2004
39% of Respondents are Current IPT Users
Source: The Yankee Group 2004 IP Telephony Deployment Strategies Survey
Which best describes your current use of IPT?
PartiallyDeployed
25%
FullyDeployed
5%
CurrentlyTesting
9%
Future Users61%
Current Users39%
22% of “Future Users” Plan to Deploy Soon
Source: The Yankee Group 2004 IP Telephony Deployment Strategies Survey
Future Users: What are your future plans?
Budgetedw/ in
12 mos22%
Test/Planw/ in
24 mos24%
Test in 12 mos
15%
Future Users61%
Current Users39%
Source: Yankee Group
RevenuesProductivity
Mobility
Cost and Network
Complexity
• Unified Communications• Real-Time Customer Info• Enterprise-Wide Networking
• Reduced Toll Charges• Integrated Wiring and Maintenance• More Operational Efficiencies • New Multimedia Offerings
• Broadened Delivery Systems• Increased Customer Contacts
• Anywhere, Anytime Accessibility• Increased Employee Flexibility• More Collaboration Options
Maximize Operational Excellence and
Innovation
IP Services Present a Significant Value Proposition
Evaluating Critical Networking Needs
Business Imperatives
IT Application
s
LAN/WANImplications
one. two. three.
IP Telephony Deployment Questions
• What technology platform should I implement?
• Will I need to throw out my existing investment?
• Will I save money over my existing TDM solution?
• Can I operate in a hybrid environment?
• Do I have the staff to operate a VoIP network?
• When will my new VoIP investment become obsolete?
• Will my selected platform be able to support new applications?
• Do converged networks really work?
• Will my business really recognize the promise of VoIP?
• Can my LAN/WAN support VoIP today?
Hosted vs. IP PBX Preference Determinants
Factors Favorable to Hosted
• Requires little in-house management expertise
• Multiple sites
• High percent on-net calling
• Longer VoIP migration period
• Mixed existing telecom platforms
• Limited capital
Factors Favorable to IP PBX
• Available in-house management expertise
• Fewer sites
• Low volume of on-net calling
• Ability to perform a flash cut
• Available capital
• Existing WAN bandwidth
Customers Have Multiple VoIP Options
Economies for Customer
Reliance on Managed-
ServiceProvider
Low
Low
High
High
Primarily VoIP PBX Option Primarily Network Softswitch Option
OwnedOwned
ManagedManaged
OutsourcedOutsourced
HostedHostedHostedHosted
IDC Hosted VoIP Cost Analysis
• Hosted voice services are less expensive than PBX equipment and have a fundamentally different economic structure from PBXs because:
– Capital expense is reduced
– Maintenance and equipment costs are greatly reduced
– There is a wider opportunity to reduce long distance charges
Source: IDC U.S. Hosted IP Voice Services 2004-2008 Forecast, September 2004
U.S. Business Hosted IP Voice Forecast
2004 2005 2006 2007 2008
Sites (000) 5 15 50 200 400
Growth % NA 200 233.3 300 100
Users (000) 75 300 1,250 6,000 12,000
Growth % NA 300 316.7 380 100
Users Per Site 15 20 25 30 30
Monthly Revenue 65 62 59 56 53Per User
Total Revenue 58.5 222.3 879.9 4012.5 7647.9
Growth % NA 280.0 295.8 356.0 90.6
Source: IDC U.S. Hosted IP Voice Services 2004-2008 Forecast, September 2004
Growth Factors for VoIP
• Increased broadband penetration
• Improved voice quality
• Not subject to traditional telephony regulation
• Security
Core Network Evolution
FR/ATM
IP Backbone
Ethernet
FR/ATM
IP
Ethernet
FR/ATM
IP
Single Common Core NetworkTo Carry All
Layers of Services
Compressingthe Existing
Core Networks
Other Protocols Other ProtocolsOther Protocols Other Protocols
DWDMCore
Ethernet
FR/ATM
IP
Ethernet
FR/ATM
IP
IP MPLS Backbone
Other Protocols Other Protocols
DWDMCore
Ethernet
FR/ATM
IP
Ethernet
FR/ATM
IP
IP MPLS Backbone
Other Protocols Other Protocols
DWDMCore
Ethernet
FR/ATM
IP
Ethernet
FR/ATM
IP
IP MPLS Backbone
Other Protocols Other Protocols
Anytime, Anywhere Access: Integration Makes it Possible, Simple for Customers
Access from Any Place, Any Device
The Evolution and Impact of Business VoIP: A Carrier’s View
Mark Fishler
Vice President – Product Management, Voice and Data Business Services