Delivering on the Promise of Hosted VoIP

Delivering on the Promise of Hosted

VoIP

Mark CastlemanPresident

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Outline

• What is Hosted VoIP?– What is the Promise?

• Three Provider Models– Model Ups and Downs

• Pure Hosted VoIP Benefits• Pure Hosted VoIP Burdens – Client• Pure Hosted VoIP Burdens – Carrier• Products Clients Buy• Products Clients Don’t Buy (yet)• Premium Products: Extra $$$• Warnings and advice!!!

– How to make it work and stay in business!

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What Is Hosted VoIP?

• Provider Based Service Offering– Platforms

• Voice Equipment– Gateways

– SBCs

– Proxies

– Application Servers

• Network Equipment– Routers

– Switches

– Interconnections

– Limited Customer Premise Equipment• Phones, routers or gateways

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What is the Promise?

• Cheaper• Faster• Better• Easier

• What is it really?– Robust– Adjustable– Complex– Cost-effective…in some situations– “Not all dial tone is created equal”

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Three Provider Models

• “Pure Hosted”– BYOB: Bring your own broadband– Only Phones are required

• Managed Hosted– Provider brings network (ie T1)– Provider brings CPE

• Router, T1 and phones

• SIP Trunking Provider– Client uses existing phone system– Provider ONLY provides dial-tone

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Model Ups and Downs

• “Pure Hosted”– Limitations on market size

• Managed Hosted– Significant infrastructure cost– Significant SGA– Limitations on market size

• SIP Trunking Provider– Limited market– Lacks “sizzle”– Invites competition to customer prem.

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Pure Hosted VoIP Benefits

• Concentration of Expertise– Provider is expert

• Client is user

– Provider manages carriers• Client is removed from carrier discussion

– Provider manages capital equipment investment• Client spend converts from “capital” to “expense”

• Simplicity of Customer Experience– “Only requires user phones”– Minimal admin burden

• No dedicated staff

• Multi-Location Solutions– Dramatic costs savings here

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Hosted VoIP Burdens: Client

• Client Networks– NAT Traversal!– Improperly configured networks

• DNS and “double NATs”

– Poor data provider SLAs– Weak data connections– Weak network gear– Weak network expertise

• Client Requirements– 500 seats per location (very difficult for pure hosted)– Possible for managed hosted but on-site only

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Hosted VoIP Burdens: Provider

• Carrier Failures– Single point of failure

• Impacts ALL clients on that carrier

• Platform Failures• LNP

– Portability is complicated– No Standard procedures– Carrier network may limit rate center coverage

• DID Management– Large number databases with multiple carriers requires

constant attention

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Products Clients Buy

• Auto-attendant/IVR• Desktop phone service

– LD– Transfer– Voice Mail– Find Me– Unified Messaging

• Notification services• Voice or Email

• Fax-to-email– Desktop Fax

• ACD, Call Queuing• Music On Hold• Schedule based functionality

• Web Administration• Attendant Console

– Web Based

• User Call Management Consoles

• Site to Site Transferring

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Product Clients Don’t Buy: yet

• Customer Profile– SMB

• 2-25 users• 1-5 sites

• Not Valuing, or paying for…yet– Video (hardly used even when available)– Voice to text (typically expects it to be included)– Overhead Paging (likes it included but will not pay extra)

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Premium Products: Extra $$$

• Additional Capacity– More calls in queue to prevent “busies”

• Simultaneous Ringing• Hunt Groups• Professional recording• Professional MOH• “Dual Ring” accounts

– Account will ring to more than one site

• Extended Greeting Length– Example: 30 min greeting

• Network management

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Warnings

• Pick Excellent Carriers– You get what you pay for is true!– Avoid “aggregators”

• Pick a Platform that Matches your target market– Not all platforms perform well for different users– Make sure the platform addresses the “billable” features

• Test Drive the Services of your competition• Invest in quality Customer Service Reps.

– Your clients will bring your next customer– Train your customer

• Don’t underestimate the weakness of your customers data provider

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Provider Guide

• Know your target market– Pick a client profile

• SMB?• Multi-location?• Single-user• Executive Suite

• Investigate the Platforms– Do research on many platforms

• Talk to users– Talk to at least 30 client companies and ask them plus observe!

• Investigate Carriers– Do not be afraid to negotiate– Understand carrier cost models

• How do carriers make money?

• Be willing to LEARN fast!