Managed SMB Services. Pudja U. Kartiman. Director PT Cisco Systems Indonesia
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1 Managed SMB Services Pudja U. Kartiman Director PT Cisco Systems Indonesia Presentation_ID 2008 Cisco Systems, Inc. All rights reserved. Cisco Public 1
2 Agenda SMB Overview and Market Opportunities Market Trends Customer Requirements and Market Drivers Service Opportunities Power of Bundles Service Topics 2
3 SMB Opportunity & Drivers 3
4 Unprecedented SMB Opportunity Worldwide Small Medium Business (5-249) market has more than 66M businesses According to AMI Partners in 2007 global SMB IT spending will surpass large enterprise IT spend SMB market will be the fastestgrowing segment of technology consumption over the next decade. 4
5 What s Driving the Small and Medium Business? Increasing need to compete with larger players Must stay nimble and efficient Teleworking, remote workers increasing Basic services needed; with ability to protect investments and scale No or minimal IT staff to handle the increasing complexities of today s IT environment More Intelligence and Integration of Services Needed by the SMB 2007 Cisco Systems, Inc. All rights reserved. Cisco Public 5
6 Evolving SMB Requirements Expanded Managed Services Solutions Customer Requirements Security and Threat Protection Collaboration Video Integration Future Optimization Customization Basic Connectivity Secure Data/Voice Integration IT as a Cost Center Network Relevance The Network Is the Platform IT as a Strategic Asset 6
7 SMB Segmentation SMB Small Business 5 99 Employees Medium-Sized Business Employees 7
8 SMB Customer Profiles Customer Environment and Requirements Business Requirements Connect Offices and Employees Serve Customers Better; Improve Customer Responsiveness Work From Anywhere Business Security and Regulatory Compliance Help Employees be More Productive (operational efficiency) Network Environment Office or Mini-Campus Network Many corporate resources are maintained locally Single site, or a loose confederation of autonomous sites Local Call Processing & voice mail WAN is IP Sec VPN over Internet or MPLS VPN 8
9 SMB Customer Profiles Attitudes Small Business Firms with under 50 employees typically do not have full-time IT staff, and the owner/manager is almost always the technology decision maker. Effective messaging should focus on specific technology benefits rather than on the technical attributes. SBs do not necessarily view technology as a key competitive tool the way MBs do and are less likely to indicate the same level of financial analysis in technology assessment. Technology providers should emphasize basic operational benefits and the long-term financial impact that new technology can provide. Medium Business Improving internal efficiency is much more important to mediumsized businesses than it is for small businesses as a motive for technology acquisition. MBs want to be able to better manage their businesses and derive maximum revenue from current customers. Messaging to MBs should emphasize the role technology can play in improving productivity, and providing competitive advantage.. Source: IDC
10 Global Market Opportunity: Sub 250 Segment Managed Services - $12B by ,000 10,000 8,000 6,000 4,000 Security Storage MetroE IPVoice IPVPN 2, Source: Ovum
11 Service Opportunities 11
12 Definition of Managed Network Services Managed Network Services are networking services that extend beyond basic transport or bandwidth connectivity. The service provider owns and leases customer premise equipment to the end user, while providing overall network and configuration management monitoring, help desk support and assistance and maintenance including performance and quality-of-service assurance. Managed Network Services DOES NOT include consulting, design, and implementation. 12
13 Build Service Annuity with Solution Roadmap Increase Service Revenue, Reduce Customer Churn Moving the customer up to multiple, profitable managed services Managed Services - Enhanced Managed Services Managed Services - Convergence and IP Communications Managed Services - Secure Access Managed CPE CPE Resale Connectivity Revenue Growth and Customer Retention 13 Service Continuum
14 Managed Services Portfolio A Roadmap For Increasing Value Revenue End Customer Responsibility Service Provider Responsibility CONNECTIVITY SERVICE Most Basic Access PROVISIONED SERVICE Managed VPNs Design Installation SLA Monitoring Troubleshoot Increasing SP Value INTEGRATED SERVICE Bundles Internet + Voice + Security Bundles Provisioned VERTICAL APPLICATIONS Business Solutions Integrated Services + eofficesuite ecollaboration ecommerce elearning esecurity $ $$ $$$ $$$$ Service Provider Value 14
15 Managed Services Power of Integration Multi-Device Traditional approach: One service per device approach Labor intensive operation Different services coming from different providers Managed Application Acceleration Managed Network Intrusion Managed LAN/WLAN SP IP NGN Network Managed Router + VPN Managed IP PBX Managed Firewall Not the Best Model for SMB or Branch Deployment 15
16 Managed Services Power of Integration Single Device Service are turned on on-demand extending CPE lifecycle 1 or 2 devices for the full service portfolio Lower CAPEX Less truck-roll and devices to manage Lower OPEX Increase ARPU and decrease churn through a comprehensive portfolio SP IP NGN Network Full Managed Empowered Branch Services Better Model for Higher Volume Deployment 16
17 ISR is a Solution Platform for Managed Services ISR Provides Simplified Choice, Enhanced Flexibility Multiple Services SSL and IPSec VPN Application Firewall Intrusion Prevention Network Admission Control URL Filtering IP Telephony Wireless Network Foundation Protection WAN Optimization Multiple Revenue-Generating Productized Offerings Managed VPNs Managed Security Managed Voice Emerging Applications Lower TCO Lowest OpEx SLA Enforcement Multiple Benefits Customer stickiness Service and solution differentiation Revenue generation ONE Router Family Increased customer loyalty Enhanced flexibility Integrated services Service Provider Cisco Integrated Services Router CPE of Choice 17
18 Cisco ISR Advantage Service Delivery Platform for the SMB Office Advanced Network Services Managed Application Optimization Managed Mobile Access Managed Endpoint Security Customer Loyalty Fundamental Network Services Convergence and Security Services Multiservice VPN Managed Router Service Managed Security Services Managed Site-to-Site VPN Managed LAN Switching Managed IP Communications Enhanced Security Services Remote Access VPN Service Differentiation 18
19 Unified Communications Manager Express Integrated Services Router (ISR) Portfolio Concurrent Services and Performances 8 Phones NEW ISR 1861 Over 65,000 Unified Communications Manager Express Express Systems Shipped!! 24 Phones 2801 Low-Density Services Modular connectivity (WIC/VIC) 36 Phones Phones Phones 2851 Multiple Services Extended modular connectivity (EVM, NM, AIM, WIC/VIC) 168 Phones Phones 3845 High-Density Services Modularity with performance optimized for all-in-one solution (HSDM, NM, EVM, AIM, WIC/VIC) Cisco Unity Express Local Auto Attendant and Voice Mail system with mailboxes, 4-8 sessions, 100 hours of storage Small Office Small Branch Enterprise Branch Office 19
20 Managed SMB Service Bundle Secure Data, Voice and Instant Customer View Internet Salesforce.com SP IP NGN Network Managed WAN Connectivity Managed Firewall Managed IPS Managed IPC Managed IPSec VPN Managed IPC and Salesforce.com XML applicatios Integrated IP Contact Center Value Proposition Managed WLAN Secure business connectivity secure data and voice for small office Work from anywhere integrated remote and wireless access Instant customer view integrated CRM customer history available on a per call basis to maximize customer interaction/sales process. 20
21 Managed Service - Power of Integration Service Bundling Flexibility Bundling Options Include: Service Capability: Eg: IP communications (connectivity, call control/routing, messaging, applications), Secure IP Communications Basic, Enhanced, Premium Customer Lifecycle: Eg: Migration to Converged Network and Applications Foundation (basic), Growth (enhanced), Optimized (premium) Business Driver or Application: Eg. Regulatory Compliance, Customer Responsiveness Alignment with SMB Segment and Vertical Industry: Eg. Retail Store Solutions for Small Business 21
22 Advanced Stores/HQ Networking Private IP- MPLS Use Case Scenario Small Retail Store Value Proposition Secure store connectivity Secure Retail Point of Sale (POS) solution supports increased transaction volume and faster processing Payment Card Industry (PCI) compliance for credit transactions Store IP communications Supply chain visibility/ collaboration,reduced communication cost Solution Features Secure store connectivity (Baseline solution = PCI compliant) Managed CPE + connectivity Redundancy/dial back up Managed basic firewall Managed store IP communications POS Registers IP VPN + VoIP CoS Back Office PCs /elearning Employee Portals Retail Servers Product Inventory Local Contact Center Managed IP Communications 22
23 Use Case Scenario Commercial Bank Branch Managed Router Managed Firewall Managed VPN Managed IP Communications and Customer Care Apps IP Video Surveillance IP ATM SP IP NGN Network Bank Branch Office E-learning, advertising, Video Conferencing Managed WLAN Wireless Concierge Value Proposition Solution Features Secure Business Connectivity Secure branch connectivity (privacy, sox, check 21); consolidate access IP ATM Branch IP Communications Enhance customer service (Basic call features within/between branches) Integrated Multichannel Marketing In branch media, self serve kiosks Mobility / Linebusting Self serve kiosks In-Store (small) Branch Managed Router Managed Firewall Managed VPN IP Video Surveillance Content caching advertisement Secure branch connectivity (Baseline solution) Managed CPE + connectivity Consolidate Firewall and IPsec VPN Branch IP Communications (Option) Managed IP PBX solution Optional: Workforce automation and CRM XML apps; Local contact center for call center support Multichannel marketing (Option) 23 IP ATM
24 Introducing the Cisco Smart Business Communications System Data Video Voice Small Business Mobility Complete Business Communications system 3 rd party application integration Easy setup, install and management plug n play Voice, video, mobility, data and security all integrated Remote monitoring and management Full suite of Cisco IP phone and IP Communicator (softphone) supported A new integrated system that enables a total communications experience 24
25 SBCS - The Complete System Cisco Catalyst Express 500 Cisco Unified IP Phones Cisco AP 521 Cisco Unified 500 Series Cisco WLC 526 Cisco Configuration Assistant Cisco Monitor Manager $350 Cisco Monitor Director $
26 Cisco Smart Business Communications System Solution Portfolio Unified Communications & Network Foundation 8 and 16 Users for Voice (Will Grow to sub-50 Users) Desktop Model Optional Integrated WLAN AP UC Applications Included Apps: Call Processing, Integrated Messaging, Voice View Express, Auto Attendant Optional Apps: Cisco Unified CallConnectors Cisco IP Communicator Cisco Unified Video Advantage Third Party Apps Cisco IP Phones All IP Phones are supported Systems Configuration and Management Cisco Smart Assist Features Phase 1 Cisco Configuration Assistant Phase 1 Cisco Monitor Manager / Cisco Monitor Director Switching Wireless Teleworker Desktop Companion Switch for UC500 AP500 WLC 500 UC500 has Optional WLAN AP Autonomous APs or Unified Wireless Solution with WLAN Controller 500 VPN, Wired & Wireless Access, IP Phone ext. 26
27 Unified Communications Manager Express Integrated Services Router (ISR) Portfolio Concurrent Services and Performances 8 Phones NEW ISR 1861 Over 65,000 Unified Communications Manager Express Express Systems Shipped!! 24 Phones 2801 Low-Density Services Modular connectivity (WIC/VIC) 36 Phones Phones Phones 2851 Multiple Services Extended modular connectivity (EVM, NM, AIM, WIC/VIC) 168 Phones Phones 3845 High-Density Services Modularity with performance optimized for all-in-one solution (HSDM, NM, EVM, AIM, WIC/VIC) Cisco Unity Express Local Auto Attendant and Voice Mail system with mailboxes, 4-8 sessions, 100 hours of storage Small Office Small Branch Enterprise Branch Office 27
28 Cisco 1861 Integrated Services Router Small Branch Unified Communications and Secure Routing Packaged for 8-users HWIC Slot Unified Communications Features: Music On Hold Cisco Unified Communications Manager Express or Survivable Remote Site Telephony Fixed PVDM configuration (1 DSP) Cisco Unity Express option 4 FXS Station Ports 4 FXO or 2BRI PSTN Trunk Ports Music on Hold port 8 10/100 POE Switch Ports + 1 Expansion port 4 FXS 2 x BRI or 4 x FXO Routing and Security Features: T1/E1 & Serial WAN 3G Wireless WAN DSL and Cable Cisco IOS Security software images Presentation_ID 2006 Cisco Systems, Inc. All rights reserved. Cisco Public Console 8 x POE FE Port LAN Uplink 28
29 The Cisco Advantage Experience Over 50,000 Unified Communications customers Over 15+ million Cisco Unified IP phones shipped Over 10+ million unified messaging seats Over 1.3+ million contact center agents 250,000+ Cisco Unified MeetingPlace licenses Over 40M VoIP gateway ports More than 70% of Fortune 500 use Cisco Unified Communications Source: Cisco, Feb
30 Managed Services for the SMB The Dynamics The Opportunity Key Success Factors Cisco Value Proposition Business driving greater productivity from branch office environment SMB is attractive market for new revenue streams Broadband connectivity, Security, VPN, Voice and Application Optimization services are in demand SMB solutions future proof application environment Service roll-out and deployment costs must be reduced to capture branch office customers with automated OSS and optimized management IP NGN Solutions for Transformation Enable Network & CPE-based Services Comprehensive Support Programs 30
31 SMB Managed Service Solutions Service Provider Opportunity Service Provider Advantage Extended Revenue Opportunities Eases upsell based upon service features and flexibility Reduces hardware footprint with integrated services platform Accelerated Service Delivery (time to market) Reduced turn-up time of diverse service bundles on integrated services platforms Service flexibility to accommodate multiple deployment options Proven, enterprise-grade business applications and technology innovation Rich suite of Services Acceleration Resources, Tools and Intelligence for GTM success Deliver Differentiated Services and Solutions to the SMB Market 31
32 Managed Services for the SMB End Customer Value Proposition For SMBs (5-250) Who need to out-task their network in order to reduce cost and increase business efficiency The Cisco based managed services Is a set of complete tailored network solutions That solve business challenges to improve communication efficiency and responsiveness at a lower Total Cost of Ownership Unlike network point players who lack the networking breadth and depth to deliver a complete set of products or lack the credibility and integrity of a Cisco solution It allows SMBs to obtain the twin benefits of efficiency and peace of mind knowing that the business is getting the most out of its resources, while knowing that vital digital assets are well managed 32
33 Summary SMB Opportunity is Compelling Bundles enable solution selling for this segment Opportunity for increased customer penetration over customer lifecycle (foundation, growth, optimization) Enables transition to experience provider Integrated services provide market advantage Managed service programs can aid time to market success 33
34 34
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