Business VoIP Migration Strategies
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1 Business VoIP Migration Strategies Chris Thompson Senior Product Manager Adtran, Inc All rights reserved
2 2 Agenda ADTRAN Overview State of the Business Voice & UC Market Preparing for the transition of Business Voice and UC SIP trunking Addressing today s needs while preparing for the future Hosted voice and UC services Leveraging equipment and expertise across multiple service offerings Ensuring the right feature set in your edge equipment Handling deployment challenges Managing mobile UC users Summary and Conclusions
3 3 ADTRAN at a Glance Broad Portfolio of Solutions More than 1,700 products 2011 Revenues - $717 million Carrier Division - $569 million Enterprise Division - $148 million Strong Financials Over 25 years of continuous profitability 2,100 Employees Global Presence Headquartered in Huntsville, AL Development centers: Greifswald, Germany Ottawa, Canada Phoenix, AZ Mountain View, CA Boston, MA Hyderabad, India ADTRAN Headquarters, Huntsville, AL NASDAQ: ADTN
4 The Right Place ADTRAN Innovations have yielded over 700 patents / pending applications High concentration of engineers Strong work ethic Strong engineering focus Innovative High level of education 4
5 5 Market Trends: Premises vs. Hosted Solutions So how is the traditional premises-based PBX/KTS market performing versus hosted? In 2011, hosted VoIP/UC services added 917K seats in the user space. That s up from 131K seats in 2010! In the same year, premises-based systems added/sold 4.2M lines in the user space. Hosted solutions are not just a service provider play anymore Many traditional PBX equipment vendors are working to develop and deploy their own cloud-based offerings in an effort to respond to the threat creeping into their reseller base Microsoft Office 365, AvayaLive, Shortel/M5, Mitel AnyWare, etc... Sources: Infonetics Enterprise Unified Communications, VoIP, and TDM Equipment Q1/12 Infonetics VoIP and Unified Communications Services and Subscribers Market Share and Forecasts, March 2012
6 Market Trends: Cloud and Managed Services Growing industry demand for managed, hosted & cloud services SMB Cloud Services U.S. market grew 25% to $15.1B in 2011 Worldwide market expected to grow to $68B by Hosted VoIP & UC services Represented 29% of all business VoIP services in 2011 Expected to grow to $10.5B by 2016 Managed IP PBX Represented 37% of all business VoIP services in % of all new IP PBX lines are managed Expected to grow to $11.5B by 2016 Sources: Parrallels SMB Cloud Insights Report, February 2012 Infonetics VoIP and Unified Communications Services and Subscribers Market Share and Forecasts, March
7 7 Market Trends: Cloud Services Security IDC recently reported that SMB spending for network and data security will grow to $5.6B in three years. o SMB adoption of Cloud Services and Unified Communications will help to drive this. One area typically ignored by small businesses is the security of evolving VoIP networks Service providers have spent millions protecting their voice networks while enterprises, particularly smaller ones, have largely ignored it. Voice security threats include: o Toll Fraud/service theft o VoIP DoS o Eavesdropping o SPAM over Internet Telephony o Identity theft / VoIP Phishing
8 So how should you prepare in this transitional environment? 8 One day Alice came to a fork in the road and saw a Cheshire cat in a tree. Which road do I take? she asked. Where do you want to go? was his response. I don't know, Alice answered. Then, said the cat, it doesn't matter. Lewis Carroll, Alice In Wonderland
9 IP Integrated Access to SIP trunking Transition $6.00 $5.00 Revenue (US Billion $) $4.00 $3.00 $2.00 $1.00 $ IP Integrated Access SIP Trunking One third of businesses are using SIP trunks but it only represented 47% of voice trunk capacity. 42% said that they would be using SIP trunks by 2014 Limitations of existing equipment and existing service contracts were keeping some businesses from switching 9 Source: Infonetics, VoIP and UC Services and Subscribers with Service Provider Scorecard (2012 Edition) 9
10 10 Session Border Control at the Edge Enterprise SBC s become mandatory Redundancy and failover Troubleshooting tools Signaling/media interworking Voice quality and SLA monitoring Service provider and enterprise security IP PBX
11 Cloud Communications Accelerating North American Hosted PBX Revenue $6.00 $5.00 Revenue (US Billion $) $4.00 $3.00 $2.00 $1.00 $ Hosted VoIP and UC accounted for 29% of business VoIP services in 2011 Growing number of options with PBX/UC vendors getting into mix Growing deployments with larger enterprises 11 Source: Infonetics, VoIP and UC Services and Subscribers with Service Provider Scorecard (2012 Edition) 11
12 12 Hurdles for Hosted Service Offerings Choosing the right equipment: Migration from trunking solutions to hosted Managed IP PBX vs. Hosted? Why choose when you can easily offer both! Overcoming customer cabling challenges Dealing with the wired AND THE WIRELESS networks
13 IP Integrated Access to Hosted Voice Migration 13
14 14 IP Endpoint and CPE Choices Choosing the correct equipment can: Ø Ease transition headaches Ø Reduce truck rolls Ø Lower support and training costs Ø Decrease installation times Ø Reduce the amount of money spent on inventory Ø Improve customer satisfaction and loyalty Managed IP PBX and Hosted VoIP Ø Choose and deploy IP phones that work equally well in both Cloudbased Voice and Managed IP PBX scenarios Ø Deploy CPE that can act as a premises-based IP PBX fed with a SIP trunk or as a survivable gateway in Hosted Voice/UC offerings
15 15 Hosted Voice Solution Deployment Concerns Wired Concerns: Cabling - All copper cabling must be four-pair Category 5 quality or higher--legacy voice-grade copper is unsuitable for Ethernet networking. Distance - Distance runs of copper cabling for both data and PoE applications are severely limited at only 100 m (328 ft). In order to span longer distances, the use of fiber, repeaters, and/or additional switches must be employed. Speed - It is possible to configure Ethernet circuits across Category 3 copper wiring. However, speeds must be limited to only 10 Mbps which is unusable for many applications. Wireless Concerns: Deploying and managing a new wireless infrastructure Scaling in an environment where the number of devices is exploding!
16 16 Wiring Issues: Today s Solution... Pull Cable In general, to overcome wiring challenges today, customers must pay to have new cable runs installed. Costs: $120 - $150 per drop of Cat5/6 Ethernet 100 ft. distances, sheet-rock, 10 ft. ceilings or less $85 per 50 ft. longer than 100 ft. Firestopping - $ each Core Drilling - $ to $ per drilling Lift Rental Could add additional $ for lift plus multiple technicians due to safety concerns
17 17 Alternative Solution Requirements Must allow LAN Ethernet networks to be constructed across a variety of existing cable plant infrastructure CAT5/6, CAT3, Legacy voice-grade copper Must allow data speeds conducive for today s demanding applications Must extend both link connectivity and Power over Ethernet over distances significantly longer than 100m (328 feet) Must include all of the innovative features and tools found in today s advanced Ethernet switches
18 18 Typical ActivReach Ethernet Deployment The flexibility of the NV1535P allows for standard IEEE Ethernet speeds of 10/100/1000 over CAT5/CAT6 or speeds of 10/100 Mbps over legacy voicegrade copper with ActivReach Using ActivReach, end-points can be connected at distances up to 1200 ft
19 19 The Workforce is Increasingly Mobile Tablets have reached 11% penetration of the workforce 45% of workers are now mobile 72% of companies have effective mobile workforce programs In 2011 smart phones and tablets outsold traditional laptops and PCs Adtran, Inc A rights reserved Proprietary and Confidential ADTRAN
20 Wireless LAN Momentum is Strong ADTRAN 2011 Adtran, Inc A rights reserved Proprietary and Confidential 204
21 Tablets and Smartphones must be factored into your Hosted Voice and UC plans 21 Mobile Data Traffic Forecast Tablets Change the Game Wireless only devices no wired capability Heavily video oriented exponential traffic increase Impact in both public (mobile) and enterprise (private) networks
22 The Answer to the Wireless Problem can be found in Software Defined Networks 22 SDN Controller Virtual Machine The network of the future has a completely separate, software-based, virtualized control plane. This allows the physical devices to be optimized for data plane duties
23 23 Example of Virtual Wireless Networking Traditional Controller-Based Architecture Virtual Controller Architecture Hypervisor WLAN Controller Access Points Access Points Management Plane Control Plane Data Plane Physical / MAC Layer Three planes exist at the centralized controller Not a scalable solution for 11n deployments because the controller limits the data throughput Management Plane Control Plane Data Plane Physical / MAC Layer Eliminates the controller hardware Moves control and mgmt to hypervisor Moves the data plane to the AP
24 24 The Implication is Far Reaching Service agility Change the software to redefine a service Cost effective scaling Control plane can be scaled independently of the data plane Higher reliability Control plane interruption does not affect the data plane Greater throughput Data plane device optimized for throughput
25 25 Hosted Communications Solution Kits Metaswitch interoperable tested equipment from ADTRAN and Polycom targeting small, medium, and large deployments with: Zero Touch Provisioning Scalability from small to large providing the solution you need for meeting the differest size SMB customers Reliable access devices, world class phones, and robust communication services that are easy to provision and use For more information visit:
26 26 Summary & Conclusions Build a broad portfolio of Business Voice Services and give your customers a choice Allow a path for both you and your customers to easily migrate services Choose the right CPE Ensure that you have the right feature set in your edge equipment Leverage equipment and expertise across multiple service offerings Be prepared to deal with deployment challenges in the wired network Take control of the wireless infrastructure and turn BYOD into a new revenue opportunity
27 Question and Answers 27
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