business voip migration strategies...– managed ip pbx ! represented 37% of all business voip...

® Adtran, Inc. 2009 All rights reserved

Chris  Thompson  Senior  Product  Manager  

Business VoIP Migration Strategies

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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

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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

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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

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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 1 – 100 user space. That ‘s up from 131K seats in 2010!

•  In the same year, premises-based systems added/sold 4.2M lines in the 1-100 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

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Market Trends: Cloud and Managed Services

– SMB Cloud Services �  U.S. market grew 25% to $15.1B in 2011 �  Worldwide market expected to grow to

$68B by 2014. – 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 2011

�  16-20% of all new IP PBX lines are managed

�  Expected to grow to $11.5B by 2016

� Growing industry demand for managed, hosted & cloud services

Sources: •  Parrallels SMB Cloud Insights Report, February 2012 •  Infonetics VoIP and Unified Communications Services and Subscribers Market Share and Forecasts, March 2012

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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

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So how should you prepare in this transitional environment?

Lewis Carroll, Alice In Wonderland

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.”

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IP Integrated Access to SIP trunking Transition

•  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

Source: Infonetics, “VoIP and UC Services and Subscribers with Service Provider Scorecard (2012 Edition)”

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IP Integrated Access SIP Trunking

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IP  PBX  

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

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Cloud Communications Accelerating

•  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

Source: Infonetics, “VoIP and UC Services and Subscribers with Service Provider Scorecard (2012 Edition)”

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North American Hosted PBX Revenue

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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

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IP Integrated Access to Hosted Voice Migration

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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 Cloud-

based 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

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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!

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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 - $125.00 each –  Core Drilling - $250.00 to $500.00 per drilling –  Lift Rental – Could add additional $600.00 for lift plus multiple technicians

due to safety concerns

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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

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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 voice-grade copper with ActivReach

•  Using ActivReach, end-points can be connected at distances up to 1200 ft

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3 ® Adtran, Inc. 2011 A rights reserved Proprietary and Confidential ADTRAN ©2011

The Workforce is Increasingly Mobile

Tablets have reached 11% penetration of the workforce

72% of companies have effective mobile workforce programs

45% of workers are now mobile

In 2011 smart phones and tablets outsold traditional laptops and PCs

20 4 ® Adtran, Inc. 2011 A rights reserved Proprietary and Confidential ADTRAN ©2011

Wireless LAN Momentum is Strong

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Tablets and Smartphones must be factored into your Hosted Voice and UC plans

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

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The Answer to the Wireless Problem can be found in Software Defined Networks

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

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Example of Virtual Wireless Networking

Traditional Controller-Based Architecture

�  Three planes exist at the centralized controller

�  Not a scalable solution for 11n deployments because the controller limits the data throughput

Virtual Controller Architecture

•  Eliminates the controller hardware •  Moves control and mgmt to hypervisor •  Moves the data plane to the AP

WLAN Controller Access Points Access Points Hypervisor

Management Plane

Control Plane

Data Plane

Physical / MAC Layer

Management Plane

Control Plane

Data Plane

Physical / MAC Layer

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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

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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: www.adtran.com/metaswitch

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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

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Question and Answers