Reseller Live

“Selling IP Applications Alone Will Not Guarantee Success”

C. Don Gant

VP Channel Marketing/Business Development

1.What are the end-user benefits of IP?

2.How can resellers make the TDM-transition?

Short Agenda

$2.98BFortune 500

2004 Corporate AmericaCommunications Spending

TOTAL 2004 = $31.51B

Large Enterprises

500 – 1000 employees

250 – 499 employees

100 - 249 employees

50 - 99 employees

5 - 49 employees

$6.67B

$7.38B

$7.04B

$3.39B

$2.52B

$1.53B

CAGR2005 - 2007

4.5%

5%

6%

7.5%

11%

9.5%

9%

Source: 2004 Enterprise Market Sizing

Lines Installed All Technologies

0

20

40

60

80

100

120

140

.

2003 2004 2005 2006 2007 2008 2009

Hosted IP

Centrex

Converged

PBX

Key/Hybrid

Lin

es

Source: InfoTech 2Q05 Report

What Does IP Convergence Provide

the End-user?

Greenfield VoIP Install = Cost Effective Opportunity

Cost to deploy VOIP shared with start up expense

Shared data and communications cabling could reduce cost

Blank

Slate

The Big Question

VoIP makes sense for Greenfield deployments but what about replacing an existing solution?

Maybe…it depends on the additional benefits

VOIP Upgrade…Does the End Justify the Means?

Applications

$$$$$$$

Killer Applications????

Reduced communications costs Corporate decentralization IP Networking International VoIP calling

Reduced office space Remote employees “hoteling”

Killer Applications???

Next generation business applications Contact centers E-business

Reduce cost to manage infrastructure # of moves/year x cost/move Data resources versus telecom recourses

Reduced Infrastructure cost Telco and data share cabling Reduce telco personnel

APPLICATIONS + BENEFITS =Success

Lower cost of ownership

Consolidation of voice and data

Lower long distance Reduce admin cost

Typical benefit statement does not provide enough information to make an informed decision.

VOIP Upgrade…Does the End Justify the Means?

Applications

$$$$$$$

Must associate $ value to the benefit to show a positive ROI

Two Types of Benefits

1. Direct Benefit Quantifiable cost saving or revenue increases

2. Indirect Benefits Returns not clearly observable, but effects can

be measured

Direct Benefits

Reduce personnel Reduce communication cost Avoid regulatory fines Reduced accounts receivable Reduced travel cost

Indirect Benefits

Reduce time to manage MAC Call center increased customer satisfaction Reduced time to do “x” Increase quality of “x” Improved technology management

Benefit Believability Index

Direct observation – pilot site Corporate history Surveys Case studies Educated guess Uneducated guess Psychic Vendor supplied estimates Vendor ROI sales calculator

Good

Bad

Benefit BelievabilityB

elie

vabi

lity

Benefit

Direct Saving-Reduction in cost

Semi-direct Saving-Expected reduction in cost

Indirect Saving-Increase worker productivity

Very Indirect Saving-Increase manager productivity

10

8

6

4

2

0

How Does The Reseller Make the

TDM to IP Transition?

Educate, Educate, Educate

Educate on the technology IP versus TDM Data resellers versus Telecom resellers

Educate on the Selling Process Consultant approach Applications driven

Educate on the ROI model Direct versus indirect saving End-user buy in of ROI methodology

Making the transition….

Embrace the technology In-house systems Day to day operations

Vendors must help Professional services Network assessments Vertical market strategy Sales assistance

Value PieProfitability/Expense Reduction

CompetitiveAdvantage

ClientRelations

EmployeeEfficiencies

ManagementTools

Company Image

Summary

IP Market Growing – out pacing TDM Applications are Important Benefits are even more important Gain end- user acceptance of your ROI

methodology Educate your self Expect your vendor to help you with the

transition

Thank You!

www.iwatsu.com