The Cloud Licensing & Pricing Conundrum

J.R. Simmons

President and Principal Consultant

Ten member firm with roots back to 1973

Owner / Principal Consultant: J.R. Simmons

➢ 32 years as an Independent Consultant

Contributing member of BC Strategies

Regular articles for No Jitter

Current President of the SCTC International

➢ Society of Communications Technology Consultants

➢ Ethics based association of independent consultants

➢ Booth 108 at Enterprise Connect this year

COMgroup

Different set of providers and options

Features not always comparable to premises versions

Op-Ex model harder to determine price components

Minimal comparative marketplace numbers are available

Collaboration offerings are layered on top of or instead of UC

Buyer likely have no previous experience with cloud UC / WCC

Contracts are different; new ones are needed

Cloud Licensing Conundrum

✓ Most of the following slides were provided by the vendors

✓ Obtain a copy of this presentation if you want to read the details

✓ Additional details (and confusion) gladly supplied by the vendors

✓ Presented in the order provided (chronologically)

Disclosure / Excuse

MS SKYPE FOR BUSINESS

PATHS TO E5

E3 E4 ECS

E5

Step Up to E5 Step Up to E5 E5 Add-on to ECS

$15 $13 $15

NEC UCaaS

NEC – UCaaS

Plus Carrier Add-on Features as Extras

NEC – Contact Center as a Service

ShoreTel CONNECT — PROFILES AND LICENSE BUNDLES

ADVANCEDSTANDARD

• All “Essentials”

licenses

• Mobility client*

• Remote phone*

• Salesforce

/other CRM

integration

ONSITE

• All “Essentials”

services

• Voice mail +

Scribe

• On-demand call

recording

• Mobility client

with IM

• 25-party audio &

web confer.

• Salesforce

/other CRM

integration

CLOUD

• All “Standard”

services

• Full call

recording

• 100-party

audio & web

• Unlimited

archiving

(IM, call

recordings &

conferencing

• Operator

CLOUD

• All

“Standard”

licenses

• Operator

ONSITE

• All Telephony

services

• Desktop client

w/softphone

and Outlook

integration

• Web & app

dialer

• Mobile

extension

(Find Me)

• Instant

messaging

• 8-party audio &

4-party web

CLOUD ONSITE

• Ext + Mailbox

• Up to 8-party

audio conference

• Desktop client

w/ softphone and

Outlook integration

(Pro Call Manager)

• IM & collaboration*

• Web & app dialer

ESSENTIALS

*Hardware may be required.

Circuit Standard Packages (recommended pricing)All in one collaboration solution targeted to specific team needs

FREE

100

3

3 foundational

1 GB per user

Self service, no SLA

TEAM

$3.95

1 TB, per Tenant

unlimited

6

foundational

5 GB per user

SLA, add. features

1 TB, per Tenant

Unlimited

Unlimited

Foundational & commercial

20 GB per user

Enterprise-grade features

PROFESSIONAL

$6.95

1 TB, per Tenant

Unlimited

Unlimited

Foundational & commercial

Telephony, UHD+ add. features

Users

Concurrent session users

Integrations

Storage

Built-In add-ons

Expansions

ENTERPRISE

$14.95

10 GB per user

Unify – Circuit

Unify – CircuitCapabilities Free User Team Professional User Enterprise UserMeeting Guest Access ✔ ✔ ✔ ✔

Dial-in support for Meetings ✗ ✔ ✔ ✔

Meeting Scheduling via circuit ✗ ✔ ✔ ✔

Meeting Recording ✗ ✗ ✔ ✔

Moderation ✗ ✗ ✔ ✔

MS Outlook Calendar Plug-In ✗ ✔ ✔ ✔

Foundational Integrations 3 ✔ ✔ ✔

Commercial Integration ✗ ✗ ✔ ✔

Internet Explorer WebRTC Support available for 30 days ✔ ✔ ✔

Basic Telephony Integration ✗ ✗✔

additional charges apply✔

additional charges apply

Advanced Telephony Integration ✗ ✗✔

additional charges apply✔

additional charges apply

User Provisioning via AD / LDAP ✗ ✗ ✔ ✔

SLA ✗ 99.00% 99.50% 99,9%

FuturesAnalytics ✗ ✗ ✗ ✔

Transcription ✗ ✗ ✗ ✔

Cloud Identity Management via OpenID & OAuth

✗ ✔ ✔ ✔

Identity Management via SAML ✗ ✗ ✔ ✔

MS vCard Plug-In ✗ ✗ ✔ ✔

Contact Center Integr. ✗ ✗ ✗ ✔

VDI Support Vmware ✗ ✗ ✗ ✔

VDI Support Citrix ✗ ✗ ✗ mid 2016

Interactive Intelligence

Choose your level of Message and Meet Services

Business Messaging

Business Messaging & Basic Meetings

Business Messaging & Advanced Meetings

1

2

3

Choose your Call Services

Hybrid Calling

Cloud Calling

Choose your Spark Service Add-Ons

Room Registration

Conference Audio – Toll Dial-in and Callback

Centers

Cisco - Spark

Cisco Offer Packaging – Hybrid Calling

Available in most Geos

M2Everything in M1, and:

• Host 25-party meetings with screen sharing with other Spark users

M3Everything in M2, and:

• Host WebEx-powered meetings with screen sharing and with external participants

• Personal Meeting Room• Scheduled Meetings

M1• Business-class

Messaging• 1:1 and 3-party video

calling with screen sharing

• Join Spark and SIP-based meetings

Hybrid

Calling

~ $10 ~ $16 ~ $35MSRP:

Cisco Offer Packaging – Cloud Calling

Available in select Geos, SMB focused

Available in most Geos C2Everything in M2, and:

Cloud Calling*• Business-class voice

and video• Mobility• Voice Messaging

M2Everything in M1, and:

• Host 25-party meetings with screen sharing with other Spark users

C3Everything in M3, and:

Cloud Calling*• Business-class voice and

video• Mobility• Voice Messaging

M3Everything in M2, and:

• Host WebEx-powered meetings with screen sharing and with external participants

• Personal Meeting Room• Scheduled Meetings

C1Everything in M1, and:

Cloud Calling*• Business-class voice

and video• Mobility• Voice Messaging

M1• Business-class Messaging

• 1:1 and 3-party video calling with screen sharing

• Join Spark and SIP-based meetings

*Excludes PSTN Services

Cloud

Calling

~ $23 ~ $29 ~ $45MSRP:

Mitel - MiCloud Enterprise Licensing

21

Basic IPT Entry UCC Standard UCC Premium UCC

MiVoice Business Virtual

MiCollab Virtual

Bas

eU

ser

Lice

nse

Use

r Se

rvic

es

Voice Services(1 device max)

Optional Mobile Client + Softphone1,2

Basic UC Client(basic web/desktop client,

chat, deskphone ctl)

Entry UC Client(+ presence)

Included PC Softphone

Full UC Client & Features

Voice Mail + UM

Voice Services(4 devices max)

Voice Services(4 devices max)

Optional PC Softphone1

Included Mobile Client + Softphone

Audio, Video & Web Collaboration

Incl. Mobile Client

Opt. Mobile Softphone

Included either PC Softphone or Mobile

Softphone

Mitel - MiCloud Enterprise User Licensing

22

Basic IPT$7.50

Entry UCC$10

Standard UCC$15

Premium UCC$20

Twinning a a a

Multiple Devices a a a

Voice Mail w/Fwd2Email a a a

Unified Messaging a a a

Desktop or Web Client a a a a

IM/Chat a a a a

Presence (incl. Tel.) a a a

Work at Home (TW) O(1) O(1) a ax3

Conf & Collab a(2) a(2)

Softphone O(1) O(1) a a

Mobile Client

O(1,4) O(1,4)

a a

Mobile Softphonea(3),O(1,4)

a

Call Handoff a

Google Integration O(1) O(1) a a

SFDC Integration O(1) O(1) O(1) a

Lync Integration O(1) O(1) O(1)

Notes:

(1) Certain features not included in user license may be available as optional add-ons. Consult MSP Licensing Guide.

(2) 1 port for every 10 Standard UCC Users; 1 port for every 5 Premium UCC Users; 9 ports in base

(3) Choice of PC Softphone OR Mobile Softphone; if both required then Optional Mobile Softphone must also be licensed

(4) Mobile Softphone option now comes with Call Handoff enabled

Conclusions and Findings➢ Vendors love to use small print

To repeat,

Vendors love to use small print …

and even smaller print for

the caveats, exclusions, and extras!

Gartner’s Magic Quadrant for Unified Communications as a Service, Worldwide, September, 2015

Conclusions and Findings

➢ UCaaS leaders are not the same as premises UC leaders

➢ Private cloud solutions (hosted) are not the same as UCaaS

➢ Cloud collaboration solutions are NOT the same as cloud unified communications solutions

Nor do the vendors of the former want it seen that way

➢ The marketplace is still not mature and change is inevitable

Conclusions and Findings

➢ Cloud software license definitions and packaging (suites) don’t always match premises versions

➢ New types of cloud services (collaboration focused) are not aligned with premises licensing – and lack features

➢ Most vendors do not have a formal plan to provide credits or discounts for customers that already own premises licenses

➢ Negotiations required – but discount levels are smaller

Conclusions and Findings

➢ Vendors make more money on their hosted / cloud solutions

➢ Average Revenue Per User (ARPU) number are larger than the per user licensing charge

➢ Financial justification, when present, is not based strictly on total payments to the service provider

➢ Justifications are not just based on the financials

Questions?

J.R. Simmonsjrs@comgroup-inc.com