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1 © 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential 12981_08_2006_c1 VOIP and the Cisco Smart Business Communications System (SBCS) ED MARSH - CISCO Small Business Sales Communication Solutions-VOICE & DATA Phone Systems, IP Applications ----------------------------------------------- Orange County/Southern LA County direct: (949) 823-1298 (Ed) [email protected]
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1© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1

VOIPand the Cisco Smart Business Communications System (SBCS)

ED MARSH - CISCO Small Business Sales

Communication Solutions-VOICE & DATA

Phone Systems, IP Applications

-----------------------------------------------

Orange County/Southern LA County

direct: (949) 823-1298 (Ed)

[email protected]

2© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1

Voip … IP Telephony … Unified Communications… Convergence of Technology

• A little History of Telephony

• Cisco’s place in IP Telephony

• Small Business Solutions

• Where is this technology going?

• Myths about IP

3© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1

It Started with Voice

• Once Upon a Time…

• Circa 1960’s

• First voice networks built to solve communications needs

• Proprietary and single purpose network

4© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1

Phone Network

PBX

PSTN

Switching

Routing

Users

VoiceMail

Application

Convergence – Two Networks vs. One

Router/GW

Client/Server

Applications

Internet

Switching

Users

Data Network

5© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1

VOIP

• Analog Phone (i.e. your home phone) connects to the internet via a converter (Vonage, Skype, Packet 8etc.)

• Compression

G729 = 28 – 30K per call or down to 13-14K per call

• Voice over the Internet, not IP telephony

PSTN

Gateway

Limited or NO

Applications

Internet

Converter

Users

Limited or NO

Applications

PBX over the network

6© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1

VOIP

• QOS

• Can you make a phone call and send a 5MB file and continue your conversation clearly

Profession Business

• How much is your conversation compressed?

• Are you sharing bandwidth from the company or office next door? Are you sharing bandwidth within your company?

• Have we accepted cell phone quality phone calls?

No QOS—Can you make a phone call and send a 5 MB file and continue your conversation clearly.

PBX over the network

7© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1

Convergence – Two Networks vs. One

Unified Network w/ open architecture vs. VOIP

PSTN

Unified

Router

Call

Processing,

VoiceMail

Client/Server

Applications

Internet

Switching

Users

Unified

Applications

Circuit Carrying Voice (Traditional) vs. Prioritized Packets via IP

network (Voice as an application…not a PBX over the network).

- Bandwidth is not the main consideration

- Prioritization/QOS is.

You CAN make a phone call and send a 5 MB file and continue your conversation without quality interruption

8© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1

Source: Synergy Nov, 2003 & Infotech Q3 2003

―By the end of 2007, traditional enterprise telephony system manufacturers will have ceased development …and announced their intention to discontinue support for their TDM-based PBX and contact center systems within five years (0.8 probability)”

Gartner, March 2003

IP Communications Is Mainstream

0102030405060708090

100

Pe

ne

tra

tio

n P

erc

en

tag

e

Year

IP to TDM Displacement Forecasted Share

IP

TDM

IP-PBX Line Shipments Surpassed Traditional CPE in 2005

9© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1

System Consolidation - Traditional

• Multiple Vendor Network Drives Complexity

Average 5-7 vendor’s products in SMB network

• Multiple Support/Maintenance Contracts

• Multiple Warranties

• High maintenance costs

• Multiple (800) numbers

• Low level of integration

10© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1

Moves, Adds and Changes – Converged Communications

• No technician required

• Extension tied to IP phone

• Simply unplug, move replug

• Changes are browser based

• Simple Graphical User Interface (GUI) for management

• Zero Cost MAC

• IP phone has built in two-port switch

• Only need one network cable per station

• Significant hard cost savings in wiring

New construction, leasehold improvements, growth

Example: 50 users, $125 per drop, $6,250 cost avoided

11© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1

IPT Benefit Savings

Improved remote office employee productivity

4.3 hrs per remote worker per week or 28 days per year

Improved telecommuter productivity 5 hours per week, or 33 days per year

Reduced travel expenses for IT 13 hrs / month / IT employee; 19 days per year

Faster moves adds changes (MACs) 1.5 Hours per move.

IT and end-user productivity benefits because features are easier to use

5.5 hours per week per IT employee involved with phone support

Easier MAC process for employees 3 more moves per year

Less telephone tag for all employees 3.9 hrs / week / employee or 25 days per year

From a survey of 100 organizations using IP Telephony,Sage Research & BCR

Unified Communications: EfficiencyQuantifiable Proven Benefits

12© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1

Data Networking - Yes

Network Security - Yes

IP Communications?

1996 1998 1999 2000 2001 2002 20031997 2004

Cisco Enters the IP

Communications MarketTraditional Voice Vendors

Enter the IP Communications Market

How does Cisco fit into IP Telephony (VOIP)

13© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1

Quick Guide to Cisco’s SMB Strategy

• The majority of Cisco’s current customer base resides in the mid market to enterprise market

• Cisco is strategically focused now on the SMB market

• Cisco is investing over $2 Billion in this market

• Cisco is launching 110 new products in FY ’06/07 targeted to the SMB market

• Cisco is providing financial incentives, marketing, training, sales and support services for SMB customers

―SMB is the fastest growing market segment. Industry surveys indicate that 40–60% of future IT spending over the next5–10 years will come from SMB customers‖

—CEO, John Chambers

131313

14© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1

R&D spending

Total Corporate Research and Development ExpenseSource: Company Annual Reports

0

1

2

3

4

2002 2003 2004 2005

$ Billions

Fiscal Year

Cisco

NEC

Nortel

Alcatel

Avaya

3Com

15© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1

WW IP Phone Shipments: Units (Market Share)

Q1 CY2007Source: Synergy Research - total 2.5M units

Other

9%

3Com

2%

Siemens

2%

NEC

2%

Mitel

5%

Alcatel-Lucent

8%

Nortel

10%

Avaya

18%

Cisco

44%

IP Phone Shipments

per Synergy Research Group – Q1 CY07

An IP phone is a clear, hard measure of true IP telephony

Cisco is the clear leader in IP phone shipments; we are deploying 2-5x as many IP phones as any other competitor

16© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1

But why Small to Medium Sized businesses?

• IP PBXs are slowly making inroads into the SMB market with most traction in the MB segment

• Most firms with <20 employees lack formal phone systems

• Results map well to other studies

Which of the following telephone equipment does your organization have?

Source: The Yankee Group 2003 SMB Infrastructure Survey (United States)

Percent of Respondents

22

21

28

8

64 27

5348

13

4

1

11

0

10

20

30

40

50

60

70

80

90

100

Very Small Small Medium

PBX

Key System

IP PBX

No Phone System

Almost non-existent IP penetration in small business market

PBXs Dominate the Small and Medium Segments of the Market

17© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1

Innovation has created complexity

…Results inDelays and

Missed Deadlines

…Unable to Reach

Coworkers on First

Try…

…Have to UseMultiple

Methods of Reaching

Coworkers…

Communication Devices and Apps

Proliferating…

EmployeesIncreasingly Mobile…

Daily 52%

Daily 36%

Monthly 22%

6.4 Types of Devices

27% Traveling 1X Month Avg.

Source: Sage Research

Are other vendors decreasing your complexity (Ex. E911, connecting to your desktop applications & mobile devices, Secure Voice, Quality of Service, CRM)

18© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1

Small Businesses are looking for a More Effective Way to Communicate With Location Independence

In your Office

At your Home

With your Client

And anywhere In between

• Public Wireless

• Hotel

Rich IP features allows Small Businesses to present a big business image

19© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1

Small Businesses Want a Single Vendor

Total

n=452

69%

31%

Yes, same person

No, 2 people/departments

Purchased by the

same person

Gartner IPC Study

IP telephony

n=102

47%

32%

21%

Both of them occur at the same time

Routers/switches

Telephony products/system

…and at the same time

14%

10%

13%

11%

8%

33%

32%

31%

35%

49%

0 20 40 60 80 100

% of respondents

Routers, n=88

Switches, n=88

Wireless LAN, n=86

Security, n=88

IP telephony, n=102

Mean

4.7

4.8

4.6

4.8

5.1

1 to 2: Not important

6 to 7: Very important

Importance of single product vendor

for integrated solutions

20© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1

Some examples of Vendors who deliver the different Components of your communication solution?

SwitchingUnified

Communications

Mobility—Wireless LAN

Routing Security

CISCO CISCO CISCO CISCO CISCO

HP Avaya Aruba Juniper Juniper

3COM Shoretel 3COM Huawei Sonic Wall

Nortel Mitel Adtran

Nortel BCM

NEC

…it is nice to have a Single Tool to Deploy and Manage your solution

21© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1

What exactly does CISCO have to offer in this Market?

True Efficiency

True Simplicity

True Mobility +

Security

For a small to medium sized business

22© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1

MusicOn

Hold

Unified Communications 500 Series

10.5‖ wide, 11.05‖ deep, 1.5 RU tall (2.625‖)

Wi-Fi (optional)

ConsolePOE

(8)WANPort

EXPPort

2 x BRI FXS (4)

VIC Slot(field expansion)

FXO (4)

• VIC3-2FXS/DID• VIC-4FXS/DID• VIC3-4FXS/DID• VIC2-2FXO• VIC2-4FXO• VIC2-2BRI-NT/TE

Expansion Modules:

23© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1

System Consolidation – Converged Communications

• Single, High Quality Vendor

SMB Designed, Purpose-Built System

• Single Warranty

• Single Support Contract

• Single (800) number

• Lower maintenancecosts

• Tightly integrated toenable advanced business features

–Full featured Voice over IP capability using H323 and SIP protocols

Voice Mail, Auto Attendant… Full Key/PBX Feature Set

–Industry’s First Complete SMB Network Solution with Switching, VPN, Encryption, Cisco Data Routing, and optional Wireless LAN

24© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1

The Sales Rep

•Stay Connected on the go•Manage Customer Relationships•Centrally Manage Customer Messages

•E-Mail, V-Mail, and Fax•Click to Dial out of Common Applications

•SalesForce.com or MS CRM•Outlook•Internet Explorer (Extension: 203)

CRM ConnectorsSalesforce.com or MS CRM

Public Internet(WIFI Hot sports, Hotel,

Mobile Broadband)

Corp Office

Airport

Integrated Messaging Cisco Secure Remote Worker

HomeHome

IP PhonesIPCelerateHome

25© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1

The Communication Closet

•One Device •Centrally Controls all communications•Delivers Network Security

•Snap-on Appliances extend capabilities•Lower total cost of IT Infrastructure

Converged Services RoutersISR 2800 or UC 500

Business Class Switch WLAN

HomeHome

IP PhonesIPCelerateHome

26© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1

High Resolution Color Touch ScreenApplication Enabled

Cisco Unified IP Phone7985G

Cisco Unified Video Advantage

Cisco IP Communicator

Cisco Unified Wireless IP Phone 7920

High Density Fax or Phone Connector

Dual Fax or Phone Connector

Full Range of IP Phones -

High Resolution BW 6 Button

Application Enabled

High Resolution BW 2 ButtonApplication Enabled

BW Soft key or Blank Screen

Value Price

IP PhonesIPCelerateHome

27© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1

Example: Open a Webpage on Computer

28© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1

UCC-Click to Dial MAGIC WAND

29© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1

Hold

Outgoing call—United Domestic

1-800-864-8331

End Call Transfer Park More

You are Calling United Domestic.

Oops! You meant to call UnitedInternational.

You now have an outgoing call from your desk phone!

30© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1

MOBILITY—Walk around the office, Work from Home or Starbucks or a Hotel, Be at your desk

• 802.11a, b, and g supported wireless IP phone

• Built-in speakerphone capabilities

• Dedicated mute and volume keys

• 100 hours standby time or 12 hours talk time

• Diversity antenna for better RF coverage

• Color high res display

Cisco Unified Wireless IP Phone 7921G

Soft Phone on Computer

• Executive Business Phone

• Color Display with Touchscreen

• Large Pixel Display with Eight Lines

• Five Dynamic ―Soft Keys‖

• High-quality Speaker Phone

• Integrated Ethernet Switch

Cisco IP Desk PhoneThese 3 phones can have the same extension

Forward your Softphone extension to your cell phoneExample: LED-works; Find me, Follow me feature

31© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1

Network Integration – Video Telephony

Video Advantage

• Audio on the Phone

• Video on PC

Cisco IP Phone

7960G

Voice

• Easy as a phone call.

• No additional training needed

Cisco IP Phone

7970G

32© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1

Network Integration – Video Telephony

VT Advantage

• Audio on the Phone

• Video on PCAssociation

Cisco IP Phone

7960G

Voice

Cisco IP Phone

7970G

33© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1

Network Integration – Video Telephony

Association

Cisco IP Phone

7960G

Video

Voice

Cisco IP Phone

7970G

34© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1

Network Integration – Video Telephony

Association

Cisco IP Phone

7960G

Video

Voice

Cisco IP Phone

7970G

Sales Companies

Construction

Parts Companies

(Service Comp—Computer Repair)

35© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1

Value of Integrated Security SystemSecurity Is No Longer an Option… It’s a Necessity

Security as an Option

• Security is an add-on

• Challenging integration

• Not cost-effective

• Cannot focus on core priority

Security as INTEGRAL to a System

• Security is built-in

• Intelligent collaboration

• Appropriate security

• Direct focus on core priority

Add On Built In

36© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1

IP Network

The Cisco BusinessCommunications Solution

E-MailCollaboration Calendar

VideoConferencing

Web ApplicationAudio-Conferencing

Instant Messaging

VoiceMessaging

ContactCenter

TelephoneServices

TelephoneServices

SECURITY

ProductivityBusiness Process

Business

Transformation

Follow the link below to learn more about Cisco Business Communications Solution…where Voice, Video and Data Meet http://www.cisco.com/cdc_content_elements/flash/bcs/bcs.html

37© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1

The Human Network

The Network as the Platform

…where is this VOIP thing going?

WEB 2.OSONA

SOA CISCO 3.0

38© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1

The Human Network

The Network as the Platform

less noise…its converging and unifying

WEB 2.OSONA

SOA CISCO 3.0

39© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1

Small Business Solutions and the Future of Convergence

• Extension Mobility

Your profile travels with you

• All your voicemail in one location

• Mobility Connect

Click to transfer mobile device to desk

• Dual mode phones

• Find me, Follow me

• Cisco Unified Personal Communicator

Presence on your mobile device

40© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1

Myths about IP communications

• Myth 1: If the public internet goes down, I won’t be able to make phone calls

• Myth 2: IP (or Cisco) is too complex

• Myth 3: IP communications are too expensive

• Myth 4: The capability of IP communications is more than I need

• Myth 5: My system will be more vulnerable if I have Unified Communications

41© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1

Myths about IP communications

• Myth 1: If the public internet goes down, I won’t be able to make phone calls

You can still make phone calls…just like the old days when the power went out in your house

• Myth 2: IP (or Cisco) is too complex

6 years ago…the answer might have been yes. IP Communications are simple and easy to manage. You no longer have to call someone to do simple telephone tasks such as Moves/Adds/Changes

• Myth 3: IP communications are too expensive

IP Communications CAN be less expensive initially than traditional telephony. IP Communications ARE less expensive than traditional telephone over the long run (Return on Investment goes UP and Total Cost of Ownership goes DOWN)

• Myth 4: The capability of IP communications is more than I need

The capabilities of IP communications can be as simple as your traditional telephone. The enhanced capabilities are exactly what enable your business to be more effiecient and have better customer intimacy and enable companies to stay competitive.

• Myth 5: My system will be more vulnerable if I have Unified Communications

The protective measures one can put on their IP communications are far stronger than and protective measures that were once on your traditional system. Whichever phone system one goes with, it is imperative that the security capbabilities of the system are robust. Cisco has industry leading security for IP communications.

42© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1

Cisco Key Differentiators

• Single Vendor, 1 Solution, Future Protection

Lower Total Cost of Ownership for customer when deploying a single vendor for communications and data - Sage Research

• R & D. $2B towards SMB. Future Protection.

• Features, Security, Applications Future Protection

Approximately 8 years ago, we realized that people communicate in many ways…verbal, non-verbal, inflection in voice, video, in person, remote, conference and point to point, e-mail, phone, wireless. We specialize in bringing these technologies together securely…providing convergence and collaboration.

43© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential12981_08_2006_c1


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