VoIP Success Promise vs Reality

October 10-13, 2006• San Diego Convention Center, San Diego California

VoIP SuccessPromise vs Reality

BrianTitle

October, 2006

October 10-13, 2006• San Diego Convention Center, San Diego California

VoIP Success: Promise vs Reality

Brian MetherellVice President/General Manager

Toshiba America Information SystemsTelecommunication Systems Division

October 10, 2006

3 October 10-13, 2006• San Diego Convention Center, San Diego California

Agenda• Toshiba Dealer Survey Findings

• VoIP Promise vs. Reality: Real Life Case Studies

• What Really Matters: Technology, Cost Savings or Productivity Improvements

• What Constitutes Success of a VoIP Solution Today

• What we see as the prominent drivers and trends for VoIP


Audience Survey• How many of you have heard of VoIP?

• How many of you are using VoIP at home for some of your communications?

• How many of you are using VoIP at work for some of your communications?

• How many of you are using VoIP exclusively for all of your communications?



Dealer Survey• Surveyed our dealer network of 400 dealers in 800 locations

nationwide

• Majority of dealers carry products from multiple manufacturers including all market share leaders

• Survey conducted September 2006



Dealer Survey Findings: Today’s VoIP Installs• In the past year, what percentage of all your installs (all

manufacturers) has included a VoIP component?– 95% of dealers surveyed installed VoIP components last year – 31% said it was in less than 10% of their installs– 28% said it was in 10-25% of their installs

1% 8%6%

21%

28%

31%

5%

100%

75-99%

50-74%

25-49%

10-24%

<10%

None

95%

5%

Installed VoIP

Did not install VoIP



Dealer Survey Findings: VoIP-Only Installs• In the past year, what percentage of your installs has been 100

percent VoIP?– Only 1% said all their installs were VoIP only– 39% said none of their installs were VoIP only– 60% were somewhere in between

1%

60%

39%100%

1-99%

None



Dealer Survey Findings: Next Year’s Predictions• Over the next year, what percentage of your installs do you predict will

contain some VoIP component?– 99% predict they will install some VoIP components in the next year – 33% expect it to be up to half of systems installed– 26% expect it to be less than a quarter of systems installed

99%

1%

Will contain someVoIP

Will contain noVoIP

2%14%

18%

33%

26%

7%

100%

75-99%

50-74%

25-49%

10-24%

<10%



Dealer Survey Findings: VoIP-only in 2007• Over the next year, what percentage of your installs do you expect

to be 100 percent VoIP?– 76% said less than a quarter of installs will be VoIP only

1% 7%7%

76%

9%

100%

50-99%

25-49%

1-24%

None



Dealer Survey Findings: Future VoIP Acceptance• By what year do you think only VoIP solutions will be sold?

– 27% predict by 2009 or 2010– 30% predict further out– 25% predict never!

8%8%

19%

10%30%

25%2008

2009

2010

2011

Further Out

Never



Dealer Survey Findings: Key VoIP Motivators• Today, when a potential customer requests a VoIP solution, what do

they say is the key motivator?– 56% said mobile and/or remote user applications– 21% don’t want to get left behind the technology curve

56%

8%2%

1%

12%

21%

Mobile and/or remote workers/offices

Cost savings

Desire to maximize the LAN

Moved to new location

Looking for a new voice technology

Afraid of being left behind if they didn't go with VoIP



Dealer Survey Findings: VoIP ROI• After the installation, what do you think your customers found to be

the most important ROI benefit of VoIP?– 62% said the ability to add mobile and remote users

62%7%

11%

8%12%

Ability to add mobile and remote workers/offices

Cost savings

Choice of endpoints (digital, IP desk phones, IP wireless,softphones)

Ease of feature use, effectiveness of applications

Increased productivity



Customer Case Studies: Real VoIP Successes• Real customers tell the story

Strata CIX Industry Success Stories


Niagara Bottling LLCToshiba Makes a Splash at Niagara

• Leading bottled drinking water company with more than 300 employees

• Networked three locations together with Toshiba Strata Net Networking– Toshiba Strata CIX systems at headquarters and bottling facility– Call Center in Irvine is all VoIP using Toshiba IP telephones

• Improved communications with centralized voice mail and direct extension dialing

• Migration cost savings re-using digital telephones and interface cards

• Long distance cost savings of $1,350 per month

• Eliminated 80 phone lines gaining cost savings of $6,000 per month



Niagara Bottling LLC


Strata Net

Strata Net


Niagara Bottling LLC Estimated Savings


Financial Returns Hard Soft Monthly 1 Year 5 Year

Long Distance Services √ $1,350 $16,200 $81,000

System Consolidation - replaced 2 systems with 1 √ $15,000 $15,000

Improved CO Line Usage (consolidation) √ $6,000 $72,000 $360,000

Share Centralized Voice Mail √ $8,000 $8,000

Reuse existing equipment (migration) √ $4,000 $4,000

IT Staff Productivity √ $1,000 $12,000 $60,000

Total Monthly Savings $8,350

Total Annual Savings $127,200 $528,000

Purchase Price of New System or Upgrade $35,000 $35,000

ROI Breakeven Time 4.2 Months


Manhattan Beachwear Toshiba VoIP Delivers a Wave of Success

• VoIP connects all locations– California HQ, New York showroom– Manufacturing plants Indonesia, Vietnam, Mexico

• Centralized communication – Improves internal communications– Improves external communication with customers and vendors

• Road warrior CEO uses SoftIPT soft phone on his laptop to stay connected when away from the office

• Migrated from Toshiba DK96 to CIX670 saving money by re-using some interface cards

• Cost savings of $3,000 per month in long distance and international conference calling costs



Manhattan Beachwear


Internet Internet

Digital Telephones

IP Telephones

Cypress, California Headquarters

Remote Home Office Workers

IP Telephones

Traveling CEO Laptop Soft IPT

Vietnam

IndonesiaNew York

Showroom

Mexico

IP Telephones

IP Telephones

IP Telephones

CIX670


Toshiba Telecommunication Systems Division We don’t just talk about VoIP – We use it ourselves!

• Multiple Strata CIX670 systems networked at headquarters combine the flexibility of VoIP with reliability of digital

• WLAN provides local users mobility with wireless phones and soft phones

• Traveling Regional Sales Managers stay connected everywhere they go– SoftIPT soft phone on laptops when traveling– IP desk telephone at home office

• Significant productivity improvement

• Improved internal and external communications

• Cost savings of $1,500 per month long distance costs



Toshiba Telecommunication Systems Division


Internet Internet

Digital Telephones

IP Telephones

Wireless IP Telephones

PDA & PC Soft Phones

Wireless LAN

Irvine, CA Headquarters

Reg. Sales Mgrs. Home Office

IP Telephone

Traveling Reg. Sales Mgrs. Laptop Soft IPT

PSTN

PSTN


Conclusions

Today’s Primary Market Drivers• Mobility

• Remote connectivity

Fast Emerging Market Drivers• Unified communications

• Business process integration– Outlook, Contact Manager and CRM applications– Sales Administration and tracking– Call statistics, employee productivity tracking, Workforce Management– Business applications beyond telephony related functions


Mortgage company loan application/approval• SQL database integrated with telephone system ACD application

• Links loan application/approval process with recording of calls

Business Process Integration Example

SQLDatabase

Strata CIX MAS/ACD


Mortgage company loan application/approval• Incoming calls to call center answered by pre-qualifying agents, tagged

for tracking and categorization


SQLDatabase

Strata CIX MAS/ACD

Pre-qualifying Agent

• Gather information

• Create customer file

• Record phone call

• File updated

Initial Call


Mortgage company loan application/approval• Call transferred to loan officer and screen pop provides customer

information upon answering

• Incoming calls are recorded and imbedded into electronic loan application documentation

• Stores accurate information, assists approval processing, and provides dispute resolution


SQLDatabase

Strata CIX MAS/ACD





• File updated

Initial Call

Loan Officer

• Screen pop the file

• More information


• File updated

• Give DID for subsequent calls


Mortgage company loan application/approval• Customer given direct dial number for subsequent calls, but if they forget

and dial the main number, system routes call directly to the loan officer by CLID stored in database

• Overall Result: Shorter phone calls, less follow-up required, faster loan processing, better service, happier customers

• With VoIP agents can be local or remote.


SQLDatabase

Strata CIX MAS/ACD





• File updatedSubsequent Call

Initial Call

Loan Officer

• Screen pop the file

• More information


• File updated

• Give DID for subsequent calls


Thank you for your participation!

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VoIP Success Promise vs Reality

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