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Windstream Webinar: Demystifying VoIP for Business

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Ten misconceptions about Voice over Internet Protocol and why VoIP might be right for your business.
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T 10 Mi ti f V IP T op 10 Misconceptions of V oIP Zeus Kerravala, SVP Research February 2011 February 2011 © Copyright 2010. Yankee Group Research, Inc. All rights reserved. Page 1 February 2010
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Page 1: Windstream Webinar: Demystifying VoIP for Business

T 10 Mi ti f V IPTop 10 Misconceptions of VoIPZeus Kerravala, SVP ResearchFebruary 2011February 2011

© Copyright 2010. Yankee Group Research, Inc. All rights reserved. Page 1February 2010

Page 2: Windstream Webinar: Demystifying VoIP for Business

F d l dFeatured analyst and presenter

Zeus Kerravala, Yankee Group Senior Vice President andSenior Vice President and

Distinguished Research Fellow

© Copyright 2010. Yankee Group Research, Inc. All rights reserved. Page 2February 2010

Page 3: Windstream Webinar: Demystifying VoIP for Business

Today’s Business Environment

New Economic Realities •Global Economy •Share Holder Expectations•New Business Models•Business Boundaries Blurring

Social Trends Accelerating •Blend Lifestyle•Social Networking •Environmental responsibility

Technology Enablers •Network, device, and application

hpp

everywhere•Automation/standardization•Presence and Mobility•Virtual office

© Copyright 2010. Yankee Group Research, Inc. All rights reserved. Page 3February 2010

Page 4: Windstream Webinar: Demystifying VoIP for Business

Proof Point 1: Workforce Is Increasingly Mobile

More than 50% of organizations spend more than 40% of their day

f th i d kaway from their desk

40% of employees havehigh-speed data cards

38% of enterprises identify % f38% of enterprises identify a cellular phone or smart phone as their primary device

45 % of corporations are interested in mobile applications

© Copyright 2010. Yankee Group Research, Inc. All rights reserved. Page 4February 2010

Page 5: Windstream Webinar: Demystifying VoIP for Business

Proof Point 2: The Nature of Work Has Changed• Collaboration between

employees• Speeds innovations, makes

• Collaboration between companies

• Support dynamic supply Speeds innovations, makes best use of (expensive) human resources

pp y pp ychains and effective customer engagement

Channel partner

Sales ManagerBusiness Partner

Customer

Office Manager Voice over IP (VoIP) and UC are building

blocks to address the future of the

© Copyright 2010. Yankee Group Research, Inc. All rights reserved. Page 5February 2010

Remote workerblocks to address the future of the workplace

Page 6: Windstream Webinar: Demystifying VoIP for Business

Status of VoIP

• Companies that have deployed VoIP have realized both cost savings and productivity gains

• Hosted VoIP has become a viable deployment option

• Despite the benefits VoIP has a long way to go to mass adoption• 82% of organizations have VoIP deployed in the organization• Less than 25% have VoIP fully deployed across the company

VoIP and Unified Comm nications ha e become linked together• VoIP and Unified Communications have become linked together

• Main barriers to adoption: • Difficult to measure the savings g• High up front costs • Integration complexity

© Copyright 2010. Yankee Group Research, Inc. All rights reserved. Page 6February 2010

• Many of the barriers are perception more than reality…

Page 7: Windstream Webinar: Demystifying VoIP for Business

Top 10 Misconceptions of VoIP

1. VoIP is about convergence2 VoIP is best deployed by replacing a PBX with an IP PBX2. VoIP is best deployed by replacing a PBX with an IP PBX3. Hosted VoIP is the same as Centrex4. VoIP is risky5. VoIP has a high up front cost6. UC and VoIP must be deployed at the same time7 Fixed telephony is the only driver for VoIP7. Fixed telephony is the only driver for VoIP8. The only value of hosted VoIP is cost savings 9. VoIP is unreliable 10. UC and VoIP will not transform the way we work

© Copyright 2010. Yankee Group Research, Inc. All rights reserved. Page 7February 2010

Page 8: Windstream Webinar: Demystifying VoIP for Business

Misconception 1

• Myth: VoIP is about convergence of voice and data • Reality: VoIP is about the IP enablement of voice y

T diti l t l h Voice over IPTraditional telephony

•Static

•Deployed on a node by node basis

Voice over IP

•IP based

•Flexible

© Copyright 2010. Yankee Group Research, Inc. All rights reserved. Page 8February 2010

•Inflexible •DynamicIP brings the dynamic nature of Internet based applications to voice

Page 9: Windstream Webinar: Demystifying VoIP for Business

Misconception 2

• Myth: VoIP is best deployed by replacing a PBX with an IP PBX • Reality: This was true over 5 years ago, but hosted VoIP provides a viable

option today What is your opinion of using a hosted/Software-as-a-Service (SaaS) for

unified communications? (n=443)

15%

8%Planning major UC purchase soon

10%

15%

15%Planning minor UCpurhase soon

purchase soon

2009

2010

2010 was a major transition year for hosted VoIP. Companies planning a major

3%

15%

14%

49%

SaaS not viable

Wait and seepurchase almost doubled.

2%

3%

14%Not sure

© Copyright 2010. Yankee Group Research, Inc. All rights reserved. Page 9February 2010

0% 10% 20% 30% 40% 50% 60%

Percent of respondents

Page 10: Windstream Webinar: Demystifying VoIP for Business

Misconception 3

• Myth: Hosted VoIP is the same as Centrex • Centrex is expensive, lacks features and can be unreliable p ,• Reality: Hosted VoIP is deployed on a SIP based soft switch • SIP standard has matured greatly over the past three years

IP PBX Deployment

Features move into the network

Hosted VoIP

the network

© Copyright 2010. Yankee Group Research, Inc. All rights reserved. Page 10February 2010

Page 11: Windstream Webinar: Demystifying VoIP for Business

Misconception 4

• Myth: VoIP is risky• Reality: • VoIP technology is mature and reliable • There are many productivity benefits and cost savings elements to VoIP• Not doing VoIP creates risk of falling behind competition

Percent of Respondents (Top Two Box Summary)

92%

88%

70% 75% 80% 85% 90% 95%

A converged voice and data infrastructure makes it easier to deployother collaborative applications

IP telephony makes it easier to deliver services to telecommuters and

Percent of Respondents (Top Two Box Summary)

88%

85%

81%

p yroad warriors

If architected correctly a converged infrastructure can provide betterreliability and overall uptime than separate networks

The management tools I need to run a converged network areavailable today

82%

80%

available today

Customer service can be improved using IP telephony

IP telephony will allow my organization to create new businessprocesses

© Copyright 2010. Yankee Group Research, Inc. All rights reserved. Page 11February 2010

78%IP telephony makes users more efficient

Page 12: Windstream Webinar: Demystifying VoIP for Business

Misconception 5

• Myth: VoIP has a high up front cost• Reality: Replacing all networking and telephony infrastructure at once y p g g p y

has a high up front cost • Reality: Hosted VoIP has a lower cost barrier to entry

What are the most important reasons for a hosted solution

42%

46%

15%

16%

Lower infrastructure

Reduced ITmaintenance time

34%

42%

17%

15%

Easier integration withother providers

costs

28%

30%

20%

19%

Faster access to newfeatures

Better / new features

Ranked top 3

Ranked 4 and below

© Copyright 2010. Yankee Group Research, Inc. All rights reserved. Page 12February 2010

27% 18%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Meets challenges ofdistributed employees

Percent of respondents

Page 13: Windstream Webinar: Demystifying VoIP for Business

Misconception 6

• Myth: UC and VoIP must be deployed at the same time • Reality:y• VoIP is a foundational component of UC • VoIP can be deployed first and then UC added later

Companies should deploy both VoIP and UC at their own pace

© Copyright 2010. Yankee Group Research, Inc. All rights reserved. Page 13February 2010

Page 14: Windstream Webinar: Demystifying VoIP for Business

Misconception 7

• Myth: Fixed telephony is the only driver for VoIP • Reality: VoIP can greatly reduce fixed telephony costs• Reality: VoIP can greatly reduce fixed telephony costs • Reality: VoIP benefits mobility as well

Relative to desktop UC, how important is mobile UC? (Please select one) (n=443)

No interest in desktop UC, only the mobile UC matters

0%No interest in mobile UC at all

3%

Mobile UC is more important FMC d M bil UCMobile UC is more important than desktop UC

16%

Mobile UC and desktop UC are of the same importance

46%

FMC and Mobile UC can provide the same or greater value than fixed telephony and d kt UC

Mobile UC is less important th d kt UC

desktop UC

© Copyright 2010. Yankee Group Research, Inc. All rights reserved. Page 14February 2010

than desktop UC35%

Page 15: Windstream Webinar: Demystifying VoIP for Business

Misconception 8

• Myth: The only value of hosted VoIP is cost savings • Reality: Value proposition of hosted VoIP is multi- faceted y p p• Reality: Can address cost savings, maintenance issues, time to

features What are the most important reasons for a hosted solution

34%

42%

46%

17%

15%

16%

Easier integration with other providers

Lower infrastructure costs

Reduced IT maintenance time

27%

28%

30%

18%

20%

19%

Meets challenges of distributed employees

Faster access to new features

Better / new features

21%

26%

27%

18%

16%

18%

Saas-based UC is part of general cloud roll-out

Allows for OPEX

Meets challenges of distributed employees

© Copyright 2010. Yankee Group Research, Inc. All rights reserved. Page 15February 2010

18% 19%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Lack of in-house skillset

Percent of respondents

Page 16: Windstream Webinar: Demystifying VoIP for Business

Misconception 9

• Myth: VoIP is unreliable • Reality:Reality:

• Consumer VoIP can be unreliable • Business grade VoIP is highly reliable

N t k i b dd d th h b ildi d d t• Network issues can be addressed through building a redundant network

• If architected correctly, VoIP can be more reliable than t diti l t l htraditional telephony Backup Network Connection

© Copyright 2010. Yankee Group Research, Inc. All rights reserved. Page 16February 2010

Primary Network Connection

High Reliable LAN

Page 17: Windstream Webinar: Demystifying VoIP for Business

Misconception 10

• Myth: UC and VoIP will not transform the way we work • Reality: SIP based communications allow for multimedia• Reality: SIP based communications allow for multimedia

communications over a variety of devices • Any communications mode to any user on any device

© Copyright 2010. Yankee Group Research, Inc. All rights reserved. Page 17February 2010

Page 18: Windstream Webinar: Demystifying VoIP for Business

UC Ecosystem

© Copyright 2010. Yankee Group Research, Inc. All rights reserved. Page 18February 2010

Page 19: Windstream Webinar: Demystifying VoIP for Business

Conclusions

• VoIP is a mature technology which can be architected to be as reliable as traditional telephonyas reliable as traditional telephony

• There is greater risk in not deploying VoIP than deploying

UC i th l ti f V IP b t b d l d i h• UC is the evolution of VoIP but can be deployed in phases

• Hosted VoIP provides a cost effective, scalable, low risk deployment optiondeployment option

• VoIP is a cornerstone to the mobile office and a collaborative work environmentwork environment

• If the proper pre-work is done, VoIP does not need to “break the bank”

© Copyright 2010. Yankee Group Research, Inc. All rights reserved. Page 19February 2010

Page 20: Windstream Webinar: Demystifying VoIP for Business

Thank YouRead analyst blogs at blogs.yankeegroup.com

W t h l t id t

Zeus Kerravala

Watch analyst videos atyoutube.com/yankeegroup

Follow us on Twitter: @YankeeGroup

Distinguished Research Fellow

[email protected]

@YankeeGroup

Fan Yankee Group at facebook.com

© Copyright 2010. Yankee Group Research, Inc. All rights reserved. Page 20February 2010

www.yankeegroup.com

Page 21: Windstream Webinar: Demystifying VoIP for Business

K ll M C l dKelley McCasland

WindstreamWindstream

VoIP Product ManagerVoIP Product Manager

© Copyright 2010. Yankee Group Research, Inc. All rights reserved. Page 21February 2010

Page 22: Windstream Webinar: Demystifying VoIP for Business

How is Windstream VoIP different from traditional VoIP?

WindstreamVoice traffic stays within our secure, private network

All voice traffic takes priority over Internet data traffic

Emergency directory and operator services handled internallyEmergency, directory and operator services handled internally

Traditional Voice traffic travels over public Internet (at risk for security issues)

Voice IP Packets get no priority treatment or tagging –which can cause quality issueswhich can cause quality issues

Some VoIP carriers do not support emergency, directory and operator services

© Copyright 2010. Yankee Group Research, Inc. All rights reserved. Page 22February 2010

Page 23: Windstream Webinar: Demystifying VoIP for Business

Introducing the Windstream Hosted VoIP & Data Bundle

Windstream can provide a complete communications system including:communications system, including:

Voice

InternetInternet

Networking

Equipmentq p

Routing

© Copyright 2010. Yankee Group Research, Inc. All rights reserved. Page 23February 2010

Page 24: Windstream Webinar: Demystifying VoIP for Business

Introducing the Windstream Hosted VoIP & Data Bundle

Windstream can host or manage all of your services, to provide a one-stop shopping experience and avoid upfront capital p pp g p p pexpense or high vendor fees

A Hosted VoIP and Data bundle gives any business the look d f l f t iand feel of an enterprise company

Employees will never miss a call with Auto Attendant and a variety of forwarding optionsy g p

Make real-time changes to your own hunt groups, phone configurations, Auto Attendant, Voicemail greetings and more

© Copyright 2010. Yankee Group Research, Inc. All rights reserved. Page 24February 2010

Page 25: Windstream Webinar: Demystifying VoIP for Business

Advantages of choosing a Windstream bundle

Dedicated internet access

No upfront capital costs no IP PBX to purchaseNo upfront capital costs, no IP PBX to purchase

Predictable operating expenses

No maintenance expenses because WindstreamNo maintenance expenses, because Windstream owns the equipment

Easy management with a simple online interface

No obsolescence as routine upgrades handled by Windstream at little or no cost

© Copyright 2010. Yankee Group Research, Inc. All rights reserved. Page 25February 2010

Page 26: Windstream Webinar: Demystifying VoIP for Business

What do SMBs need to know about deploying a hosted solution?

Not much at all – Windstream handles it for you!

Just tell us:Just tell us: How you want your voice traffic to come into your site

Which IP phones you’d like to usep y

When you want to schedule installation

In addition to our hosted solution, Windstream can provideIn addition to our hosted solution, Windstream can provide a holistic solution with services such as:

Managed Network Security

SVPN MPLS

Online Data Backup

And more

© Copyright 2010. Yankee Group Research, Inc. All rights reserved. Page 26February 2010

And more

Page 27: Windstream Webinar: Demystifying VoIP for Business

Zeus Kerravala Kelley McCasland Austin HerringtonSenior Vice President and Distinguished Research

Fellow

Windstream VoIP Product Manager Windstream Director Of

Enterprise Solutions

© Copyright 2010. Yankee Group Research, Inc. All rights reserved. Page 27February 2010

Terry O’BrianWindstream Staff Manager-

Product Marketing

Jaclyn MispagelWindstream Staff Manager-

Product Marketing

Page 28: Windstream Webinar: Demystifying VoIP for Business

© Copyright 2010. Yankee Group Research, Inc. All rights reserved. Page 28February 2010


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