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Crucial Intersection: IT Converges Applications Crucial Intersection: IT Converges Applications, Services, & Infrastructure to Support the Distributed
EnterpriseEnterprise
Robin GareissExecutive Vice President, Sr. Founding Partner
www.nemertes.com
Agenda
About NemertesOrganizational TrendsDistributed Enterprise TrendsDistributed Enterprise TrendsVoIP & UC Technology Overview & Adoption TrendsWAN Technology Overview & Adoption TrendsWireless TechnologyRecommendations
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About Nemertes
Analyze business value of emerging technologiesAdvise Fortune 100-2,000 b i iti l IT t t ibusinesses on critical IT strategiesBenchmark realityh 2,500+ IT executives share strategies,
costs, vendor satisfaction.
A l h 1 30 Analysts have 17-30 years experience, including operationalF d d 2002Founded 2002
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Organizational Trends
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Organizational Changes
I t ti b t t h l Integration between technology “silos” (apps, networking, security)
Interaction with groups outside IT (HR, legal, personnel, facilities)
More matrixed structure
Balance openness with Balance openness with effectiveness--limit who’s in the critical path!
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Business Unit Partnership
Identify business/technology liaisons within ITIdentify “grassroots” helpBudget time for discussions with business-unitsh Leaders in HR, sales, finance, service, legal, etc.h Also discuss with managers and staff
D ’t k t h l ti f bl th h i ith th i j bDon’t ask technology questions—focus on problems they are having with their jobsUnderstand business problems, and relate your technology knowledge to solve themAssemble UC teamAssemble UC teamhMulti-disciplinary team—network, telecom, application development, contact
center, security, business unitsEngage team in all UC-related decisions
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Reporting Structure Option
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10 Steps for Identifying Business Issues
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Distributed Enterprise Distributed Enterprise Trends
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Distributed Enterprise: Overview
89%M d S iMore virtual
workers
89%Managed Services
atio
ns
More branch 9.2%
MPLS & Ethernet(Solid network 57%
mm
unic
a
offices performance is vital)More centralized
apps & dataOptimization
ed C
om
85%Branches with 18%
ream
line
Decreased or Flat IT budgets
IT personnel More bandwidth demandsSt
r
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budgets
Worker Characteristics and Needs
Worker Bandwidth Security WirelessTeleworker Moderate Moderate Low
Small/Branch/New High Moderate ModerateOffice
Customer Site High High LowWorker
Road Warrior Moderate High HighRoad Warrior Moderate High High
Field Force Moderate High High
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Connectivity to the Cloud
Customer Site VOIP
Ethernet TeleworkerDSL
Worker VOIP Server
MPLS Cloud
DSL
MPLS CloudIPsec/SSL
MPLS CloudInternet
DSL/T1
MPLS Cloud
R d Small/New
OfficeWireless
(3G/4G/LTE)TeleworkerRoad
Warrior
Field Force( )
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Formal Teleworking Policy
84% increasing the number of telecommuters telecommuters they support.
Only 37% had a Only 37% had a teleworking policy in place in 2008.
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What are the Drivers for Increasing Telecommuters?Drivers for Increase in Telecommuters
82%Improve EmployeeRetention
61%Save Facilities Costs
53%Advance Green Policy
Assist/Advance Virtual 53%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Assist/Advance VirtualWorkplace Policy
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Virtual Workplace Business Drivers
Facilitiesh Moving from expensive headquarters to remote site saves $h Major metro area: $11,000-$20,000 per employee/yearh Suburban area: $7,000 - $10,ooo per employee/yearh Telecommuter: virtually zero
Agilityh Can respond more quickly to competitive pressuresh Can attract, retain employees by allowing them to work close to home or at home
Cultureh Virtual workplaces foster culture of responsibility, loyalty, employee productivity
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Streamlining Communications & Applications
Location doesn’t matterhUsers want applications, access to data regardless of location
Trend toward centralization of apps, datapp ,hEase of management key driver
All-in-one devices gaining momentumAll in one devices gaining momentumh48% of organizations use/want to use Two types of devices
Routing/switching/security/wireless/IPT/compression– Routing/switching/security/wireless/IPT/compression– App acceleration/WAFS/DHCP/DNS/Print & file servers
More attention toward robust WAN & optimizationMore attention toward robust WAN & optimization
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Unified Communications and Collaboration: Technology
and Overviewand Overview
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Technology Architecture & Evolution
VoIP IP CCCom
User InterfacesIP audio VoIP
IP VidPWeb
conferencing
IP CC
Social Computing
mm
on ProWeb portals
IP audio conferencing
IP VideoPresenc
conferencing Computing otocols (SI
DashboardDesktop videoTelepresence
ce
IM UM
IP,SIMPLE
Office productivity
appsFixed Mobile Convergence
Communications-Enabled Business Process
E,XMPP)
Handsets
Management, Directory, Security
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Typical Deployment Timeline
TelepresenceWeb Conf. CEBP
IP Video
IP Audio Conf IP Contact Center
Social ComputingUnified Messaging
Presence/Unified Dashboards
VOIP Pilot VOIP Production
IP Audio Conf IP Contact Center
36 months24 months 60+ months48 months12 months
Planning
Corporate Buy-in
Upgrade WAN infrastructure
Validate Business Case Upgrades
Mobile Extensions
Training, Management, Reporting, Security
Corporate Buy in
Pre-deployment benchmarking
Validate Business Case Upgrades
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What Triggers a Move to UC?
Move to new facilityR l i TDM i f t tReplace aging TDM infrastructureNeed to centralize voicemailNeed integrated call features across multiple Need integrated call features across multiple locationsWorkforce becomes more mobileWant virtual contact centerWant virtual contact centerTime for a network upgradeVoice survivability/disaster recoveryy yRenegotiate telecom contractCost reduction opportunities/responseGreen initiatives
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UC Trending
UC Adoption, 2007-2011
80%80%
90% (Projected)
60%
70%
60%
70%
47%
30%
40%
50%
17%10%
20%
30%
0%2007 2008 2009 2010 2011
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Must-Haves
Business Drivers for Implementation
TechnologyCost Savings
Sales Increase
Competitive differentiator
Improved productivity
Expedite business transaction
Falling behind without it
p
gy g p y
VoIP ● ● ● ● ● ●IP Room ● ● ●Videoconferencing ● ● ● ● ● ●Webconferencing ● ● ● ● ● ●Instant Messaging ● ● ● ● ● ●P ● ● ● ● ●Presence ● ● ● ● ● ●
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On the Drawing Board
Business Drivers for Implementation
TechnologyCost Savings
Sales Increase
Competitive differentiator
Improved productivity
Expedite business transaction
Falling behind without it
IP Contact Center ● ● ● ● ● ●IP audioconferencing ● ● ● ● ● ●Unified Messaging ● ● ● ● ● ●Telepresence ● ● ● ● ● ●Telepresence ● ● ● ● ● ●
Social Computing ● ● ● ● ● ●
UC Dashboards ● ● ● ● ● ●
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UC Deployment: Key Challenges
Challenge 1: Ever-shrinking IT budget Challenge 1: Ever shrinking IT budget h In 2009: 85% of organizations had decreased or flat budget vs. 46% in 2008
Challenge 2: Staff decreasesChallenge 2: Staff decreaseshOn Average by 17%
Ch ll 3 I t bilit Challenge 3: Interoperability concerns h Limiting adoptionh C t d d lih Concerns over standards complianceh Added cost & complexityh Need for additional upgrades just to achieve backwards complianceNeed for additional upgrades just to achieve backwards compliance
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Challenge 4: Management
Why is Management Becoming So Important? h Network Complexityh New Application Plans
M bilih Mobilityh Fewer IT resources internallyh End user demandsEnd user demandsh Globalizationh More remote workers & branch offices
UC adds more complexityh Presence management VOIP managed services grew from h Integrated rich mediah Application integration
VOIP managed services grew from 22% in 2007, to 42% in 2009
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Challenge 5: WAN Demands
2009 Benchmark data: Average of 34% bandwidth increase year over year (in a flat economic environment benchmark conducted during worst months of flat economic environment—benchmark conducted during worst months of recession, January to April 2009)Increases driven by:yh Bandwidth-intensive applicationsh Multimedia applications (voice, video)h Distributed/collaborative applications
Optimization techniques can mitigate but not eliminate need for increased bandwidthbandwidthBottom line: WAN architectures must accommodate growth
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VOIP/UC Architecture: Network Becomes More Important
2008 2009
62%60%
70%
53%
40%
50%
41%
30%30%
40%
10%
20%
6% 8%0%
Centralized Distributed or Regional Hosted
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WAN Technology and OverviewOverview
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Typical Deployment Timeline
VoIP/UC
Optimization
All-in-One Branch/New sites & upgradesBranch standardization
Switch/router upgrade
WLAN
MPLS,Ethernet, VPLS deploymentData-center consolidation
OptimizationSwitch/router upgrade
36 months24 months 60+ months48 months12 months
Planning
Corporate Buy-in
Carrier RFP & negotiations
Validate Business Case Upgrades
Mobile Extensions
Training, Management, Reporting, Security
Corporate Buy in
Pre-deployment benchmarking
Validate Business Case Upgrades
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Must-Haves
B i D i f I l t tiBusiness Drivers for Implementation
TechnologyCost savings
Sales increase
Broadly available
Managed services widespread
Enables virtual workplace
Falling behind without itTechnology savings increase available widespread workplace without it
MPLS ● ● ● ● ● ●Ethernet/ VPLS ● ● ● ● ● ●Broadband A ● ● ● ● ● ●Access ● ● ●Optimization ● ● ● ● ● ●
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On the Drawing Board
Business Drivers for Implementation
TechnologyCost savings
Sales increase
Broadly available
Managed services widespread
Enables virtual workplace
Falling behind without it
Wi-LAN ● ● ● ● ● ●4G ● ● ● ● ● ●4G
Branch All-in-One Box ● ● ● ● ● ●
SIP Trunking ● ● ● ● ● ●
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MPLS and Carrier Ethernet Taxonomy
MPLS-Based ServicesServices
Layer 3 Layer 2 Layer 1 (optical)
ATM/FrameEthernet
RFC 4364 VPLS P2P PWE3 GMPLS
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Network SemanticsMPLS is a technology, not a serviceWe say “MPLS” when we mean “layer 3 RFC 2547/4364 We say MPLS when we mean layer 3 RFC 2547/4364 MPLS”—not any of the others (which are also MPLS)We say “Carrier Ethernet” to mean three separate service We say Carrier Ethernet to mean three separate service types:hEthernet connectivity to layer 3 MPLS (which is also MPLS)Ethernet connectivity to layer 3 MPLS (which is also MPLS)hPoint-to-point Ethernet connectivity (which may be delivered over an
MPLS fabric)hMultipoint Ethernet connectivity (which must be delivered over an
MPLS fabric)
Th f i i lt l b “MPLS” d Therefore, a service can simultaneously be “MPLS” and “Carrier Ethernet”—or be one or the other
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Justification: MPLS
Key Benefits Why Not?
Cost savings Global coverage from single carrier
Key Benefits Why Not?
h Range is 10%-40%Ability to integrate multiple traffic types on one network
g gnot “truly” availableCosts associated with upgrade (network equipment, installation,
Any-to-any ability/DRCOS: Better manage capacity
( q p , ,training)No application driversh I t t VPN till h i h 50% don’t use COS
h 23% use 4 or more classesLess overhead than ATM/Frame
h Internet VPN still cheaper in some cases
Solid managed services available
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Justification: Ethernet & VPLS
Why Not?Key Benefits
Emerging as next-generation WAN Can’t get it!
Why Not?Key Benefits
g g gtechnologyLower per MB costs vs. MPLS
g
Greater bandwidth & flexibilityBetter customer satisfaction vs. MPLSMPLSh 79% extremely satisfied, compared
to 67% with MPLS
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Justification: SIP Trunking
Why Not?Key Benefits
Reduced costs Can’t get it!
Why Not?Key Benefits
h PSTN: 20%-60% savings, depending on current, future networkN d t b t
gSecurity concernsh IP connection opened to PBX; need
h No need to buy gateways
Ability to share trunksVirt al N mber Ser ices
SIP firewall
PBX doesn’t support SIP or requires costly upgradeVirtual Number Services costly upgrade
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WAN Optimization Deployment
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WAN Optimization Functions
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The Role of Wireless
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Enterprise-Wide Mobility Strategy?
Mobility Strategy 2008
Mobility Strategy 20092008 2009
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The Mobilized Workforce Is Here!
Over 75% of companies have or are planning mobility strategyAverage anticipated 12-month growth in number of mobile devices is 421% (median = 100%)hOf those with discrete budget, currently spending 4%-4.5% of overall IT
budget on wireless/mobility
Enterprise user populations are shifting from “special-purpose” (sales, logistics, onsite repair) to “general” A li i d d i i i d i llApplication demand is increasing dramaticallyDevice requirements are more complex (multimode, security, etc.)
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Managing Mobile Devices
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Mobile App Time Savings Impact
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The Mobility Transformation
Old NewSpecial-purpose network
Service IntegrationGeneral purpose network
Choice of DevicesDevice Proliferation
Special-purpose devices
Separate from Integrated with
devices
IT Infrastructure IT InfrastructureTransparency to User
M d bManaged by IT
IT IntegrationManaged by
Silos
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Justification: WiLAN
Key Benefits Why Not?
Productivity Enhancement Security concerns
Key Benefits Why Not?
yServes contractors, visitorsCan add wireless VoIP
yNewness of 802.11n standardOpportunity to save costs by moving cellular voice to WiLAN may erode as cellular voice to WiLAN may erode as Femtocells become available.
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Justification: 3G/4G
Key Benefits Why Not?
Serve virtual workforce Performance
Key Benefits Why Not?
Disaster recoveryRedundancy for leased line access
4G still unavailable widelyStandards rapidly changingy
Potentially less expensive than carrier landline services
p y g g
54% using/planning fixed broadband; 89%
mobile broadbandmobile broadband
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Closing Thoughts & Closing Thoughts & Recommendations
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Technology OutlookVideo distribution 3D telepresence Hologram
telepresence
Social computing integration
CEBP
Intense mobile integration
VoIP rollouts / UC integration continues; increased penetration in large companies
p g g g
20112010 2013+20122009
More managed services
More hosted apps
Second life integration
UC virtualization Mobile multimedia
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Bottom Line
Consider key emerging WAN technologies.Standardize products capabilities at your Standardize products, capabilities at your distributed enterprise.Plan for expansion! The keyword here is “more” applications, bandwidth requirements, branch-office sites, expectations from users, , p ,etc.Leverage wireless—fixed and mobile.Understand business problems VoIP & UC can solvesolve.Spend time up front educating IT, business units, executives.h Win support internally.
Tie UC to corporate green initiatives.h Enables telecommuting
Prioritize: You can’t do it all now!Consider MSPs, third parties.Know your numbers!
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Addendum
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Characteristics of Canonical MPLS
Enterprise WAN device (CE) must be a router Enterprise WAN device exchanges routing info with carrier WAN device (PE)Routing across cloud handled by carrierPackets are mapped into pathsPackets are mapped into pathsPath topology is defined by carrier hO ti i f h t i ti f ll l dhOptimizes performance characteristics for all users across cloud
Connection between CE and PE may be either standard telco interface (T1 fractional T3 T3 etc) or alternative interfaces (DSL interface (T1, fractional T3, T3 etc) or alternative interfaces (DSL, Ethernet.. or even Ethernet-over-DSL…)
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Three Flavors of Carrier EthernetEthernet access to MPLS networkh This is just canonical (RFC 2547/4364) layer 3 MPLS service with an Ethernet
connection between the CE and the PE h CE must still be a router; still exchanges routing information with PE
Ethernet point to point across MPLS (or other) networkEthernet point-to-point across MPLS (or other) networkh “Virtual private wire services”—VPWS (Martini RFC)h CE may be a (layer 3) router or a (layer 2) switchCE may be a (layer 3) router or a (layer 2) switchh Carrier emulates “Ethernet in the cloud” between any two points in the WANh No routing information is exchanged between user and carrierg g
Ethernet Virtual Private LAN Services (VPLS)h CE may be a router or a switch; customer handles routingh No routing information is exchanged between user and carrierh Carrier emulates “Ethernet in the cloud” between multiple points in the WAN
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Scalability
MPLS has successfully scaled to support 10,000-node networks; multi-thousand node networks are not uncommonLargest known Carrier Ethernet network is ~ 200 nodesOne reason: OSPF route adjacencies max out at 50 (therefore you can’t have any-to-any connectivity of more than 50 sites)Users can engineer hierarchical routing across Carrier Ethernet (same as with private lines in the old days)This takes some degree of routing skill and expertise from users MPLS generally doesn’t require the same level of expertiseMPLS generally doesn t require the same level of expertise
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Canonical (VPLS) Carrier EthernetUser handles routing across cloud
LANCE
Site 1
LANCE
Site 3Site 1
LANCE
Site 2
LANCE
Site 4Site 2
WAN access circuits are Ethernet(may be over telco cabling, eg DSL)
No routing information exchanged between carrier and user!
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No routing information exchanged between carrier and user!
VoIP
Key Benefits Why Not?
Cost savings TDM works fine. Why mess with it?
Key Benefits Why Not?
gh MACsh WAN network & access
yType of business doesn’t need advanced telecom features/appsLack of robust WANh Telecommuting
Application developmentImprove productivity
Lack of robust WAN
Improve productivityIntegration with UCAbility to take advantage of SIP Ability to take advantage of SIP trunking 74% using;
21% planning
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Justification: IP Videoconferencing
Key Benefits Why Not?
Save on travel costs & time Capital investment can be costly
Key Benefits Why Not?
Makes meetings more productiveDecipher facial expressions
p y(particularly telepresence)Need ample network capacityp p
Keep increasingly virtual staff connected
Not many/any remote locations
Competitive disadvantage without itServices enable communications with business partnerswith business partners
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IP Video Adoption Rates, 2009Videoconferencing Adoption
Using Evaluating Not Using
6 6%31.9%
15.8%90.0%
100.0%
15.3%
6.6%50.0%
60 0%
70.0%
80.0%
77.6%
15.3%
22.2%40.0%
50.0%
60.0%
52.8%
27 8%
20.0%
30.0%
27.8%
0.0%
10.0%
Desktop Room-based Telepresence
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UC: Have you Quantified Video Benefits?
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UC: Video Reduces Travel Time
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UC: Video Management
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UC: Video Networks
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Webconferencing
Key Benefits Why Not?
Share documents, spreadsheets, No need to share desktop
Key Benefits Why Not?
desktopMakes meetings more productiveKeep increasingly virtual staff
applications.
Keep increasingly virtual staff connectedSee who is on call, attentive, not tt ti 67% attentive
Easier to sell products/servicesOn premise saves more than
67% + using/planning
On-premise saves more than services
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Instant Messaging & Presence Dashboards
Key Benefits Why Not?
Get quick answers to important questions Compliance/security/regulatory issues
Key Benefits Why Not?
questionsHelp close dealsImproves customer service at contact centers
p y g y
centersKeep increasingly virtual staff connectedCost reduction through lower phone usageusageDashboards provide quick glance and integrated communicationsRemote supervisor tool (What’s your Remote supervisor tool (What s your availability?)Know how to contact whom (presence)
68% + using/planning IM
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IP Contact Centers
Key Benefits Why Not?
Customer service Training essential for success
Key Benefits Why Not?
Virtual contact centerImprove productivity
gCapital investment requiredMust have a contact center p p y
Integration with UC h Important/critical part of business
Specific Needs
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IP Audioconferencing
Key Benefits Why Not?
Eliminate CPM for audioconferencing Capital investment required
Key Benefits Why Not?
gservices (internal calls)Integrate with IP telephony system
p qFew or no internal conference callsNo IP PBX yet
No separate bridge required for 6-12 endpoints (included in IP PBX)When integrated to dashboard can
y
When integrated to dashboard, can view who joined rather than taking roll call.
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Unified Messaging
Why Not?Key Benefits
Saves time Voicemail becomes data in terms of
Why Not?Key Benefits
Better loggingIntegration
complianceRequires integration with IP telephony systemg telephony system
53% + using/planning
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Social Computing
Key Benefits Why Not?
Unique marketing opportunities Can be a time-waster
Key Benefits Why Not?
q g ppReach people quicklyWord gets out through networks
Legal responsibilities for postingsCompliance regulationsg g
Keep increasingly virtual staff connected
p g
38% + 38% + using/planning
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Business Case: Rapid Restock
Challenge: Competition for retail g pshelf space Solution: Integrating mobile data g gdevices with inventory system applicationOutcome: One sales person replaced $70,000 worth of product instantly
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Business Case: Another Margarita, Please!
Challenge: Increasing top-line revenue at restaurants at restaurants Solution: Wireless-enabling waitstaffOutcome: Measurable increase in alcohol sales and margins
Note: Also works in high-end coffee b ith t bl i !bars with table service!
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Business Case: JITFTEChallenge: Obtaining real-time subject matter expertisej pSolution: Integrating data devices with presencepOutcome: Measurable increase in close rates and decrease in sales cycles
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Business Case: Smarter Spies
Challenge: Validating intelligence tips faster (DIA)intelligence tips faster (DIA)
Solution: Wiki-enabling analysts
Outcome: Streamlined speed of pinformation validation by 20%-25%, maintained historical record of analysis (vs email record of analysis (vs. email trail)
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Business Case: Cutting Support Costs
Challenge: Fast, low-cost tech support for challenged users support for challenged users (consumer technology retailer)
Solution: Presence and instant messaging capabilities for first and messaging capabilities for first and second-level help desks
Outcome: Increased productivity of second-level help desk by sevenfold second level help desk by sevenfold (700%): fewer (expensive) experts
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