current state of cloud communications - cvt-dallas · •why does it matter? • only pay for what...

Current State of Cloud Communications

Presentation to Dallas CVT-IEEE

Tracy Venters Director, Technical Marketing, Cloud Communications

April 2015

| ©2015 Mitel. Proprietary and Confidential.

Agenda

• Introductions

• Definitions

• Obligatory slide

• Drivers/Inhibitors (with a twist!)

• What’s next for CaaS?

• Oh and…

• Let’s keep it interactive

• …..and have fun!

2


This is Mitel

3

OPERATING IN

COUNTRIES

100 MILLION IN CLOUD BUSINESS

60 MILLION END-USER CUSTOMERS

OVER 1,900 PATENTS

BROADEST PORTFOLIO IN

THE INDUSTRY

OVER

CLOUD SEATS

IN EMEA

GLOBAL LEADERSHIP

OVER $1 BILLION IN REVENUE

1,000,000

100+

2500 CHANNEL PARTNERS

#1

We specialize in Unified Communications & Collaboration


Mitel in the cloud

33 Million

POWERING

CLOUD CONNECTIONS

PER DAY


What kind of aaS do you have?

• IaaS - Infrastructure as a Service

• Servers, storage, networking

• PaaS – Platform as a Service

• Middleware environments, development platforms

• IaaS/PaaS lines increasingly blurred

• SaaS – Software as a Service

• Third party owns the software, customer pays for what they use

• Example app types: telecom, CRM, collaboration

• Example vendors: Google Apps, Office 365, Salesforce.com, Cisco Webex

• CaaS – Communications as a Service

• SaaS – specifically communications (e.g., telecom) software

• Example: Mitel, 8x8, RingCentral, Vonage


Who owns it? • Public

• Software owned hosted by third party

• Likely adopted by SMBs

• Exception: also adoption by large institutions in US (Centrex replacement)

• Private

• Software owned by single institution

• Mid-large enterprises

• Most common PBX replacement in a “cloud environment”

• Could be subscription model licensing

• Hybrid

• Mixture of on-prem and cloud

• Mid-large enterprises

• Especially attractive to businesses with mixture of location types, sizes

• Businesses in transition


Components of a Cloud Comms Service

7 7

Software &

Devices

Telecom Provider

(SIP, LD, DIDs)

Customers

Data Center &

Infrastructure

Management and

Integration

Third-Party Tools

(Billing and

Provisioning)

Installation and

Configuration Customer Support

Contract and

Billing

Sales &

Marketing

Service Delivery Components

Technology Components


Architectures

• Multi-tenant

• One software instance with partitions per enterprise customer

• Cookie cutter approach

• Upgrades usually automatic, affect all customers

• Generally cheaper

• A good option to provide a low cost service to SMB

• Examples: Mitel Telepo, Mitel Clearspan, Broadsoft, Metaswitch, 8x8

• Single instance

• Each enterprise customer has its own instance

• Customizations can be done for each

• Upgrades not automatic

• More flexibility, options per enterprise

• Usually more expensive

• Examples: Mitel MiCloud, Cisco, private cloud solutions


What the Analysts Say

9


Market Drivers and Inhibitors (Quiz Time)

10


IT Simplification Relatively speaking, how does moving to a public and/or managed cloud solution

simplify telecom operations for an organization?

11

A: Greatly simplified : the organization only needs vendor contract /procurement

management

B: Moderately simplified : the organization needs some staff trained in telecom to

order changes such as user moves/deletes, changes to auto attendant trees, etc

C: Minimally simplified: the organization still needs a staff trained in telecom to

provision some features, deploy phones, support users and manage changes

D: Depends


IT Simplification

12

Answer: A to B

• Depending on size and expectations of

users of organization some onsite tier one

support may be needed

• Vendor tools, user sophistication and even

media such as YouTube help immensely

“We don’t want to be our

own phone company” –

CIO of major university


Change orders in the 21st century

13


Mobility, UCC Which of the following is a benefit that can only be provided by moving to a cloud

environment for communications:

14

A: Provide the EXACT same feature set for workers at fixed sites as well as home

and mobile workers

B: Provide a complete fixed-mobile-convergence (FMC) solution, including the

ability to reply to a text message revealing only the business (PBX) phone number

C: Allows users to easily designate any phone - home, work, mobile, even hotel - as

their work number and make/receive calls using that number

D: B and C

Answer: E

None of the above, all can be achieved with a more modern

prem system, however a cloud system helps you get their

faster

E: None of the Above


Customization In general, can cloud communications (CaaS) solutions be customized per

enterprise?

15

A: CaaS supports only limited customizations at a company level such as a

company level Auto Attendant

B: CaaS supports company level (e.g. Auto Attendant and Corporate Directory

integration) as well as individual (e.g., speed dial and white/black list) customizations

C: With CaaS, customizations are allowed similar to what would be allowed with an

onsite PBX

D: D it is vendor and architecture dependent

Answer: D

A single instance public cloud, or a private cloud architecture can

support the same customizations as a privately owned on-premise

PBX.


Security Which of the following statements best describes security considerations when it

comes to cloud communications?

16

A: Cloud communications are generally less secure than onsite solutions and

security is often cited as a reason why some businesses stay with an onsite solution

B: In reality, service providers are often better equipped to provide the necessary

compliances than enterprises may be able to achieve on their own

C: Privacy and data sovereignty are serious issues facing the roll out of global cloud

communications solutions today

D: All of the above

Answer: D

Security is a complex subject, however one should not assume that an onsite

solution is always more secure


Business Continuity What is the best option to assure your business communications stay up in case of

network or system disruption?

17

A: An onsite system is actually most reliable; it does not depend on connection to a

broader IP network

B: A cloud solution is best; it is the only way to cost-effectively provide geographic

redundancy

C: It doesn't matter, we all have cell phones

D: I want it all; just protect my aaS

Answer: D

There are many options available, failover could be onsite survivability, 4G, failover

to cell phones or maybe it doesn’t matter


But sometimes it does

18


IT Focus CIOs/IT directors are reluctant to move to cloud communications because it

threatens their budgets/staff

19

TRUE

FALSE

Answer: FALSE

IT struggles to show value…is keeping dial tone on that well recognized?

Let the cool kids work on something else!


TCO The single most important driver for enterprises moving to cloud communications is

that it lowers their TCO

20

TRUE

FALSE

Answer: idk


Case Study: Iowa State University

• Situation:

Aging on premise system, lacked newer UC features, high annual

maintenance costs

• Estimated cost savings by moving to cloud:

$600,000 per year

• Savings comes from

• Eliminating PBX maintenance contract

• Eliminating dedicated PBX engineer

• Less expensive handsets (now SIP standard)

• SIP trunking


On-Prem vs Cloud Solutions

22


Cost considerations • Software appications

• Telephony, UM, mobility, contact center, other apps

• Hardware

• Servers, media cards, gateways, phones

• Trunking and telecom

• SIP

• LD

• Local/PSTN

• Infrastructure

• Floor/rack space, power, cooling, insurance, etc

• Maintenance contracts

• Staff

• Support: onsite, tier 1/2/3

• MACDs

• Vendor management

• Professional services


OPEX vs CAPEX

• Why does it matter?

• Only pay for what you need without having to overprovision

• Don't tie up large amount of funds up front/cash flow

• Ride the falling price downward

• Reductions due to Moore’s law, falling prices with AWS, CaaS, etc.

• There may always be some CAPEX involved

• Although vendors happy to rent to you – why?

• Buy vs Lease considerations


Changing Business Models Is "changing business models" a Driver or Inhibitor for adoption of a

communications in the cloud?

25

A: Driver

B: Inhibitor

C: Blank so we can have an option D

D: It depends on whether you are the end

customer or the vendor/channel

Answer: D


Who benefits from cloud based models

• Customers

• Lots of benefits

• Model they are comfortable: Outsourcing email, storage, CRM, marketing

automation, etc…why not telecom

• Dealers (vendor channel partners)

• Trading in a dollar today for $2 over 3 years not so appealing

• New breed of partners required?

26

“With the advent of the

cloud, I can see 2/3 of

my staff becoming

irrelevant in the next 4

years. This is what

keeps me up at night.”

– VAR exec


Risk Which of the following is the most important benefit of a cloud based

communications solution:

27

A: Lower TCO

B: Faster time to market for new features

C: Shifts the burden of risk

D: Isn’t it obvious by the slide title

Answer: D

This is the biggest factor in my opinion

Cloud is “forever upgrade” model

As cloud vendors we have to earn your business every day!


What’s Next?

28


Now and Upcoming

• Mobile First

• Nordics lead

• Technology and commercial issues

• More sophisticated customer portals/self service

• Continued integrations/cloud mash ups

• Globalization

• Data sovereignty issues

• Business Analytics

• The Netflix of telecom!!


www.linkedin.com/in/tracyventers

THANK YOU!

#Mitel

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