One Step At A TimeOne Step At A TimeRetaining Traditional PBXs While

Benefiting from IP Telephony

IP Telephony IP Telephony MarketMarket

• IP Telephony is the Future– In-Stat forecasts show a steady rise in IP telephony

implementation• 2002 - 260,000 firms (2% of all US firms) are using IP

Telephony• 2007 - over 2.2 million firms (19%) will be using IP Telephony

– Of 432 firms polled, 21% are already using IP Telephony

– IP telephony is a future plan for 13% of businesses

Upgrade DriversUpgrade Drivers• Primary Drivers for IP Telephony Upgrades

– Cost Savings• Toll avoidance• Multi-use data connections (convergence)• Staff reductions (combined telecom and IT resources)

– Administration Simplification• Combine communications resources• Web-based administration• Centralized multi-system/networked-system

administration

– Additional Features• Remote teleworker• Branch office networking• Web integration• Simplified CTI• Future expectations

Upgrade Upgrade BenefitsBenefits

• Communications upgrades offer 3 types of benefits...– New features

• Web connectivity• Networking• Remote worker support• Database connectivity• Integrated CTI applications • New phone styles or “Modernization”

– Administrative Options• Web or centralized administration• Simplified MAC• Reliability/redundancy options

– Cost Savings

QuestionsQuestions

… the system failing.

Is an upgrade necessary?

… the system impacts productivity.

... business growth requires new equipment.

The answer:The answer:

Yes. If...Yes. If...

QuestionsQuestions

Is upgrading a benefit?

… it can save money for the business?

… it will modernize the business?

… there is a feature that benefits the business process?

The answer:The answer:

Yes. If...Yes. If...

Common Common ObjectionsObjections

My business will be down for days…even My business will be down for days…even

weeks!weeks!

My current system is just fine.My current system is just fine.

New technologies are not proven.New technologies are not proven.

It’s too complicated.It’s too complicated.

Real ObjectionsReal Objections

• Factors that may prevent upgrading– Economy/Money

• Is there enough benefit to justify expense?• Does the existing PBX/KSU provide acceptable

service?

– Questionable Technology• “I heard from that new technology is unreliable.” • IP Telephony has come a long way but is it really

complete?

– Conventional Thinking• “I’ll wait until it is a proven technology.”• “If it ain’t broke, don’t fix it!”• “Training my people will just cost me more money.”

Upgrading Upgrading RealitiesRealities

• TDM Solutions are Not Necessarily Replaced Because….– TDM solution investment is too great to write-off

• Cost outweighs benefit• Perceived value of new system is low

– TDM solution has IP-enabled capabilities that meet current needs

• Current equipment provides acceptable performance and features

– Time to upgrade interferes with business– User training requirements too great– The system works!

• How are Upgrades Accommodated?– Only new installations get IP-PBX systems– Existing systems are IP-enabled to provide most

beneficial feature (I.e. teleworker, networking)– Upgrade is delayed until equipment is fully

capitalized

Upgrading Upgrading RealitiesRealities

Why Limit Yourself to….

Co-existence: IP Co-existence: IP and TDMand TDM

How can installing a new system behind How can installing a new system behind existing system justify upgrading?existing system justify upgrading?

• Cost/Existing Equipment– Benefits

• By not removing the existing equipment, the existing investment is retained but new features are added.

– Drawbacks• The cost of upgrading is not removed however. New

equipment will incur some costs.

Co-existence: IP Co-existence: IP and TDMand TDM

• Time Value– Benefits

• Allows for a graduated install plan that avoids time restricted and error prone weekend cutovers.

• Installs can occur during business hours with little or no downtime.

– Drawbacks• ?

Co-existence: IP Co-existence: IP and TDMand TDM

• Training– Benefits

• Common methodologies can be taught and used throughout the company increasing productivity.

• New features and functionality can actually be used.

– Drawbacks• Takes time from job responsibilities to attend training.

Co-existence: IP Co-existence: IP and TDMand TDM

Inevitable Inevitable UpgradesUpgrades

• Communications upgrades are necessary– Provide new communications options to

customers• Examples: Voice mail, IVR, Fax, Email • Automated response mechanisms (fax back, email

responses)• Outbound notifications (pagers, text messaging)

– Smoother business processes• Automated document processing• Automated storage processes

– Keep up with business partners• Remember Electronic Data Interchange (EDI)?• Wal-mart

Don’t Be Limited to….