Transcript Webinar #1: Cloud PBX

THE BRAINS OF THE NEW GLOBAL NETWORK
HOSTED BUSINESS SERVICES
BRINGING YOUR SERVICES TO MARKET
Bryan Grimm
February 5th , 2015
Metaswitch Networks | Proprietary and confidential | © 2015 | 1
THE NETWORK BRAINS ARE ON THE MOVE…
…FROM DEDICATED HARDWARE APPLIANCES TO PRIVATE AND PUBLIC CLOUDS
NETWORK INTELLIGENCE
SERVICE INTELLIGENCE
INTELLIGENT SOFTWARE
GENERIC HARDWARE
COMMODITY COMPUTE
COMMODITY STORAGE
COMMODITY SWITCHING
THE NEW GLOBAL NETWORK IS MORE…
COST EFFECTIVE
FLEXIBLE
PROGRAMMABLE
REVENUEGENERATING
INTELLIGENT
COMPETITIVE
METASWITCH: THE BRAINS OF THE NEW GLOBAL NETWORK

Unmatched Communication Software DNA
 30+ years of software development; broad portfolio
 proven business model; financial stability

Cloud, NFV, SDN leadership
 Industry experts, first-to-market virtualized applications

650 employees
 High retention of engineering expertise
 Innovative, agile development methods

1000+ global customers
 Service Providers
 Equipment Manufacturers
 Large Enterprises

Built on
 Innovation
 Quality Engineering
 Reliability
 Exceptional customer support
AGENDA
 Hosted Voice Market Observations
 Product Positioning
 Sales Engagement
 Support Services
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MARKET OBSERVATIONS
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LEGACY PBX IS IN DECLINE WHILE HOSTED IS GROWING
Hosted IP PBX/UC Market Size and Forecast by Region
$14
Revenue (US$ Billions)
$12
$10
$8
$6
$4
$2
$0
CY12
CY13
North America
CY14
CY15
EMEA
CY16
Asia Pacific
CY17
CY18
CALA
Though PBX systems have had stagnant-to-declining sales over the past few years, the market for
cloud services continues to expand, with businesses worldwide seeking out hosted alternatives.
* Infonetics, 2014
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WOULD YOU LIKE A SLICE?
YES PLEASE!!!
COMPETITIVE LANDSCAPE
North America
EMEA
14.9 million seats (YE 2014)
6.5 million seats
 Over 100 providers
 8x8, RingCentral, West, Verizon,
Vonage Business, Thinking Phone
Networks, Comcast, Broadview
Networks, Star2Star, Mitel,
ShoreTel, Cox, Intermedia,
Telesphere, Megapath
 BT, Telenor, Orange, TeliaSoneria,
Telefonica, TDC, Vonafone, DT, SFR,
Bezeq, KPN
 Country level activity with dominate
providers
 UK has broad competitive landscape
Asia Pacific
CALA
7.3 million seats
1.6 million seats
* Infonetics, 2014
 Healthy markets in S. Korea, Australia,
China, Japan
 Still nascent market with slower competitive
activity
 Telestra, Optus, KT, Samsung
Networks, China Unicom, China
Telecom,
 Mexico, Brazil, Argentina
IP ADOPTION RATES BY COUNTRY
30%
25%
28%
< 10 Employees
Low adoption rates are an
opportunity for service
providers willing to address
the needs of the SME market
23%
10-49 Employees
> 50 Employees
20%
15%
18%
17%
16%
13%
13%
11%
10%
10%
7%
5%
0%
3%
4%
9%
8%
6%
4%
4%
3%
VOIP DEPLOYMENT BY COMPANY SIZE
Plenty of opportunity…
100%
6%
17%
90%
22%
22%
78%
78%
20 to 49
50 to 99
29%
80%
70%
60%
50%
94%
83%
40%
71%
30%
20%
10%
0%
1 to 4
5 to 19
TDM
IP
100+
TIMING?
HISTORY LESSON
’08
‘08
Early 90’s
Early 90’s
• Business
as
Future
Future
• Global
• Global
Economic
Economic
Recession
Recession
• Business as
Usual
usual
• Window
• closes
Window
closes
Late90’s
90’s
Late
2015
2014
• •Build
upup
toto
Build
Y2K
Y2K
• Opportunity
• Opportunity
OPPORTUNITY COST
 Hosted PBX has a high opportunity cost factor
 Once the customer chooses another provider they are “lost”
for at least 3 years – probably much longer
 Given you may have a limited number of businesses to go
after, this has a big economic impact
$2,000,000
Market Example:
$1,800,000

$1,400,000

1,600 businesses in a single
target market
6 month delay results in
$900K less revenue over 5
years – 20% less!
Annual Revenue

ILEC with CLEC markets
$1,600,000
Speedy Deployment
Delayed Deployement
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$0
Year 1
Year 2
Year 3
Year 4
Year 5
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THE TIME IS NOW
32%
<50 employees
>50 employees
33%
25%
24%
25%
17%
15%
11%
10%
8%
60% in the next 2 years
73% in the next 2 years
FIRST JOB IS TO…
COMMON UNDERSTANDING OF IP COMMUNICATIONS
39%
Opportunity to
educate
20%
13%
Unfamiliar Reduce Costs Innovative
Features
16%
11%
QoS Issues Better Way to
Manage
CURRENT PHONES SYSTEM ISSUES
32%
No Issues
11%
Too Expensive
10%
SP Customer Service
Too Old or Outdated
9%
Billing
9%
8%
Poor Call Quality
7%
Capacity
MACDs
Doesn't Meet Business Needs
Lacking Features
5%
4%
4%
~ 1/3 of the market is
content with their current
solution
COMMON PERCEPTION
Perception is that
Hosted is cheap but
not as good
19%
20%
32%
37%
56%
58%
52%
45%
18%
Cost
22%
Management
25%
16%
Features
Call Quality
STILL INTERESTED
<50
>50
Extremely
Interested
25%
Extremely
Interested
Very Interested
24%
Very Interested
Moderately
Interested
26%
Moderately
Interested
Somewhat
Interested
Not Interested
15%
11%
21%
33%
22%
Somewhat
Interested
12%
Not Interested
13%
INTERESTED IN WHAT THOUGH…
Visual VM
Portal
Softphone
Presence
IM
Collaboration
ACD
Sim Ring
Group Features
Auto Attendant
Advanced Call Ctr
FMFM
CRM Integration
Music on Hold
0%
10%
20%
Important to our company today
30%
40%
50%
60%
Important to our decision to switch to VoIP
70%
MARKET RESPONSE – MORE COMPETITIVE PRESSURE
 An attractive market with good returns = competition
 Hosted PBX is also a disruption on how companies purchase
telephony services
 Most haven’t thought about it in some time (or at all)
 Two emerging players – large MSO’s and Over-the-Top
 Both have aggressive pricing and a lot of marketing
 US Pricing – normalizing in the $30/seat/month range
 Slightly higher in EMEA
 Slightly lower in APAC and CALA
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YOU HAVE THE HOME FIELD ADVANTAGE
 Not only can you deliver a
best in class product at an
attractive price, you can
deliver:




Personalized service
Local sales force
On-call technicians nearby
Reference customers in the
community
 This needs to be central to
your marketing messaging
and sales model!
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PRODUCT DESIGN AND
PACKAGING
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Customers
to understand
Simple for…
Sales to
position
Simple for…
Simple for…
THINK SIMPLE WITH YOUR OFFER!
Operations
to turn-up
and
support
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RECOMMENDED HOSTED PBX PACKAGING AND PRICING
Basic Seat
Standard Seat
•
•
Includes:
PBX Feature
Set
•
•
Target
•
Conference
room
Break room
•
PBX Feature Set
CommPortal
Unified
Messaging
Easy Call
Manager
Typical end user
configuration
Lines
Pricing (MRC)
Long Distance
Phone Price
Non-recurring
Global Features
(included in every
sale)
Premium
Seat
•
•
•
Mobility
(Accession)
E-fax
•
•
•
Admin Portal
Auto Attendant
Music on Hold
Mobile
Worker
Included
$
$$
$$$
Unlimited or large bucket of minutes
$-$$$ per month based on chosen phone with option to purchase
Minimal
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SEGMENTATION
 Understand your marketplace and what customers are
looking for
 Put a dollar value on those segments so you know where to
focus
 This might minor changes to your offer to meet business requirements
of a certain type of customer (size or vertical)
 Also examine your salesforce and their capabilities
SEGMENTATION NEEDS BY MARKET SIZE
 Bigger companies have more specialized needs
Smaller Businesses
Mid-Size Businesses
Product
Simpler needs
More complexity
Timing
Faster sales cycles
Slower sales cycle
SLA’s
SLA’s generally not
needed
SLA’s desired
Multi-site
requirements
Generally no
Yes
Call Center
Existing hosted
capabilities OK (MLHG)
Generally will need ACD
and call recording
Network Redundancy
Not an issue
Many will want
geographically diverse
servers
Network Security
Design
Concerned
Critical concern
MOBILITY – GET IT INTO YOUR OFFER
 Mobility package would enable integration of desk phone
environment with any device
 For instance, if the end user has an iPhone, iPad, and Windows laptop,
they can load the application on all devices for the same price
 Would allow “mobile-only” users – no desk phone, just
client(s) – would still need to buy a “seat”
 Research points to a $5/month price point
29
THINK THROUGH YOUR OPERATIONAL PLAN
 Hosted has lots of moving parts
CUSTOMER – Hosted PBX Process
Rev 1.0, May 2013
Order Entry/Site Survey
Customer
STOP – cancel order
NO
From
Page 1
Customer
Accepts
Changes?
Customer
Customer
Customer
YES
Update contract to
Schedule Site Survey
Hosted Voice Process
reflect changes
Conduct Site Survey
and LAN Assessment
Negatioate
Installation date
with customer
Schedule Install
Date
Rev 1.0 - INS
Site Survey (Form)
and Facility Pictures
Any changes
from original
Proposal?
Customer
Sales Coordinator
Order Entry/Site Survey
Customer
Accepts
Changes?
Upload revised site
survey form into
Goldmine
NO
Customer
NO
STOP – cancel order
Customer
Page 3
YES
Site Survey (Form)
and Facility Pictures
Append Site Survey to order?
Notify Sales of any
Changes from
baseline proposal
Customer
Rev 1.0 - INS
Schedule installation
date and load into
dispatch system
Create Service Order
in Metasolve and
append with Site
Survey doc
Notify finance for
911 processing
Customer
Page 3
Customer
INS Engineering
Any changes
from original
Proposal?
Revise Proposal and
Present to customer
ATI Installation
Conduct Site Survey
and LAN Assessment
ATI Project Mgr
NO
INS Sales Supt
Sales Engineer - ATI
Hosted Voice Process
YES
Installation
Complete
ATI Proj
Manager
From
Page 1
Revise Proposal(?)
and Present to
customer
Sales
Sales
Schedule Site Survey
INS Sales
Support
YES
Notify Sales of any
Changes from
baseline proposal
Activate Port
From
Page 3
Confirm Install Date/
TIme
Customer Training
Install POE Switch,
Router, Phones
Test configuration
Finalize Installation
– test service
Customer Test
(form)
Notify INS Sales
Support order is
complete
Close out order in
billing system
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OPERATIONS MAKES A HUGE DIFFERENCE
 Strive to get a quote to a prospect within 48 hours
Outreach to first sales conversation
Outreach
Referral to
Sales
Time from sales call to first quote
Initial Sales
Conversation
Time from initial quote to final quote
Revise
Quote
Draft Quote
Final Quote
 Once the sale is made, target a customer turn-up within 30
days
 Clearly communicate timelines with the customer
 Be professional throughout
 Research shows that a positive up-front experience is a big
indicator of a long term relationship – go the extra mile!
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YOUR WEBSITE

Front door to your product and
your company

Prospects (that don’t know you)
will almost certainly research
you using your website

Invest in it and make it current!
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PRODUCT MESSAGING
Easy
Call to
action
Not a single
acronym
used
PRODUCT MESSAGING
Let videos with
real employees
tell the story
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SELLING HOSTED UC
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THE WRONG APPROACH TO SALES TRAINING
Slide 1 –
“Hosted Voice Service is
Service Provider X’s answer to
the communication needs of
today’s Small and Medium
Business Customer.”
Slide 2 –
 Jargon and Network Diagrams in
advance of customer benefits
 No benefits statements to features
or practical applications
 Offer Training vs. Sales Training -Lack of Solutions Selling and
practical use cases
SOLUTION SELLING
 Solution selling involves asking clarifying questions to
understand a customer’s needs before you propose a
solution
 Key is to become the trusted advisor – helping them solve a
business problem using your expertise
 A short video:
http://smallbusiness.chron.com/solution-selling-sales-training-71867.html
It is critical that sales know this product inside
and out…this is a competitive market with very
experienced sales people
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THREE SIMPLE STEPS
Ask
Listen
Advise
• 5 Questions that are not specific to
technology
• What are the business’ core values
• From the customer’s responses you can
begin to formulate your solution
• Listen for indicators about who else will be
involved in the decision making process
• Craft your solution to address the
customer’s stated business needs
• Acknowledge where your recommended
solution is a good fit/where it is not
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THE BRAINS OF THE NEW GLOBAL NETWORK
QUESTIONS?