Transcript The Evolution and Impact of Business VoIP

The Evolution and Impact of
Business VoIP: A Carrier’s View
Mark Fishler
Vice President – Product Management, Voice and Data Business Services
“Although the consumer market has
attracted the most attention from the
press, the fastest growing VoIP
market is hosted IP voice services
for business customers.”
– IDC, September 2004
Source: IDC U.S. Hosted IP Voice Services 2004-2008 Forecast, September 2004
39% of Respondents are Current IPT Users
Which best describes your current use of IPT?
Currently
Testing
9%
Future
Users
61%
Current
Users
39%
Partially
Deployed
25%
Fully
Deployed
5%
Source: The Yankee Group 2004 IP Telephony Deployment Strategies Survey
22% of “Future Users” Plan to Deploy Soon
Future Users: What are your future plans?
Test in
12 mos
15%
Current
Users
39%
Future
Users
61%
Budgeted
w/ in
12 mos
22%
Test/Plan
w/ in
24 mos
24%
Source: The Yankee Group 2004 IP Telephony Deployment Strategies Survey
IP Services Present a
Significant Value Proposition
Revenues
Productivity
Mobility
• Anywhere, Anytime Accessibility
• Increased Employee Flexibility
• More Collaboration Options
• Unified Communications
• Real-Time Customer Info
• Enterprise-Wide Networking
Maximize Operational
Excellence and Innovation
• Reduced Toll Charges
• Integrated Wiring and Maintenance
• More Operational Efficiencies
• New Multimedia Offerings
• Broadened Delivery Systems
• Increased Customer Contacts
Cost and
Network
Complexity
Source: Yankee Group
Evaluating Critical Networking Needs
one.
two.
Business
Imperatives
three.
IT
Applications
LAN/WAN
Implications
IP Telephony Deployment Questions
•
What technology platform should I implement?
•
Will I need to throw out my existing investment?
•
Will I save money over my existing TDM solution?
•
Can I operate in a hybrid environment?
•
Do I have the staff to operate a VoIP network?
•
When will my new VoIP investment become obsolete?
•
Will my selected platform be able to support new applications?
•
Do converged networks really work?
•
Will my business really recognize the promise of VoIP?
•
Can my LAN/WAN support VoIP today?
Hosted vs. IP PBX
Preference Determinants
Factors Favorable to
Hosted
• Requires little in-house
management expertise
Factors Favorable to IP PBX
• Available in-house management
expertise
• Fewer sites
• Multiple sites
• Low volume of on-net calling
• High percent on-net calling
• Ability to perform a flash cut
• Longer VoIP migration period
• Available capital
• Mixed existing telecom
platforms
• Existing WAN bandwidth
• Limited capital
Customers Have Multiple VoIP Options
Hosted
High
Outsourced
Reliance on
ManagedService
Provider
Managed
Owned
Low
Low
Economies for Customer
Primarily VoIP PBX Option
High
Primarily Network Softswitch Option
IDC Hosted VoIP Cost Analysis
• Hosted voice services are less expensive than PBX
equipment and have a fundamentally different economic
structure from PBXs because:
– Capital expense is reduced
– Maintenance and equipment costs are greatly
reduced
– There is a wider opportunity to reduce long distance
charges
Source: IDC U.S. Hosted IP Voice Services 2004-2008 Forecast, September 2004
U.S. Business Hosted IP Voice Forecast
2004
2005
2006
2007
2008
5
15
50
200
400
Growth %
NA
200
233.3
300
100
Users (000)
75
300
1,250
6,000
12,000
Growth %
NA
300
316.7
380
100
Users Per Site
15
20
25
30
30
Monthly Revenue
65
62
59
56
53
58.5
222.3
879.9
NA
280.0
295.8
Sites (000)
Per User
Total Revenue
Growth %
4012.5 7647.9
356.0
90.6
Source: IDC U.S. Hosted IP Voice Services 2004-2008 Forecast, September 2004
Growth Factors for VoIP
• Increased broadband penetration
• Improved voice quality
• Not subject to traditional telephony regulation
• Security
Core Network Evolution
Anytime, Anywhere Access: Integration
Makes it Possible, Simple for Customers
Access from Any Place, Any Device
The Evolution and Impact of
Business VoIP: A Carrier’s View
Mark Fishler
Vice President – Product Management, Voice and Data Business Services