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Copyright© 2004 Avaya Inc. All rights reserved Customer Choice Through Service Provider Hosted Solutions Denzil Samuels Vice President & General Manager, Service Provider Division October 12, 2004 On NDA Until Announcement
2 Copyright© 2004 Avaya Inc. All rights reserved Agenda The News Target Market Market Opportunity Hosted Solutions for Service Providers –IP Telephony –Contact Center Customer Case Study Complete Support Programs for Service Providers Product Roadmap
3 Copyright© 2004 Avaya Inc. All rights reserved Whats New SP Delivered Solutions Expand Customer Choice New product portfolio for network service providers, outsourcers, and system integrators –Market-leading Contact Center and IP Telephony solutions –Messaging solutions (coming 05) Industry-standard bladed server as hosted platform New business model (Build, Finance, Manage & Market) Unique pay-as-you-go usage based pricing model Best-of-breed solutions targeted at mid market Service provider customers Include Sprint, France Telecom, Telecom Italia, PLDT, TeleTech, Allstream, Sitel Available now in North America, Western Europe, A/P Offering customers path, pace and choice
4 Copyright© 2004 Avaya Inc. All rights reserved Market Opportunity Hosted IPT, CC and Messaging Markets Regional View 20042007 North America43%41% EMEA35%29% Asia-Pacific18%25% LA/RoW4%5% 64%Total HIPT, HCC, HM 28%Hosted Messaging 78%Hosted Contact Center 107%Hosted IP Telephony 04-07 CAGR Segment 0 1000 2000 3000 4000 5000 6000 HM Vendor 71874086910861523 HCC Vendor 73157376666881 HT Vendor 104335120522632992 20032004200520062007 $ Millions Source: Avaya analysis based on various industry reports
5 Copyright© 2004 Avaya Inc. All rights reserved Service Provider Business Drivers Focus on Global Tier 1 Service Providers Engender Customer Loyalty/Retention Reduce Risk Drive Net New Revenues Utilize Existing Bandwidth and Infrastructure Maximize Revenue/Square Ft of Data Center Space
6 Copyright© 2004 Avaya Inc. All rights reserved End Customer Target Target Customers Target Customers Business Drivers Business Drivers Benefits of SP Hosted Solutions Benefits of SP Hosted Solutions Mid-Market Enterprises ($200M - $1B in Revenues) Large Enterprises With Multiple Branch Locations Mid-Market Enterprises ($200M - $1B in Revenues) Large Enterprises With Multiple Branch Locations Increasingly Distributed Workforce Need to Improve Employee and Agent Productivity Over-Burdened IT Staff Need to Minimize Capital Spend Predictable Monthly IT Costs Speed to Market Increasingly Distributed Workforce Need to Improve Employee and Agent Productivity Over-Burdened IT Staff Need to Minimize Capital Spend Predictable Monthly IT Costs Speed to Market Turn-key Market Leading Solutions Pay-as-you-use No Major Capital Outlay Rapid Deployment No Technology Obsolescence Disaster / Recovery, Redundancy & Security Seamless Functionality To Multiple Locations Turn-key Market Leading Solutions Pay-as-you-use No Major Capital Outlay Rapid Deployment No Technology Obsolescence Disaster / Recovery, Redundancy & Security Seamless Functionality To Multiple Locations
7 Copyright© 2004 Avaya Inc. All rights reserved Service Provider Hosted IP Telephony IP Cloud For Voice and Data PSTN Avaya Intelligent End-User Devices Mobile Worker Mobile Worker Remote Worker Remote Worker Service Provider IP Network Services Branch Office Branch Office Headquarters PSTN Phone Avaya Conferencing Avaya Conferencing Avaya Telephony Avaya Telephony Avaya Messaging Avaya Messaging Avaya Brings IP Telephony applications Carrier engineered and tested configurations Management, Maintenance & Provisioning Services SP Brings WAN services Hosting facilities Hosting services (optional) Billing for services Service Provider Distributed Workers & Locations on same Platform Network Infrastructure and Services Hosted IP Telephony Infrastructure
8 Copyright© 2004 Avaya Inc. All rights reserved Service Provider Hosted Contact Center The Cloud 8xx Voice Services IP Transport Service Global Internet Enterprise Customer #1 Branch Office Branch Office Remote Worker Remote Worker Agents Remote Worker Remote Worker Agents Enterprise Customer #2 Distributed Agents Remain Employees of the Business Network Infrastructure and Services Hosted Contact Center Infrastructure Data Center Avaya Brings Multi-channel contact center & telephony applications Engineered and tested configurations SP Brings Broadband and Voice services Professional services Billing for services Service Provider
9 Copyright© 2004 Avaya Inc. All rights reserved France Telecom and Avaya HCC Maximize Customer Service France Telecoms customer: Multi-national catalog retailer Goals: Create a virtual call center by consolidating two in-house and two outsourced sites, all geographically dispersed within and outside of France Investment protection and flexibility for growth Solution Avaya Hosted Contact Center solution from France Telecom Results Reported decrease in customer waiting time 40% decrease in lost calls rate Dynamic call dispatching for more efficient call management Better allocation of agent resources High security level Easy to link new sites and develop new products
10 Copyright© 2004 Avaya Inc. All rights reserved Strategic Go-To- Market Planning Train SP Sales and Engineers Joint Demand Generation & Selling Bundled with Avaya Global Services Assess-Design- Implement-Maintain Managed Services are Optional Equipment Installed at SP Data Center Usage-Based Pricing Priced for Mid-Market Constructed in SP Labs Avaya Labs-Certified for Interoperability Service Provider Deployment Tools Construct Solution in SP Labs Avaya Labs-Certified for Interoperability Service Provider Deployment Tools BUILD Minimal Capital Expenditure Usage-Based Pricing Priced for Mid-Market Constructed in SP Labs Avaya Labs-Certified for Interoperability Service Provider Deployment Tools Bundled with Avaya Global Services Assess-Design- Implement- Maintain Managed Services are Optional Equipment Installed at SP Data Center Usage-Based Pricing Priced for Mid-Market Constructed in SP Labs Avaya Labs-Certified for Interoperability Service Provider Deployment Tools Complete Support Programs Enabling a Net New Business for Service Providers
11 Copyright© 2004 Avaya Inc. All rights reserved SP Delivered Solutions Product Roadmap Network Element Management Automation Techniques Seamless Networking Across NAT Shared Server Platform Usage Mediation End User Self -Administration Provisioning Management Hosted Web IVR Portals Carrier Grade Media Management Shared Media Processing Services Feature Server Applications Extensions OSS/BSS Management Platform Hosted Messaging Hosted IP Telephony Hosted Contact Center OSS/BSS Management Platform ph 1 Carrier Grade Network Routing Vertical Applications
12 Copyright© 2004 Avaya Inc. All rights reserved In Summary Avaya is taking its market-leading Contact Center and IP Telephony solutions to a new market, in a new way –Solving business challenges and enabling a net new revenue stream for service providers –Introducing a unique business model for the service provider –Delivering enterprise-class solutions to the mid-market A significant channel for Avaya –Driving global growth for Avaya –Penetrating the mid-market
13 Copyright© 2004 Avaya Inc. All rights reserved Official Convergence Communication Provider for the 2002 and 2006 FIFA World Cup FIFA Womens World Cup USA 2003
Copyright© 2004 Avaya Inc. All rights reserved Back-up Slides
15 Copyright© 2004 Avaya Inc. All rights reserved Hosted IP Telephony Telephony Applications as a Network-Based Service Avaya IP Telephony Solution at the SP Data Center –Avaya Communication Manager –Avaya Media Servers (S8700) for customers with more than 500 users –IBM Blade Server for customers with less than 500 users Avaya IP Telephony Solution at the SP Data Center and/or on the Customer Premises –Avaya Gateways (G350, G650, G700) –Avaya IP Phones Bundled with Avaya Assessment, Implementation and Maintenance Services –Option of adding managed services (Move, Add, Change; Performance Management; Capacity Management and Reporting) Provides Phased Migration, Highest Level of QoS, Robust Reliability and Security, Rich Functionality
16 Copyright© 2004 Avaya Inc. All rights reserved Hosted Contact Center Contact Center Solution as a Network-Based Service Avaya Hosted Contact Center Solution at the SP data center offers full Avaya call center functionality –Avaya Communication Manager (700+ features) –Avaya Servers (S8700), Media Gateways (G650, G700), and IBM blade server –Avaya Call Center Elite –Optional Functionality: IVR, Call Recording, Multi-Channel Contact, CRM application, Network Peering Point Bundled with Avaya Global Services –Network Assessment (VoIP), Implementation, Maintenance Services, & software upgrades –Option of adding Managed Services (move, add, change; performance management; capacity management and reporting) Agents remain employees of the enterprise and can be located anywhere –Ability to integrate outsourced agents into the call flow Provides phased migration, highest level of QoS, complete reliability and security, rich functionality
17 Copyright© 2004 Avaya Inc. All rights reserved Build Tested for the Service Provider Environment Avaya Labs-Certified Solution Set for Interoperability –Scalable, pre-provisioned, and licensed –Easily repeatable for rapid deployment –Engineered for capacity on demand –Fast way to get to the market = rapid ROI All Solutions Are Certified for Service Provider Environment –WAN testing –IP addressing and domain interoperability –Interoperability testing with third party components –Documentation made available to the service provider –Engineering and third-party products ensure carrier-grade reliability, security Service Provider Deployment Tools –Bandwidth calculations –Operational services and tools for efficiencies to serve multiple customers
18 Copyright© 2004 Avaya Inc. All rights reserved Finance Unique Usage-Based Pricing Model Avaya Solution Equipment Installed at SP Data Center –Minimal up-front cost to the Service Provider Usage-Based Pricing –Pay for usage –Pay for functionality –Minimums apply –Service Provider flexibility for pricing to customers Flat monthly fee or usage-based pricing –5-year terms standard, 3 years optional Solutions Priced for Mid-Market –Allowing SPs to offer high-end enterprise functionality at mid-market pricing
19 Copyright© 2004 Avaya Inc. All rights reserved Manage Service Levels Provide Choice Infrastructure readiness for IP communication apps Assess Design dial plans, vectors, skills, applications Design Project management Site preparation Solution deployment End user materials Implement Maintain Coverage 24/7 Remote tech support Same day parts replacement Software maintenance & fixes Avaya Managed Services Optional
20 Copyright© 2004 Avaya Inc. All rights reserved Market Complete Go-To-Market Support Dedicated Marketing and Sales Resources To Help Service Providers Market and Sell to New Customers Strategy, Training and Execution Marketing –Develop complete Go-to-Market Plans with Service Providers –Implement joint demand generation programs –Sales tools and collateral development Lead Generation –For Service Providers Training and Enablement of Sales Forces –For Service Providers sales and technical staff –For Avaya sales forces
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