1. Redefining IP Communications “Its Not just Technology, it’s a Partnership” Tom Burger October 7, 2004

2. © 2004 NEC Unified Solutions, Inc. “ It is not the strongest of the species that survives, nor the most intelligent that survives… It is the one most adaptable to change.” Charles Darwin IPC Is Here to Stay

3. © 2004 NEC Unified Solutions, Inc. The True Value Of IPC Improved Productivity Enhanced Customer Experience Integrated Applications Revenue Generation Reduced Costs Shared Infrastructure Effective Administration

4. © 2004 NEC Unified Solutions, Inc. IPC Evolving Benefits Source: InformationWeek Research VoIP survey of 300 business-technology executives Reduced costs Improved productivity Platform for innovation Universal in-box Better collaboration Anytime, anywhere access to company data Faster responsiveness to customers Better quality of service and applications Better support for globalization efforts Fewer employees supporting telecom operations What are the most likely long-range benefits of VoIP to your company? 1020304050607080

5. © 2004 NEC Unified Solutions, Inc. Redefining Leadership A recent study on how executives use IT to create business Value and Competitive Advantage Discovered that Leaders: - Move Beyond IT Alignment Toward Integration Of Business And Technology - Invest In Leading Edge, Innovative IT Aimed At Delivering Business Value - Anticipate The Next Wave Of Technology And Define Its Impact On Business And Industry Source: AT Kearney

6. © 2004 NEC Unified Solutions, Inc. It’s Not Just The Technology Cost… ROI / TCO - Full Lifecycle – Not Just Initial Investment - Scalability and Technology Integration Reliability - Technology and Support Time To Implement - Integration Experience Business Impact - Improved Customer Experience - Enhanced Revenue Opportunities - Productivity Improvements

7. © 2004 NEC Unified Solutions, Inc. Convergence On Many Levels Management Voice IT Administration Skill Sets Users Phone PC Applications Self Service Technology Voice Data Security System Support Financial Communications IT Investments New Revenue

8. © 2004 NEC Unified Solutions, Inc. Current Enterprise Challenges Changing Market - Vendor Consolidation - Multi Vendor Environment - Open Systems - Confusion As Vendors Reinvent Themselves Changing Technology - Technology Evolution Phase (1) Introduce IP Technology Phase (2) Introduces Value Added Applications - Application Bundles Drive ROI - Services Increasing In Importance Scarcity (multiple certifications required)

9. © 2004 NEC Unified Solutions, Inc. Moving Beyond Traditional Relationships How Are Companies Changing The Way They Evaluate Supplier? - Is Your It Supplier A Vendor Or A Partner? - How Does Your Partner Make Your Job Easier? What Kind Of Value Do They Bring And, How Do They Bring Value? - Do They Understand Your Business? Are They Just Trying To Sell You More Stuff? Do They Assess Your Business And Provide Skill Across Your Needs ? What Problems Have They Solved Before? Technology Is Changing Business Performance - Industry Leaders Seek And Invest In Partners Vs. Vendors - Has The Way You Select And Build Vendor Relationships Changed?

10. © 2004 NEC Unified Solutions, Inc. Trends Driving Partnerships Continued Migration Toward More Complex Enterprise Technologies and Applications Heightened Attention To Assure Business Continuity Across The Entire Network Availability of New Outsourcing Options Ongoing Scarcity Of Technical Expertise Desire for Single Partner With Multi-vendor Experience Evaluating Multi Faceted Partnerships is Key

11. © 2004 NEC Unified Solutions, Inc. Traditional Decision Making Criteria “What” - Hardware Reliability Upgradeability Maintenance Costs - Software Licensing/Maintenance Fees Security Productivity Improvements - Services Existing Relationship References

12. © 2004 NEC Unified Solutions, Inc. Today’s Decision Making Methodology “HOW” Hardware - RFP/RFI - “Bake Off” Environment - TCO or ROI Calculations Software - Can I Continue Business Using The Current Version? - Is/How Much Customization Is Required? Services - Do I Have Internal/ External Resources Available? - Skill Set Gap Analysis

13. © 2004 NEC Unified Solutions, Inc. Historical Providers System Integrators - Engaged When Multiple Products Are Required - Utilized When Direct Relationships With Manufacturers Are Not Available Consultants - Independent “Third Party” Perspectives - Help Identify “Missed” Requirements Manufacturers - Used To Achieve “Best Price” - Ability To Influence Development

14. © 2004 NEC Unified Solutions, Inc. What Businesses are Looking For Strong technical support and expertise in IP Telephony Strong track record in systems maintenance Expertise in communications-related applications Committed to understanding our business problems Knowledgeable and responsive sales representatives Good existing relationship Knowledgeable staff in professional services and consulting % of IPC Implementers that Rated the Criteria as Extremely or Very Important EnterprisesSMB 97% 95% 89% 81% 76% 73% 86% 78% 84% 79% 74% 52% 64% IPC Vendor Selection Criteria 40%60%80%100%40%60%80%100% Source: Infotech, 2004

15. © 2004 NEC Unified Solutions, Inc. Planned Use of External Support Customers Using Some Form Of External Support For IPC Source: Gartner Dataquest 2003

16. © 2004 NEC Unified Solutions, Inc. Accelerating The Benefits of IPC PlanningImplementationOperations Limit Internal Resource Investment to steady state Typical IPC Resource Profile Headcount Utilize Vendor skill set to bridge the gap and accelerate solution advantages Or Outsource to Further Reduce Internal Investment

17. © 2004 NEC Unified Solutions, Inc. Today’s Provider Options Manufactures w/ Services Arm - PBX, gateway, router, or server products Traditional Systems Integrators Value Added Resellers Network Services Providers w/ Systems Integration Arm Traditional Consulting Firms Emerging Category: Total Solution Provider

18. © 2004 NEC Unified Solutions, Inc. Total Solution Provider Strong Core Products and Applications Life Cycle Services Capabilities Extensive, Collaborative Services Delivery - Provide Access To Sophisticated, Scarce Technical Expertise Experienced at Controlling Startup/ Ongoing Costs Current In Technology Developments While Controlling Technical Risk Deliver World Class Performance With Clear Objectives, Accountability, And Control Create Consistency Across A Decentralized Environment

19. © 2004 NEC Unified Solutions, Inc. Evaluation Criteria The Path to Acquiring Solution Providers Technology Vision - Platform / Applications - Road Map - Historical Acid Test Market Viability - Financial Stability - Experience - Ability to Execute Go-To-Market Strategy Weighted on Services / Solutions - Capability - Differentiator

20. © 2004 NEC Unified Solutions, Inc. Solutions Approach Assessment Evaluation and Documentation Readiness Consult - Ability To Approach Need From A Business Requirement Perspective Strategy Formulation Recommendation and Prioritization Design and Development Platform Applications Network Integration - WAN/ LAN - Wireless/ Fixed - Security Requirements - TDM, Hybrid, IP

21. © 2004 NEC Unified Solutions, Inc. Solution Provider Competencies Ability To Deliver Multiple Technologies - Act as SPOC, Single Contract, PMO, Rates, Skills Methodology - Consulting - Assessment - Architecting - Scoping - Project Management - Practice Expertise Delivery - Engagement through Implementation - Project Management Managed Services - NOC, Sparing, Break / Fix - Voice and Data

22. © 2004 NEC Unified Solutions, Inc. Case Study - Municipality Mid-sized city experiencing hyper growth required a communication system to accommodate current needs and future growth Implementation – Phased Approach - Establish Network Performance Baseline - Replaced PBXs with Integrated IP Network - Connected City Service Departments Results - Enhanced Customer Service - 25% reduction in annual spend - Eliminated Internal Rewiring by Half - Improved Network Capacity

23. © 2004 NEC Unified Solutions, Inc. Case Study - Healthcare Large Hospital Network Needed to Connect 40 sites Onto A Single, Integrated Network to Provide Improved Patient Care Implementation - Hybrid IP System and video integrated into data infrastructure - Upgraded Network for enhanced QoS Result - Proactive Management of Network - Streamlined Network Administration - Reduced Equipment and Maintenance Costs - Supports Advanced Application Requirements

24. © 2004 NEC Unified Solutions, Inc. Case Study – Higher Education College Needed To Enhance Communication Infrastructure To Support Increases Student Population And Campus Expansion Implementation – Phased Approach - Hybrid IP System integrated into existing data infrastructure - Unified Messaging, Wireless, Soft Phones, E911 Result - Improved Network Administration - Deployment of New Applications - Enhanced Student Services - Reduced Equipment Through Soft Phone Deployment - No Disruption of Communications System

25. © 2004 NEC Unified Solutions, Inc. Case Study - Financial Large Financial Services Firm with $827M in Assets and 23 Branch Locations Wanted to Improve TCO and Customer Experience Implementation - End-to-end IP Network for Voice, Data and Video - “Virtual Agent” and Unified Messaging Results - Improved Customer Experience Through Multiple Access Points (Call Center to Contact Center) - Substantial Month to Month Savings; 17.5 Month ROI - XML Application With Current Interest Rates Displayed on Phone

26. © 2004 NEC Unified Solutions, Inc. Case Study – Food Services National Restaurant Chain Wanted to Utilize Communications Network To Drive Additional Revenue Through its Take Out Business and Build Differentiation Across its 600+ Properties Implementation - IP Communications Infrastructure - Designed a Voice Response Unit Matching Customer’s Needs - Integrated IVR to the POS database - Personalized Service through Real-time Customer Information Result - Customer Experience Improved - Ease of Order Placement and Accuracy - Revenue Generation - Implemented Call Ahead Reservation System

27. © 2004 NEC Unified Solutions, Inc. Conclusion Market And Technology Driving Change Convergence is Complex Changing Capabilities of Vendors New Partnerships Are Formulating Services Skills are Critical Support Demand Increasing - Daily Business Priorities Vs. IT Needs - Economics: Labor, Training, T&E - 7x24x365 Vs. In House Total Solution Provider is the Answer Market And Technology Driving Change Convergence is Complex Changing Capabilities of Vendors New Partnerships Are Formulating Services Skills are Critical Support Demand Increasing - Daily Business Priorities Vs. IT Needs - Economics: Labor, Training, T&E - 7x24x365 Vs. In House

28. © 2004 NEC Unified Solutions, Inc. Thank You!