1. One Step At A Time Retaining Traditional PBXs While Benefiting from IP Telephony

2. IP Telephony Market 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

4. Upgrade 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

5. Upgrade Benefits 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

7. Questions … the system failing. Is an upgrade necessary? … the system impacts productivity.... business growth requires new equipment. The answer: Yes. If...

8. Questions 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: Yes. If...

9. Common Objections My business will be down for days…even weeks! My current system is just fine. New technologies are not proven. It’s too complicated.

10. Real 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.”

11. Upgrading Realities 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!

12. 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 Realities

13. Why Limit Yourself to….

14. Co-existence: IP and TDM How can installing a new system behind existing system justify upgrading?

15. 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 and TDM

16. 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 and TDM

17. 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 and TDM

19. Inevitable Upgrades 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

20. Don’t Be Limited to….