Premise Based or Hosted ? Presented by: Pierre Kerbage, Sr. Vice President Zultys, Inc. (512)

3 determining factors: 1.Cost and ROI reasons 2.Technical reasons 3.Practical reasons and features

1. FINANCIAL REASONS With hosted systems, all end points (phones, etc…) must be purchased upfront (large Capital expenditure) All Layer 2 items must be pre-purchased as well (Switches, Routers, etc…) While sometimes these can be rolled into the monthly payments (making the monthly payments even higher), that is often NOT the case

Example: Customer wants 50 phones Hosted charges typically around $50 per phone per month or in this example: $2500 Per month Customer must also pay around $200 per phone for the acquisition or $10,000. More than $200 per phone if they are wanting a full featured phone Customer must also pay for the cost of the router, switches, etc… around $1000 or more Sometimes, customer also gets charged an “initial” fee or installation Training is of course an additional fee

CONCLUSION OF COSTS / Hosted 50 users = $2500/Mo + $10,000 capital expenditure for phones + $1,000 for switches and Routers + Training, installation, etc…

What does the client get ? Internet bandwidth (TBD) Phone lines (TBD) Phones $2500 Per month + $11,000 capex up front

Now – Let’s look at Premise based Same Example of 50 Phones $22,000 cash or on a 5 year lease to own with a 1 dollar buyout – that would be: $440/Month Add a T1 DATA Circuit (or higher) for around $300/Month Add 23 SIP trunks or a PRI for $400 (with unlimited LD) Conclusion: $440 for equipment + $300 for T1 + $400 for phone lines = $1140/Month $ZERO Capital Expenditure

Financial Conclusion Why pay more than DOUBLE to get LESS ????? – Sometimes you pay TRIPLE ! $2500/Month for hosted v/s $1140 $10,000 upfront for hosted v/s $0 upfront for premise based. Which you would rather ? Even from month 1 : Premise based WINS ! And this is a Premise based system LOADED with features (Soft phones, works on MACs, 64 bit PCs, 32 Bit PCs, Unified Comm, Mobile Platform for Blackberry and iphone, Fax Server, Call Recording, ACD, conferencing, find me follow-me, twinning and MUCH MUCH MUCH more). Of course that includes the Duplex PoE Phones as well.

2. TECHNICAL REASONS Unless the hosted company is intending on providing dedicated lines (which will escalate the costs even further) – there is NO QoSing the internet – resulting in the #1 complaint for nearly ALL hosted systems: POOR VOICE QUALITY. BYOB is DEAD ON ARRIVAL in sound quality Internet down = dead phones Who do you call for support ? Sometimes there are no local representations – even if there is a VAR, VAR will need to refer to hosted company

Other Technical Reasons Minimum features on the phones (Is paging even supported ???) – what about paging across the WAN ? Fax from the desktop ? Client on iphone ? Client Mobility on the BlackBerry ? Chat with XMPP Support ? What if I want to use my own phones? What if I want to use my OWN phone lines ? What if I already have a 3 year contract with my existing provider (Internet provider and/or PRI or SIP)

With Premise Based Perfect call quality EVERY TIME (we do NOT rely on the Internet) to make or receive a call. PRI and T1 are SOLID technologies. SIP is good too when provided from a known national company using dedicated bandwidth No QoS issues – EVER ! Features, Features and more features

3. PRACTICAL REASONS Most premise based systems can expand to tens of thousands of nodes Hosted systems are typically sold in the sub 20 space. Limited scalability Local support, Local VAR, local training, local upgrades Chose ANY SIP phone you want Chose ANY carrier you want or KEEP the one you have No taking out your existing provider of T1 or PRI or SIP – Chose from PRI, SIP, T1, chose the BEST technology for YOU and the best provider for YOU. And if you do not want to finance it – THEN OWN IT FROM DAY 1

Quote from an actual client “We were initially attracted to the Hosted VoIP solution because we were a small company at the time and wanted more functionality from our phone system than what a traditional phone system could offer. We were on the service for several years enduring issues with outages and call quality. The last straw was when our Hosted VoIP provider (who was our third provider) had an outage for two days. Our entire phone system was down for two days. Customer calls rang busy for two days and our calls to the Hosted Provider’s service desk to fix the problem rang busy as well. in Dallas came in with the system and got us switched over to another provider which allowed us to maintain our investment in our IP phones. The call quality improved dramatically when we moved from a Hosted VoIP system to the premise system. Furthermore, we now get to administer 100% of the features and it is a very easy platform to administer. Fax to the desktop also works well and is easy to use. Call handling rules allow a lot of flexibility in getting calls to where they need to be (i.e., cell phone, or other extensions) and they are easy for users to implement with a little instruction. We’re very pleased we made the switch.” Clint Miller Igniter Media Dallas, Texas

CONCLUSION Premise based wins EVERY TIME in EVERY SITUATION Price Technical Reasons Practical Reasons

CONCLUSION SAVE MONEY SAVE HEADACHES GET MORE FEATURES FOR LESS % uptime SUPERB VOICE QUALITY OWN IT – LEASE IT – RENT IT – YOU CHOSE Premise based: The CHOICE is up to YOU