2. Delivering on the Promise of Hosted VoIP
Mark Castleman
President

3. Outline What is Hosted VoIP? Three Provider Models
What is the Promise?
Three Provider Models
Model Ups and Downs
Pure Hosted VoIP Benefits
Pure Hosted VoIP Burdens – Client
Pure Hosted VoIP Burdens – Carrier
Products Clients Buy
Products Clients Don’t Buy (yet)
Premium Products: Extra $$$
Warnings and advice!!!
How to make it work and stay in business!

4. What Is Hosted VoIP? Provider Based Service Offering Platforms
Voice Equipment
Gateways
SBCs
Proxies
Application Servers
Network Equipment
Routers
Switches
Interconnections
Limited Customer Premise Equipment
Phones, routers or gateways

5. What is the Promise? Cheaper Faster Better Easier What is it really?
Robust
Adjustable
Complex
Cost-effective…in some situations
“Not all dial tone is created equal”

6. Three Provider Models “Pure Hosted” Managed Hosted
BYOB: Bring your own broadband
Only Phones are required
Managed Hosted
Provider brings network (ie T1)
Provider brings CPE
Router, T1 and phones
SIP Trunking Provider
Client uses existing phone system
Provider ONLY provides dial-tone

7. Model Ups and Downs “Pure Hosted” Managed Hosted SIP Trunking Provider
Limitations on market size
Managed Hosted
Significant infrastructure cost
Significant SGA
SIP Trunking Provider
Limited market
Lacks “sizzle”
Invites competition to customer prem.

8. Pure Hosted VoIP Benefits
Concentration of Expertise
Provider is expert
Client is user
Provider manages carriers
Client is removed from carrier discussion
Provider manages capital equipment investment
Client spend converts from “capital” to “expense”
Simplicity of Customer Experience
“Only requires user phones”
Minimal admin burden
No dedicated staff
Multi-Location Solutions
Dramatic costs savings here

9. Hosted VoIP Burdens: Client
Client Networks
NAT Traversal!
Improperly configured networks
DNS and “double NATs”
Poor data provider SLAs
Weak data connections
Weak network gear
Weak network expertise
Client Requirements
500 seats per location (very difficult for pure hosted)
Possible for managed hosted but on-site only

10. Hosted VoIP Burdens: Provider
Carrier Failures
Single point of failure
Impacts ALL clients on that carrier
Platform Failures
LNP
Portability is complicated
No Standard procedures
Carrier network may limit rate center coverage
DID Management
Large number databases with multiple carriers requires constant attention

11. Products Clients Buy Auto-attendant/IVR Desktop phone serviceLD
Transfer
Voice Mail
Find Me
Unified Messaging
Notification services
Voice or
Fax-to-
Desktop Fax
ACD, Call Queuing
Music On Hold
Schedule based functionality
Web Administration
Attendant Console
Web Based
User Call Management Consoles
Site to Site Transferring

12. Product Clients Don’t Buy: yet
Customer Profile
SMB
2-25 users
1-5 sites
Not Valuing, or paying for…yet
Video (hardly used even when available)
Voice to text (typically expects it to be included)
Overhead Paging (likes it included but will not pay extra)

13. Premium Products: Extra $$$
Additional Capacity
More calls in queue to prevent “busies”
Simultaneous Ringing
Hunt Groups
Professional recording
Professional MOH
“Dual Ring” accounts
Account will ring to more than one site
Extended Greeting Length
Example: 30 min greeting
Network management

14. Warnings Pick Excellent Carriers
You get what you pay for is true!
Avoid “aggregators”
Pick a Platform that Matches your target market
Not all platforms perform well for different users
Make sure the platform addresses the “billable” features
Test Drive the Services of your competition
Invest in quality Customer Service Reps.
Your clients will bring your next customer
Train your customer
Don’t underestimate the weakness of your customers data provider

15. Provider Guide Know your target market Investigate the Platforms
Pick a client profile
SMB?
Multi-location?
Single-user
Executive Suite
Investigate the Platforms
Do research on many platforms
Talk to users
Talk to at least 30 client companies and ask them plus observe!
Investigate Carriers
Do not be afraid to negotiate
Understand carrier cost models
How do carriers make money?
Be willing to LEARN fast!