1. Bridging Two Worlds www.citel.com Introduction to IP Telephony Mike Robinson CEO www.citel.com

2. Bridging Two Worlds www.citel.com Agenda What we’ll cover in this session: What is an IP PBX (and what isn’t)? What are the benefits? Hosted versus CPE Considerations in choosing a solution What we won’t cover in this session: Telling you what to buy Technical details in depth (covered later)

3. Bridging Two Worlds www.citel.com What is an IP PBX? An IP PBX is a software application on a server. The IP PBX application is the directory service and traffic controller between “endpoints”. An endpoint can be a telephone (of many kinds), a gateway device (e.g. PSTN trunk gateways), or another application (such as voice mail). Critical distinction -> the media stream (the voice) does not flow through an IP PBX.

4. Bridging Two Worlds www.citel.com What is an IP PBX? Trunk CardsStation Cards Software Media Network TDM PBX PSTN Trunks TDM PBX 1010 Break it down! Specialize! Set the software free! IP PBX Trunk Gateway Trunks IP PBX Software (w/ Applications) PSTN LAN 1010 Station Cards Handset Gateway Media Network

5. Bridging Two Worlds www.citel.com What isn’t an IP PBX? VoIP alone ≠ IP PBX “PC PBX” (Cards in a Server) ≠ IP PBX TDM PBX with IP Trunk Cards ≠ IP PBX TDM PBX with IP Station Cards ≠ IP PBX An IP PBX is a software application on a server. Critical distinction -> the media stream (the voice) does not flow through an IP PBX.

6. Bridging Two Worlds www.citel.com Agenda What we’ll cover in this session: What is an IP PBX (and what isn’t)? What are the benefits? Hosted versus CPE Considerations in choosing a solution What we won’t cover in this session: Telling you what to buy Technical details in depth (covered later)

7. Bridging Two Worlds www.citel.com What are the benefits? Lower operating cost Scalability and disaster recovery Geographic Flexibility Next-generation features

8. Bridging Two Worlds www.citel.com What are the benefits? Lower Operating Cost Cheap long distance Pass calls over Internet or WAN between sites Route traffic over WAN to area of lowest rates Get cheap LD from an IP carrier Reduce number of business lines Share trunks among sites (or centralize them) Pay for a full T-1 plus 2 backup trunks per site (instead of 6 – 8 trunks per site) Lower administration cost (esp. MAC) Web-based admin means less training cost Allows remote admin and centralized admin Enables user self-admin

9. Bridging Two Worlds www.citel.com What are the benefits? Scalability and Disaster Recovery Software is inherently more scalable! Not limited by cabinet size for lines and trunks More devices can be added as needed Not limited by PBX processor capacity Clustered servers can add scale (like web sites) Mirrored servers can be miles apart Same technology used for WWW and FTP If one server goes down, devices “scramble” to another server and overall service stays up

10. Bridging Two Worlds www.citel.com What are the benefits? Geographic Flexibility No more 2500 foot limits on line length Both signaling (“features”) and media (voice) are passed over IP at any distance Phones and other devices all over the city and around the world can work as a single network Single dialing plan, central admin, shared resources and applications, etc. This enables several other benefits Cheap long distance Telecommuter support Disaster recovery Hosting becomes a viable option

11. Bridging Two Worlds www.citel.com What are the benefits? Hold, Transfer, Conference Music-on-hold, Paging, DND Caller ID, MWI, Multiple Line Appearances Call Forwarding, Bridged Lines, BLF -- Traditional PBX Stuck Here DialtoneInvented when?1890’s Make Call, Take Call (DOD, DID) 1890’s – 1940’s Call Logs, Directory Dialing Instant Messaging Telecommuting, SimulRing Computer-Telephone Integration (CTI - a bundle) Unified Messaging (an application) -- IP Telephony Enables These Next-Generation Features

12. Bridging Two Worlds www.citel.com CTI Make your PC and Phone work together: -Click-to-Dial -Call Logging -Call Recording -Incoming Call Pop -Visual Call Control +

13. Bridging Two Worlds www.citel.com Unified Messaging Single System for Voice, Fax & E-Mail -See All Mail In One In-Box -Listen to Voice Mail via PC -Hear E-Mail via Phone -Respond to Voice Mail w/ E-mail and vice versa (reduce call-backs!) -Forward and Folder Voice Mail w/ E-Mail

14. Bridging Two Worlds www.citel.com Web-Based Administration Open PBX Administration to Mere Mortals -Reduce Training For PBX Admin -Customer Self-Administration for MAC -User Self-Administration (speed dial programming, call routing capabilities) -Combined Admin of PBX, LAN, E-mail…

15. Bridging Two Worlds www.citel.com Telecommuter/Branch Support (a.k.a. “Voice VPN”) Enable PBX stations to be deployed over IP WAN or Internet. -Part or Full-Time Telecommuters -Small Branch Office to Metro Hub -Distributed Call Center -Toll By-Pass -Coordinated Dialing Plan

16. Bridging Two Worlds www.citel.com Eventually You’ll Want All These -Computer-Telephone Integration (CTI) -Unified Messaging -Web Based Administration -Telecommuter/Branch Office Support You can do these on a TDM PBX, but I wouldn’t recommend it

17. Bridging Two Worlds www.citel.com Next-Gen Features on TDM TDM PBX What’s wrong with this picture?? Do you think this will work? WAN or VPN WAN or VPN IP IP Trunk Adaptor RAA Branch PBX / KTS Admin Server PSTN Voice Adaptors UM Server CTI Adaptor IP T. A. Circuit Trunks Admin Link Remote Access 1010

18. Bridging Two Worlds www.citel.com Next-Gen Features in IP Software can be spread across many devices. One company doesn’t have to make all the elements. Different elements can be placed anywhere. PC Softphone from Microsoft, Handset Gateway from Citel, phones from new IP PBX vendor plus your old phones. (A Handset Gateway converts your existing PBX telephones into IP phones without doing a LAN upgrade or buying new phones. Get the benefits of IP Telephony at $140/seat instead of $600.) Trunk Gateway Trunks IP PBX Plus Applications PSTN LAN WAN or VPN WAN or VPN 1010

19. Bridging Two Worlds www.citel.com What are the benefits? Lower operating cost Scalability and disaster recovery Geographic Flexibility Next-generation features These all stem from “setting the software free” Compare the pace of PBX feature development to the pace of Internet feature development An IP PBX is a software application on a server.

20. Bridging Two Worlds www.citel.com Agenda What we’ll cover in this session: What is an IP PBX (and what isn’t)? What are the benefits? Hosted versus CPE Considerations in choosing a solution What we won’t cover in this session: Telling you what to buy Technical details in depth (covered later)

21. Bridging Two Worlds www.citel.com IP PBX Trunk Gateway Trunks IP PBX Software & Applications PSTN LAN 1010 Hosted versus CPE IP Centrex PSTN Gateway IP PBX Software & Applications PSTN LAN 1010 IP WAN Customer Service Provider An IP PBX is a software application on a server. You can buy and operate the service yourself… Or you can “rent” service from a service provider LAN

22. Bridging Two Worlds www.citel.com Hosted versus CPE Traditional “Centrex” Limitations Relatively expensive compared to PBX Limited features compared to PBX Difficult to provision, long lead times for MAC Mainly attractive to 2000 users -> Only has 10%-14% market share vs. PBX IP Centrex Costs are leveled (no wires, no class 5 switch) Features are the same (it’s the same software) Provisioning and admin are web-based -> Expected to win 25% to 50% market share -> Do you host your own web servers? Hosted IP Telephony

23. Bridging Two Worlds www.citel.com Agenda What we’ll cover in this session: What is an IP PBX (and what isn’t)? What are the benefits? Hosted versus CPE Considerations in choosing a solution What we won’t cover in this session: Telling you what to buy Technical details in depth (covered later)

24. Bridging Two Worlds www.citel.com Considerations in choosing What are you trying to achieve? Which benefits are driving your decision? Should you buy or rent? Don’t make a knee-jerk decision on this. Hosted IP Telephony is a real option. How will you get there? Does the solution offer a migration path? Can you protect your sunk costs?

25. Bridging Two Worlds www.citel.com Summary -IP Telephony is compelling telephony because of the benefits it brings. -Features and applications are the real drivers behind all PBX telephony. Be clear about what you want in your solution. -Consider the rent versus buy option, and look for a good migration option.

26. Bridging Two Worlds www.citel.com Q & A www.citel.com