TMC University’s Introduction to the IP-PBX

2. TMC University’s Introduction to the IP-PBX Reaping the Benefits of the IP PBX Leigh Fatzinger, VP Marketing Citel. The VoIP Migration Company. citel.com

3. Agenda In this session: • What is an IP PBX (and what isn’t)? • What are the Benefits? • Lease versus Buy • Deployment Considerations • What we won’t cover in this session: • Telling you what to buy • Technical details in depth

4. What is an IP PBX? • A software application on an server. • The directory service and traffic controller between “endpoints”. • An endpoint can be a telephone (of many kinds), a handset gateway, device (e.g. PSTN trunk gateways), or another application (I.e: voice mail). • Critical distinction ⇨ the media stream (the voice) does not flow through an IP PBX.

5. PSTN Trunks TDM PBX What is a PBX? Media Network Station Cards Trunk Cards TDM PBX Challenges: Not open. Little room for innovation. Not driven by software. Software

6. Station Cards Media Network PSTN Trunk Cards Trunks TDM PBX TDM PBX 1010 Open it up! Innovate! Set the software free! Software Trunks Trunk Gateway LAN IP PBX IP PBX Software (w/ Applications) 1010 What is an IP PBX? PSTN

7. PSTN Trunks TDM PBX What is an IP PBX? Station Cards Media Network Trunk Cards TDM PBX 1010 Open it up! Innovate! Set the software free! Software Media Network PSTN Trunks Trunk Gateway IP PBX LAN IP PBX Software (w/ Applications) Handset Gateway 1010

8. What an IP PBX is not. VoIP ≠ 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

9. What an IP PBX is not. VoIP ≠ 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.

10. Agenda In this session: • What is an IP PBX (and what isn’t)? • What are the Benefits? • Lease versus Buy • Deployment Considerations • What we won’t cover in this session: • Telling you what to buy • Technical details in depth

11. What are the Benefits? • Lower Operating Cost • Scalability and Disaster Recovery • Geographic Flexibility • Next-Generation Features

12. What are the Benefits? Lower Operating Costs Reduced LD Opex • Pass calls over Internet or WAN between sites • Route traffic over WAN to area of lowest rates • Get cheap LD from an IP Carrier

13. What are the Benefits? Lower Operating Costs Reduced LD Opex • 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 trucks per site)

14. What are the Benefits? Lower Operating Costs 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 trucks per site) Lower administration cost (esp. MAC) • Web-based administration means less training cost • Allows remote and centralized administration • Enables user self-administration

15. What are the Benefits? Scalability and Disaster Recovery Software 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)

16. 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

17. What are the Benefits? Geographic Flexibility No 2500 foot wire length limit • 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 administration, shared resources and applications, etc.

18. What are the Benefits? Geographic Flexibility No 2500 foot wire length limit • 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 administration, shared resources and applications, etc. This enables several other benefits: • Reduced LD opex • Mobility and Telecommuter Support • Disaster recovery • Hosting becomes a viable option

19. What are the Benefits? Improved Features Definition of a “Feature” • Dial tone, Make/Take Calls (DID/DOD) • Music-on-hold, Paging, DND • Caller ID, MWI, Multiple Line Appearances • Call Forwarding, Bridged Lines, BLF ☞ Traditional PBXs Stuck Here

20. What are the Benefits? Improved Features Hold, Transfer, Conference Music-on-hold, Paging, DND Caller ID, MWI, Multiple Line Appearances Call Forwarding, Bridged Lines, BLF ☞ Traditional PBX Stuck Here Next-Generation Features • Call Logs, Directory Dialing • Instant Messaging • Telecommuting, Simul-Ring • Computer - Telephone Integration (CTI - a bundle) • Unified Messaging (an application) ☞ IP Telephony Enables All These

21. Computer Telephony Integration Desktop, Laptop and Handset Work In Tandem: • Click-to-Dial • Call Logging • Call recording • Incoming Call Pop • Visual Call Control

22. Unified Messaging Single System for Voice, Fax and Email • See All Mail in One In-Box • Listen to Voice Mail via PC • Hear Email via Phone • Respond to Voice Mail with Email and vice versa (reduce call-backs!) • Forward and Folder Voice Mail with Email

23. Web-Based Administration PBX Administration Can Be Opened to Broader Group • Reduce Training for PBX Administration • Customer Self-Administration for Moves, Adds, Changes. • User Self-Administration (speed dial programming, call routing capabilities) • Combined Administration of PBX, LAN, Email…

24. Home Office/Branch Support Enable PBX handsets 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

25. Eventually, you’ll want all these: • Computer Telephone Integration (CTI) • Unified Messaging • Telecommuter / Branch Office Support • Web-based Administration You can do all these on a TDM PBX… …at a price

26. Next-Gen Features on TDM PSTN Circuit Trunks TDM PBX 1010

27. Next-Gen Features on TDM PSTN Circuit Trunks TDM PBX 1010 CTI Adaptor Add CTI: $250-$500 per user

28. Voice Adaptors UM Server Next-Gen Features on TDM PSTN Circuit Trunks TDM PBX 1010 CTI Adaptor Add UM: $200-$400 per user

29. Voice Adaptors UM Server Next-Gen Features on TDM PSTN Circuit Trunks TDM PBX 1010 CTI Adaptor IP Trunk Adaptor WAN or VPN IP T. A. Branch PBX / KTS Add VoIP Toll Bypass: $xxK

30. Voice Adaptors UM Server Next-Gen Features on TDM PSTN Circuit Trunks TDM PBX 1010 CTI Adaptor IP Trunk Adaptor Remote Access IP WAN or VPN IP T. A. Branch PBX / KTS RAA Add Telecommuter Support

31. Voice Adaptors UM Server Next-Gen Features on TDM Admin Link Admin Server PSTN Circuit Trunks TDM PBX 1010 CTI Adaptor IP Trunk Adaptor Remote Access IP WAN or VPN IP T. A. Branch PBX / KTS RAA Add Web-based Admin

32. Voice Adaptors UM Server Next-Gen Features on TDM Admin Link Admin Server PSTN Circuit Trunks TDM PBX 1010 CTI Adaptor IP Trunk Adaptor Remote Access IP WAN or VPN IP T. A. Branch PBX / KTS What’s wrong with this picture? Will this work? RAA

33. PSTN Trunks 1010 Trunk Gateway 1010 LAN 1010 WAN or VPN LAN IP PBX Plus Applications 1010 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 places anywhere. PC soft phone from Microsoft, Handset Gateway from Citel phones from new IP PBX vendor, plus your old phones.

34. What are the Benefits? • Lower operating cost • Scalability and disaster recovery • Geographic flexibility • Next-generation features These all stem from Software Enabling the PBX Compare the pace of PBX feature development to the pace of Internet feature development. An IP PBX is a software application on a server.

35. R LAN Server If Local LAN Deployment is an Issue: Re-use PBX Wiring Gateway Gateway L A N IP Phone • User experience maintained • Less customer training • Mix in IP phones as needed • Re-use of phone focuses attention on • IP applications • Existing PBX work force can be leveraged 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 $100/seat instead of $600.

36. Agenda In this session: • What is an IP PBX (and what isn’t)? • What are the Benefits? • Lease versus Buy • Deployment Considerations

37. Lease versus Buy An IP PBX is a software application on a server. You can buy and operate the service yourself… Trunks PSTN PSTN IP PBX Gateway LAN IP PBX Software & Applications 1010

38. Lease versus Buy An IP PBX is a software application on a server. You can buy and operate the service yourself… or you can “rent” service from an service provider. Trunks PSTN PSTN Gateway WAN LAN IP PBX Software & Applications 1010

39. Rent versus Buy An IP PBX is a software application on a server. You can buy and operate the service yourself… or you can “rent” service from an service provider. Buy Higher Capex Higher Risk of Obsolescence More Direct Control Multiple Vendor Selection Uptime is Up-to-You Multiple Carriers (Voice/Data) Shop for PSTN Deals Rent Lower Capex Lower Risk of Obsolescence No Server Maintenance Geographic Reach SLA Guarantees Uptime Combined Billing (Voice/Data) Eliminate PSTN Charges

40. R.B.O.C Central Office R Traditional Centrex Service • Dedicated wired service from Central Office • Limited functionality with Analog or proprietary Centrax feature telephones • All Applications derived from C.O. (Voice Mail, etc.) My Centrex L A N

41. Remote Serving Location R Hosted IP Softswitch Hosted Applications from Softswitch makers, providing: Hosted IP using SIP Unified Messaging Voice Recognition Single Number Service, Etc. Calls can be re-routed to mobiles Service Provider or Central Office IP Phones L A N Gateway for PBX Telephones Traditional PBX Telephones using existing level 3 cable IP Phones

42. Lease versus Buy Centrex Limitations • Relatively expensive compared to PBX • Limited features compared to PBX • Difficult to provision, long lead times for MAC • Mainly attractive to <10 users or > 2000 users • Only has 10% - 14% market share vs. PBX

43. Lease versus Buy Centrex Limitations • Relatively expensive compared to PBX • Limited features compared to PBX • Difficult to provision, long lead times for moves, adds, changes. • Mainly attractive to <10 users or > 2000 users • Only has 10% - 14% market share vs. PBX Hosted IP Telephony • Costs are leveled (no wires, no class 5 switch) • Features are the same (it’s the same software) • Provisioning and administration are web-based • Expected to win 25% to 50% market share • Do you host your own web servers?

44. Lease versus Buy Centrex Limitations • Relatively expensive compared to PBX • Limited features compared to PBX • Difficult to provision, long lead times for MAC • Mainly attractive to <10 users or > 2000 users • Only has 10% - 14% market share vs. PBX Hosted IP Telephony • Costs are leveled (no wires, no class 5 switch) • Features are the same (it’s the same software) • Provisioning and administration are web-based • Expected to win 25% to 50% market share • Do you host your own web servers?

45. Agenda In this session: • What is an IP PBX (and what isn’t)? • What are the Benefits? • Lease versus Buy • Deployment Considerations

46. Considerations in Choosing • What are you trying to achieve? • What benefits are driving your decision? • How will you get there? • Does the solution offer a migration path? • Can you protect your sunk costs? • Watch out for hidden costs. • LAN upgrade for QoS and PoE can be costly. • Make sure the total cost is accounted for. • Should you buy or rent? • Don’t make a knee-jerk decision on this. • Hosted IP telephony is a real option.

47. Summary • IP telephony is compelling telephony because of the benefits it brings. • Don’t be confused by VoIP noise. • Features and applications are the real drivers behind all PBX telephony. Be clear about what your want in your solution. • Consider the rent versus buy option, and look for a good migration option.

48. For more information, or to speak with a Citel VoIP Migration Consultants: Email: info@citel.com Free White Paper: www.citel.com/10myths Toll Free: 1.888.454.7979