E-03 : Vendor Panel Responding to Today’s and Tomorrow’s Enterprise Requirements

1. E-03: Vendor PanelResponding to Today’s and Tomorrow’s Enterprise Requirements Moderator: Frank Stinson Partner & Sr. Analyst IntelliCom Analytics

2. Focus Of This Session • Key Trends That Are Driving Transformation of the Enterprise Communications Space: • A Competitive Landscape Disrupted by Fundamental Business Model Shifts Toward Software-Based Approaches • The Emergence of Advanced Unified Communications (UC) and Collaboration Solutions Delivering Targeted Business- and End User-Specific Value • New Options Blending Premise- and Cloud-Based Capabilities to Deliver Advanced Applications to Specific Job Functions and Individual Users • Virtualization Initiatives Supporting All-In-One Packaging of UC Software Suites And Data Center Consolidation Efforts • Vendor Panel Discussion on How These Dynamics Are Impacting Customer Requirements and Solution Acquisition 2

3. The Enterprise Communications Market Grew Strongly During The First Three Quarters Of 2010 After Experiencing A Historic Downturn At The Onset Of The Recession Which Impacted Even The Most Stable Of Providers Enterprise Communications Manufacturer Product Revenues – North America 1Q’07 to 3Q’10 Beginning of Downturn Year-Over-Year Growth -4% -1% -6% -16% -29% -27% -24% -8% +6% +12% +8% Source:IntelliCom Analytics, IntelliCom Market Performance DashboardSM, September 2010

4. The Downturn Coincided With Fundamental Delivery And Business Model Shifts – Now Accelerating – That Are And Changing How Business Communication Solutions Are Delivered And Who They Are Delivered By Software-Centric Voice and UC TDM IP Telephony Position of Voice Voice as a System Voice as an Application Voice as a Feature System Architecture Open Standards and Hardware Support, Session Management, SaaS/Hybrid Delivery Alternatives, SOA-based CEBP Enablers Central Processor Proprietary Servers and Appliances Key Customer Decision Attributes Business Process Integration, Productivity Enhancement, User Experience, Incremental Revenue Infrastructure Convergence, ROI / TCO Reliability, Functionality Decision Focus Site-Centric Network and Enterprise-Centric Enterprise Community / User-Centric Services Model Maintenance Shared Responsibility Management (Managed and Hosted Services) Applications / Solution Design and Integration, Business Consulting Source: IntelliCom Analytics, IntelliCom Market DashboardSM

5. Emerging Cloud-Based And Blended Premise/Cloud Solutions Add To The Growing Array Of Delivery Choices That Customers Must Evaluate In Making These Future Implementation Plans Feature Customizability Fully Open Solution-Centric Approaches Premise-Based Cloud-Based Blended BCS Packaging Models Next-Generation Native SIP IPT Platforms w/TDM-Enablement or 1st Gen IPT Migration All-In-One Voice/Data Appliances Evolutionary TDM/IPT Hybrid Systems 1st Gen Proprietary IPT Traditional TDM Systems Legacy Fully Proprietary Box-Centric Approaches Delivery Flexibility Industry Standard Hardware Proprietary Hardware Shrink-Wrapped Open Hardware

6. Virtualization Initiatives Add To The Open Hardware Options For Customers To Consider When Deploying Next-Gen Voice And UC Solutions And Help Better Support Both Enterprise Data Centers And Mid-Market All-In-One Packaging Description Examples • Legacy TDM Systems • Traditional voice system packaging on separate, proprietary boxes produced by the manufacturer • Limited synergies with the rest of the customer’s IT environment Proprietary Appliance • Most mainstream IP-PBXs • Call control and other communication applications run on open operating systems like Linux • Manufacturer utilizes open processor components to reduce costs but produces turnkey appliances for the customer to ensure availability Appliance w/Open Components • Microsoft OCS/Lync 2010 • Siemens OpenScape UC • Interactive Intelligence • Voice system vendor produces only the software-based elements of the voice and UC applications • Customers and/or systems integrators chose third-party servers and devices based on guidelines and/or certifications Software-Only on 3rd Party Server • Avaya Aura System Platform • Lotus Foundations (ShoreTel, NEC) • The provider utilizes virtualization technology to place multiple voice and UC applications onto a single server produced by them • This may save space and reduce power consumption while allowing the provider to position their full software suite at once Virtualization Enabling Voice/UC Co-residency • Mitel vMCD • Siemens OpenScape UC • Cisco UCS • Voice and UC applications are delivered as software-only solutions that run on an open virtualization platform • This allows these applications to be deployed on common hardware with business applications deployed in the data center Virtualization Enabling Data Center Consolidation • Mitel/Sun Ray • Mitel/VMware View • Cisco VXI • Thin-client desktop devices running all user communication and productivity applications displace the current PC model • All major user applications are shifted to centralized data centers broadly supporting the organization Desktop Virtualization

7. This Panel Will Address A Range Of Questions On How Providers Are Using These Evolving Architectural Alternatives To Better Respond To Both Current And Future Enterprise Requirements • What are the compelling reasons a customer should implement a next-generation voice platform, UC, and/or Collaboration solution today given the lingering economic uncertainty? • What types of changes are providers seeing in the content and process through which customers define the requirements of RFPs they submit for new voice and UC solutions, and what further changes are anticipated over the next few years? • How are vendors and their channel partners changing their sales approaches to more broadly engage LOB, functional departments, and user communities without alienating traditional voice and IT stakeholders? • Is the current RFP process effective in defining the needs of this broader audience and demonstrating value to these evolving stakeholders in the vendor responses? • Are the most compelling business cases for deploying next-generation solutions currently based more on traditional IT cost considerations or on the productivity and business process enhancements enabled by their flexibility and interoperability? How will this change over time? • Are UC and Collaboration solutions best delivered through a multi-vendor approach built around interoperability or through a single provider delivering a tightly-integrated, end-to-end architecture? • How large a role will solutions blending premise- and cloud-based capabilities play in delivering targeted UC and Collaboration functionality to specific business segments and users compared to current premise-only offerings? • What are the potential advantages and disadvantages of implementing cloud-based and blended solutions today, and how is that likely to evolve over time? • Virtualization has emerged as a key area of development and emphasis among enterprise voice providers over the past 12 months, but does it have customer appeal and value beyond large-enterprise data centers? • How are the business process benefits of targeted UC, Collaboration, and CEBP capabilities enabled through next-generation architectures quantified, and what changes does this require in the sales process beyond addressing the technical considerations of implementing new delivery approaches?

8. Reach Information Frank Stinson fstinson@intellicom-analytics.com 1259 Route 46, Building 1 Parsippany, New Jersey 07054-4913 Main: 908-686-4477 www.intellicom-analytics.com