Introduction to Cloud-based Unified Communications

Module 1: Introduction to Cloud-based Unified Communications

Introduction to Cloud-based Unified Communications Introduction to Voice Over IP (VoIP) Trends in Voice Over IP Cloud-based Unified Communications VoIP Terminology VoIP Protocols Voice Quality Legacy Business Voice Models Centrex PBX/IP PBX Hosted PBX / Cloud PBX Architecture Functional Diagram Network Components Outline

VoIP (Voice over IP): Refers to the technique of carrying voice over a data connection using the Internet Protocol but does not necessarily mean over the public Internet. Introduction to Voice Over IP Class 5 Central Office Switch ProprietaryPBX Phones PSTN • TDM (Time Division Multiplexing): Refers to traditional telephony where a phone has a direct, dedicated connection to a voice switch / PBX. TDM uses a fixed amount of bandwidth for a voice call whether or not any voice is being carried. Data Network IP Phones IP Phones

Introduction to Cloud Hosted VoIP OUR Network FeatureApplication Server TABLET CLIENT IP PHONE MOBILE CLIENT DESKTOP CLIENT

Largest Market Share & Revenue Growth – Our Space Source: Infonetics Research, VoIP & Unified Communication Services & Subscribers Market Share & Forecasts April 2014

Strong demand forVoIP Services acrossvarious businesssegments VoIP services delivera clear transformationpath for customersmigrating from legacyTDM services to IP-based services Business Movement to Cloud UC Driving $27B Market Communications Enabled Business Processes

17% said lack of reliability as a pain point with their current business phone system: connectivity problems and dropped calls frequently induced issues Reasons Why Medium Businesses Interested in VoIP Source: Incovo Small Businesses Shirting toward VoIP Solutions, Aug 2014

New Portfolio additions bring new source of revenues Unified Communications as Growth Engine

Hosted PBX IP Centrex and hosted VoIP/IP PBX services, including enhanced features; multi-tenant solution Hosted UC Full business telephony application (i.e., hosted IP PBX components) that is integrated with additional hosted applications such as presence, e-mail, conferencing, and document collaboration Hosted PBX vs Hosted UC Forecast til 2018 Infonetics Research: Business Cloud VoIP & UC Services Market Size & Forecast, August 2014

Drivers for Unified Communications Our World Has Gotten Bigger

Hosted, multi-tenant solutions that replaces a premises-based PBX or key system, including value-added applications and unified communications UC integrates multiple and disparate communication modes (voice, e-mail, fax, chat, etc) into a unified and cohesive communications experience. Hosted UC aggregates telephony, presence/IM, messaging, collaboration and conferencing into a unified service delivered to multiple devices that is managed and sold as a subscription based model Hosted PBX: IP Centrex and hosted VoIP/IP PBX services, including enhanced features; multi-tenant solution Micro business: fewer than 20 employees Small business: 20–100 employees Medium business: 101–1,000 employees Large business: More than 1,000 employees UC telephony: the full business telephony application (i.e., hosted PBX components) that is integrated with additional hosted applications such as presence, e-mail, conferencing, and document collaboration UC applications: hosted business applications integrated with telephony, including e-mail, calendar, presence/IM, document sharing, and conferencing with a UC client application Infonetics Descriptions for Hosted VoIP & UC

Centrex IP A service which utilizes IP transport to the customer premise but features are limited to the traditional Centrex feature set due to the use of a legacy Class 5 switch for call control and feature delivery. Offered by a few major telcos as an early entry into the VoIP market Integrated Access Services / Managed IP PBX Services A service which delivers legacy (i.e., TDM) voice circuits and data transport over a converged access circuit through fixed allocation of channels on a digital circuit. Used to interconnect on premise PBX or IP PBX solutions to the larger network. Hosted IP PBX (PBX) Service / IP Centrex A business-oriented Hosted IP Telephony Service Leverages IP transport and a carrier-grade “next generation” voice services platform to deliver traditional Centrex and PBX-like features as well as advanced capabilities Hosted IP Telephony Services / Cloud-based Unified Communications Generic terminology for the delivery of VoIP services in an outsourced, cloud-based model The core VoIP service platform is centrally-located at a service provider’s central office and is owned and managed by the service provider Services may be either residential or business In most cases, the service platform is a shared resource in the delivery of services to multiple customers. Common VoIP Service Names

Chief Executive Officer Looking to remain competitive & offer exceptional service Employee productivity & morale with better communications & collaboration with each other Prevent employees spending hours struggling to properly communicate & wasting time to reach the right person to complete tasks Find ways to cut costs & run business more efficiently Lower Total Cost of Ownership / Increased Return on Investment vs on premise phone systems Decision Maker Motivations to Choose Hosted VoIP

Chief Technical Officer Looking for ways to increase innovation Better chance of leveraging web-based innovation via hosted telephony than from managing a phone system onsite Looking for technologies that will help the company make money and give them an unfair advantage in their market A chief innovation officer as much as a chief technology officer. Will champion innovative ideas and make sure that employees are set up to be innovators Decision Maker Motivations to Choose Hosted VoIP

Chief Operations Officer Responsible for ensuring that business operations are efficient and effective and that the proper management of resources, distribution of goods and services to customers and analysis of systems is conducted Looking for ways to have better organizational agility With employees more mobile, communications via hosted are more flexible and available via any broadband connection Integration of communications with basic tools like Outlook and CRM apps Decision Maker Motivations to Choose Hosted VoIP

Chief Information Officer Looking to maintain communications services for employees scattered among various offices or traveling With Limited / Diminishing IT Personnel hosted VoIP makes sense Constantly being asked to do more with less Not outsourcing their job Decision Maker Motivations to Choose Hosted VoIP

Chief Financial Officer Looking for ways to improve cash flow management Keeping costs down give pricing edge, ability to maintain strong margins through cost controls Fixed monthly payment for communications services One vendor provides savings Decision Maker Motivations to Choose Hosted VoIP

Decision Maker Motivations to Consider Cloud-Based Voice Solutions U.S. Business Segment Motivation To Consider Hosted IP PBX And Hosted Voice Applications – Top Ranked Reasons All U.S. Businesses Enterprise Medium-Large Business Medium-Small Business Small Business Low TCO No/Little CapEx Low TCO No/Little CapEx Low TCO Prefer predictable Mo/ly expense Reduced Data Center expense & reqts Prefer predictable Mo/ly expense SP does admin, mgmnt, etc Low TCO Why decision makers will consider Hosted Voice Solutions Hosted Voice Solution Service Providers will align their value propositions and marketing materials with the consideration motivators for each targeted geographic or business size segment

US Business Subscription to Hosted / Cloud-based Apps The Correlation Of U.S. Business Segment Hosted Business Application Subscribers And Consideration Rates Of A Hosted Voice Solution All U.S. Businesses Enterprise Medium-Large Business Medium-Small Business Small Business Currently subscribe to Hosted Business Apps. Percentage more apt to consider Hosted IP PBX and Hosted Voice Apps 33.3% 36.7% 46.2% 25.9% 33.3% 23% / 27% 20% / 19% 4% / 13% 15% / 31% 53% / 47% In The U.S. market, Hosted Voice Solution Service Providers are more apt to garner offer consideration from businesses that already subscribe to a Hosted Business Application, such as Payroll/Accounting Human Resource, Sales force, etc. Target these customers.

Highly competitive industry where customer experience matters most from storefront to online to call centers Top action priorities on the retail floor: Rapid and accurate responses to customer needs and inquiries; Managing and locating inventory Communicating business-critical information among employees Ability to connect multiple stores and simplify communications management of communications, networking and security. Improve responsiveness to customers, find ways to be more efficient and more reliable communications Most Important Reasons to Move to VoIP - Retail

Need to adapt to infrastructure, regulatory & technology changes while trying to improve operational efficiency, accelerate transaction speeds, improve customer satisfaction & grow top line revenues. Proven experience in delivering integrated, reliable & secure solutions. Reduce complexity and simplify network management with cloud-based communications Unify regional and national operations with our extensive nationwide network reach to connect all your retail banking locations Most Important Reasons to Move to VoIP - Financial

Hospitals, medical offices, skilled nursing facilities and other healthcare providers facing an increasing number of challenges: Needing to meet evolving regulatory requirements Providing staff with reliable and secure access to applications and medical records Healthcare providers must make an informed decision in choosing a technology partner that can help them provide the best patient care possible. Nationwide networks can connect hospitals, doctors and healthcare staff and enable better communications and access to information in a secure environment. Ensure continuity of operations with data center & network redundancy to ensure ability to serve patients. Most Important Reasons to Move to VoIP - Healthcare

Need to connect geographically dispersed locations over nationwide network Fast access to applications and client data across office locations Gain operational efficiencies and reduce costs with a converged voice, data and security solution eliminating unnecessary equipment and duplicated network services Quickly add new offices and integrate operations with fully hosted solutions enabling you to be more agile and adapt to business needs without having to source, buy and install equipment Most Important Reasons to Move to VoIP - Professional

IP (Internet Protocol): The protocol that defines the format of packets of data and the addressing scheme. Internet: A connection of interconnected networks using IP. In most cases, people use this term to refer to the unmanaged public Internet. VoIP (Voice Over IP): The signaling and transmission of packetized voice call traffic across an IP network. IP Phone: Phone set that has an Ethernet connection and communicates over the data network instead of a traditional phone line. Terminal Adapter / Analog Adapter: Device that enables one or more legacy analog telephones to interconnect with a VoIP network. Bandwidth: A measure of the number of bits per second that can flow through an IP channel at a given time. Quality of Service (QoS): The idea that transmission rates, error rates, and other characteristics can be measured, improved and, to some extent, guaranteed VoIP Terminology

SIP: (Session Initiation Protocol) Signaling protocol for Internet conferencing, telephony, multimedia and other types of communications over the Internet. Designed as a peer-to-peer protocol. MGCP: (Media Gateway Control Protocol) Signaling protocol for IP phones and media gateways. Designed as a client/server protocol where an intelligent device (e.g., media gateway controller or application server) controlled a large number of relatively inexpensive and unintelligent devices (e.g., media gateways, IP phones etc.) SCCP: (Skinny Client Control Protocol) Signaling protocol developed by Cisco initially used for Call Manager implementations. Similar to MGCP in its client/server architecture. RTP: (Real Time Protocol) Protocol used for the transmission of real-time voice bearer traffic regardless of the signaling protocol used to establish the voice call. Specifically concerned with the dependable transmission of latency-sensitive traffic across the network and is involved in using time stamping to determine network jitter tolerance and making sure that voice packets are arriving in order. VoIP Protocols

The term CoDec is a contraction of coder and decoder. A codec is a device that encodes analog signals into digital signals for transmission over a data network and decodes the same signal back into analog signals. Codecs are discussed in terms of the amount of data used to carry the voice otherwise known as compression What is a CoDec?

G.711 (mu-Law/a-Law) - UNCOMPRESSED Often referred to as “uncompressed” as it uses the same sampling rate that is used in circuit switch (TDM) environments. 64 Kbps (without transport overhead) G.711 may use either mu-law Pulse Code Modulation (PCM) encoding (as used in North America and Japan) or A-law Pulse Code Modulation (PCM) encoding (commonly used in Europe and the rest of the world). G.729 (G.729, G.729a, G.729b) - High quality/low latency compressed codec 8 Kbps (without transport overhead) G.729a is a lower complexity variant of the G.729 algorithm which requires significantly less processing power. G.729 and G.729a provide nearly identical voice quality. In most cases, people referring to G.729 are referring to the G.729a variant. G.729b is a Speech Activity Detection/Silence Suppression algorithm which may be used with either G.729 or G.729b to reduce bandwidth consumption during “silent” periods. G.722 – HD VOICE Standard wideband speech codec operating at 48, 56 and 64 kbit/s Lower bit-rate compressions also known as AMR-WB Bandwidth is automatically conserved when network congestion is high and when congestion returns to a normal level, lower compression, higher-quality bitrate is restored. Sample audio data rate 16 kHz (double that of traditional telephony devices) for superior audio quality and clarify CoDec Comparison

HD Voice Frequency Range Most new IP Handsets do support HD Voice codecs (G.722) Calls out to the public telephone network do not support G.722 yet HD Voice

Quality voice requires that a series of small packages of information arrive at the destination at a consistently regular basis Issues that impact voice quality over a data connection Codec – different codecs make different tradeoffs between voice quality, bandwidth conservation and/or increased delay. Packet Loss - packets are occasionally lost in data transmissions Delay - packets take too long to arrive at destination Jitter - the variation of the amount of delay that packets arrive; increases delay due to need for jitter buffers Types of Data Access to Customer Site Managed Data Connection: Service Provider controls data connection and can monitor / manage traffic. Example: MPLS Network with Service Provider SLAs Unmanaged: Data connection where data packets are not monitored / managed. Example: Public Internet Ensuring Toll Quality Voice Service Managed transport service Packet prioritization (e.g., TOS, DiffServ, RSVP etc.) Voice Quality / Quality of Service (QoS)

PBX (Customer Premise Solution) Features provided by the enterprise PBX PSTN access provided by phone company’s Class 5 switch via ISDN or analog trunks Capital investment: PBX and PBX phones Enterprise manages equipment PBX and PBX phones are generally proprietary Legacy Models - PBX and Centrex Class 5 Central Office Switch Enterprise Enterprise PSTN Centrex Phones Proprietary PBX Phones PBX • Centrex (Hosted Solution) • Features provided directly by the phone company’s Class 5 switch • Capital investment: limited to phones • Service Provider manages service

IP PBX (Customer Premise Solution) Phone features are provided by the IP PBX on the enterprise LAN Class 5 switch provides PSTN access via ISDN or analog trunks Capital investment required in the IP PBX and the IP PBX phones Enterprise manages equipment IP PBX and IP PBX Phones are generally proprietary Legacy Models - IP PBX Class 5 Central Office Switch IP PBX Phones PSTN IP PBX Phones IP PBX IP PBX Router Router Data Network Enterprise Enterprise

Whether the Enterprise uses a PBX or Centrex phones, a separate connection / service is required for Internet access and/or data networking. Legacy Enterprise Environment Class 5 Central Office Switch PSTN Centrex Phones PBX PBX Phones Router Router Data Network Enterprise Enterprise

Hosted PBX / Cloud PBX PSTN Hosted App Servers Hosted IP Phones Hosted IP Phones Mobile Data Network Mobile Router Router Desktop Desktop Enterprise Enterprise Hosted PBX/ Cloud PBX • Phone features and application clients are provided directly by the service provider’s network • Minimal capital investment • Service Provider manages service • Enables Converged Access for Voice and Data Services • Equipment is standards-based

Hosted PBX / Cloud PBX Service - Functional Diagram NOTE: This functional diagram does not represent a typical service office deployment in that it does not depict necessary redundancy. HostedAppServers SessionBorder Controller PSTN Gateway Router Service Office Voice and Data Voice and Data IP Network Router/ FW Router/ FW Router/ FW IAD IAD Analog Users Analog Users IP Phone Users IP Phone Users IP Phone Headquarters SOHO Branch Office

Service Office Router Terminates broadband connections to the data network Session Border Controller(s) Firewalls non-voice traffic from the Service Office Provides enterprise firewall traversal (i.e., NAT traversal) functionality Hosted SIP Application Servers App Server– Provide call control and features Database – Stores customer configuration and provisioning Web Server(s) – Provides GUI for Web Portal and provisioning Messaging Server(s) – Stores voicemail messages Gateway(s) Provides connectivity to the legacy PSTN Converts VoIP to TDM since many hops along the way are still TDM on the Class 4 side Customer Premise Router/FW Terminates broadband connection to the data network Prioritizes voice and data traffic to ensure voice quality IP Phones Telephone handsets with direct connections to the data network IADs (Integrated Access Devices) Premise-based “gateway” to provide data network connectivity for legacy analog phones, alarms, credit card machines, fax machines, etc. Network Components

The GENBAND EXPERiUS Application Server enables Hosted IP Telephony / Cloud-based Unified Communications service providers to offer several different types of business-oriented services: SIP PBX Trunking/Integrated Access – A VoIP-based service enabling integrated access service delivery to customers that wish to retain an existing PBX or Key System. This service generally provides: PSTN access, Internet access, local and LD calling. Generally, most features are provided by the premise-based PBX or Key System. Cloud-based Unified Communications / Hosted PBX with Analog Phones – A VoIP-based service providing local and long distance calling, basic phone features and enhanced capabilities (e.g., unified messaging, web portal etc.) via an integrated access device and analog phones at the desktop. This offering leverages legacy TDM wiring at the customer premises to reduce networking complexity at the customer premise (e.g., eliminating LAN requirements) and lends itself to highly structured bundles that can be provisioned and installed in a stream-lined fashion. Cloud-based Unified Communications Hosted PBX with IP Phones – A service similar to the Analog Phones one that leverages IP phones at the desktop. IP Phones deliver additional capabilities and a better user experience (e.g., programmable buttons, graphic displays etc.) but require consideration of the customer’s LAN environment to ensure business voice quality and service availability. Desktop & Mobile clients provide for greater functionality such as Instant Messaging, Presence, Conferencing and much more. Service Models

Integrated Access/SIP PBX Trunking Hosted IP Telephony Service Models PBX Phones ISDN PRI T1 CAS Analog Trunks PBX PSTN Data Network IntegratedAccess Device Service Provider Customer Premise • The Integrated Access Device provides both Access Router functionality as well as Terminal Adapter functionality • Since legacy wiring is used between the PBX and the PBX phones, the LAN infrastructure is inconsequential to the performance or reliability of the voice services • Enables Integrated Access Services (Voice, Internet Access, Data VPN) for a customer with an existing PBX or Key System • Supports ISDN PRI, T1 CAS (Channel Associated Signaling) or Analog Trunk interfaces to the premise system

Hosted PBX with Analog Phones Hosted IP Telephony Service Models PSTN Data Network Analog Phones IntegratedAccess Device Service Provider Customer Premise • Enables Integrated Access Services (Voice, Internet Access, Data VPN) • Supports traditional analog telephones and legacy twisted-pair wiring • The Integrated Access Device provides Access Router functionality as well as Analog Terminal Adapter functionality. Standalone terminal adapters may be used with a standalone access router or for additional capacity. • Since legacy wiring is used between the Integrated Access Device and the analog phones, the LAN infrastructure is inconsequential to the performance or reliability of the voice services.

Hosted PBX with IP Phones Hosted IP Telephony Service Models IP Phones PSTN Data Network Customer Premise Service Provider • Enables Integrated Access Services (Voice, Internet Access, Data VPN) • Supports a wide-range of IP telephones from a variety of vendors • Since the voice traffic traverses the corporate LAN to the desktop IP phone, the LAN must be designed and engineered for quality and reliability. • Additional Applications such as Desktop & Mobile clients can be added

Service Model Differentiators

Introduction to Cloud-based Unified Communications