The IP-Enabled PBX

1. The IP-Enabled PBX Todd Corham Director of IT Lowenstein Sandler PC

2. Interconnecting people at remote locations IP Network Connecting telephones locally via the LAN Integrating telephony into powerful new business applications What is the Requirement?

3. IP Network What is Driving Force? • For connecting sites via IP: • Toll bypass to reduce costs • Extend central applications to remote office and home workers • Remote management • For LAN telephony: • Reduce costs of management and installation (plug and play MACs) • Provide architecture to support new integrated applications • Simplified roll out of new applications • For integrated business applications: • Enhanced conferencing • Unified messaging • Web enabled contact centres and self service solutions • One number follow-me services • Click-to-talk

4. VoIPA Non-Starter in 2001 • Insufficient line appearances • Nightbells and Overhead Paging achieved only with $ and difficulty • Call-center features missing • 40% more expensive than anticipated

5. The Technology – Hysteria Curve RealityCheck Marketing DisappointmentSlide Hype Hyper-Drive MarketReality Creation Time Despair

6. IP TelephonyMarket Share/Trends Summary Line Shipments IP Telephony vs. Traditional CPE IP Telephony market offsets the decline in traditional PBX & KTS as more customers migrate Source: InfoTech 2003

8. Where Does VoIP Make Sense • Greenfield/New locations • Remote Offices (Branch or Remote Sites) • Firms with PBX platforms reaching the end of their lifecycle (i.e. fully depreciated capital equipment requiring upgrades) • There may be Law Departments at enterprises with contact center focused business models (limited pilot adoptions/niche applications)

10. IP-Enabled PBX vs. IP PBX • IP PBX • Replaces existing TDM PBX • Major new investment • Legacy integration can be expensive • Full benefits of IP and IP applications • Reduced administration and support costs • IP-Enabled PBX • Utilizes existing TDM PBX equipment • Incremental investment • Simple legacy integration • Partial benefits cost savings of IP

11. Market Share IP Line Shipments 2003 Year-end (IP PBX, PBX, KTS) Total Line Shipments 2003 Year-end (IP PBX, PBX, KTS) Mitel Siemens Siemens Alcatel NEC 10.5% 6.1% 8.3% 5.4% Avaya 6.5% NEC Other Alcatel 10.7% 7.4% 12.3% 10.2% Cisco 3% 3Com 3.30% Tenovis 3% Mitel 2% InterTel 0.80% Nortel EADS 2% Other EADS 0.70% Avaya 15.5% Inter-Tel 1% Altigen 0.70% 10.3% 13.7% Comdial 1% Tenovis 0.60% 3Com Sphere Shoreline 0.50% Altigen Sphere 0.40% Vertical Comdial 0.20% Shoreline Nortel Vertical 0.10% Cisco Others 34% 22.3% 19.6% Source: Dell’Oro 2004 Source: Dell’Oro 2004

13. PSTN QoS WAN (Intranet) Cisco IP PBX Architecture Ethernet/ Fast Ethernet Cisco Call Manager Cisco CallManager Cisco 5300 Cisco 2611 Branch Office Headquarters

14. WAN Access Router IP-enabled PBX Model Architecture Signaling Server Voice/Unified Messaging System IP Phones LAN IP WAN IP-enabled PBX PSTN Analog/Digital Phones

15. Architecture Core System Applications CallPilot Symposium MCS 5100 Applications for IP Phones OTM Signaling Servers (redundancy optional) Call Server(s) Media Gateways Peer Networking to BCM, Succession & Meridian systems Passport 8600 Routing Switch Baystack 460 Power Over Ethernet Switch Survivable Remote Gateway WAN Clients Succession Branch Office Remotes

16. System Components Signaling Server • H.323 signaling engine • Centralized redundant Gatekeeper and simplified dialing planCall Server • Core system intelligence; performs telephony call processing • Contains Enterprise software and user database • Highly available single or redundant CPU configurationsMedia Gateways • Supports line and trunk cards, applications and DSP resources • Modular for additional capacity

18. VoIP IP PBX Pros & Cons • Pros • Elimination PBX Tie-Line Charges • Consolidates Voice & Data on Single Wiring Plan to the Desktop • Significantly Reduces Move, Add, Change Expenses • Enables Advanced Applications • Enables Number/Feature Mobility • Distributed Architecture for Graceful Growth • Remote/Mobile Office Applications • Cons • Requires Managed QoS in the LAN/WAN for Voice Quality • Reliability/Availability Concerns • Rapid Technological Growth mayRequire Upgrades for Early Adopters • Requires Replacement of Business Sets with IP Phones • Limited Interoperability Between Manufacturers

19. VoIP Enabled PBX, Pros & Cons • Pros • Elimination PBX Tie-Line & T1 • Increase Utilization of Existing IP Network • PSTN Fallback Overflow & Mission Critical Applications • Supports Traditional PBX Features No Impact on Business Sets • No Impact on Inside Wiring • Minimal Impact on PBX • Minimal Deployment Cost • Remote/Mobile Office Applications • Migration Path Exist for Legacy PBX & Key • Cons • Requires Managed QoS in the WAN for Voice Quality • Reliability/Availability Concerns • Requires Dual Vendor Support Voice and Data Products • No Interoperability Between Manufacturers

20. IP-Enabled Solution • Approach • An evolutionary or a “Mix and Match” solution: • Mix digital (TDM) phones with IP applications • Keep digital sets in campus but do VoIP between sites • Add IP phones and re-use existing applications eg Voicemail • The solution must satisfy your individual business requirements, not the vendors products

21. Experiences from VoIP Trenches • Robin Compton, IT DirectorCooper, White & Cooper LLP • Two Offices - San Francisco and Walnut Creek, CA • 18 months of full IPT implementation • 135 people - 150 phones • Cabling plant mixture of Cat5/5e (no 6!) • Fiber from floor to floor (edge closets) Robin D. Compton Director of Information Systems COOPER, WHITE & COOPER, LLP 201 California Street, 17th Floor San Francisco, CA 94111 (415) 433-1900 (415) 433-5530 facsimile RCompton@cwclaw.com www.cwclaw.com

22. Cooper, White & Cooper LLP - Background • Former System • Avaya Definity • Intuity voicemail • 15 year old handsets • 45 CO lines • Maintenance costs were extraordinary • Service and support retiring (permanently) 12/31/02 • No ability to validate account code entry • Long distance abuse • Delayed delivery of voicemail

23. Cooper, White & Cooper LLP - Today • Call Manager 3.3(3) sr4a on redundant ICS 7750 • Unity 4.0 voicemail • VG200 in both office - analog backup • 3745 Router - two PRIsSan Francisco • 2691 Router - one PRIWalnut Creek • Call Accounting - Litescape • SRST (Survivable Remote Site Telephony) • Handsets - mixture of 7940/7960

24. CWC LLP - Why VoIP? "The two areas that just really excite me right now are 'wireless everything' ... and Voice over IP." "My goal is basically to get this entire nation and every last American off analog infrastructures and into digital broadband infrastructures... And if we don't do it, every other country in the world will." FCC Chairman Michael Powell, December 25, 2003.

25. CWC LLP - Why VoIP? (And why did I get dragged into phones?) • Ability to leverage existing network infrastructure and equipment • Significant reduction in maintenance costs • System Administration - consolidation of IT and Telecom departments • Validated account codes for long distance charge back • Unified messaging • Training and Support • Extension mobility • Scalability

26. CWC LLP - Pilot Group • 20 Users • Two Offices • Four weeks • Echo • Extension Mobility • Unified Messaging • Rolled out firm wide one week early!

27. CWC LLP - Gotchas, Pitfalls & Considerations • Unified Messaging - impact on the end user • Call Accounting • Conferencing • “Eggs in One Basket”

28. CWC LLP - Would we do it again? • Yes! • Unified Messaging/Universal In Box/Blackberry • Ease of Administration • Projected savings in maintenance costs • Future video between offices with minimal additional equipment • Creative possibilities in disaster recovery • Users LOVE their phone

29. IP Telephony Experiences – The Challenges Athelene Gieseman Stinson Morrison Hecker Telecommunications Peer Group VP Lawnet - August 2004

30. Quick Background • Implemented full IPT solution in May 2002 • 1000 + phones today • 9 offices (8 as of September 2004) • Merger • Office consolidation in 2004

31. IPT ChallengesTwo Flavors • Technical • Cultural

32. Technical Challenges • Network Configuration Options • Centralized • Decentralized

33. Technical Challenges • Centralized Environment • Bandwidth • Redundancy • Router Configuration challenges • Ongoing Management

34. Technical Challenges • Decentralized Environment • Redundancy • Latency problems • Cost • Ongoing Management

35. Technical Challenges • Understanding the brave new world • Compression • Gain • Call Handlers • JTAPI

36. Technical Challenges • Staffing • Router configurations – Do not try this at home! • Getting your data folks to understand the telephony world • My favorite quote from engineer: • “I never knew there was a law firm ring!”

37. Hard or Easy? • Some things that were hard are now easy: • Moves Adds and Changes (MACs) • Somethings that were easy are now hard: • Faxing

38. Cultural Challenges

39. Cultural Challenges • Call Routing • Switchboard/Receptionist functions • DID routing • 800 number routing • Before/After Hours • One secretary/Multiple Attorneys • Web interfaces

40. Cultural Challenges • Training • Hands on • Understanding DID, Line appearances, etc. • Voicemail • More Voicemail! • Special training for receptionists (don’t forget about people who fill in.)

41. Cultural Challenges • Voicemail Challenges • Explore customization options • Web interfaces for customization • Understanding Unified Messaging • DMS Integration

42. Cultural Challenges • Music On Hold (MOH) • Especially hard in IP environment • Understanding the options

43. Cultural Challenges • Implementation • Go slowly! • Pilot Groups

44. Despite the Challenges • Nothing worthwhile was ever easy • “A ship is safe at port.” • “But that’s not what ships are made for”

45. Sail On • Carefully plan your route • Make sure your ship is in good shape • Set your sails • Sail on!