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Delivering on the Promise of Hosted VoIP

Delivering on the Promise of Hosted VoIP. Mark Castleman President. Outline. What is Hosted VoIP? What is the Promise? Three Provider Models Model Ups and Downs Pure Hosted VoIP Benefits Pure Hosted VoIP Burdens – Client Pure Hosted VoIP Burdens – Carrier Products Clients Buy

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Delivering on the Promise of Hosted VoIP

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  1. Delivering on the Promise of Hosted VoIP Mark Castleman President

  2. Outline • What is Hosted VoIP? • What is the Promise? • Three Provider Models • Model Ups and Downs • Pure Hosted VoIP Benefits • Pure Hosted VoIP Burdens – Client • Pure Hosted VoIP Burdens – Carrier • Products Clients Buy • Products Clients Don’t Buy (yet) • Premium Products: Extra $$$ • Warnings and advice!!! • How to make it work and stay in business!

  3. What Is Hosted VoIP? • Provider Based Service Offering • Platforms • Voice Equipment • Gateways • SBCs • Proxies • Application Servers • Network Equipment • Routers • Switches • Interconnections • Limited Customer Premise Equipment • Phones, routers or gateways

  4. What is the Promise? • Cheaper • Faster • Better • Easier • What is it really? • Robust • Adjustable • Complex • Cost-effective…in some situations • “Not all dial tone is created equal”

  5. Three Provider Models • “Pure Hosted” • BYOB: Bring your own broadband • Only Phones are required • Managed Hosted • Provider brings network (ie T1) • Provider brings CPE • Router, T1 and phones • SIP Trunking Provider • Client uses existing phone system • Provider ONLY provides dial-tone

  6. Model Ups and Downs • “Pure Hosted” • Limitations on market size • Managed Hosted • Significant infrastructure cost • Significant SGA • Limitations on market size • SIP Trunking Provider • Limited market • Lacks “sizzle” • Invites competition to customer prem.

  7. Pure Hosted VoIP Benefits • Concentration of Expertise • Provider is expert • Client is user • Provider manages carriers • Client is removed from carrier discussion • Provider manages capital equipment investment • Client spend converts from “capital” to “expense” • Simplicity of Customer Experience • “Only requires user phones” • Minimal admin burden • No dedicated staff • Multi-Location Solutions • Dramatic costs savings here

  8. Hosted VoIP Burdens: Client • Client Networks • NAT Traversal! • Improperly configured networks • DNS and “double NATs” • Poor data provider SLAs • Weak data connections • Weak network gear • Weak network expertise • Client Requirements • 500 seats per location (very difficult for pure hosted) • Possible for managed hosted but on-site only

  9. Hosted VoIP Burdens: Provider • Carrier Failures • Single point of failure • Impacts ALL clients on that carrier • Platform Failures • LNP • Portability is complicated • No Standard procedures • Carrier network may limit rate center coverage • DID Management • Large number databases with multiple carriers requires constant attention

  10. Auto-attendant/IVR Desktop phone service LD Transfer Voice Mail Find Me Unified Messaging Notification services Voice or Email Fax-to-email Desktop Fax ACD, Call Queuing Music On Hold Schedule based functionality Web Administration Attendant Console Web Based User Call Management Consoles Site to Site Transferring Products Clients Buy

  11. Product Clients Don’t Buy: yet • Customer Profile • SMB • 2-25 users • 1-5 sites • Not Valuing, or paying for…yet • Video (hardly used even when available) • Voice to text (typically expects it to be included) • Overhead Paging (likes it included but will not pay extra)

  12. Premium Products: Extra $$$ • Additional Capacity • More calls in queue to prevent “busies” • Simultaneous Ringing • Hunt Groups • Professional recording • Professional MOH • “Dual Ring” accounts • Account will ring to more than one site • Extended Greeting Length • Example: 30 min greeting • Network management

  13. Warnings • Pick Excellent Carriers • You get what you pay for is true! • Avoid “aggregators” • Pick a Platform that Matches your target market • Not all platforms perform well for different users • Make sure the platform addresses the “billable” features • Test Drive the Services of your competition • Invest in quality Customer Service Reps. • Your clients will bring your next customer • Train your customer • Don’t underestimate the weakness of your customers data provider

  14. Provider Guide • Know your target market • Pick a client profile • SMB? • Multi-location? • Single-user • Executive Suite • Investigate the Platforms • Do research on many platforms • Talk to users • Talk to at least 30 client companies and ask them plus observe! • Investigate Carriers • Do not be afraid to negotiate • Understand carrier cost models • How do carriers make money? • Be willing to LEARN fast!

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