Reseller Live Selling IP Applications Alone Will Not

Reseller Live “Selling IP Applications Alone Will Not Guarantee Success” C. Don Gant VP Channel Marketing/Business Development

Short Agenda 1. What are the end-user benefits of IP? 2. How can resellers make the TDM-transition?

2004 Corporate America Communications Spending TOTAL 2004 = $31. 51 B CAGR 2005 - 2007 $2. 98 B 4. 5% Large Enterprises $6. 67 B 5% 500 – 1000 employees $7. 38 B 6% 250 – 499 employees $7. 04 B 7. 5% 100 - 249 employees $3. 39 B 11% 50 - 99 employees $2. 52 B 9. 5% 5 - 49 employees $1. 53 B 9% Fortune 500 Source: 2004 Enterprise Market Sizing

Lines Installed All Technologies Source: Info. Tech 2 Q 05 Report

What Does IP Convergence Provide the End-user?

Greenfield Vo. IP Install = Cost Effective Opportunity nk Bla ate Sl § Cost to deploy VOIP shared with start up expense § Shared data and communications cabling could reduce cost

The Big Question § Vo. IP makes sense for Greenfield deployments but what about replacing an existing solution? § Maybe…it depends on the additional benefits

VOIP Upgrade…Does the End Justify the Means? Applications $$$$$$$

Killer Applications? ? § Reduced communications costs o o o Corporate decentralization IP Networking International Vo. IP calling § Reduced office space o o Remote employees “hoteling”

Killer Applications? ? ? § Next generation business applications o o Contact centers E-business § Reduce cost to manage infrastructure o o # of moves/year x cost/move Data resources versus telecom recourses § Reduced Infrastructure cost o o Telco and data share cabling Reduce telco personnel

APPLICATIONS + BENEFITS Success =

Lower cost of ownership § Consolidation of voice and data § Lower long distance § Reduce admin cost Typical benefit statement does not provide enough information to make an informed decision.

VOIP Upgrade…Does the End Justify the Means? Must associate $ value to the benefit to show a positive ROI Applications $$$$$$$

Two Types of Benefits 1. Direct Benefit o Quantifiable cost saving or revenue increases 2. Indirect Benefits o Returns not clearly observable, but effects can be measured

Direct Benefits § § § Reduce personnel Reduce communication cost Avoid regulatory fines Reduced accounts receivable Reduced travel cost

Indirect Benefits § § § Reduce time to manage MAC Call center increased customer satisfaction Reduced time to do “x” Increase quality of “x” Improved technology management

Benefit Believability Index Good Bad § § § § § Direct observation – pilot site Corporate history Surveys Case studies Educated guess Uneducated guess Psychic Vendor supplied estimates Vendor ROI sales calculator

Benefit Believability Direct Saving -Reduction in cost 10 8 6 4 Semi-direct Saving -Expected reduction in cost Indirect Saving -Increase worker productivity Very Indirect Saving -Increase manager productivity 2 0 Benefit

How Does The Reseller Make the TDM to IP Transition?

Educate, Educate § Educate on the technology o o IP versus TDM Data resellers versus Telecom resellers § Educate on the Selling Process o o Consultant approach Applications driven § Educate on the ROI model o o Direct versus indirect saving End-user buy in of ROI methodology

Making the transition…. § Embrace the technology o o In-house systems Day to day operations § Vendors must help o o Professional services Network assessments Vertical market strategy Sales assistance

Value Pie Profitability/ Expense Reduction Competitive Advantage Company Image Management Tools Client Relations Employee Efficiencies

Summary IP Market Growing – out pacing TDM Applications are Important Benefits are even more important Gain end- user acceptance of your ROI methodology § Educate your self § Expect your vendor to help you with the transition § §

Thank You! www. iwatsu. com