Reseller Live

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(No Transcript)
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• Reseller Live
• Selling IP Applications Alone Will Not Guarantee
  Success

C. Don Gant VP Channel Marketing/Business
Development
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Short Agenda

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

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2004 Corporate AmericaCommunications Spending
TOTAL 2004 31.51B
CAGR 2005 - 2007
2.98B
4.5
Fortune 500
6.67B
Large Enterprises
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7.38B
500 1000 employees
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7.04B
250 499 employees
7.5
3.39B
100 - 249 employees
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2.52B
50 - 99 employees
9.5
1.53B
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5 - 49 employees
Source 2004 Enterprise Market Sizing
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Lines Installed All Technologies
Lines
Source InfoTech 2Q05 Report
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What Does IP Convergence Provide the End-user?

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Greenfield VoIP Install Cost Effective
Opportunity

• Cost to deploy VOIP shared with start up expense
• Shared data and communications cabling could
  reduce cost

Blank Slate
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The Big Question

• VoIP makes sense for Greenfield deployments but
  what about replacing an existing solution?
• Maybeit depends on the additional benefits

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VOIP UpgradeDoes the End Justify the Means?
Applications

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Killer Applications????

• Reduced communications costs
• Corporate decentralization
• IP Networking
• International VoIP calling
• Reduced office space
• Remote employees
• hoteling

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Killer Applications???

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

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APPLICATIONS
BENEFITS
Success
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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.
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VOIP UpgradeDoes the End Justify the Means?
Must associate value to the benefit to show a
positive ROI
Applications

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Two Types of Benefits

• Direct Benefit
• Quantifiable cost saving or revenue increases
• Indirect Benefits
• Returns not clearly observable, but effects can
  be measured

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Direct Benefits

• Reduce personnel
• Reduce communication cost
• Avoid regulatory fines
• Reduced accounts receivable
• Reduced travel cost

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Indirect Benefits

• Reduce time to manage MAC
• Call center increased customer satisfaction
• Reduced time to do x
• Increase quality of x
• Improved technology management

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Benefit Believability Index
Good

• Direct observation pilot site
• Corporate history
• Surveys
• Case studies
• Educated guess
• Uneducated guess
• Psychic
• Vendor supplied estimates
• Vendor ROI sales calculator

Bad
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Benefit Believability
Direct Saving -Reduction in cost
Believability
10 8 6 4 2 0
Semi-direct Saving -Expected reduction in cost
Indirect Saving -Increase worker productivity
Very Indirect Saving -Increase manager
productivity
Benefit
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How Does The Reseller Make the TDM to IP
Transition?
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Educate, Educate, Educate

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

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Making the transition.

• Embrace the technology
• In-house systems
• Day to day operations
• Vendors must help
• Professional services
• Network assessments
• Vertical market strategy
• Sales assistance

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Value Pie
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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

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Thank You!

• www.iwatsu.com