Maximizing Your Investment in the Cloud: How to Find the Right Mix for Your Customer Base Tuesday, September 24, 2013 1:30-2:15 p.m. PLEASE SILENCE YOUR CELL PHONES THANK YOU! Moderator: Jim Hintze, Vice President, Business Development, BTI Systems Speakers: Dawane Young, Division Vice President, Strategic Solutions, Verizon Global Wholesale William Birnie, CMO, Alteva Michael M. Hou, Senior Vice President and General Manager of Wholesale, Broadview Networks Cloud World Realties & Opportunities  Cloud market is competitive & price drops are a regular occurrence  5 Cloud Providers own 75% of the IaaS market  Customers for cloud services look to Cloud Providers for – Scale / reliability – Time To Market (TTM) – Strategic partner  Providers need to differentiate with: – Fast provisioning – Granular reporting – API integration – Across-cloud connectivity – Or focus on specific applications, locations or vertical markets 4 Company Confidential. Distribution of this document is not permitted without written authorization. It’s Also A Colo ‘Eat’ Colo World!  Colocation Providers need to leverage their: – DCI for joint customer and customers’ customer marketing – Reduce cost for customers by covering last mile connectivity – Provide proximity to leading providers like Amazon, Government, Financial organizations, MSOs, content providers, cloud providers and service providers – Enable a portal to these customers for business and partner revenue potential 5 Company Confidential. Distribution of this document is not permitted without written authorization. Case Study – Content Service Provider Background N.A. Metro Major cloud company building own network for cost & control, connecting data centers, hosting facilities, access & peering points in main metros Problem Long-Haul Need low latency data center interconnects supporting massive scale to keep up with traffic growth; space & power constraints Solution BTI 7800/7000 cloud network solutions deliver massive scale, low latency, smallest footprint. Repeat deployments plus future router bypass, valuable analytics & application-awareness 6 APAC Metro Eye Ball Network Mobile & Desktop Access Company Confidential. Distribution of this document is not permitted without written authorization. Case Study – Leading Pure-Play Managed Hosting Provider Background Managed Service Solution Major hosting company connecting cloud data centers & carrier hotels Major Metro Managed Service Problem Need to increase performance, quicken time to revenue & ensure high availability to deliver superior service levels to large enterprises in metro area – build vs. lease Nx10G wavelengths BTI Solution >60% Savings Over 3 Years Equating To $7M Solution BTI 7000 cloud data center solution integrates seamlessly with routers to deliver better scale/capacity, simplify operations, rapid service turn up, migration to 100G, improved ROI (vs. managed service). Expansion plans in London, Sydney, Americas… 7 Company Confidential. Distribution of this document is not permitted without written authorization. Major Metro Nx10G wavelengths Case Study – Leading Hosting Provider Background Singapore Major hosting company connecting growing numbers of data centers Today Problem Data centers are full, need to increase number of data centers in the metro as business grows. Interconnect and protection are key ROADMS installed at both sites for future ring expansion Solution BTI 7000/7800 ROADM solution is non-disruptive, and integrates new data center seamlessly because ring topology was created at beginning. Routers already perform only gateway function. Additional expansion in Tokyo and Americas planned. 8 Company Confidential. Distribution of this document is not permitted without written authorization. 2013 Nx10G wavelengths Maximizing your Cloud investment Dawane Young Division Vice President, Strategic Solutions, Verizon Global Wholesale Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. PROPRIETARY STATEMENT This document and any attached materials are the sole property of Verizon and/or Terremark and are not to be used by you other than to evaluate Verizon/Terremark services. This document and any attached materials are not to be disseminated, distributed, or otherwise conveyed throughout your organization to employees without a need for this information or to any third parties without the express written permission of Verizon and/or Terremark. © 2011 Verizon. All Rights Reserved. The Verizon and Verizon Business names and logos and all other names, logos, and slogans identifying Verizon’s products and services are trademarks and service marks or registered trademarks and service marks of Verizon Trademark Services LLC or its affiliates in the United States and/or other countries. All other trademarks and service marks are the property of their respective owners. Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 10 What are the Goals of most cloud customers? • • • • Simplify Physical Infrastructure Eliminate Manual Processes Reduce unnecessary Dependencies Maximize the return-on-investment (ROI) of their IT infrastructure Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 11 Cloud Computing: Types of Cloud Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 12 Cloud Computing: Deployment models • Public Cloud: • • Private Cloud: • • Services offered over the Internet or over a private internal network to only select users, not available to the general public Internal Cloud: • • Services offered over the public Internet and available to anyone who wants to purchase the service. In general these are credit card based transactions. A type of private cloud whose services are provided by an IT department to those in its own organization Hybrid Cloud • A Cloud environment that includes multiple integrated internal and/or external providers Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 13 How do you maximize your investment in the cloud? + Applications Value Solutions / Bundles Connections Connect people, machines and information. Increase mobile worker productivity. Erase boundaries between data and people. Incorporate machine data into business decisions. Expertise Vertically-oriented Horizontal Solutions Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 14 Verizon Enterprise Platforms Vertical Applications and Solutions Applications Developers / Partners Machine-toMachine Commerce Engine (Store) Healthcare Analytics Enrichment Professional Services Connect & Compute Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 15 Maximizing Your Investment in the Cloud William K. Birnie Chief Marketing Officer 16 Agenda • Alteva at a glance • What is the Cloud? • Why the Cloud? • Cloud UC or UCaaS? • UC Benefits: UC Effects on Productivity and Revenue ©2013 Alteva. All Rights Reserved. Alteva Value Proposition • Experience • Resilient Cloud Services • Resilient, Reliable & Scalable • • • Architecture – BroadSoft / Microsoft / & Hybrid Cloud Methodology – Best Practice Continuous Workplace – BC / DR • True UC – BroadSoft & Microsoft • Increase Revenue – Best of Both Worlds • Pre & Post Sale Excellence 18 ©2013 Alteva. All Rights Reserved. What is the Cloud? Massively scalable IT-related capabilities are provided “as a service” to multiple external users via the Internet or large-scale private networks. Infrastructure ● Applications ● Delivery Increases capabilities without investing in new infrastructure, training personnel or buying a software licenses. ©2013 Alteva. All Rights Reserved. Why the Cloud? • DR / Continuous Business • Future-Proof • Highly Scalable • Anywhere Access • Low Upfront Cost • Shift IT from Cost Center to a Profit Center • Shift IT from Reactive to Proactive CHALLENGE – Only as good as ... Architecture, Applications, & Delivery ©2013 Alteva. All Rights Reserved. Evaluating Hosted VoIP Providers Evaluate the Hosted VoIP provider 21 How You connect ©2013 Alteva. All Rights Reserved. Understand Your LAN The Changing Landscape Business owners face increasing and ever changing threats: • New virus attacks • Hackers • SPAM • Disgruntled employees • The unimaginable……….. • Katrina emergency preparation and planning was based on a Category 3 Hurricane. WHAT IS THE COST? 22 ©2013 Alteva. All Rights Reserved. Site Specific & Virtual Recovery Site Specific and Virtual Recovery Inbound DID routing Call is placed Emergency Recovery Center, emergency declared and Emergency Recovery Center initiates your Business Continuity Plan. Local service provider Corporate Site Down Alternate Site(s) Managed VoIP Switch Home Phone Cell Phone 23 IP Phone Access Anywhere HighSpeed Internet is Available ©2013 Alteva. All Rights Reserved. The Real Need • Multi-tenancy • Simultaneous call quantity • Carrier class network and design • Network built to reduce latency • Designed for disaster recovery • Highly advanced features and functionality • Open SIP platform 24 ©2013 Alteva. All Rights Reserved. What You Need to Know • What type of switch are you using? • What is your switch capacity? • What release are you on? What is the current release? • Where are switches located? Get Specifics. • What is the disaster recovery plan? • How does your platform handle latency / QoS? • Ask about RTP ( Voice ) stream path. • Does your company use open standards? • Can you build applications around the platform? 25 ©2013 Alteva. All Rights Reserved. Think About Your LAN Cable issues • What is the cabling to the phone location? • Do have one or two drops per desk? • Data Drop needs to be Category 5 or better Switching Requirements • Managed LAN switches are recommended • VLANs • PoE Firewall Issues 26 ©2013 Alteva. All Rights Reserved. Behavioral Revenue Savings from UC EMPLOYEE ACTIVITY MINUTES SAVED Daily REVENUE IMPACT PER USER (ANNUALLY) Reach co-worker 1st Time 32 Minutes * $4,333 Stay Connected Anywhere 42 Minutes * $5688 5 Minutes * $677 Communicate simultaneously 10 Minutes * $1354 Unified Messaging – Voice Fax Email – Via Outlook 52 Minutes * $7042 Collaborate Easily with Sharing 15 Minutes * $2031 1 DAY $40K TO $120K Move to UC first time CFO REPORT ** $8,000 Integrate Resilient Voice w/UC CFO REPORT ** $1,000 Enable via using True UC Ideal Connection Method STAY UP Sources: Forrester Research, Sage Research, Hewlett Packard, Microsoft, Cisco * User Interviews ** CFO reports ©2013 Alteva. All Rights Reserved. Unified Communications as a Service (UCaaS) • UC = an integrated set of voice, data and video communications applications, all of which leverage PCand telephony-based presence information • A Cloud UC solution involves the delivery of pre-integrated networkbased UC applications. • UC solutions simplify communications for end users by giving them ubiquitous access to various tools = the “any” mantra – anywhere, anytime, any device, any network, etc. Data PC and Telephony Presence Voice • Key – They need to be resilient Video UC Applications Source: Frost & Sullivan analysis ©2013 Alteva. All Rights Reserved. The Network • • • • Built on Level 3 (The Internet backbone) 4 Broadsoft Switches Paired for Redundancy Gateways through-out the United States ©2013 Alteva. All Rights Reserved. Features & Functionality • Do you need Fixed Mobile convergence? • What types of services do I need? • Mobility? • Soft Phones? • How do I handle SOHO users? • What model phone should I use? • What advance features do I need? • 30 Examples: Call center, Hunt Groups, Call Flow, Receptionist, etc. ©2013 Alteva. All Rights Reserved. Future Proof • Have you considered UCaaS? • What about video? • How are smart phones continuing to settle in? • What about SIP trunks? • Can I blend services? • How can I be sure I am up to date? 31 ©2013 Alteva. All Rights Reserved. WHAT ARE THE BASIC OPTIONS? Option Description Agent Sell another company’s cloud service and network, under their brand. Build Your Own Develop majority of the components necessary to operate cloud services in your network, under your brand. License License majority of the components necessary to operate cloud services in your network, under your brand. White Label Sell another company’s cloud service and network, under your own brand. Many go to market with a blend of the above depending on core competencies and target markets. © Broadview Networks 33 AGENT Sell another company’s cloud service and network, under their brand.  Pros     What Matters Most? Rapid speed to market Low capital requirement Leverage brand equity and operations     Cons    Lower revenue (commissions) Need to build brand loyalty thru other value add services No/little control over roadmap  © Broadview Networks Experience/Reputation References Expertise Feature sets Product roadmap 34 BUILD YOUR OWN Develop components necessary to operate cloud services in your network.  Pros      Highest income/margin Sticky/loyal user base Direct control over roadmap Retail and Wholesale Channel What Matters Most?      Cons  In-House Expertise  Speed to market Capital intensive Ongoing R&D expense  © Broadview Networks Development Engineering Support Marketing 35 LICENSE License components necessary to operate cloud services in your network.  Pros      What Matters Most? High income/margin Sticky/loyal user base No ongoing R&D expense Speed to market    Cons   In-House Expertise  No direct control over roadmap Capital intensive   © Broadview Networks Engineering Support Marketing Experience & Expertise Technology/Roadmap 36 WHITE LABEL Sell another company’s cloud service and network, under your own brand.  Pros       High income/margin Sticky/loyal user base Less drain on resources Speed to market Low capital requirement What Matters?      Cons   Limited product control May compete with provider Vendor experience Vendor’s expertise   © Broadview Networks Development Engineering/Operations Support Marketing Technology/Roadmap 37 OPTIONS TO GO TO MARKET Option Agent Build Your Own License White Label Speed Profits Complexity Control Capital $ VERY EASY NONE $ $$$$ VERY HARD TOTAL $$$$ $$$ HARD SOME $$$ $$ EASY VARIES $ Loyalty Many go to market with a blend of the above depending on core competencies and target markets. © Broadview Networks 38 WHICH OPTIONS WORK BEST FOR YOU?  What are your customers expecting? Analyze your target market and ask what really matters to them!  What are your core competencies? Look deep and determine what are your strengths and areas you want to improve and invest in     Agent model for non core competencies Build on core competencies License/White Label anything that is adjacent How much are you willing to invest? Review/analyze long term market trends and studies © Broadview Networks 39 Speaker Contact Information: Jim Hintze, jhintze@btisystems.com Dawane Young, dawane.young@verizon.com William Birnie, wbirnie@alteva.com Michael M. Hou, mhou@broadviewnet.com THANK YOU FOR ATTENDING!