BroadSoft Connections 2015 Survey

#BSFTConnections

BroadSoft Connections Survey 25 - 28 October 2015

The ‘Future of Work’ From an Industry Leader Perspective

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BroadSoft & Connections Background

>  BroadSoft Connections began in 2001 and is one of the world’s largest cloud communications industry conferences o  Attended by top service providers and industry

leaders - over 1,000 attendees

>  BroadSoft story o  26 of the top 30 global service providers are

customers

o  Service provider customers represent over 70% of world’s business lines, ~ 300 million

o  12 million licenses shipped to date o  Frost and Sullivan estimates 41% market share1

>  Connections 2016: Nov 13 - 16, San Antonio, Texas

1.  Frost & Sullivan, 2015

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Connections 2015: Define the Future

CEO and co-founder Mike Tessler, CMO Taher Behbehani, and CTO and co-founder Scott Hoffpauir kicked off the event and announced:

>  BroadSoft’s “best kept secret” era is over – new focus on brand awareness and cloud communications leadership

>  Service providers remain core sales channel – additional go-to-market support to accelerate cloud transformation

>  Shift in innovation and support beyond technical teams to business buyers and end-user experiences

>  New future of work vision – “Project Tempo” – contextual team collaboration with deep application integration

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Connections 2015: Event Overview

* How our attendees describe Connections

The Stats

1,123 registered attendees

540 service provider attendees

22 customers interested in Project Tempo Beta

100% would recommend Connections to a colleague

3,297 social media interactions

4.9 million social impressions

Fantastic*

Informative Productive Learning Future

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>  New competitors are challenging service providers o  Microsoft enters the service provider business

o  Others are nibbling and dabbling in the UC market … Google, Facebook, etc.

>  Core businesses are under pressure o  Telephony fixed-line business rapidly declining

o  Cellular/broadband growth slowing, margin pressure

o  Churn rates require aggressive management

Threats

Drop in cellular ARPU1

4%

1.  CTIA: U.S. mobile data traffic increased 26% in 2014, but growth rate falls sharply from previous year CTIA Annual State of the Industry Report 2015

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Opportunities

>  Millennials see the cloud as a smart choice

o  New B2C messaging-type and other applications moving into the B2B business environment

>  Large and growing market for service providers

o  Excellent enterprise value proposition reduces complexity/costs and improves mobility/productivity

o  28.3%1 CAGR through 2018 per Infonetics

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Connections 2015 Survey

Cloud UC Will Rapidly Transform Enterprise Communications and Opens Up New Opportunities for Service Providers

>  6x increases in market share across all segments1 (see next page)

>  94% want integrated cloud/premise UCaaS analyst reports

>  94% say cloud/hosted UCaaS will take a top five market share position

>  90% are leading with hosted/UCaaS solutions, only 10% premise

>  82% argue email will be disrupted by team collaboration platforms

>  Over one third of SMB will be 100% mobile UCaaS1

>  28% say BroadSoft will achieve over 50% of their installed base2 1.  Over five years.

2.  Over three years.

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Bigger Than We Imagined!

Cloud UCaaS Becomes a Significant Market Force in All Customer Segments – Including Significant Gains in the Medium and Large Segments

1. MZA

BroadSoft Estimates today – Light color Survey Response Projections – Dark color

Aggregated survey estimates – new lines shipped

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THE RESULTS Future of Work Survey

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Small Businesses Prefer Cloud

Question 1 - Small business (1 – 99 employees):

In five years (2020), what percentage of hosted PBX/UCaaS market share do you believe cloud solutions will

capture?

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Midsized Businesses Embrace Cloud

Question 2 - Medium business (100 – 999 employees):

In five years (2020), what percentage of hosted PBX/UCaaS market share do you believe cloud solutions will

capture?

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Cloud Adoption Will Move “Up Market”

Question 3 - Large business (1,000 +):

In five years (2020), what percentage of hosted PBX/UCaaS market share do you believe cloud solutions will

capture?

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Small Businesses Will Cut the Cord!

Question 4 - Small business (1 – 99):

In five years (2020), what percentage will use 100% mobile/cellular-only Hosted PBX/UCaaS cloud solutions?

Small Business Goes Mobile

A significant number of SMBs will opt for 100% cellular business unified communications solutions, eliminating the need for premise-PBXs

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UC and Mobility Will Become Synonymous

Question 5:

In five years (2020), what proportion of UC interactions will occur on mobile devices?

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The Cloud is Changing How They Sell

Question 6:

What is your strategic, lead, and preferred technology solution strategy?

90% of service providers are leading with hosted PBX/UCaaS solutions

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Service Providers are Bullish on the Cloud

Question 7:

Today’s top UCC/VoIP premise market-share leaders (in order) are Cisco, Avaya, NEC, Panasonic, and Mitel. In your opinion, what market position(s) will cloud

vendors like BroadSoft attain by 2020? Survey respondents believe that hosted

PBX/UCaaS solutions will displace premise-

based vendors as market-share leaders

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We Want One Market View!

Question 8:

Market research currently reports PBX and cloud data separately. Would you like to see an integrated view of

the market that combines PBX and cloud data to highlight the transition to cloud? Combining PBX and

Cloud Data:

94% would like to see an integrated view and see

enterprise communications as one market

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Email – Really!?!?

Question 9:

In your opinion, will email solutions be disrupted by a new generation of users and by enterprise integrated

messaging, team collaboration and communication search tools, e.g. HipChat, Glip, Slack, etc.?

82% believe new messaging and team collaboration tools will diminish email’s role as the primary messaging tool

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Cloud Rules!

Question 10:

What approach do you consider your biggest strategic threat?

Service providers believe that emerging cloud communications solutions and vendors are their biggest competitive threats

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Banking on BroadSoft!

Question 11:

In three years’ time, what percentage of your installed business base will BroadSoft Hosted PBX/UCC services

represent (users)?

BroadSoft will power significant portions of their installed base’s hosted PBX/UCaaS services

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Find out more …

>  BroadSoft Connections 2015 website

>  BroadSoft recent press releases

>  Project Tempo

>  BroadSoft recent blogs

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Are you ready to make the most of emerging communication trends?

BroadSoft’s next-generation cloud communication and collaboration solutions

unleash benefits that can ripple across the value chain to help Communication Service Providers capture market share, reduce churn and build their bottom line.

Interested in learning more?

Contact us at:

info@BroadSoft.com

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ADDENDUM

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Connections 2015 Survey: Respondents

~11% of 1,123 Survey Respondents

74%

15%

11%

Service Provider

Sponsor

Other (enterprises, resellers etc.)

25%

9%

7%

59%

EMEA

APAC

CALA

NA

8%

20%

9%

7% 28%

12%

16% C-Level

Director

Vice President

Department Head

Manager

Engineer

Other

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Connections 2015: Select Attendees

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Connections 2015: Sponsors

Silver

Event

Platinum Plus

Platinum

Gold