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Copyright© 2004 Avaya Inc. All rights reserved
Customer Choice ThroughService Provider Hosted Solutions
Denzil SamuelsVice President & General Manager, Service Provider Division
October 12, 2004
On NDA Until Announcement
2Copyright© 2004 Avaya Inc. All rights reserved
Agenda
• The News
• Target Market
• Market Opportunity
• Hosted Solutions for Service Providers
– IP Telephony
– Contact Center
• Customer Case Study
• Complete Support Programs for Service Providers
• Product Roadmap
3Copyright© 2004 Avaya Inc. All rights reserved
What’s NewSP Delivered Solutions Expand Customer Choice
• New product portfolio for network service providers, outsourcers, and system integrators
– Market-leading Contact Center and IP Telephony solutions
– Messaging solutions (coming ’05)
• Industry-standard bladed server as hosted platform
• New business model (Build, Finance, Manage & Market)
• Unique ‘pay-as-you-go’ usage based pricing model
• Best-of-breed solutions targeted at mid market
• Service provider customers Include Sprint, France Telecom, Telecom Italia, PLDT, TeleTech, Allstream, Sitel
• Available now in North America, Western Europe, A/P
Offering customers path, pace and choice
4Copyright© 2004 Avaya Inc. All rights reserved
Market Opportunity
Hosted IPT, CC and Messaging Markets
Regional View
2004 2007
North America 43% 41%
EMEA 35% 29%
Asia-Pacific 18% 25%
LA/RoW 4% 5%
64%Total HIPT, HCC, HM
28%Hosted Messaging
78%Hosted Contact Center
107%Hosted IP Telephony
04-07 CAGRSegment
0
1000
2000
3000
4000
5000
6000
HM Vendor 718 740 869 1086 1523
HCC Vendor 73 157 376 666 881
HT Vendor 104 335 1205 2263 2992
2003 2004 2005 2006 2007
$ M
illi
on
s
Source: Avaya analysis based on various industry reports
5Copyright© 2004 Avaya Inc. All rights reserved
Service Provider Business DriversFocus on Global Tier 1 Service Providers
Engender CustomerLoyalty/Retention
ReduceRisk
Drive Net NewRevenues
Utilize ExistingBandwidth and Infrastructure
Maximize Revenue/SquareFt of Data Center Space
6Copyright© 2004 Avaya Inc. All rights reserved
End Customer Target
TargetCustomers
TargetCustomers
BusinessDrivers
BusinessDrivers
Benefits ofSP Hosted Solutions
Benefits ofSP Hosted Solutions
Mid-Market Enterprises
($200M - $1B in Revenues)
Large Enterprises With Multiple Branch Locations
Mid-Market Enterprises
($200M - $1B in Revenues)
Large Enterprises With Multiple Branch Locations
Increasingly Distributed
Workforce
Need to Improve
Employee and Agent
Productivity
Over-Burdened
IT Staff
Need to MinimizeCapital Spend
Predictable Monthly IT
Costs
Speed to Market
Increasingly Distributed
Workforce
Need to Improve
Employee and Agent
Productivity
Over-Burdened
IT Staff
Need to MinimizeCapital Spend
Predictable Monthly IT
Costs
Speed to Market
Turn-key Market
Leading Solutions
‘Pay-as-you-use’
No Major Capital Outlay
Rapid Deployment
No Technology
Obsolescence
Disaster / Recovery, Redundancy & Security
Seamless Functionality
To Multiple Locations
Turn-key Market
Leading Solutions
‘Pay-as-you-use’
No Major Capital Outlay
Rapid Deployment
No Technology
Obsolescence
Disaster / Recovery, Redundancy & Security
Seamless Functionality
To Multiple Locations
7Copyright© 2004 Avaya Inc. All rights reserved
Service Provider Hosted IP Telephony
IP “Cloud”For Voice and Data
PSTN
AvayaIntelligentEnd-UserDevices
MobileWorkerMobileWorker
RemoteWorkerRemoteWorker
Service Provider IPNetwork Services
BranchOffice
BranchOffice
HeadquartersHeadquarters
PSTNPhone
AvayaConferencing
AvayaConferencing
AvayaTelephony
AvayaTelephony
AvayaMessaging
AvayaMessaging
Avaya Brings• IP Telephony applications• Carrier engineered and
tested configurations• Management, Maintenance
& Provisioning Services
SP Brings• WAN services• Hosting facilities• Hosting services (optional)• Billing for services
ServiceProvider
Distributed Workers & Locations on same Platform
Network Infrastructureand Services
Hosted IP Telephony Infrastructure
8Copyright© 2004 Avaya Inc. All rights reserved
Service Provider Hosted Contact Center
“The Cloud”
8xx Voice Services
IP Transport Service
GlobalInternet
EnterpriseCustomer #1
BranchOffice
BranchOffice
RemoteWorkerRemoteWorker
AgentsAgents
RemoteWorkerRemoteWorker
AgentsAgents
EnterpriseCustomer #2
Distributed Agents RemainEmployees of the Business
Network Infrastructureand Services
Hosted ContactCenter Infrastructure
DataCenter
Avaya Brings• Multi-channel contact center
& telephony applications• Engineered and tested
configurations
SP Brings• Broadband and Voice
services• Professional services• Billing for services
ServiceProvider
9Copyright© 2004 Avaya Inc. All rights reserved
France Telecom and Avaya HCC Maximize Customer Service
France Telecom’s customer:• Multi-national catalog retailer
Goals:• Create a virtual call center by consolidating two in-house and two outsourced
sites, all geographically dispersed within and outside of France• Investment protection and flexibility for growth
Solution• Avaya Hosted Contact Center solution from France Telecom
Results• Reported decrease in customer waiting time• 40% decrease in lost calls rate• Dynamic call dispatching for more efficient call management• Better allocation of agent resources • High security level• Easy to link new sites and develop new products
10Copyright© 2004 Avaya Inc. All rights reserved
• Strategic Go-To-Market Planning
• Train SP Sales and Engineers• Joint Demand Generation &
Selling• Bundled with Avaya Global
Services• Assess-Design-Implement-
Maintain• Managed Services
are Optional• Equipment Installed
at SP Data Center• Usage-Based Pricing• Priced for Mid-Market• Constructed in SP Labs• Avaya Labs-Certified for
Interoperability• Service Provider Deployment
Tools
• Construct Solution in SP Labs
• Avaya Labs-Certified for Interoperability
• Service Provider Deployment Tools
BUILD
• Minimal Capital Expenditure
• Usage-Based Pricing• Priced for Mid-Market• Constructed in SP
Labs• Avaya Labs-Certified
for Interoperability• Service Provider
Deployment Tools
• Bundled with Avaya Global Services
• Assess-Design-Implement- Maintain
• Managed Servicesare Optional
• Equipment Installedat SP Data Center
• Usage-Based Pricing• Priced for Mid-Market• Constructed in SP Labs• Avaya Labs-Certified for
Interoperability• Service Provider
Deployment Tools
Complete Support Programs
Enabling a NetNew Business forService Providers
11Copyright© 2004 Avaya Inc. All rights reserved
SP Delivered Solutions Product Roadmap
Network ElementManagement Automation
Techniques
Seamless Networking Across NAT
Shared Server Platform
Usage Mediation
End UserSelf -Administration
ProvisioningManagement
Hosted Web IVR Portals
Carrier GradeMedia Management
Shared MediaProcessing Services
Feature ServerApplications Extensions
OSS/BSSManagement Platform
Hosted Messaging
Hosted IP Telephony
Hosted Contact Center
OSS/BSSManagement Platform ph 1
Carrier GradeNetwork Routing
Vertical Applications
12Copyright© 2004 Avaya Inc. All rights reserved
In Summary
• Avaya is taking its market-leading Contact Center and IP Telephony solutions to a new market, in a new way
– Solving business challenges and enabling a net new revenue stream for service providers
– Introducing a unique business model for the service provider
– Delivering enterprise-class solutions to the mid-market
• A significant channel for Avaya
– Driving global growth for Avaya
– Penetrating the mid-market
13Copyright© 2004 Avaya Inc. All rights reserved
Official Convergence Communication Providerfor the 2002 and 2006 FIFA World Cup™
FIFA Women’s World Cup USA 2003
Copyright© 2004 Avaya Inc. All rights reserved
Back-up Slides
15Copyright© 2004 Avaya Inc. All rights reserved
Hosted IP TelephonyTelephony Applications as a Network-Based Service
• Avaya IP Telephony Solution at the SP Data Center– Avaya Communication Manager
– Avaya Media Servers (S8700) for customers with more than 500 users
– IBM Blade Server for customers with less than 500 users
• Avaya IP Telephony Solution at the SP Data Center and/or on theCustomer Premises
– Avaya Gateways (G350, G650, G700)
– Avaya IP Phones
• Bundled with Avaya Assessment, Implementation and Maintenance Services
– Option of adding managed services (Move, Add, Change; Performance Management; Capacity Management and Reporting)
• Provides Phased Migration, Highest Level of QoS, Robust Reliability and Security, Rich Functionality
16Copyright© 2004 Avaya Inc. All rights reserved
Hosted Contact CenterContact Center Solution as a Network-Based Service
• Avaya Hosted Contact Center Solution at the SP data center offers full Avaya call center functionality
– Avaya Communication Manager (700+ features)
– Avaya Servers (S8700), Media Gateways (G650, G700), and IBM blade server
– Avaya Call Center Elite
– Optional Functionality: IVR, Call Recording, Multi-Channel Contact, CRM application, Network Peering Point
• Bundled with Avaya Global Services– Network Assessment (VoIP), Implementation, Maintenance Services, & software
upgrades
– Option of adding Managed Services (move, add, change; performance management; capacity management and reporting)
• Agents remain employees of the enterprise and can be located anywhere – Ability to integrate outsourced agents into the call flow
• Provides phased migration, highest level of QoS, complete reliability and security, rich functionality
17Copyright© 2004 Avaya Inc. All rights reserved
BuildTested for the Service Provider Environment
• Avaya Labs-Certified Solution Set for Interoperability– Scalable, pre-provisioned, and licensed
– Easily repeatable for rapid deployment
– Engineered for capacity on demand
– Fast way to get to the market = rapid ROI
• All Solutions Are Certified for Service Provider Environment– WAN testing
– IP addressing and domain interoperability
– Interoperability testing with third party components
– Documentation made available to the service provider
– Engineering and third-party products ensure carrier-gradereliability, security
• Service Provider Deployment Tools– Bandwidth calculations
– Operational services and tools for efficienciesto serve multiple customers
18Copyright© 2004 Avaya Inc. All rights reserved
FinanceUnique Usage-Based Pricing Model
• Avaya Solution Equipment Installed at SP Data Center
– Minimal up-front cost to the Service Provider
• Usage-Based Pricing
– Pay for usage
– Pay for functionality
– Minimums apply
– Service Provider flexibility for pricing to customers
• Flat monthly fee or usage-based pricing
– 5-year terms standard, 3 years optional
• Solutions Priced for Mid-Market
– Allowing SPs to offer high-end enterprisefunctionality at mid-market pricing
19Copyright© 2004 Avaya Inc. All rights reserved
ManageService Levels Provide Choice
• Infrastructure readinessfor IP communication apps
Assess
• Design dial plans, vectors, skills, applications
Design
• Project management • Site preparation• Solution deployment• End user materials
Implement
Maintain• Coverage 24/7• Remote tech support • Same day parts
replacement• Software
maintenance & fixes
Avaya ManagedServices Optional
20Copyright© 2004 Avaya Inc. All rights reserved
MarketComplete Go-To-Market Support
• Dedicated Marketing and Sales Resources To HelpService Providers Market and Sell to New Customers
• Strategy, Training and Execution
• Marketing
– Develop complete Go-to-Market Plans with Service Providers
– Implement joint demand generation programs
– Sales tools and collateral development
• Lead Generation
– For Service Providers
• Training and Enablement of Sales Forces
– For Service Provider’s sales and technical staff
– For Avaya sales forces
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