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January 23-26, 2007• Ft. Lauderdale, Florida
TMC University’s Introduction to the IP-PBXReaping the Benefits of the IP PBX
Leigh Fatzinger, VP MarketingCitel. The VoIP Migration Company.citel.com
January 23-26, 2007• Ft. Lauderdale, Florida
Agenda
In this session:• What is an IP PBX (and what isn’t)?• What are the Benefits?• Lease versus Buy• Deployment Considerations
• What we won’t cover in this session:– Telling you what to buy– Technical details in depth
January 23-26, 2007• Ft. Lauderdale, Florida
What is an IP PBX?
• A software application on an server.• The directory service and traffic controller
between “endpoints”.– An endpoint can be a telephone (of many kinds), a
handset gateway, device (e.g. PSTN trunk gateways), or another application (I.e: voice mail).
– Critical distinction ⇨ the media stream (the voice) does not flow through an IP PBX.
January 23-26, 2007• Ft. Lauderdale, Florida
What is a PBX?
TDM PBX
Challenges:Not open.Little room for innovation.
Not driven by software.
Trunk CardsStation Cards
Software
Media Network
TDM PBX
PSTNPSTNTrunks
January 23-26, 2007• Ft. Lauderdale, Florida
What is an IP PBX?
PSTN
PSTN
IPPBX
Trunk Gateway
Trunks
IP PBX Software(w/ Applications)
LAN
1010
Trunk CardsStation Cards
Software
Media Network
TDM PBX
PSTNPSTNTrunks
TDMPBX
Open it up! Innovate!Set the software free!
1010
January 23-26, 2007• Ft. Lauderdale, Florida
What is an IP PBX?
Trunk CardsStation Cards
Software
Media Network
TDM PBX
PSTNPSTNTrunks
TDMPBX 1010 Open it up! Innovate!
Set the software free!
IP PBX
Trunk Gateway
Trunks
IP PBX Software(w/ Applications)
PSTNPSTN
LAN
1010
Media Network
Handset Gateway
January 23-26, 2007• Ft. Lauderdale, Florida
What an IP PBX is not.
VoIP ≠ IP PBX
“PC PBX” (Cards in a Server) ≠ IP PBX
TDM PBX with IP Trunk Cards ≠ IP PBX
TDM PBX with IP Station Cards ≠ IP PBX
January 23-26, 2007• Ft. Lauderdale, Florida
What an IP PBX is not.
VoIP ≠ IP PBX
“PC PBX” (Cards in a Server) ≠ IP PBX
TDM PBX with IP Trunk Cards ≠ IP PBX
TDM PBX with IP Station Cards ≠ IP PBX
An IP PBX is a software application on a server.
Critical distinction ⇨ the media stream (the voice) does not flow through an IP PBX.
January 23-26, 2007• Ft. Lauderdale, Florida
Agenda
In this session:• What is an IP PBX (and what isn’t)?• What are the Benefits?• Lease versus Buy• Deployment Considerations
• What we won’t cover in this session:– Telling you what to buy– Technical details in depth
January 23-26, 2007• Ft. Lauderdale, Florida
What are the Benefits?
• Lower Operating Cost• Scalability and Disaster Recovery• Geographic Flexibility• Next-Generation Features
January 23-26, 2007• Ft. Lauderdale, Florida
What are the Benefits?
Lower Operating Costs
Reduced LD Opex• Pass calls over Internet or WAN between sites• Route traffic over WAN to area of lowest rates• Get cheap LD from an IP Carrier
January 23-26, 2007• Ft. Lauderdale, Florida
What are the Benefits?
Lower Operating Costs
Reduced LD Opex• Pass calls over Internet or WAN between sites• Route traffic over WAN to area of lowest rates• Get cheap LD from an IP Carrier
Reduce number of business lines• Share trunks among sites (or centralize them)• Pay for a full T-1 plus 2 backup trunks per site
(instead of 6-8 trucks per site)
January 23-26, 2007• Ft. Lauderdale, Florida
What are the Benefits?
Lower Operating Costs
Cheap long distance• Pass calls over Internet or WAN between sites• Route traffic over WAN to area of lowest rates• Get cheap LD from an IP Carrier
Reduce number of business lines• Share trunks among sites (or centralize them)• Pay for a full T-1 plus 2 backup trunks per site
(instead of 6-8 trucks per site)
Lower administration cost (esp. MAC)• Web-based administration means less training cost• Allows remote and centralized administration• Enables user self-administration
January 23-26, 2007• Ft. Lauderdale, Florida
What are the Benefits?
Scalability and Disaster Recovery
Software inherently more scalable• Not limited by cabinet size for lines and trunks• More devices can be added as needed• Not limited by PBX processor capacity
• Clustered servers can add scale (like web sites)
January 23-26, 2007• Ft. Lauderdale, Florida
What are the Benefits?
Scalability and Disaster Recovery
Software is inherently more scalable!• Not limited by cabinet size for lines and trunks• More devices can be added as needed• Not limited by PBX processor capacity• Clustered servers can add scale (like web sites)
Mirrored servers can be miles apart• Same technology used for www and FTP• If one server goes down, devices “scramble” to another
server and overall service stays up
January 23-26, 2007• Ft. Lauderdale, Florida
What are the Benefits?
Geographic Flexibility
No 2500 foot wire length limit• Both signaling (“features”) and media (voice) are passed
over IP at any distance• Phones and other devices all over the city and around the
world can work as a single network• Single dialing plan, central administration, shared
resources and applications, etc.
January 23-26, 2007• Ft. Lauderdale, Florida
What are the Benefits?
Geographic FlexibilityNo 2500 foot wire length limit• Both signaling (“features”) and media (voice) are passed over IP
at any distance• Phones and other devices all over the city and around the world
can work as a single network• Single dialing plan, central administration, shared resources and
applications, etc.
This enables several other benefits:• Reduced LD opex• Mobility and Telecommuter Support• Disaster recovery• Hosting becomes a viable option
January 23-26, 2007• Ft. Lauderdale, Florida
What are the Benefits?
Improved FeaturesDefinition of a “Feature”
• Dial tone, Make/Take Calls (DID/DOD)• Music-on-hold, Paging, DND• Caller ID, MWI, Multiple Line Appearances• Call Forwarding, Bridged Lines, BLF
☞ Traditional PBXs Stuck Here
January 23-26, 2007• Ft. Lauderdale, Florida
What are the Benefits?
Improved FeaturesHold, Transfer, ConferenceMusic-on-hold, Paging, DNDCaller ID, MWI, Multiple Line AppearancesCall Forwarding, Bridged Lines, BLF☞ Traditional PBX Stuck Here
Next-Generation Features• Call Logs, Directory Dialing• Instant Messaging• Telecommuting, Simul-Ring• Computer - Telephone Integration (CTI - a bundle)• Unified Messaging (an application)
☞ IP Telephony Enables All These
January 23-26, 2007• Ft. Lauderdale, Florida
Computer Telephony Integration
Desktop, Laptop and Handset Work In Tandem:
• Click-to-Dial• Call Logging• Call recording• Incoming Call Pop• Visual Call Control
January 23-26, 2007• Ft. Lauderdale, Florida
Unified Messaging
Single System for Voice, Fax and Email
• See All Mail in One In-Box• Listen to Voice Mail via PC• Hear Email via Phone• Respond to Voice Mail with Email and vice versa
(reduce call-backs!)• Forward and Folder Voice Mail with Email
January 23-26, 2007• Ft. Lauderdale, Florida
Web-Based Administration
PBX Administration Can Be Opened to Broader Group
• Reduce Training for PBX Administration• Customer Self-Administration for Moves, Adds,
Changes.• User Self-Administration (speed dial programming,
call routing capabilities)• Combined Administration of PBX, LAN, Email…
January 23-26, 2007• Ft. Lauderdale, Florida
Home Office/Branch Support
Enable PBX handsets to be deployed over IP
WAN or Internet.
• Part or Full-Time Telecommuters• Small Branch Office to Metro Hub• Distributed Call Center• Toll By-Pass• Coordinated Dialing Plan
January 23-26, 2007• Ft. Lauderdale, Florida
Eventually, you’ll want all these:
• Computer Telephone Integration (CTI)• Unified Messaging• Telecommuter / Branch Office Support• Web-based Administration
You can do all these on a TDM PBX…
…at a price
January 23-26, 2007• Ft. Lauderdale, Florida
Next-Gen Features on TDM
TDM PBX
PSTNPSTNCircuit Trunks
1010
January 23-26, 2007• Ft. Lauderdale, Florida
Next-Gen Features on TDM
TDM PBX
PSTNPSTN
CTIAdaptor
Circuit Trunks
1010
Add CTI: $250-$500 per user
January 23-26, 2007• Ft. Lauderdale, Florida
VoiceAdaptors
UM Server
Next-Gen Features on TDM
TDM PBX
PSTNPSTN
CTIAdaptor
Circuit Trunks
1010
Add UM: $200-$400 per user
January 23-26, 2007• Ft. Lauderdale, Florida
Next-Gen Features on TDM
TDM PBX
WAN or
VPN
WAN or
VPN
IP Trunk Adaptor
Branch PBX / KTS
PSTNPSTN
VoiceAdaptors
UM Server
CTIAdaptor
IP T. A.
Circuit Trunks
1010
Add VoIP Toll Bypass: $xxK
January 23-26, 2007• Ft. Lauderdale, Florida
Next-Gen Features on TDM
TDM PBX
WAN or
VPN
WAN or
VPN
IP
IP Trunk Adaptor
RAABranch PBX / KTS
PSTNPSTN
VoiceAdaptors
UM Server
CTIAdaptor
IP T. A.
Circuit Trunks
Remote Access
1010
Add Telecommuter Support
January 23-26, 2007• Ft. Lauderdale, Florida
Next-Gen Features on TDM
TDM PBX
WAN or
VPN
WAN or
VPN
IP
IP Trunk Adaptor
RAABranch PBX / KTS
AdminServer
PSTNPSTN
VoiceAdaptors
UM Server
CTIAdaptor
Circuit Trunks
AdminLink
Remote Access
1010
Add Web-based Admin
IP T. A.
January 23-26, 2007• Ft. Lauderdale, Florida
Next-Gen Features on TDM
TDM PBX
What’s wrong with this picture?
Will this work?
WAN or
VPN
WAN or
VPN
IP
IP Trunk Adaptor
RAABranch PBX / KTS
AdminServer
PSTNPSTN
VoiceAdaptors
UM Server
CTIAdaptor
IP T. A.
Circuit Trunks
AdminLink
Remote Access
1010
January 23-26, 2007• Ft. Lauderdale, Florida
Trunk Gateway
Trunks
IP PBXPlusApplications
PSTNPSTN
LAN
LANWAN or
VPN
WAN or
VPN1010
1010
1010
1010
Next-Gen Features in IP
• Software can be spread across many devices.• One Company doesn’t have to make all the elements.• Different elements can be places anywhere.
PC soft phone from Microsoft, Handset Gateway from Citelphones from new IP PBX vendor, plus your old phones.
January 23-26, 2007• Ft. Lauderdale, Florida
What are the Benefits?
• Lower operating cost• Scalability and disaster recovery• Geographic flexibility• Next-generation features
These all stem from Software Enabling the PBX
Compare the pace of PBX feature development to the pace of Internet feature development.
An IP PBX is a software application on a server.
January 23-26, 2007• Ft. Lauderdale, Florida
If Local LAN Deployment is an Issue:
•User experience maintained•Less customer training•Mix in IP phones as needed•Re-use of phone focuses attention on •IP applications•Existing PBX work force can be leveraged
A Handset Gateway converts your existing PBX telephones into IP phones without doing a LAN upgrade or buying
new phones. Get the benefits of IP telephony at $100/seat
instead of $600.
L A N
IP Phone
Re-use PBX Wiring
Gateway
LAN Server
R
Gateway
January 23-26, 2007• Ft. Lauderdale, Florida
Agenda
In this session:• What is an IP PBX (and what isn’t)?• What are the Benefits?• Lease versus Buy• Deployment Considerations
January 23-26, 2007• Ft. Lauderdale, Florida
Lease versus Buy
An IP PBX is a software application on a server.
You can buy and operate the service yourself…
IP PBX
TrunksPSTN
1010
LANIP PBX Software& Applications
PSTNGateway
January 23-26, 2007• Ft. Lauderdale, Florida
Lease versus Buy
An IP PBX is a software application on a server.
You can buy and operate the service yourself…
or you can “rent” service from an service provider.
TrunksPSTN
1010
LANIP PBX Software& Applications
PSTNGateway
WAN
January 23-26, 2007• Ft. Lauderdale, Florida
Rent versus Buy
An IP PBX is a software application on a server. You can buy and operate the service yourself… or you can “rent” service from anservice provider.
RentLower CapexLower Risk of ObsolescenceNo Server MaintenanceGeographic ReachSLA Guarantees UptimeCombined Billing(Voice/Data)Eliminate PSTN Charges
BuyHigher CapexHigher Risk of ObsolescenceMore Direct ControlMultiple Vendor SelectionUptime is Up-to-YouMultiple Carriers (Voice/Data)Shop for PSTN Deals
January 23-26, 2007• Ft. Lauderdale, Florida
Traditional Centrex Service
• Dedicated wired service from Central Office
• Limited functionality with Analog or proprietary Centrax feature telephones
• All Applications derived from C.O. (Voice Mail, etc.)
L A N
R.B.O.C
Central Office
R
My
Cen
trex
January 23-26, 2007• Ft. Lauderdale, Florida
Hosted IP
L A N
Service Provider
or Central Office
Hosted Applications from Softswitch makers, providing:
Hosted IP using SIPUnified MessagingVoice RecognitionSingle Number Service, Etc.Calls can be re-routed to mobiles
IP Phones
Softswitch
Gateway for PBX Telephones
Traditional PBX Telephones
using existing level 3 cable
R IP Phones
Remote Serving
Location
January 23-26, 2007• Ft. Lauderdale, Florida
Lease versus Buy
Centrex Limitations• Relatively expensive compared to PBX• Limited features compared to PBX• Difficult to provision, long lead times for MAC• Mainly attractive to <10 users or > 2000 users
• Only has 10% - 14% market share vs. PBX
January 23-26, 2007• Ft. Lauderdale, Florida
Lease versus Buy
Centrex Limitations• Relatively expensive compared to PBX• Limited features compared to PBX• Difficult to provision, long lead times for moves, adds,
changes.• Mainly attractive to <10 users or > 2000 users• Only has 10% - 14% market share vs. PBX
Hosted IP Telephony• Costs are leveled (no wires, no class 5 switch)• Features are the same (it’s the same software)• Provisioning and administration are web-based• Expected to win 25% to 50% market share• Do you host your own web servers?
January 23-26, 2007• Ft. Lauderdale, Florida
Lease versus Buy
Centrex Limitations• Relatively expensive compared to PBX• Limited features compared to PBX• Difficult to provision, long lead times for MAC• Mainly attractive to <10 users or > 2000 users• Only has 10% - 14% market share vs. PBX
Hosted IP Telephony• Costs are leveled (no wires, no class 5 switch)• Features are the same (it’s the same software)• Provisioning and administration are web-based• Expected to win 25% to 50% market share• Do you host your own web servers?
January 23-26, 2007• Ft. Lauderdale, Florida
Agenda
In this session:• What is an IP PBX (and what isn’t)?• What are the Benefits?• Lease versus Buy• Deployment Considerations
January 23-26, 2007• Ft. Lauderdale, Florida
Considerations in Choosing
• What are you trying to achieve?– What benefits are driving your decision?
• How will you get there?– Does the solution offer a migration path?
– Can you protect your sunk costs?
• Watch out for hidden costs.– LAN upgrade for QoS and PoE can be costly.
– Make sure the total cost is accounted for.
• Should you buy or rent?– Don’t make a knee-jerk decision on this.
– Hosted IP telephony is a real option.
January 23-26, 2007• Ft. Lauderdale, Florida
Summary
• IP telephony is compelling telephony because of the benefits it brings.
• Don’t be confused by VoIP noise.• Features and applications are the real drivers behind
all PBX telephony. Be clear about what your want in your solution.
• Consider the rent versus buy option, and look for a good migration option.
January 23-26, 2007• Ft. Lauderdale, Florida
For more information, or to speak with a Citel VoIP Migration Consultants:
Email: [email protected]
Free White Paper: www.citel.com/10myths
Toll Free: 1.888.454.7979