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Remain Competitive & Relevant: UCaaS Disruptive InnovationRami Houbby, VP for UCaaS (EMEA & APAC)

May 2019

#ucexpo

Today’s Discussion

Business Dynamics

Journey to Cloud Comms

Market Opportunity

Case Study: Mitel’s Transformation

1

2

3

4

Business Dynamics

Top Items: Productivity, Cloud and Workplace

Reducing operational

costs

Improving workforce

productivity

Improving quality of

products & processes

Increasing profitability

Increasing business

growth

Cloud

Mobility

Managed Services

Collaboration

Analytics

Budget constraints

Mobility security

Data protection / recovery /

business continuity

Cloud orchestration /

integration

Workplace

transformation

Top MidmarketBusiness Issues

Top MidmarketIT Priorities

Top MidmarketIT Challenges

01

02

03

04

05

Rank

4

The world of

COLLABORATION

is expanding

Vision /

Light

Electro-

magnetic

Motion

/ Speed

Chemical

Temperature

Humidity

Proximity

Acoustic

DIGITAL TRANSFORMATION

is driving change

Two Main Dynamics in Market

DIGITAL TRANSFORMATION

REWIRINGToday’s Business

STRATEGY

CHANGINGHow Customers

INTERACT

People

Things

Data

80% of Global Workforce Works Without a Desk

Agriculture, education, healthcare, retail, hospitality, manufacturing, transportation, and construction

industries employ 2.7B employees.

Agriculture 858M

Manufacturing 427M

Retail 497M

Healthcare 148M

Restaurants /

Hospitality 122M

Education 226M

Construction /

Real Estate 265M

Transportation

& Logistics 189M

desklessworkforce2018.com

Journey to Cloud Comms

Not All Cloud are Made Equal: 3 Waves of Cloud Comms

“Dial Tone” PSTN

replacement

1

Mobility and

collaboration

2

Customer analytics

and intelligence

3

WHICH CLOUD?

Customer

On-Premise

Equipment

Public cloud

Hybrid cloud

Private cloudEvery business will move to the cloud but…

By 2021, 90% of IT leaders will not purchase new premises-based UC infrastructure” – Gartner*

* Gartner Magic Quadrant for Unified Communications as a Service, Worldwide. October 2018

The Three Flavours of Cloud Communications

11

UCaaS

• Instance per customer• Leverages virtualization• Compliance & control

Customer-1 Customer-2 Customer-n

Private Cloud

PBX1 PBX2 PBXn

UC

Customer

PBX

Hybrid CloudSingle/Multi-Instance Single Instance

• Bespoke install• Security & compliance• Full control

• Shared services• Quick deployment• Always up to date

PBX

Customer-1 Customer-2 Customer-n

Public CloudMulti-Tenant

Customer Journey to Cloud Communications

• Transition may take time…

• Perceived disruption & cost

• User re-training

• Handset replacement logistics and costs

• Switch-over process

• Impact on productivity

Half Image

Winning the Journey to Cloud

• Enhance fan experience

• Quick and secure communications

• Reduce response times

• Seamless and efficient experience

Omni-Present Customer Experience is Expected

• AI & ML enabling completely

automated experiences

• BOTS/Predictive Scripting

• Enhanced Human-to-Human

experience

• Omnichannel / complete

customer data

Omnichannel CX

Market Opportunity

Disruptive Innovation: Cloud Will Surpass On-Premise in 2021

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2015 2016 2017 2018 2019 2020 2021 2022

Tele

ph

ony E

nd

-user

Spen

din

g

Premise

Cloud

Annual End User Spending

Source: Gartner, Forecast Overview: Unified Communications, Worldwide, 2018 Update – Nov 2018 Segment: Telephony & Messaging

Cloud12%

17

Cloud Communications Momentum Building Up

Source: MZA Hosted Telephony, September 2018; Public Multi-tenant + Public Multi/Single Instance- Calculations based on blended ARPU = $20

EMEA + ANZ PBX market in 2018

Million seats

179m

seats

0 10 20 30 40 50

2018

2023 $10bn

14% CAGR

$5bn

19

Capitalising on the UCaaS Opportunity: Sales Partner Model

• Focus on bringing and registering opportunities and leave rest to us!

• No investment in infrastructure, tech resources, support or operations

MITEL

Fulfilment & Billing

(quotes, demos, orders, billing)

SALES

PARTNER

Introduction

CommissionCUSTOMER

Relationship

Case Study: Mitel

Cloud Disrupts the Entire Supply Chain

21

OTT Players

Collaboration

New Channels

Cloud Giants

Enterprise Comms

DigitalAgency

Multiple Roles of Disruption at Once

The Challenge

• Disruptive Innovation

• Strategic Choices

Disrupt Within: Change & Lead

24

Per

form

ance

The Innovator’s Dilemma, by Clayton Christianson (Adapted by Rami Houbby)

Time

#1 Cloud Globally

#2 UCaaSGlobally

BestPositioned

to Win

Innovation Delivering Results: Market Leader in UCaaS

1.057M

1.662M

618k625k

1.311M

4Q18 Synergy Research Group – UC Market Tracker, UCaaS by Total Subscriber Seats

Visit the Mitel Stand#G112