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Hosted PBX:
Should You Be A Provider Or A Reseller?
Thursday August 27, 2015
2:30pm ET/ 11:30am PT
Presented By:
Kevin Selkowitz Moderated By:
Peter Bernstein
Unified Communications Platform for Service Providers
Class 4/5 Softswitch Geographic Redundancy Session Border Controller SIP Trunking Feature Server
Mobile App Device Provisioning Recording WebRTC Call Center Applications
Multi-tenant Call Routing Monitoring User Portals Flexible API
www.netsapiens.com | @NetSapiens
My Perspective
https://www.youtube.com/watch?v=6KeG_i8CWE8
Director of Product Management
Previously Director of Business Communication Systems for a Regional CLEC
www.netsapiens.com | @NetSapiens
Trend: SIP is a Growing Market
0
20
40
60
80
100
120
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
CY13 CY14 CY15 CY16 CY17 CY18
Revenue Seats/Trunks
Hosted VoIP, UC & SIP Trunking
Source: Infonetics, 2014
SIP is a growing market.
Voice communication is extremely or very
important
Voice Communications
Planning to look at new phones in the next three
years.
Looking to upgrade because of something
other than saving money.
This is what businesses have to say:
50% 74% 69%
“ “ “
“ “ “
Source: Hanover 2015
Hosted PBX Opportunities The market is wide open!
94%
83% 78% 78%
71%
6%
17% 22% 22%
29%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1 to 4 5 to 19 20 to 49 50 to 99 100+
TDM IPSource: Marketvision 2014
Now is the time to offer HPBX!
Before you take the leap into HPBX
Provider vs Reseller Basics What Does It Really Cost? Pricing Flexibility Amount of Control Staffing Diagnostic Access Quality of Service Redundancy & Reliability
Considerations before choosing a solution.
Provider vs Reseller Basics
Reseller Their Data
Center The software is
controlled by a third party who owns the
software in their data center.
Provider Your Data
Center You control the software and
own/lease it in your data center or a data
center of your choosing.
VS
Provider vs Reseller Basics
Reseller Bundles
Often locked in to their carriers,
supported devices, billing system, etc
Provider Choices
Choice of carriers, devices, billing systems, etc
VS
What Does it Really Cost?
“Margins are significantly better with NetSapiens” - Ron Kohn, Fidelity Voice
The cost of service vs. ownership.
What Does it Really Cost?
The cost of service vs. ownership.
“Whitelabel Provider A”
NetSapiens SNAPsolution
User Cost Assuming 15 users/active call
~$11500 User and bandwidth costs
~$6000 Includes estimated server & data center costs, switch licensing, billing software
3000 Users
What Does it Really Cost?
The cost of service vs. ownership.
“Whitelabel Provider A”
ThinQ
Average Termination Domestic US
$.0125/min $.0035/min
Termination
What Does it Really Cost?
The cost of service vs. ownership.
“Whitelabel Provider A”
VoIP Innovations
Origination Domestic US
99¢/DID $.0076/min
50-75¢/DID $.0035/min
Origination
Pricing Flexibility
“With our whitelabel we get charged per active phone, while with NetSapiens we're based on concurrent calls, so we can decide how we want to bill customers” - Cody Anderson, AWI Networks
Don’t let pricing limit your business model.
Pricing Flexibility
Don’t let pricing limit your business model.
Common Ways to Price HPBX Per Seat Pricing
Different seat levels Free seats for paging units, door
phones, etc Seat and Trunk pricing Trunk only pricing
Amount of Control
“When we had a new phone or device that they hadn't tested, they wanted a pretty large amount of money to test that and make it work” - Cody Anderson, AWI Networks
Will you be able to control your product?
Amount of Control
Supported Devices Device Firmwares Device Configuration & Control Security Dial Plan Carriers Features
Will you be able to control your product?
Features
“There were some features that a few customers wanted that they didn't offer, call recording and call queues were one” - Cody Anderson, AWI Networks
Will you be able to control your product?
1. Voicemail to email (38%)
2. Remote desk phones (25%)
3. Music on hold (25%)
4. 3 way calling (24%)
5. Mobile client for desk phone (24%)
6. Interoffice dialing (24%)
7. Interface to manage phone (21%)
8. On Demand call recording (20%)
9. Integration with 3rd party systems (15%)
10. Conference bridges (13%)
11. Call reporting (13%)
Source: Hanover 2015
Will you be able to control your product?
SMBs Most Wanted Features
Staffing
“We haven't had to hire any additional staff since switching from whitelabel to premise” - Cody Anderson, AWI Networks
What are their core competencies?
Staffing
Either way you’re responsible for Tier 1/2 Support Provisioning
And that’s most of the work!
What are their core competencies?
Diagnostic Access
"[troubleshooting] was cumbersome…when we tried to troubleshoot something, our engineers never felt that the reseller was doing as good a job as they would have done” - Ron Kohn, Fidelity Voice
How can you troubleshoot when things go wrong?
Diagnostic Access
Switch logic/Call Flow Registration Logs PCAP Files
How can you troubleshoot when things go wrong?
12.345.67.890:1234 tls/12.345.67.890:5432
Quality of Service
“Having it in our backbone itself, its much better call quality” - Cody Anderson, AWI Networks
End to end QoS is a huge advantage!
Quality of Service
If you’re an ISP, putting services in your network helps ensure call quality and reliability
This is a HUGE advantage in the marketplace against BYOB providers
We’ve seen HPBX providers NNI with ISP providers for QoS
BYOB does work if you have a good carrier and proper network design
End to end QoS is a huge advantage!
Redundancy
An untested redundant system isn’t redundant! SNAPsolution features HA & Active/Active Georedundancy
ROI Analysis
“Whitelabel Provider A”
NetSapiens SNAPsolution
3000 Seats, $25/seat
$900,000 $900,000
Estimated Service Cost (250 min orig/term per seat)
$354,000 $163,000
Net $546,000 $737,000
3000 Seats
ROI Analysis
“Whitelabel Provider A”
NetSapiens SNAPsolution
500 Seats, $25/seat $150,000 $150,000
Estimated Service Cost (250 min orig/term per seat)
$60090 $52650
Net $89910 $97350
500 Seats
Final Thoughts
Whitelabel Hosted PBX makes great sense for a small operation with limited engineering experience.
Facilities based Hosted PBX makes sense
for larger installs, carriers, and ISPs.
Questions?
Connect With Us Today!
1 (858) 764-5213
www.netsapiens.com
Twitter: @NetSapiens