SIP Trunk Provider

Beyond SIP Trunking:
Unify The Enterprise

May 12, 2010 | 2:00 PM ET
XO® Enterprise SIP
Provided by:
© 2010 XO Communications, LLC. All rights reserved. | www.xo.com 1

Presented By:
Lisa Pierce
Founder and President
Strategic Networks Group
www.strategicnw.com
Alex Doyle Steve Carter

Senior Director, Senior Product Manager,
Global Solutions Marketing SIP Trunk Services
BroadSoft XO Communications
www.broadsoft.com www.xo.com

Today’s Topics
• Benefits of SIP Trunk Services

and Future Trends
• How to Evaluate the ROI of SIP
• How to Evaluate SIP Trunk
Service Providers
• Your Enterprise Network:
Before and After SIP
• Q and A

U.S. SIP Trunk Services
Lisa Pierce
Provided by:
© 2010 Strategic Networks Group, LLC. All rights reserved. | www.strategicnw.com 4

Agenda
• Critical Problems Facing Businesses

• UC and SIP Trunks
• Other SIP Trunk Benefits
• Evaluation Criteria
• Current and future state of US SIP Trunk services

Critical Challenges Facing US Businesses
Improve efficiency/reduce
costs
Increase employee productivity
Collaborate across employees,

partners and suppliers
Become more nimble and
flexible
Optimize business
model/processes
Improve customer service
Obtain new customers
Sell more to existing customers
Data is normalized. Source: Opinion Research Corporation, “Inside the Midmarket: A 2009 Perspective”. Study commissioned by IBM

Unified Communications (UC) Provide the
IT Tools to Support Many Key Business Objectives
60%
50%
40%
30%
20%
10%
0%

Select UC Benefits Cited by Key Business Functions
Percent
Department Respondents Metric
Who Cited
R&D 44 Shorter product development cycle

Product better suited to market
R&D 42
requirements
R&D 44 Higher product quality
Sales 45 Improve sales success rate
Sales 41 Reduce cost of sales

Sales 42 Reduces sales cycle time
Source: Frost and Sullivan, "Meetings Around the World II" survey, October 2009

2009 U.S. Business Customer UC Deployments
Now using UC
Plan to use in 1-3 years
Plan to use within 5 years
No plans/not sure
Source: CIO Magazine

Examples of UC Applications
Category Description
IP-Based Point-point and multipoint HD videoconferencing (desktop,
Collaboration and room/telepresence), web/data conferencing or whiteboarding
Conferencing augmented by audio
Find Me/Follow Me Enabled by presence engines, often included in Fixed Mobile Services
like consecutive ring or single number service
Unified Messaging Unified inbox/outbox (single message box that handles email, IM, fax,
landline and mobile phone messages) often augmented by text-to
speech and speech-to text capabilities
Contact Center Presence is used to optimize call/session handling; other common UC

applications used in contact center applications include click to chat,
click to call and speech recognition

SIP Trunk Benefits
Include Connecting UC ‘Islands’
Function Example
Support for multi-site See prior slide for some examples- can be especially important to cost-
UC Applications effectively extend UC to small/remote sites
Decreased Reduce the number of service-specific access lines and trunks on either
Telecommunications a local or long distance basis, frequently also decreasing the effective
Expenses price of on-net calls. Some providers’ SIP Trunk services also offer
lower prices on local calls or blocks of DIDs.
Simplified Companies that implement UC and SIP Trunks often make heavy use of
Architectures strategically-placed data centers. This often results in drastically
simplified IT/network architectures.
Future Migration Paves the way for future migration to advanced WAN services like
Ethernet VPLS, or cloud/SaaS-based solutions
Source: Strategic Networks Group

Simplified Enterprise Architecture
Before SIP Trunk Service
HQ
T1, T3, OCX

OCX
Data Center 1
PRI • MPLS
PBX LD • Ethernet
• IP VPN
SS7 • FR/ATM
Local OCX
POTS
Key
System
Broadband or
Fractional T1
Store/Branch 1-N Data Center 2

Many SIP Trunk Architectures Appear
Only to Replace Existing Carrier Trunks
HQ
T1, T3, OCX

OCX
Data Center 1
PRI • MPLS
PBX LD • Ethernet
• IP VPN
SS7 • FR/ATM
Local OCX
POTS
Key
System
Broadband or
Fractional T1
Store/Branch 1-N Data Center 2

But To Save Money, the Enterprise
Often Must Re-Architect for SIP
IP PBX
T3, OCX Data Center 1

Headquarters
Softswitch
to PSTN MPLS
Ethernet
SS7
Local
T1 IP PBX
Store
1-N
Data Center 2

Five Critical SIP Trunk Service Considerations
Enterprises should always inquire about

providers’ current and planned SIP Trunk Service:
– Features/Functions
– WAN Service Interoperability and Vendor
Compatibility
– Performance and Resiliency
– Geographic Availability
– Price

1 Verify SIP Trunk Features/Functions
Providers’ offers diverge greatly

– Definitions of ‘on-net’
– Calling features (PSTN equivalents)
– UC features (Presence, Local Numbers, FMC, etc.)
– (Voice) Bursting
– Use of broadband access (DSL)
– Backup/overflow features
– Access to Operator Services, N11, Directory
Assistance, Call Detail Records

Verify WAN Service and
2 CPE Vendor Interoperability
Service Interoperability - Not all SIP Trunk providers

currently support:
– MPLS
– Internet Access
– IP Toll Free Service
Vendor interoperability for specific functions,
features, functions
– Standards exist, but aren’t enough. Most providers have
their own CPE certification processes.
– Limited compression functions compared to CPE (most
SIP Trunk services only support G.711, G.729 a/b)

3 Verify Performance and Resiliency (Part 1)
• Quantity of provider’s VOIP/SIP infrastructure, quality

of redundancy
• Customer business continuity — SIP Trunk
backup/overflow to SIP, PRI, Inband Trunks
• Day 1 and 2 processes and support
– Design, ordering and provisioning - little automation/flow
through
– Monitoring, remediation – often Layer 1-3 focused
• Trouble resolution can depend on insight into history
– Range of retention of performance data is from 3 to 14
months
– Type of info retained varies greatly-those with data-centric
processes don’t yet retain application-level performance data

‘Optimized’ WAN Architecture
with SIP Trunks Needs Backup
IP PBX
GW
Data Center 1
Headquarters
Softswitch
to PSTN MPLS
IP VPN
Ethernet
SS7
Local
IP PBX
Store
1-N GW
Backup Data Center 2
Wireless
3 Verify Performance and Resiliency (Part 2)
• SIP - specific security functions vary by provider

• Given small installed base, many providers’ installation, monitoring
and management processes require extensive human involvement —
which can’t scale
• Portals/automation – 25% allow some MAC functions via portal
– 13% can quote a standard change interval (5 days)
– 38% support SIP Trunk trouble reporting via portal
• SLAs —
– 25% offer installation SLAs (but with one exception, all intervals are ICB-
typically 60-90 days)
– 13% offer MTTR SLA
– All availability SLAs kick-in after 30 minutes (or more) of each
(unscheduled) outage
– Less than 40% support voice-specific SLAs

4 Verify Geographic Availability
• Domestic SIP Trunk footprint may differ from

same Provider’s PRI Footprint
– Often less
– Sometimes greater
• International SIP Trunk availability by country/city
varies greatly by provider
– Especially important consideration if you plan to use a
US carrier overseas
• Not all SIP Trunks support both local and LD calls –
should verify for both domestic and international
offers

5 Verify SIP Trunk Service Price
“Before” SIP Trunk “Before” Pricing

“After” SIP Trunk Services
Services Structure
Analog Lines MRC SIP Trunks drastically reduce the need for (or
entirely eliminate use of) analog lines
DIDs Blocks or Per-Unit May be bundled into price of concurrent call

paths (provider-dependent)
Domestic Local & Long Per-Minute May be bundled into price of concurrent call
Distance Calls paths (provider-dependent)
International Long Per-Minute IF US originated international call via PSTN,

Distance Calls same price structure as PSTN
T1s and/or PRIs MRC Replaced by SIP Trunks, number needed may
increase or decrease
Concurrent Call Paths Not available pre-SIP On-net calls usually are bundled into price of
concurrent call paths, off-net is not

Secondary SIP Trunk Services Provider
Selection Criteria
• Volume/ramp up
• Relevant recent SIP Trunk references
• Provider’s broader service portfolio
• Provider’s relationship with key external
partners
• Cultural ‘fit’
• Flexibility
• Viability

Current and Forecasted Score of US
SIP Trunk Services Market
(10 Participating Providers)
1= weakest, 10 = strongest idealized score
10
9
8
7
6
5
4
3
2
1 Actual Score, 1Q 2010
0
Predicted Score, EOY 2012
Service Connectivity
Domestic Availability
Business Continuity
Access
Features
Price
SLAs
Key Vendors
Day 2 processes
Portals
Day 1 Processes
Network Resiliency

Where Does SIP Trunking
Add Value?
Alex Doyle
Senior Director Global
Solutions Marketing
BroadSoft
Provided by:
© 2010 BroadSoft Inc. All rights reserved. | www.xo.com 25

Where Does SIP Trunking Add Value?
SIP Trunking isn’t just about Cost Reduction…

…how will it Improve Your Business?
One Analogy: Cable Television

Originally just an access pipe to your home
Now it’s a Lifestyle Tool:
Digital Video Recording
On-Demand Content
Specialized Content

Enterprise Communications Needs
• Communications Cost Reduction Integration

Communications Systems,
• Increased Productivity Business Applications,
– Improved Reachability & Collaboration
Faster Responsiveness
– Work Anywhere
Multi-Location
– Improved Customer Service
Separate Locations, Systems,
Employees
Reinforces the Need for Service Provider Solutions;

Value-Added Solutions
It’s not just connectivity….

SIP Trunking 2.0
SIP Trunking “1.0” SIP Trunking “2.0”

Single Service Multi Service
Fixed Line Only Mobile Integration
PSTN Quality Voice HD Voice, Video
Single Location Multi Location
Hard Coded Business Process

Integration
Access Replacement Business Productivity Value

Cost/Commodity Play Makes your Employees, your business,
Limited Value to Business your customer service better
Productivity Helps your CIO
Helps your Telecom team

Leveraging UC-Ready Service Providers –
The Smarter Way to Use SIP Trunking
Business Strategy
“Focus on your Core Business –
Economics not your Chore Business”
Trunk Reduction
Cost Reduction
Technology
Leverage
“Cloud” UC Demographics
Remote/Flex
Working
Leveraging Service Green Initiatives
Providers lets you focus Multi-Location
on your Core Business

Connect Your Islands with
XO Enterprise SIP
Steve Carter
Sr. Product Manager
XO SIP Services
XO® Enterprise SIP
Provided by:

XO Enterprise SIP Solution
XO Enterprise SIP provides high-capacity SIP

trunking to your primary locations and eliminates the
need for separate lines and equipment at all your
branches! No more wasted PRI capacity!
Customer

Not All ESIP Solutions are Created Equal
With XO Enterprise SIP You Can:

• Share capacity for voice sessions across the ENTIRE network
– Deliver proper E911 info to PSAP
– Rate local calls properly that traverse the PSTN
– Allow Data to share the ESIP access or provide separate access.
• Burstable bandwidth to handle inbound and outbound calls, so you

always have additional capacity when you need it
• Redundancy solutions for Business Continuity including
Wireless Backup
• A Web Portal that enables you to Manage your own Network

Burstable Bandwidth – Handles
Additional Capacity When You Need It
• Bursting provides additional capacity for use in unusual situations,

such as emergencies and seasonality
– Optimize voice resources: by “pooling” idle trunks or Concurrent Call sessions at
the Enterprise level to meet call traffic requirements at the remote location level
– Dynamically use concurrent calls: across all locations to be able to ‘burst’ above
the purchased quantity of concurrent calls
800
SIP Trunk #1
sessions
400
time
800 SIP Trunk #2

Burst conditions
sessions
400
time
PBX#1 incurs
PBX #1 fails PBX #1 restored
seasonal bursting

Performance and Resiliency?
It’s Built-In
XO Enterprise SIP offers several

layers of protection:
– Multi-Location
• Standby Failover when one location is
down or overcapacity
• Load Balancing between locations
• Tertiary – multiple backup routes
– Automatic Call Routing protects
incoming calls to a single location
– Inside the XO Network
• The XO VoIP Network architected to
provide built-in protections and no
single points of failure

Beyond YOUR Premise, XO’s Enterprise SIP
Architecture Provides Redundancy in the Network

The SIP Interoperability Question
XO Enterprise SIP:
– Pre-certified for interoperability with the current
leaders in the IP-PBX Market
– Provides Independent Lab Testing with your
Network
– Certified for interoperability with Session Border
Controllers on YOUR premise
– Provides detailed Configuration Guides and
Implementation Documentation

Connect More Locations with XO®
• XO provides business-class VoIP services in more markets than most

other communications services providers
– The XO VoIP footprint covers nearly every state and 2,700 cities nationwide
• Our VoIP infrastructure supports local, long distance and

international calling
– No hidden billing surprises

The Right Pricing Structure
Makes All the Difference
• Pricing Flexibility
– Select the TOTAL number of sessions you need
across ALL LOCATIONS
– Pick the port speed that will support total sessions,
plus capacity for failover
– Tailor the pricing with your choice of an XO®
Corporate Long Distance Plan
– Bundle with XO MPLS IP-VPN solution –
ONLY if you need it
• The flexibility to select the options you want,

so you don’t pay for more than you need

XO Enterprise SIP – The Only Choice
5 Critical SIP Trunking Considerations
 Features
 Service Interoperability
 Performance and Resiliency
XO® Enterprise SIP
 Geographic Availability
 Price
 EXPERIENCE

Thank You for Joining Us!
Lisa Pierce
lpierce@strategicnw.com
(941) 539 6670
www.strategicnw.com
Alex Doyle Steve Carter

Senior Director, Senior Product Manager,
Global Solutions Marketing SIP Trunk Services
BroadSoft XO Communications
www.broadsoft.com www.xo.com

Get More Enterprise SIP Intelligence at:
http://bit.ly/eSIPMyEnterprise
Or call 1-888-718-7586
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Provided by:

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Beyond SIP Trunking:

Unify The Enterprise

© 2010 XO Communications, LLC. All rights reserved. | www.xo.com 1

Alex Doyle Steve Carter

© 2010 XO Communications, LLC. All rights reserved. | www.xo.com 2

• Benefits of SIP Trunk Services

© 2010 XO Communications, LLC. All rights reserved. | www.xo.com 3

© 2010 Strategic Networks Group, LLC. All rights reserved. | www.strategicnw.com 4

• Critical Problems Facing Businesses

© 2010 Strategic Networks Group, LLC. All rights reserved. | www.strategicnw.com 5

Collaborate across employees,

Obtain new customers

Sell more to existing customers

© 2010 Strategic Networks Group, LLC. All rights reserved. | www.strategicnw.com 6

© 2010 Strategic Networks Group, LLC. All rights reserved. | www.strategicnw.com 7

R&D 44 Shorter product development cycle

Sales 45 Improve sales success rate

Sales 41 Reduce cost of sales

© 2010 Strategic Networks Group, LLC. All rights reserved. | www.strategicnw.com 8

Source: CIO Magazine

© 2010 Strategic Networks Group, LLC. All rights reserved. | www.strategicnw.com 9

Contact Center Presence is used to optimize call/session handling; other common UC

© 2010 Strategic Networks Group, LLC. All rights reserved. | www.strategicnw.com 10

Source: Strategic Networks Group

© 2010 Strategic Networks Group, LLC. All rights reserved. | www.strategicnw.com 11

T1, T3, OCX

Store/Branch 1-N Data Center 2

© 2010 Strategic Networks Group, LLC. All rights reserved. | www.strategicnw.com 12

T1, T3, OCX

Store/Branch 1-N Data Center 2

© 2010 Strategic Networks Group, LLC. All rights reserved. | www.strategicnw.com 13

T3, OCX Data Center 1

© 2010 Strategic Networks Group, LLC. All rights reserved. | www.strategicnw.com 14

Enterprises should always inquire about

© 2010 Strategic Networks Group, LLC. All rights reserved. | www.strategicnw.com 15

Providers’ offers diverge greatly

© 2010 Strategic Networks Group, LLC. All rights reserved. | www.strategicnw.com 16

Service Interoperability - Not all SIP Trunk providers

© 2010 Strategic Networks Group, LLC. All rights reserved. | www.strategicnw.com 17

• Quantity of provider’s VOIP/SIP infrastructure, quality

© 2010 Strategic Networks Group, LLC. All rights reserved. | www.strategicnw.com 18

• SIP - specific security functions vary by provider

© 2010 XO Communications, LLC. All rights reserved. | www.xo.com 20

• Domestic SIP Trunk footprint may differ from

© 2010 Strategic Networks Group, LLC. All rights reserved. | www.strategicnw.com 21

“Before” SIP Trunk “Before” Pricing

DIDs Blocks or Per-Unit May be bundled into price of concurrent call

International Long Per-Minute IF US originated international call via PSTN,

© 2010 Strategic Networks Group, LLC. All rights reserved. | www.strategicnw.com 22

© 2010 Strategic Networks Group, LLC. All rights reserved. | www.strategicnw.com 23

© 2010 Strategic Networks Group, LLC. All rights reserved. | www.strategicnw.com 24

© 2010 BroadSoft Inc. All rights reserved. | www.xo.com 25

SIP Trunking isn’t just about Cost Reduction…

One Analogy: Cable Television

© 2010 BroadSoft Inc. All rights reserved. | www.xo.com 26

• Communications Cost Reduction Integration

Reinforces the Need for Service Provider Solutions;

© 2010 BroadSoft Inc. All rights reserved. | www.xo.com 27

SIP Trunking “1.0” SIP Trunking “2.0”

Fixed Line Only Mobile Integration

PSTN Quality Voice HD Voice, Video

Single Location Multi Location

Hard Coded Business Process

Access Replacement Business Productivity Value