monetizing hosted unified communications

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Monetizing Hosted Unified Communications Malachi Threadgill Sr. Director – Digital Marketing

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Statistics on monetization of hosted unified communications and how moving your pbx to the cloud can not only add functionality like instant messaging and presence, but also save money through both decreased opex and increased productivity.

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Page 1: Monetizing Hosted Unified Communications

Monetizing Hosted Unified Communications

Malachi ThreadgillSr. Director – Digital Marketing

Page 2: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

HI, MY NAME IS MALACHI THREADGILL

Page 3: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

About me

Malachi Threadgill

Sr. Director Digital Marketing

ANPI – Leading Hosted UC Provider

Reside in Dallas

10+ Years Digital Experience

8+ Years SaaS Experience

6+ Years Telecom Experience

I met the WOZ

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Page 4: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

HOW MANY PEOPLE KNOW WHAT HOSTED UC IS?

Quick Question

Page 5: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

SOME INTERESTING STATISTICS

Page 6: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

The Case for Hosted UC

Today, the communications market for businesses with under 100 lines is a roughly $15 billion.

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Page 7: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

The Case for Hosted UC

Hosted Unified Communications will grow from $2.8b in 2010, to $5.5b in 2014. (Radicati Group)

Margins for UC range from 40% to 70%.

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Page 8: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

The Case for Hosted UC

$377 billion to be spent on VoIP, UC and business hosted services over thenext 5 years. (Infonetics)

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Page 9: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

The Case for Hosted UC

The number of seats for hosted business VoIP and UC is on track to more than double between 2013 and 2016. (Infonetics)

Market lifecycle stage is early adopter with weak barriers of entry.

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Page 10: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

WHY WOULD A BUSINESS TRANSITION TO HOSTED UC?

Page 11: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

Hosted UC Business Drivers

Eliminate/Reduce Capital Expenditures

• Redirect capital to other business considerations

• Lower / Remove Maintenance Costs

• Improve ROI

• Lowered TCO

Page 12: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

Hosted UC Business Drivers

Eliminate/Reduce Capital Expenditures

• Redirect capital to other business considerations

• Remove Maintenance Costs

• Improve ROI

• Lowered TCO

Avoid Technology Obsolescence

• Remain current with regard to features and services

• Reduce time to implement, train and activate new services

• Staff expertise is allocated to business-centric applications

Page 13: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

Hosted UC Business Drivers

Eliminate/Reduce Capital Expenditures

• Redirect capital to other business considerations

• Remove Maintenance Costs

• Improve ROI

• Lowered TCO

Avoid Technology Obsolescence

• Remain current with regard to features and services

• Reduce time to implement, train and activate new services

• Staff expertise is allocated to business-centric applications

Attain Business Continuity

• Replace the PBX, which is a single point of failure

• Access the cloud from any location over a carrier-grade network

• Support mobile workers, home workers and remote offices

Page 14: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

Hosted UC Business Drivers

Eliminate/Reduce Capital Expenditures

• Redirect capital to other business considerations

• Remove Maintenance Costs

• Improve ROI

• Lowered TCO

Avoid Technology Obsolescence

• Remain current with regard to features and services

• Reduce time to implement, train and activate new services

• Staff expertise is allocated to business-centric applications

Attain Business Continuity

• Replace the PBX, which is a single point of failure

• Access the cloud from any location over a carrier-grade network

• Support mobile workers, home workers and remote offices

Improve Productivity and

Mobility

• Unified Messaging

• Mobility tools and applications

• Audio/Web/Video Collaboration

Page 15: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

Why these Benefits?

1. Five of the six most stated UC benefits are on the list of highest priority goals for SMBs

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Page 16: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

Why these Benefits?

2. They resonate with SMBs because they are measurable & relate to either an improvement in revenue or noticeable reduction in costs

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Page 17: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

Why these Benefits?

3. They are directly influenced by the implementation and adoption of a Hosted UC solution

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Page 18: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

MONETIZATION OF UC

Page 19: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

Monetizing Hosted UC Parameters

• Business Size

• 22 employees (average small business)

• 100 employees (midpoint between small and midsize business)

• Per Employee Compensation

• $51,000 per year

• $24.52 per hour

• $0.408654 per minute

• Per Employee Work Period

• 260 days per year

• 2080 hours per year at 8 hours per day

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Page 20: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

Monetizing Hosted UC Example22 Employees

Assumption: Savings is 30 minutes per employee per day:

• Minutes saved / year = 30*260 or 7800

• 22 employees save 7800*22 or 171,600 minutes per year

• 2,860 Hours Saved

• 357.5 Business Days Saved!

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Page 21: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

Monetizing Hosted UC Example100 Employees

Assumption: Savings is 30 minutes per employee per day:

• Minutes saved / year = 30*260 or 7800

• 100 employees save 7800*100 or 780,000 minutes per year

• 13,000 Hours Saved

• 1,625 Business Days Saved!!!

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Page 22: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

Monetizing Hosted UC Example

Assumption: Savings is 30 minutes per employee per day:

Monetary savings ($0.408654 per minute)22

22 employees save $70,125 per year

100 employees save $318,750 per year

Page 23: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

PRODUCTIVITY AND MOBILITY

Page 24: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

Increase ProductivityHosted Unified Communications

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With Integrated Messaging

• Reach the right people quickly

• Contact using a single number

• Establish ad hoc audio, web and video conferences

• Leverage mobile devices

5-15 Minutes / Event

16-30 Minutes / Event

31-60 Minutes / Event

0% 20% 40% 60%

Time Savings

*Forrester Research Inc.

Page 25: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

Increase MobilityHosted Unified Communications

Smartphones are used as the primary device for online access by 50% of users

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Page 26: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

Increase MobilityHosted Unified Communications

43% of business owners use a cell phone as their primary communications platform

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Page 27: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

Increase MobilityHosted Unified Communications

60% of small businesses owners now allow their workers to telecommute (NSBA)

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Page 28: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

Increase MobilityHosted Unified Communications

Enterprise workers listed “Sharing Files” and “Participating in a Multimedia Conference” as the two most “painful” tasks to perform when working offsite

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Page 29: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

Increase MobilityHosted Unified Communications

Smartphones now make up 69.6% of cell phone users (comScore); 42% of the population have tablets (Forbes).

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!=

Page 30: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

Increase MobilityHosted Unified Communications

• Only 20% of Smartphone usage in the US is for making phone calls; only 10% in Europe.

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!=

Page 31: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

Increase MobilityHosted Unified Communications

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=

Page 32: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

ALL OF THIS ON YOURSMART PHONE

Voicemail

Email

Fax

IM / Presence

Collaboration

Integrated Mobility• Mobile Client• Chat• Presence• Desktop Sharing• Call Handling• Audio/Web/Video Collaboration• Outlook Integration

Page 33: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

COLLABORATION

Page 34: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

Increase CollaborationHosted Unified Communications

18% of projects are delayed because of ineffective team collaboration

16% of projects are delayed because a decision maker could not be reached

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Page 35: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

Increase CollaborationHosted Unified Communications

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• Over 75% percent of organizations experienced improved productivity of employees across geographically-dispersed locations due to voice and video conferencing

Source: Chadwick Martin Bailey

Page 36: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

Increase CollaborationHosted Unified Communications

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• 46% of organizations realized travel savings of more than five days per employee annually

Source: Chadwick Martin Bailey

Page 37: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

Increase CollaborationHosted Unified Communications

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• 64% of organizations experienced reduced travel costs of over 10%.

Source: Chadwick Martin Bailey

Page 38: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

Increase CollaborationHosted Unified Communications

54% of organizations saved up to 20 minutes

per employee daily by escalating IM chats into phone calls.

50% of organizations saved up to 20 minutes

per employee daily by escalating IM chats into Web conferences.

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Page 39: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

CAPEX AND OBSOLESCENCE

Page 40: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

Eliminate/Reduce Capital ExpendituresHosted Unified Communications

By moving to hosted, Companies were able to reduce their 3-year TCO by 54%. IDC

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Page 41: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

Eliminate/Reduce Capital ExpendituresHosted Unified Communications

Hosted can make the difference between an organization being 20% efficient and being 80% efficient. Diversity Limited

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Page 42: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

Eliminate/Reduce Capital ExpendituresHosted Unified Communications

CAPEX per employment for premises-based UC ranges from $550 to $900 depending upon business size, with SMBs spending the most and enterprises the least. Phone Wire

IT maintenance is around 80% of total IT expenditure, thus the shift to hosted. Gartner

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Page 43: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

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Technology ObsolescenceHosted Unified Communications

• The Speed of Innovation is Dizzying

• Average lifespan for a handset in the U.S. is 21.7 months – Recon Analytics

• Average laptop life span is 2.5 years and dropping – Computer World

• Average server life span is 3 years and dropping – Computer World

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Page 44: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

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Technology ObsolescenceHosted Unified Communications

New IP PBXs are forecasted to last only 5–6 years, while traditional PBXs could be counted on for 8.5 or more years. – Network World

One study respondent indicated that they had to replace their PBX after only three years because the upgrade cost was almost equal to the original capital expenditure.

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Page 45: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

Prevent Technology ObsolescenceHosted Unified Communications

Hosted communications allows businesses to avoid wasting money:

• As much as 20% of money spent on upgrades is wasted Hopkins and Keller

• 71% of such projects did not meet the users’ expectations Standish Group

Page 46: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

Prevent Technology ObsolescenceHosted Unified Communications

Cost Elements

• IP PBX with UC features cost between $500 to $900 per employee

• Upgrade cost is 40% to 60% of the initial purchase price

• Two upgrades required over the life of the PBX

Page 47: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

BUSINESS CONTINUITY

Page 48: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

Achieve Business ContinuityHosted Unified Communications

50% of SMBs admit to not having Business Continuity or Disaster Recovery plans in place with only 28% having a plan in place

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Page 49: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

Achieve Business ContinuityHosted Unified Communications

70% of small firms that experience a major data loss go out of business within a year. – Strategic Research Corp and DTI/PWC

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Page 50: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

Achieve Business ContinuityHosted Unified Communications

43% of businesses that experience a disaster and have no emergency plan never reopen; of those that do reopen, only 29% exceed two years. – The Hartford Financial Services Group

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Page 51: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

Achieve Business ContinuityHosted Unified Communications

46% of businesses stated employees could not access the necessary company resources to do their jobs during an outage.

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Page 52: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

MONETIZATION ANNUAL SAVINGS

Page 53: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

What’s the Annual Savings/Benefit22 Employees

22 Employees

Productivity $70,476

Mobility $70,356

Collaboration $93,808

Travel $32,450

CAPEX $20,900

Obsolescence $3,046

Bus. Continuity “Priceless”

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Page 54: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

What’s the Annual Savings/Benefit100 Employees

100 Employees

Productivity$290,804

Mobility$319,800

Collaboration $426,400

Travel$147,500

CAPEX $75,000

Obsolescence $11,538

Bus. Continuity “≈Priceless”55

Page 55: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

Hosted Unified Communications

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Increase Productivity Enable Mobility Increase

CollaborationAchieve Business

Continuity

Eliminate/Reduce Capital

Expenditures

Avoid Technology Obsolescence

Page 56: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

Hosted Unified Communications

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Now You know the Rest of the Story!

Page 57: Monetizing Hosted Unified Communications

Confidential and Proprietary. Subject to Non-Disclosure Agreement.

www.anpi.com

Malachi Threadgill

Email: [email protected]

214.377.0919

@malachiii

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