right place : right time oss telephony adoption trends

Right Place : Right Time

OSS Telephony Adoption Trends

Economic Upheaval

• Worldwide markets still reeling from global economic crisis

• IT markets predicted to decline in 2009• Enterprise spending down 30% yoy• Carrier spending down 20% yoy• Public sector spending down 15% yoy

1. Thomas Wiesel

Creative Innovation – Customer Satisfaction – Continual Quality Improvement

1

Economic Upheaval

• Buyers currently undergoing a ‘reset-tion’• Once spending begins to return, buyer

behavior will change• Buyers much more cautious• Buyers looking for value• ROI terms shortened• Lower cost alternatives get more airplay


Economic Upheaval

• Markets contract as a result of lower cost alternatives gaining share

• Open Source-based alternatives gaining momentum and acceptance as a result of the economic turmoil and changes in buyer behavior


Open Source Software

Adoption Trends

Function/ApplicationOpen Source

SolutionOperating System Linux

Web Server ApacheBrowser Firefox

Telephony/Communications AsteriskDatabase MySQL

Customer Relationship Management SugarCRMBackup Zmanda

Productivity Suite Open OfficeCollaboration Suite Zimbra


Open Source Trends

Source: Savatar


The Market for Open Source

• Stand Alone Open Source Market will reach $5.8B by 2010/2011 (26% CAGR)1

• Tens of millions of new downloads of some version of open source software in 2009

1. IDC


Voice over IPAdoption Trends

VoIP – an upheaval survivor• VoIP as a technology category will fair well

in comparison to other technologies• VoIP enables …

• Communications expenditure cost reductions• Non-centralized work force structure

• Lower commute costs• Lower facilities cost

• Mobile work force productivity


Total IP PBX Market ForecastIP PBX Market Forecast (Global), 2006-1013

0

10

20

30

40

50

60

2006 2007 2008 2009 2010 2011 2012 2013

Year

Un

its (

Mil

lio

ns)

0

1

2

3

4

5

6

7

8

9

10

Reven

ue

(US

$ B

illi

on

s)

Units (Millions) Revenue (US$ Billions)

Source: Frost and Sullivan 2008

IP Telephony Adoption• IP PBX market will reach $7.9B by 2010 (21% CAGR)2

• 2010 IP PBX penetration will still be less than 50%• This year, IP line shipments will pass TDM

shipments3

• Growth in IP Telephony (IPT) systems dominates PBX market segment3

• 19% CAGR

2. Gartner Group3. TEQConsult Group

Open Source VoIPAdoption Trends

Open Source IP PBX Downloads

• 2008 total worldwide downloads of Open Source PBX software– Total - 1,750,000– Asterisk - 1,540,000– Non-Asterisk - 210,000

• 2008 total North America downloads of Open Source PBX software – 490,000– North America is 28 percent of total downloads

Source: Eastern Management Group


Open Source IP PBX Metrics• Total 2008 North American Open Source

PBX Business Telephone Systems– 86,872

• Total 2008 North American Open Source Business Telephone System end points– 2,854,749

• Average 2008 Open Source PBX Business Telephone System end points:– 32.8 end points



2008 Total North America

Business Telephone System

Market

Traditional PBX and Key System

Lines

13,029,148

Open Source lines 2,854,749

Total Lines 15,883,897

Open Source as a % of Total 18%



2008 New PBX End Points

2008 Largest Suppliers End Points

Open Source 2,854,749

Nortel 2,632,145

Cisco 1,990,255

Avaya 1,752,885

Mitel 1,228,887

NEC 1,222,578



2008 Business Communications Systems Market Share



Asterisk Share of OSS IP PBX MarketBased on most recent implementation



2008 New PBX End Points

2008 Largest Suppliers End Points

Nortel 2,632,145

Asterisk 2,512,179

Cisco 1,990,255

Avaya 1,752,885

Mitel 1,228,887

NEC 1,222,578



OSS IP PBX Vendor Market Share

Open Source Manufacturers Percent

3 Com 2%

Aastra 2%

Critical Links 2%

Digium 68%

Fonality 21%

Intuitive Voice Technology 2%

Nortel (including Pingtel) 3%

SimiComm <1%Source: Eastern Management Group


How does Open Source Telephony get adopted by end-users?


How end users benefit from OSS

• IP PBX (based on OSS)• Media Gateways (based on OSS)• Soft Switch (based on OSS)

Buy a complete OSS-based

product

• OSS Software• Commercial Software• Hardware Platforms• Training• Services• 3rd Party Add-ons

Build you own – or have an

integrator build a solution for you

Tool KitComponents

Lo ….…. End-User Technical Competency ….… Hi

Packaged OSS Based Solutions

Custom Engineered OSS Solution

Market Needs vs. End User Technical Skill

Market Needs vs. Size of Business

The OSS IP Telephony ‘Long Tail’

Turn-key OSS-based products

Custom-built OSS-based solutions


Demand /Revenue

STD IP PBX

Digium Product Relationships

OSS Asterisk V1.4 OSS Asterisk V1.6

Turn-Key Products (Switchvox 4.0)

Commercial Edition Version C.x

Testing and Qualification

Turn Key Products (Switchvox 5.0)

Commercial Edition Version D.x

Testing and Qualification

Asterisk Development

OSS Enables Customizable Solutions

• The holy grail for communications solutions • Tightly integrate communications with

existing business processes– Reduce cost– Improve productivity

• Enabled through– Software-based communications engines– APIs and/or custom development


Summary• Next 12-24 months will be challenging• VoIP is an investment that pays a tangible

ROI - today• Open Source solutions are gaining popularity

– Lower cost– No vendor lock-in– Easily customizable

• OSS + VoIP = Right Place, Right Time


Questions & Discussion

Digium - The Answer is Open


right place : right time oss telephony adoption trends

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