Successfully Selling and Implementing Hosted Vo IP Services

Successfully Selling and Implementing Hosted Vo. IP Services for Business Clients Tales from the Trenches Patrick Matthews Sr. Global Strategic Manager Alcatel-Lucent January 23 -26, 2007 • Ft. Lauderdale, Florida

Agenda § Market Overview § Top Lessons Learned/Best Practices § Review and Conclusion § Questions 2 January 23 -26, 2007 • Ft. Lauderdale, Florida

Why Carriers Are Interested in Hosted Vo. IP from a 3 rd Party § Capture high-margin voice revenues immediately – Decrease time to market § Path to future services growth – Avoid obsolescence via access to content rich ecosystem § Single partner for Vo. IP platform and ecosystem – On-going interoperability, roadmap enhancements, and reliability § Minimize CAPEX and keep OPEX controlled – Pay as you grow w/minimal impact to existing operations 3 January 23 -26, 2007 • Ft. Lauderdale, Florida

Current State of the Hosted Vo. IP Market § Growth of Hosted Vo. IP services is ramping, but more slowly than expected: – Number of Drivers Also…. . – Number of Inhibitors Today: Forecast is ~$4 B less by 2009 4 Source: In-Stat, Yankee, Alcatel-Lucent, 2005 January 23 -26, 2007 • Ft. Lauderdale, Florida

Lesson #1: Sales and Marketing § Guiding Principles of Sales and Marketing – Educate – Calculate How Familiar Are You with Vo. IP? – Generate – Consult-”ate” Source: Savatar, 2006 5 January 23 -26, 2007 • Ft. Lauderdale, Florida

Lesson #1: Sales and Marketing Cont’d § Educate – Invest in educating the market on Hosted Vo. IP – Leverage trials for your and your customers benefit § Calculate – Develop an economic value proposition – Don’t sell on features or complex bundles, start with basic Vo. IP – Know your competition and position relative to the competitor’s pricing/features § Generate – Leads – Don’t assume you build it, and they will come – Make customers want you to leverage their success stories § Consultative Selling – Arm and incent your sales channel so they spend time with the right customers – Look beyond your direct channels 6 January 23 -26, 2007 • Ft. Lauderdale, Florida

Lesson #2: Clearly Define Offer and Requirements Upfront § Define and launch your core offer based upon: – Understanding of your target market and channel requirements – Agreed upon roles of the partners in your ecosystem § Standardize your offering to clearly define: – – – Features/functionality & limitations Services & Support Requirements Control/Demarcation Documentation & training § Have a few defined standard offers, but don’t have too many – Don’t include value-add/up-scope services into core offering § Communicate future enhancements and offers via roadmap 7 January 23 -26, 2007 • Ft. Lauderdale, Florida

Lesson #3: Operations and Support § Test and tighten the end-to-end processes within entire offer ecosystem § Implement Qo. S offer as part of standardized offering § Leverage expertise for ongoing OSS/BSS management – Eliminate manual intervention for provisioning, configuration, and billing § Institute change management processes with the business clients § Invest in lab facilities for proactively trouble shooting and product enhancements § Request feedback on your overall solution January 23 -26, 2007 • Ft. Lauderdale, Florida

Lesson #4: Don’t Forget the Basics on the Implementation § Engage all the stakeholders upfront § Insist on LAN / WAN assessments and station reviews § Treat security as integral to, rather than separate from, the voice solution § Clearly defined methods and procedures, back out plan, and transition schedule with firm dates § Educate your customers on their new solution 9 January 23 -26, 2007 • Ft. Lauderdale, Florida

Review and Conclusion § The Hosted Vo. IP market will continue to gain momentum and grow § View offer as an end to end solution, but keep in mind “one size” does not fit § Leverage Lessons Learned/Best Practices: § Sales and Marketing § Offer and Requirements Upfront § Operations and Support § Basics on Implementation 10 January 23 -26, 2007 • Ft. Lauderdale, Florida

Thank You! Patrick Matthews Alcatel-Lucent pjm@lucent. com January 23 -26, 2007 • Ft. Lauderdale, Florida