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Johnny G. BarnesVice President, Global IT Solutions and StandardsOffice of the CIO

Case Study: IBM's Internal VoIP implementation

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On a good day:

My PC worksMy IM works

My audio conferencing worksMy applications work

My phone worksMy cell phone works

My PDA works

Everything Works!

But none of them really work together

What if they did?

At IBM, we have excellent communications tools and depend on them daily. Yet they don’t always

work together.

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Operating in 140+ countries spread across three primary geographies

• Americas, Europe / Middle East / Africa (EMEA), Asia Pacific (AP)

900+ PBXes in 700+ facilities

• Average PBX age about 15 years – many Rolm CBX systems

• 400,000 internal telephones

IBM Message Center (Unified Messaging for Websphere) for voice mail

• Except in U.S., which uses Siemens/Rolm PhoneMail

35% of workforce is mobile or work-at-home

• No assigned IBM office space

• Use of IBM mobility centers

• Use of some value-added services such as AccessLine for follow-me service

Communications Today at IBM

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150,000 cellular users

Applications

• Extensive use of Lotus SameTime instant messaging

• Over 4,000,000 instant messages per day

• Lotus Notes for eMail and teamroom (asynchronous) collaboration

• Lotus SameTime for eMeeting (synchronous) collaboration

Single consolidated corporate IP network

• 2nd generation “Power 9” network being implemented 100% complete in U.S., Canada and Japan; 40% in EMEA;

25% in AP; 0% in LA

• Migration from Token Ring to Ethernet about 60% complete

• Network is outsourced to AT&T in most regions of the world

• Cisco is sole supplier of most data networking equipment (routers, switches)

Communications Today at IBM (Continued)

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0

0.05

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0.25

0.3

0.35

1996 1997 1998 1999 2000 2001 2002 2004 2004 2005

Domestic US Trans Europe US to UK Trans AP SW Threshold

CostPer

Minute

Applied Research Technologies

We can no longer drive 10% YTY cost savings because circuit switched rates are approaching a

brick wall

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Migration from TDM to IP Phones

0

2

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10

1995

1996

1997

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2001

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2004

2005

2006

Stat

ions

Shi

pped

(000

)

Circuit Switched IP Total

World Wide Migration WAN Voice Minutes: Cross Border

0

5

10

15

20

25

2001

2002

2003

2004

2005

2006

Min

ute

s (M

illio

ns)

Circuit Switched IP Total

In-Stat/MDR“LAN Telephony:

A Billion Dollar Market”

IDC Rept #26354Jan 02

IP Telephony is rapidly gaining momentum as a viable alternative for decreasing costs.

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Maturity

TechnologyTrigger

Peak ofInflated

Expectations

Trough of Disillusionment

Slope ofEnlightenment

Plateau ofProductivity

Visibility

Sci/Tech Grids

Wi-Fi 802.11g

Web Services Security Standards

Commercial Grids

Internal MPP Grids

Wi-Fi 802.11a

Speech Recognition for telephony and call center

VoIP Services

Public Key InfrastructureSpeech Recognition for the desktop

Location Aware Services

Wi-Fi 802.11b

Text to Speech/Speech Synthesis

Basic Web Services

Natural Language Search

Selected TechnologiesGartner Position, May 2003

Source: Gartner May 2003 Hype Cycle Research NotesSource: Gartner May 2003 Hype Cycle Research Notes

KEY

Gartner Time to “Plateau”

Less than two years

Two to five years

Five to 10 years

Beyond 10 years

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Selected TechnologiesIBM Status, June 2003

Maturity

TechnologyTrigger

Peak ofInflated

Expectations

Trough of Disillusionment

Slope ofEnlightenment

Plateau ofProductivity

Visibility

Sci/Tech Grids

Wi-Fi 802.11g

Web Services Security Standards

Commercial Grids

Internal MPP Grids

Wi-Fi 802.11a

Speech Recognition for telephony and call center

VoIP Services

Public Key InfrastructureSpeech Recognition for the desktop

Location Aware Services

Wi-Fi 802.11b

Text to Speech/Speech Synthesis

Basic Web Services

Natural Language Search

KEY

Gartner Time to “Plateau” IBM Time to Deploy

Less than two years In Production

Less than two Years

Two to five years

Five to 10 years

Beyond 10 years

No Initiatives

Two to five years

Five to 10 years

Beyond 10 years

VoIP status in IBM

Voice Over IP

•IBM sites using IP WAN for voice transport:•AP: 20 sites installed•US: 16 sites implemented by year end

•IBM sites (LAN) with IP phones installed: 19 sites, approx 10,000 people

•Continuing roll-out of VoIP WAN and LAN systems

•Implementing standards based (SIP), multi-vendor infrastructure includes SDC based resources for flexibility and cost efficiency

•Integrating voice application with other communications applications using presence/awareness technology to provide significantly enhanced communications capability within 1-2 years

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3% of population has an IP phone on their desk 15% of population uses some form of IP telephony

We expect to have 10,000 15,000 phones (5%) and 100,000 VoIP users (30%) by YE 2003

Location Date VoIP Type

# Users

Facility Type

BUs Comment

NA WAN Jul 03 WAN 10,000 Multi Multi Pok, Burlington, Southbury upKorea Jul 03 LAN/WAN 781 Field PwCC

BCS240 phones, 601 mobile users, QoS

Canadian PwCC May 03 LAN 1520 9 sites PWCC Entered production status in May/June.Aust Gold

CoastMar 03 LAN/WAN 100 Field S&D, IGS Entered production status in March.

Istanbul Mar 03 LAN 100 Subsid Subsid Greenfield.Lisbon Mar 03 LAN 600 Field S&D, IGS Greenfield.India WAN Feb 03 LAN/WAN 1,400 6 sites Multiple 2 phones on desks due to regulations.Prague Feb 03 LAN 450 Cntry HQ Multiple Greenfield.Paris Oct 02 LAN 500 Lab PwCC Acquired with PwCC acquisition.Ottawa Oct 02 LAN 300 Field PwCC Acquired with PwCC acquisition.Calgary Jun 02 LAN 400 Field S&D, IGS Greenfield.Dubai Jun 02 LAN 200 Cntry HQ Multiple Greenfield.Tel Aviv 2002 LAN 700 Cntry HQ Multiple Greenfield.AP WAN 2002 WAN 30,000 18 sites Multiple Existing PBXes, 50% transport savings.IP Rmt Agent 2001 Rmt ACD 400 Cntct Ctr S&D U.S. CSO, U.S. Techline, EMEA CSO, etcSingapore Nov 01 LAN 1,000 Cntry HQ Multiple Greenfield.Toronto Jul 01 LAN 3,000 SWG Lab SWG Greenfield.

Production VoIP Sites – July 2003

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Location VoIP

Type

#

Users

Facility

Type

BUs Comment

Segrate LAN/

WAN

X,000 Field Multiple Possible 1st deploy of strategy in EMEA

Frankfurt LAN 800 Field Multiple Sept target 1st phase; 2400 Total

Australia LAN 25 Field PWCC Additional seats on current CM; June

tgt

Audio conf WAN 70,000 All All Sept target

EMEA DSL WAN tbd Home Multiple Pilot starting, 15 Oct expansion

checkpoint

NA WAN WAN 70,000 Multiple All Site-to-site traffic; 16 sites by YE

Japan WAN WAN 30,000 10-20 sites All Aligned with our SIP Strategy

Munich LAN 2,500 Field Multiple Incl wireless; September target

Hamburg LAN 2,000 Field Multiple Incl wireless; Aug target

Palisades LAN 48 Brief Ctr RESO Multi-vendor SIP showcase; June target

Beaverton LAN 1,400 Lab SG Equipment on order; July target

Amsterdam LAN 2,000 Cntry HQ Multiple RFP about to be awarded

Active VoIP Projects – July 2003

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Val

ue

Time

Network Impact • Toll bypass• Long dist avoidance

Operational Impact • Managing 10 servers instead of 900 PBXes• Merging network and client support

Application Impact• 50% savings on audio conferencing rates• 25% reduction in voice mail expense

Hardware Impact• Retire 900 PBXes• Outsource PSTN connect

Business Process Impact• Common services• Application integration• Call Center flexibility• Employee productivity• Employee availability

Commercial Services• Design & Implementation • Systems integration • Hosting & Operations

Value Statement

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Atlanta

Boulder

Raleigh

PBX

PBX

PBX

PSTN

VPN

The OldThe Old SDCVoice servers

xSeries and pSeries with Linux

Power9 IP Network

LAN

Raleigh

Somers

Etc.

Boulder

Atlanta

LAN

LAN

LAN

LAN

LAN

The NewThe New

9003

or 10-20

Centralization

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Voice is undergoing a transformation from a standalone

proprietary TDM-based environment to a set of integrated

applications running on industry-standard server platforms and

communicating across the global corporate Power9 IP network.

Voice Network Client Server ESM Security

Applications

Common Services

Transforming Voice into an Infrastructure Application

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Voice Network Client Server ESM Security

Applications

Common Services

Network Client Server ESM Security

Voice Application

Common Services

In doing so, voice is shifting from a vertical technology tower to a horizontal infrastructure application with dependencies upon the other remaining horizontal technology towers.

Voice is undergoing a transformation from a standalone proprietary TDM-based environment to a set of integrated applications running on industry-standard server platforms and communicating across the global corporate Power9 IP network.

Transforming Voice into an Infrastructure Application

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Off-the-shelf IBM Hardware• Xseries servers

• Ethernet networking

Open Linux O/S

Vendor supplies software on

CD• Clustering software

• Carrier-like reliability

• Carrier-grade resilience

• SIP server functions

• API

LinuxLinux

Clustering SoftwareClustering Software

Resilient Telco PlatformResilient Telco Platform

SIP Server FunctionsProxy / Registrar / Redirect / Etc.

SIP Server FunctionsProxy / Registrar / Redirect / Etc.

LinuxLinux

IBM x345IBM x345

Open APINode 1 Node 2

Voice as an Infrastructure Application … An Example

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Voice as an Infrastructure Application … An Example (continued)

No vendor hardware• No PBX

Gateways for connection to PSTN

Interfaces with other towers• Network• Server• ESM• Client

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Voice Application Integration Opportunities –

A New Same Time View … With a Link to Telephony

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Different Views of Buddy List

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eCards can bring eCards can bring people to life in people to life in other applications other applications too. For example, too. For example, the IBM Lotus the IBM Lotus Sametime Sametime Connect client Connect client becomes more becomes more useful with more useful with more information and information and more ways to more ways to communicate with communicate with people.people.

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My context: location and activity (obtained passively)

Talk to me Type to

me

Face-to-face

Tell me

Communication Channels

Application Example: The Grapevine eCard

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IBM Confidential Draft 0.9b

Return value to IBM• Reduce voice cost while improving employee

productivity

• Showcase for IBM’s Internal “On Demand” transformation

Improve end user satisfaction• Accommodate mobility requirements

• 35% of today’s IBM population and growing• Separate personal and terminal mobility

Base solutions on open standards (IETF, ITU, APIs)• Multi-vendor interoperability

Strategic Architectural Goals

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Strategic Architectural Goals (continued)

Centralize voice infrastructure and provide resiliency

• Eliminate PBXes

Shift the intelligence to the edge

Consistent worldwide strategy, architecture and standards

• For voice, presence, IM, video

Ensure a secure environment

Accommodate application integration

Hosted byWhat We Tell Our Vendors We Need From Them

1.SIP-based telephony, with IP transport – “A disruptive but integrating technology”

2.Standards-based products, subject to compliance testing

3. IBM hardware platforms

4.Linux operating system

5.Scalability to 100,000 endpoints

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What We Tell Our Vendors We Need From Them(continued)

6. Carrier-grade resilience

7. A independent platform for SIP application integration and abstraction

8. Convergence and integration along multiple planes• Voice / data• Wireline / wireless• On-premise / off-premise• Voice / IM / video / etc.• Presence

9.Leap to the new ODT environment rather than taking baby steps

10. Integrated support & service

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IBM Confidential Draft 0.9b

•Any vendor’s User Agent or End Point•Any vendor’s SIP server•We will measure compliance in an IBM lab environment

Multi-vendor, Interoperable, Standards-Based: These represent the foundation principles of the IBM On Demand Telephony architecture

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IBM Confidential Draft 0.9b

•IBM buys application interfaces•If we buy apps, then apps must work in multi-vendor environment•All User Agents and End points have access to all applications

Multi-vendor, Interoperable and Standards principles Also apply to the applications we implement.

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Transport & Network Endpoints•Backbone routing•Gateways•IP network (incl. QoS)•SIP Proxies

Call Control•SIP Proxies •Softswitches•Hosted HiPath•Call Manager•S8700•TDM & Hybrid PBXes•ACDs

Applications•Audio conferencing•Voice mail•Sametime•Unified messaging•Video conferencing• GTA

User Endpoints•Hard phones (SIP, IP, TDM) •Soft phones (SIP, IP)•Mobile phones (cellular, 802.x)

VoIP Segmentation

InteroperabilityA Multi-Vendor Architecture

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Logical View: Converged Voice/Data ArchitectureDisaggregated Parts – Integrated Whole

GW

TDMPBXSIP

UA

SIPSVR

AAA andPolicy SVR

IVR Web

PresenceSvr

MediaMixer

ConfScheduler

UMStore

DirectoryAnd ENUM

Text toSpeech

FW

Third Party Apps

FeatureSvr

Websphere?

AppSvr

Internet

PSTNCellular

ExternalServices

GW

DSL/Cable

IP NetworksGW

FW

MobilitySvr

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GW

TDMPBX

SIPUA

SIPSVR

AAA andPolicy SVR

IVR Web

PresenceSvr

MediaMixer

ConfScheduler

UMStore

DirectoryAnd ENUM

Text toSpeech

FW

Third Party Apps

FeatureSvr

Websphere?

AppSvr

Internet

PSTN

Cellular

ExternalServices

GW

DSL/Cable

IP NetworksGW

FW

MobilitySvr Was: Vendor

Now: Customer

(Much like the shift from mainframe to client/server or Web-based computing.)

Creates: Opportunity

A Shift In Integration Responsibility

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On Demand: The New Agenda

Variable

Responsive

Resilient

Focused

Integrated

Open

Virtual

Autonomic

on demand business

on demand operating environment

new financial models

Define Business Model Define the delivery vehicle

ODT

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On Demand: The New Agenda

Variable

Responsive

Resilient

Focused

Integrated

Open

Virtual

Autonomic

on demand business

on demand operating environment

new financial models

Define Business Model Define the delivery vehicle

ODT

Less Fixed Cost

Quick toDeploy

Carrier Grade

Best of Breed

Components

ApplicationIntegration

SIP, SOAP, XML

CommonServices

Stateless = quick recovery

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We have excellent communications tools and depend on them daily. Now they are starting to work together.

With this strategy:

I have better info for contacting peopleMy PC works with my phone

My IM can send message to cell phone screensMy conferencing is multimedia and linked to appsMy applications work with communication toolsMy phone still works but features are easier to use

My cell phone can receive messages from IMMy PDA can also be engaged (future)

Everything Works!Now our tools are starting to work together

Imagine what else we can do…….

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Thank You!