Industry Perspective:Next Generation Services

Eric ShepcaroVice President

AT&T Business Strategy and Development

Broadband Penetration Tops 63% in USNielsen//NetRatings, October 2005

70+% percent of companies use cell phones; 40+% use PDAs/pocket PCs; 60% of large organizations use BlackBerrys NOP World Technology, 2005

Over 26 million Americans worked from home during at least one business day a monthITAC , October 2005

Over 450B minutes of VoIP traffic was carried by service providers worldwide (4Q04-3Q05) iLocus, September 2005

53% of US households subscribing

to VoIP services have completely replaced their landline phones Telecompaper, September 2005

All the pieces are coming together:

90% of employees spend up to 90 minutes daily sending IMsePolicy Institute & AMA, 2005

The Evolution of Convergence … Why Now?

3%

5%

5%

8%

8%

8%

10%

13%

13%

15%

18%

18%

28%

18%

68%

0% 10% 20% 30% 40% 50% 60% 70%

Cost SavingsSimplify or improve communications

Enable collaborationReduce LD or circuit cost

Enable applicationsEnable mobility

Optimize networkBoost productivity

Improve customer serviceAccommodate growth

Extend functionality to remote workersEliminate cable plant

Facilitate cost-effective telecommutingIncrease competitiveness

Consolidate vendors

Business Drivers for Convergence

Source : Nemertes Research - Survey of 68 IT professionals at organizations across a range of industries, predominantly midsize-to-large companies, with annual revenues typically exceeding $1 billion.

Enterprise customers view convergence as a lower cost solutionfor their multiple application/multiple network dilemma.

What applications are drivingyour convergence project?

Customers are moving towards purchasingapplications and functionality within a converged and integrated environment

2%

2%

2%

5%

5%

7%

12%

12%

14%

21%

21%

26%

36%

36%

29%

55%

0% 10% 20% 30% 40% 50% 60%

VideoUnified communications applications

Audio conferencingCollaboration tools

Call center, CTI / support deskVoice only

Web conferencingVoice to remote facilities

MobilityCRM or EPR data linked to handsets

No applications, just cost savingsImaging

PresenceInstant messagingDirectory ServicesDisaster Recovery

Multi-modal Ubiquitous Device independent Intelligent and integrated

Delivered in New Ways Predictive Personalized Global Highly Secure

Delivering New Efficiencies Improved business performance Enhanced corporate agility Increased operational control Strengthened security

Dynamic Network Applications

A New Definition of Collaboration

Voice Conferencing

Messaging Video

Web Services & Service Oriented Architecture Will Define Collaboration

Next

The Next Generation of Convergenceis About Collaboration

Now

“ Click to Call” from any application

Access to and from any device

Presence will drive productivity & customer satisfaction

Single point for all communications: VM, Email,Fax,Automated Attendant, Call Control PolicyIncreased richness, flexibility and device support

Repurposing digital assets / learningPersonal Communications / On demand

Auto sync, Group Share, Dynamic

Voice

E-mail

Instant Messaging

Unified Communications

Conferencing

Media

Document Collaboration

Voice Data Converged Domain

Local Loop, SubscriberLoop Carrier, Copper

Digital Switches, DACS,TDM Trunks, SONET

Digital Switches, PBXs,Telephones, Wiring

Call Center, IVR, ACD,Voicemail, Conferencing,

Directory Services

Voice Network Mgt.,DMTF PIN Codes,Operator Services

Private Line

IP, ATM,Frame Relay

Routers, LANs, SANs,CoLo, Hosting, DNS

Supply Chain Mgt.,Enterprise Resource

Planning, Email,Directory, IM

iGEMS, TokenAuthentication,

Identify Mgt.

Integrated Voice & Data Packet access

Integrated IP and MPLS Layer

IP-oriented Infrastructure with InteroperableSoftswitches, Storage, Servers, SIP Servlets

Integrated Contact Centers, Voice and VideoEnabled Applications, Collaboration and

Productivity Applications

Global Network Operations Center,Unified Threat Management,

Single Service Portal

Management, Portal, Security

Applications

Infrastructure

Core Network

Access

Tech

nolo

gy /

Uti

lizati

on

User

Pro

du

cti

vit

y

Convergence and Integration at all Layers

Access(Wi-Fi, Wi-Max, Ethernet, Optical, Private Line)

Networking Fabric(Firewalls, Gateways, Border Elements, MPLS Nodes)

SecurityBuilt into every layer from network transport through end-user application

Highly AvailableEnsures continued business operations

GlobalHigh performing, global application-aware IT environment

Integrated Application infrastructure and networking environment work together seamlessly for improved performance management

Application Infrastructure(Storage, Servers, OS, DB, IDCs)

Applications(Vertical Apps, Core Bus Apps (SCM, CRM, ERP) , SoIP, AT&T

Dynamic Network Apps (Voice, Video, Conferencing, Messaging)

Vis

ibilit

yC

on

trol

Corr

ela

tion

AT&T iGEMS & Business DirectSM

Home office

HQBranchEmployee

Contact Center

Partners/SuppliersMobile

Worker

Integrated Multi-Service Access Element

Network Prem Equipment

AT&T Dynamic IT Environment

VoIP Enabling Enterprise Networks

• VoIP on Managed IP & VPN Services • Interoperable Network- & Prem-based VPN’s• IP LD / IP Local• Call Routing / Toll Free Features

AT&T’s SoIP Infrastructure

• Single, scalable, common platform• Support TDM & IP hybrid environments• Plug & Play capability

VoIP Enabling Premises Solutions

• IP Telephony Interoperability & Certification• Managed IP Telephony & LAN Service

• Network-based IP Telephony• Remote Worker• Conferencing – Audio / Web• Enabling IP Call Centers

SoIP Applications

• Control over IP Traffic and Provisioning through a single portal

• Consistent service levels across all Services

Integrating Client Experience

AT&T Services over IP Product Strategy

AT&T Proprietary

ContactCenter

Remote Site

Headquarters

Supplier or International location

IPWAN

PSTN

Corporate On-Net to On-Net

Corporate On-Net to Off-Net

TDM (PSTN) Caller

Callers to Contact Centers

IP/IP EnabledPBX

HostedIP PBX /

Centrex

Remote Worker / Teleworker

AT&T Voice over IP• IP PBX Interoperability

• PBX Emulation

• IP Call Center

• Extended PBX to home office for Remote Worker

• IP 800 PSTN / TDM Callers

• Trusted Federated Partners – Gateway Partners

AT&T VoIP Technology Strength Extends From world-class IP Networking Foundation to Deliver an Integrated VoIP-enabled

portfolio of Enterprise Networking Services

VoIP Integrates A Company’s Multiple and Diverse Endpoints

The Foundation:IP/MPLS and Voice over IP

Benefits Include Greater business productivity Reduced complexity Cost savings

Voice DNA Provides Multiple Access options All-Distance calling with nationwide

pricing Telephony features & enhanced

applications including• Voice Mail• Find Me Follow Me• Switch phones• Conferencing

Customer Portal for enterprise-wide administration and end user feature support

VoIP SLA’s Redundancy Options

Voice DNA (Dynamic Network Application)

• Standard Management Plan– Low cost, basic monitoring with automatic

notification – Includes design, site installation, test/turn-up,

minimal reporting

• Advanced Management Plan– Includes Standard Package plus– Proactive Fault Management – Configuration (MACDs)– SLA reporting: Time to respond & restore,

Availability, On-time MACD Performance

• Additional Options – Performance & Capacity Tuning– Security WAN/QoS Optimization – Architectural Assessment, Design/Engineering

and Implementation

• Interoperability with Voice over IP Services• Multi-vendor support

– Avaya, Cisco, Alcatel, Nortel and Siemens

• Distributed or Centralized IP PBX config.’s

IP PBX

Branch Office

Branch Office

Branch Office

Headquarters

A

Voice Mail

AT&T MgdRouter

GCSC

AT&T Global MPLS

Network

PSTNLocal

AT&T MgdRouter

AT&T MgdRouter

IP Telephony & LAN Services

Local Service Features:• Local Number Portability• E-911, Inbound/Outbound, N11• Caller ID • Network Hunting• Directory Listings• Operator Services• Various Blocking Options• Dial Around (10XXX)• CALEA support• Local Pre/Post Routing options• Available in 125+ MSAs/RCs

• Converged voice and data network for all distance calling

• Telephone numbers provisioned anywhere for appearance of local “presence”

• Centralization of company operations

• Elimination of multiple local TDM lines from incumbent carrier

IP PBXor

TDM PBX w/ G/W

backup only

PSTNLocal,

International

LD & LocalCCE

GlobalIP Network

Verizon

911

PSAP

Local

IP PBXor

TDM PBX w/ G/W

LD & Local

#

#

#

#

#

#

IVR/Call Center

• Store hours

• Inventory

• Specialists

NYC

NYC

Chicago

GW

AT&T Voice DNA Flexible Reach Customer Applications

Adding IP Local to your VoIP Network

IPTF is an Enabler to Business Success

LABOR – AGENT COSTS

IP ENABLERS

PORTFOLIO OF

KNOWLEDGE MANAGEMENT COSTS

CTI & CRM

NETWORK COSTS

IVRIVR

US Center

MS

IP ACDIP ACD

TDM ACDTDM ACD

GW

GW

IVRIVRIP enabledIP enabledLegacy ACDLegacy ACD

IP based PlatformsIP based Platforms

IP ACDIP ACD

AT&T IP/MPLS

Global Network

TATA

CCE

BRICKS & MORTAR COSTS

Building 2

City

Suburban home

IBM AS/400

IBM AS/400

PSTNLocal, International

IVRIVR

IP Toll FreeIP Enabling Contact Centers & More

IP Audio Conferencing Provides

SIP-based, IP Reservationless Conferencing Management of all platform & network hardware Operations team supporting registrations

management, training, help desk, trouble assistance, etc.

Capital / Asset Management Production Maintenance Organization supporting all

maintenance activities / upgrades Scalable, low cost solution Identical user experience regardless of access (e.g.

PSTN or IP ) Migration ease from TDM to IP environments

IP Web Conferencing Provides

Document collaboration Application and desktop sharing Features and enhanced applications from Whiteboard,

Chat & File Share Easy access from anywhere from Internet Secure experience including SSL encryption Reliable, network based solution

Audio & Web Conference Services over IP

Portal User Admin.

Service Delivery Platform

ManagementSecurityVisibility

Policy

Deliver utilitynetwork based

applications

ManagedApplication

Infrastructure

EAGClient

App

SI

ISVEnable third partyapplications to utilize

AT&T’s network functions

Service Delivery Platform – CSF

Messaging

IM

Unified Comm.

IP Centrex

Web Conferencing

Video Conferencing

SOA

Provide applicationintegration in

the network

VoIPManaged

ApplicationInfrastructure

Converge real time andNear real time transactions

Leverage core assets Ubiquitous Global Access IP/MPLS

AT&T’s Vision

Reach51 Countries

77.6k Fiber Miles

152 Nodes

MSA Ethernet

DSL

WiFiNative IPWireless

IP/MPLS

VoIP

ManagedApplication

Infrastructure

Call Control Element

Media Services

Border Elements

DynamicCollaborations& Transactions • Federation/Trust/

Security• Intelligent Transactions• Application

Interoperability• Network resident

Functions• Realtime/Near-Realtime

IntegrationCPE/IPPBXVoice over X

Control

Communications

Convergence – Voice &

DataIP adoption

• Cost Reduction• Efficiency Gain• Capital/Resource

Maximization

Mobile Workforce

Device Proliferation

Ubiquitous Connection

Globalization

Drivers Need

Multinational

CoS

QoS

AT&T’s Services over IP Platform

• Dynamic virtualized IT environment

• Simplified to the IT organization and end users

• Visibility and Control of services delivered

• Applications delivered as Services over IP Access

Native IP, Ethernet, DSLBroadband, Wireless, WiFi

IP/MPLSGlobal Reach, Quality of Service,

Multi-Service Edge

Network Application EnablersData Centers, Network Based Firewall,

SMTP Gateway

VoIPBorder Elements, Call Control Element,

Media Servers

Application Aware Network

Load Balancing and Utility Scaling of Bandwidth, CPU’s, Storage and

Business Continuity

AT&T Application Infrastructure

Application Service Creation, Deployment,

Execution and Orchestration

ExternalApplicatio

nGateway /

SDKManageme

nt

Proactive Management,

Monitoring and Remediation of CPE, Network,

IDC’s, Gatewaysand applicationsutilizing iGEMS

PortalProvisioning, MACD’s, Reporting utilizing BusinessDirect, E-

Business

The Building Blocks for AT&T’s Services over IP PlatformAn Application Aware Infrastructure requires capabilities at all levels

Service Bundles

UnifiedCommunications =

Near Real TimeService Building Blocks

UtilityService Building Blocks

Real TimeService Building Blocks

Call Control

UserProfile

Confer-encing

Voice

MidCall

Move

CallRe-

directTransfer

3 WayCalling

Mess-aging

Pres-ence

DataMgmt.

Encryp-tion

MobileTrans-code

Direct-ory

Identity

UtilityCPU

Storage AV/AS

NBFTrans-lations

Grid

3rd

PartyToolKit

ISV

ClientOwnedApps

SI

Management

Reporting

Policy

Billing

Contracting

Portal

Dynamic Transaction Services

ArchivingClient A = IP/MPLS

VoIP

IDC

Policy

Email IMBlackBerry

IPCentrix

Direct-ory

Fax

Storage AV/ASUser

ProfileData

Mgmt.

Encryp-tion

So what

Integrated Collaboration in Action…a real-world scenario

E-Mail

Outbound Calls

Fax

Voice Mail

EMS Service

WirelessNotification

VPIM

Conference Bridge IVR

Unified Communications adds Value to AT&T’s Enterprise Messaging Service by unifying ALL forms of communication into a easily accessible platform

HQ IP-PBXCorporateIntranet

Network Prem Equipment

Home or RemoteBranch Office

DataVoice

Video

Integrated Multi-ServiceAccess Element It’s All About

IP/MPLS Core

Service Access Network

NRT-XoIP CommonInfrastructure

Converged Dynamic Networking and Computing

MSE

MSEMSE

Call Control

Border ElementBorder Element Border Element

Network Based FW

SMTP GW

Hosting

MediaSvrs

RT-XoIP CommonInfrastructure

Voice DNAServices over IP Application Infrastructure

Conferencing DNA Collaboration DNAMedia/Video DNA

P O R T A L (provisioning, reporting, MACDs)

ExternalApplication

Gateway

External Application

Gateway

Application Aware Network

AT&T is revolutionizing the Services over IP World

Revolutionizing All Services over IP:Target Architecture