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January 23-26, 2007• Ft. Lauderdale, Florida
Successfully Selling and Implementing Hosted VoIP 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
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January 23-26, 2007• Ft. Lauderdale, Florida
Why Carriers Are Interested in Hosted VoIP from a 3rd 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 VoIP 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
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January 23-26, 2007• Ft. Lauderdale, Florida
Growth of Hosted VoIP services is ramping, but more slowly than expected:
– Number of Drivers Also…..– Number of Inhibitors
Current State of the Hosted VoIP Market
Source: In-Stat, Yankee, Alcatel-Lucent, 2005
NA Hosted VoIP TAM ('04-'09)
$0
$1
$2
$3
$4
$5
$6
$7
$8
$9
CY2004 CY2005 CY2006 CY2007 CY2008 CY2009
$ (
$B
US
D)
RevenueHosted Provider
Today: Forecast is ~$4B less by 2009
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January 23-26, 2007• Ft. Lauderdale, Florida
Lesson #1: Sales and Marketing
Guiding Principles of Sales and Marketing
– Educate
– Calculate
– Generate
– Consult-”ate”
0
10
20
30
40
50
60
70
80
90
100
Q3 2005 Q1 2006 Q3 2006
Low
Medium
High
Source: Savatar, 2006
How Familiar Are You with VoIP?
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January 23-26, 2007• Ft. Lauderdale, Florida
Lesson #1: Sales and Marketing Cont’d
Educate – Invest in educating the market on Hosted VoIP– 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 VoIP– 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
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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
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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 QoS 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
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January 23-26, 2007• Ft. Lauderdale, Florida
Review and Conclusion
The Hosted VoIP 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
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