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Cisco Managed IP Telephony Solution

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Cisco Managed IP Telephony Solution
Q. What is the Cisco Managed IP Telephony solution? A. The Cisco Managed IP Telephony solution enables service providers to offer profitable, managed Cisco AVVID (Architecture for Voice, Video and Integrated Data) IP Telephony services to business customers. The solution, managed by the service provider, includes Cisco AVVID IP Telephony product components, Cisco and third-party management tools, and IP telephony design resources. The service provider deploys and provides ongoing support services for its customer’s Cisco AVVID IP Telephony solution. These services may include systems, network, and performance management; fault monitoring; network security; capacity planning; configuration management; and help desk. Q. What are the market forces behind this solution? A. Enterprises are seeking to lower costs and increase productivity from converged voice and data services. According to a Meta Group survey, almost 70 percent of respondents believe that converging their networks will help them realize moderate to substantial infrastructure savings. Fifty percent expect moderate to substantial administrative cost savings. And 60 percent expect to achieve moderate to substantial toll bypass savings. This demand for converged voice and data services is reflected in the growth of the IP private branch exchange (PBX) market. With compound annual growth rate (CAGR) exceeding 35 percent, IP PBXs are projected to exceed one-half of all PBX line shipments by 2004, according to Phillips InfoTech. The managed IP telephony opportunity is accelerated by the growing portion of enterprises that want to outsource the provisioning and ongoing management of their voice services so they can focus on core competencies. Businesses can lower internal support and capital costs in favor of predictable communications expenditures with a Managed IP Telephony service. Q. What are the target service providers for this solution? A. For carriers who resell or maintain traditional PBXs, the opportunity is to support customers migrating to IP PBXs based on Cisco CallManager and bundle higher-value managed services that are simply not possible in a traditional time-division multiplexing (TDM) environment. For network service providers (NSPs) offering managed LAN, WAN, or multiservice VPN solutions, the opportunity is to help these enterprises move to completely converged service by offering the Cisco Managed IP Telephony solution as an additional option. Q. What important benefits do service providers derive from the solution? A. The solution generates new revenue streams with a success-based capital expenditure (CapEx) model. Managed IP Telephony services can be quickly profitable because the service provider invests most CapEx after the customer has been acquired. Furthermore, Average

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Revenue per User (ARPU) typically increases because satisfied customers are likely to outsource more management services over time to the Managed IP Telephony service provider. Q. What important benefits do enterprise customers derive from the solution? A. Enterprise customers of service providers offering the Cisco Managed IP Telephony solution will realize a lower cost of ownership based on reduced telecommunications staffing and administration costs, reduced network costs from converged voice and data networks, and lower operational costs by avoiding hiring specialized in-house resources. Furthermore, the Cisco Managed IP Telephony solution reduces the risk of migrating to IP telephony, because the end customer relies on the service provider's operational scale and expertise. In addition, the managed IP telephony customer can increase employee productivity by exploiting new IP-enabled communications applications, such as unified messaging, notification services, network-based call distribution, and “find-me/ follow-me” services. Specifically, business customers seeking these benefits who do not have skills to support an IP telephony system or the migration to IP PBXs should be interested in a managed solution offered by service providers. Q. What products are included in this solution? A. Based on Cisco AVVID, the solution includes Cisco CallManager, Cisco IP phones, Cisco Unity‘ unified messaging software, Cisco Catalyst“ switches and inline power, voice-enabled gateways such as the Cisco 2600 or3600 series routers, and Cisco and third-party network management systems (NMS) tools. As part of its future strategy to support managed services, Cisco Systems will be delivering even more comprehensive NMS solutions for its Cisco Managed IP Telephony services. Q. When is the solution available? In what regions? A. The Cisco Managed IP Telephony solution is available to service providers now in all geographical regions in which Cisco CallManager is sold. The solution is available from several service providers to enterprise customers in many regions as well. Contact your local Cisco office to locate a Cisco Managed IP Telephony service provider. Q. Where can I find more information about this solution? A. Solution overviews and other collateral are available at the Cisco Managed IP Telephony Web site. www.cisco.com/go/telephony/

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