The Move to Hosted

Graham Bevington

Managing Director, EVP International Markets

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The Move to Hosted

• About Mitel

• Key Market Drivers in Business Communications

• Why go Hosted for Unified Communications?

• Mitel & Talk Talk Business

• slide 3• Mitel | Confidential3

About Mitel

• slide 4• Mitel | Confidential4

About Mitel

More than1,600

Partners

2,000Employees

Founded in1973

More than 100,000

Customers

In over100

countries

• slide 5• Mitel | Confidential5

OUR VISION

Not the largest – simply the best

• Delivering superior financial results

• Loyal customers and partners

• A place where people want to work

• To be the premier business communications and collaboration company in our industry

• slide 6• Mitel | Confidential6

OUR MISSION

To deliver solutions that enable our

customers to communicate and

collaborate, and to conduct business

anywhere, over any medium with the

device of their choice.

• slide 7• Mitel | Confidential

Mitel Financial Highlights

Revenues by Region (FY 2011) Revenues by Business Segment (FY 2011)

7

• Publically traded (Nasdaq:MITL)

• 2011 fiscal year revenues: U.S. $650 million

• slide 8• Mitel | Confidential

• Source: MZA IP-PBX Report Q2 2011 - September 2011

• UK

• Netherlands

• France

• Australia

• Canada

• USA

#2 with 23.3%

#3 with 19.3%

#6 with 4.9%

#4 with 10% (2010)

#3 with 19.5%

#3 with 9.5%

• Q1 – Q4 2011

Mitel Market Share in Key Markets

• IP Extensions Shipped• Source: Corded PBX-IP PBX – Q4 2011 – World, MZA

• slide 9• Mitel | Confidential

Mitel UK Market Share - Full Year 2011% IP Extensions Market all segment sizes (excluding micro)

Cisco

Mite

l

Avaya

Siemen

s

Alcate

l

NEC

Aastra LG

Panas

onic

Swyx

Samsu

ng

Splice

com

Toshib

a

Oth

ers

0

5

10

15

20

25

30

3531.54%

23.3%

19.96%

6.39%

3%

1.68%1.43% 1.22%

1.01%0.78%

0.78% 0.6%0.44%

7.88%

• Source: MZA Consultants Ltd• PBX/IP-PBX Report Q4 2011 – March 2012

Mitel clear #2 in UK

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Key Market Drivers

In Business Communications

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Market Drivers

Cloud/Hosted/Virtualization Mobility

Unified Comms & Collaboration

• slide 12• Mitel | Confidential

Key Market DriverUnified Communications & Collaboration

• January 2012 “Unified Communications Purchase Plans 2012”

• slide 13• Mitel | Confidential

Key Market DriverMobility - Freedom to Work Anywhere

An in-office experience, regardless of location

Freedom of device choice (supporting BYOD)

Single identity Improved customer service

• slide 14• Mitel | Confidential

• 2011 • 2014

Key Market DriverCloud/Hosted/Virtualization

• Hosted Voice, SMB & Enterprise Segments 2

• 30%

• 70%

• Enterprise Virtualization Management 3

• 66%

• 34%

• Virtualized Apps • Server Apps

• 2011 • 2014

• Mitel % Virtualized IPT and UCC Apps Forecast 4

• 5%

• 95%

• 2 Gartner, Gartner Predicts 2011: Adoption of UC Creates New Sourcing and Deployment Challenges, 2010• 3 Gartner, x86 Virtualization Market Driven by Management and Desktop Needs, 2010• 4 Mitel forecast based on Mitel sales metrics in Q1, CY2011

• Hosted VaaS users• Voice CPE users

• 10%

• 90%

• % Mitel Virtual IPT

• % Mitel Virtual UCC Apps

• 2%

• 98%

• 32%

• 68%

• 34%

• 66%• 66%

• 34%

• 2011 • 2014

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Catch The Mitel Wave - it’s our 3rd one!

It’s all about timing!

• MCD

Unified Communications

Software

• Wave 2

• Wave 1 IP Telephony

• Wave 3Mitel Virtual,

Cloud & Hosted UC Solutions

• slide 16• Mitel | Confidential

• A Single Cloud-Ready Software Stream

• An In-Office Experience Anywhere

• Freedom From Walled Garden Architectures

• Freedom of Commercial Offerings

• Including Hosted!

Which brings us to……..

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The question used to be ....

Versus

Hosted Telephony

PBX

• slide 18• Mitel | Confidential

Now the question should be .....

Or

On-Site Unified Communications

Hosted Unified Communications

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The Advantages of Hosted Unified Communications

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What do you get with a Mitel & TalkTalk Business Hosted solution?

• It’s hosted Unified Communications not hosted voice.

• All the features of a CPE UC solution in a hosted environment

• Full service and support wrap from TalkTalk Business

• With an SLA that fits your business need

• Deployment flexibility over the long term

• Hosted, CPE or Virtual with the same user experience, same phones, same applications

• No lock in to one fixed deployment method

• Fully supports emerging trends including “Bring Your Own Device”

• Ability to deliver full UC to Blackberry, Android and iOS

Key Advantages of Hosted UCfor the end user (vs CPE)

• Subscription based OPEX model

• Easier to plan & budget

• Lower TCO

• Off balance sheet

• PBX for life:

• Always on the latest version, features, applications

• Easy In-Life Service & Support

• Non disruptive, centrally delivered via TalkTalk Business

• Centralised System Management, Upgrades, Enhancements

• Business Continuity built-in (resiliency)

• Flexibility:

• Proof of concepts easy to run

• Models to cater for seasonal environments easy to achieve

22

Mitel & TalkTalk Business

• slide 23• Mitel | Confidential

Mitel Cloud Go-to-Market Strategy

• IaaS • PaaS

• Service• Providers

• System• Integrators

• MSPs• VARs

• Cloud Ecosystem

Single sourcing – voice and other business applications

Subscription pricing (OpEx vs. CapEx)

Simplified management

Lower cost of ownership

Faster time to value

• End-customer• Value

• Mitel

• slide 24• Mitel | Confidential

Mitel and TalkTalk Business

• Mitel and TalkTalk Business relationship goes back over 10 years• Significant experience in working together to

sell & support Mitel CPE solutions over this period

• TalkTalk Business have played a key role in Mitel UK market share growth

• TalkTalk Business are fully accredited on Mitel hosted and CPE solutions, offering a range of complementary services• Business grade network• SLA and Support• Complementary Applications

Getting Started3 Key Questions when considering Hosted

25

Communications empowers your business and your people. Do you want to risk compromising this when moving to hosted unified communications?

Previous hosted voice offerings were limited in capabilities and quality. Mitel Hosted is fully featured unified communications, delivering exactly the same as Mitel’s on- premise solution

1NO

Hosted unified communications is only as good as the network it is delivered on.Are you confident in your service provider?

TalkTalk Business provide business grade network connectivity TalkTalk Business offer quality SLA and support

2YES

Is your Hosted choice a secure long term solution for your business communications?

Mitel Hosted unified communications leverages our core MCD software stream. It is core to our business and core to our R&D roadmapMitel Freedom provides long term flexibility of deployment and migration opportunities

3YES

THANK YOUGraham Bevington, Managing Director, EVPgraham_bevington@mitel.comVISIT WWW.MITEL.COM FOR MORE INFO

• The information conveyed in this presentation, including oral comments and written materials, is confidential and proprietary to Mitel® and is intended solely for Mitel employees and members of Mitel’s reseller channel. If you are not a Mitel employee or a Mitel authorized PARTNER, you are not the intended recipient of this information and are not invited to the conference, and cannot participate in or listen to and/or view the presentation. Please delete or return any related material. Mitel will enforce its rights to protect its confidential and proprietary information, and failure to comply with the foregoing may result in legal action against you or your company.