Cisco in the Evolving UC and Collaboration Market
Author and Analyst: Richard Bennett
© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 2
Objective
“Understand the overview of Industry Unified Communications and the
progression to Collaborative Communications across multiple vendors”
© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 3
Agenda
1.
What is Unified Communications?
2.
Market In Transition
3.
Introduction to a Software Vendor –Microsoft
4.
The Voice Vendor Landscape
6.
Cisco Workspace and Multi Vendor
7.
Microsoft UC Strategy and Licensing Structure
8.
Cisco: Open and Integrated
9.
Conclusion
© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 4
‐ Understand the Definition and Components of UC‐ Understand the UC Market & Key Players
© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 5
Collaborative Communications?
Live CommunicationsVoice (Mobile and Fixed) Instant MessagingVideo Telephony
Conferencing
MessagingE‐Mail Voice Mail Unified Messaging SMS
Source: Gartner, Jan 2007- “A framework for Unified Communications”
Clients and Endpoints
Desktop
SoftPhones and IP Phones
Wireless Phones (802.11x)
Mobile Devices
Support Applications
Notification Applications
Rich Presence Engines (RPE)
IM
CEBP (Communication Enabled Business Processes)
© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 6
Current Market Vendor Opportunities
Communication Infrastructure Vendors
Enterprise Application
Vendors
Service Providers
• IP Telephony systems• Presence engines• Unified Communications suites• “dial-tone” provider
• Hosted IP Telephony & messaging• Public IM & VOIP services• Fixed-mobile convergence• Future IMS based services`
• Presence, IM, & collaboration add-ins• Collaboration suites• Contextual collaboration
Messaging & Collaboration Vendors
• IM & conferencing platforms• P2P Voice over IP• Content mgt platforms
© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 7
‐ Transition for the Voice Vendors‐ Transition for the Software Vendors
Source: Richard Bennett ‐
OFCOM Presentation
“
The difference between
Unified Communications and
Collaborative
Communications, is
understanding that the
user is the endpoint
rather than the IP
address, the end‐point,
the desktop or the
location in which they are
working.”
© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 9
Collaborations Vision is about creating Business Value
Bus
ines
s Va
lue
Innovation
Employee Productivity
Collaboration and efficiency
Business Transformation
Business agility and market differentiation
Unified Communications
IT TCO – pays for itself
ROI and TCO are always part of the discussion around communications technology
Business Transformation varies by vertical industry and requires process to drive technology adoption inside out outside the enterprise
© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 10
Market Transition: Challenges, Trends & Implications
Software vendors become more active in the UC marketMicrosoft is emerging as a challenger with the release new productsAlso IBM has began to increase it’s focus on UC in collaboration with CiscoGoogle will surely enter this market soon with GCSTraditional Voice Vendors are having to change Dynamics are changing “co‐opetition” or “Comp‐partner” with many vendors adopting “collaboration”Collaborative Communications is not just about vendor collaboration
“This definition was selected for it’s simplicity in highlighting all the components of UC but it is how these are brought together to
form a solution that is key”
© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 11
Market Transition: Challenges, Trends & Implications
Customers see Microsoft as Unified Communications
Unified Communications focus at the desktop providing• Interoperation• Productivity enhancements• Efficiency
Unified Communications for Cisco is seen as end‐point dial‐tone
Discussions with customers must now focus upon Collaborative Communications
• User to User collaboration in the enterprise• Business to customer collaboration• Inter‐vendor Collaboration
“The Unified Communications market is no longer about only UC. Collaborative Communications cannot be provided solely from the
Desktop”
© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 12
‐Who are Microsoft?‐ How do they make their Money?
© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 13
Brief Introduction to Microsofttest
$16.9bil.
$13.2bil.
$18.9bil.
$16bil.$6bil.
$60.4 bil. – FY’08
81% across 3 Divns
28%31%
22%
© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 14
What do Microsoft Sell & How Much?
Microsoft sell “multi year” Software Licenses which makes up 40% of the year revenue A further 30% comes from the relationship with the PC manufacturersTheir core business is still business applications
Windows Operating systemServer; Exchange Email, Windows ServerOffice; desktop applications
Look out for the entertainment division is also growing hugely with X‐box and providing PoCThey also have an online BU that competes with companies like Google with “Microsoft Workspace Live”As you will start to see the overlap with Cisco is with core areas of MSFT’s business as they expand into UC
© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 15
‐
What about other UC competitors?‐
How are they transitioning into UC? ‐
How much of an end‐to‐end solution do they have?
© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 16
UC Vendor Landscape‐ Product
SpecialtiesTelephony Unified/Voice
MessagingWeb
ConferencingContactCenter
EmailCalendaring
Team Collab.Social Net.
EnterpriseIM/Presence
Telep./VideoConferencing
Others… 3Com AastraEricssonNECPanasonicPolycomSamsung
AdobeCentraCitrixGenesysInterwiseRadvisionRaindance
3Com AastraAdomoAVSTEsnatechNECPanasonic
ConfluenceEMCGoogleInterwovenIntralinksOpenTextSocialText
CodianHPLifesizePolycomRadvisionSonyTandberg
AntepoAOLJabberMessageL.PeopleLinkReuters
AspectEnvoxEricssonInteractive In.IntervoiceCosmocomNEC
OracleNovellSendmail
© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 17
In order to talk confidently around UC you must Understand:‐ The Cisco Strategy‐ The Cisco Workspace
© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 18
Collaborative Interaction
Open Collaboration integrates all presence and user state information
Rich Presence provisions communication routing benefit
User location and communication processes must be understood
Collaboration delivers seamless Unified Communications
What is the network?
Centralized CollaborativeCommunications
Network??Home User
Branch User
Wi-Fi “hotspot”Device
© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 19
Unifying Workspaces: Cisco Unified Collaboration
Applications on Fixed and Mobile Networks
for Workspaces
Every time, Everywhere,Everyone’s included
Use Network as the Platform
VOICE
VIDEO DATA
MOBILE
© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 20
Microsoft are their applications How do they go togetherWhere do they compete with Cisco
© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 21
Understanding the Microsoft Strategy
Microsoft Message
“VOIP as you are”Means keep your existing PBX and
expand in the future with MSFT UC
“Quality of Experience”This phrase is often used in reference to the way MSFT ensures the
quality of their solutionUser quality of experience is excellent and seamless
Enable a future‐ready foundation for communications
Apps = valueCall control = plumbing??
© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 22
Understanding the Microsoft GTM
Microsoft Game Plan and Key Statements
Exchange 2007 UM and IM MOC as entry pointsThere are many customers with Exchange and OfficeA primary goal on UC will be to upgrade these customers to UC
Will leverage existing enterprise licensingEnterprise licenses include many parts of MS UC solution under the
existing agreement
Bypass Net/ Telephony groups & sell to the Desktop/Apps teamMSFT will off course focus on the desktop and this is way Cisco talks
about the wider “workspace”
Stall legacy PBX migration“VoIP as you are” offsets need for UC investment in infrastructure
© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 23
Understanding the Microsoft GTM (cont.)
MSFT Games PlanInstall and Use - pay at end of your agreement
MSFT have the opportunity to do this to existing enterprise customers
Microsoft’s Must Win BattlesMust win the directory - Active Directory
Active directory is the main directory of all users on the network Like Cisco winning the LAN in a deal
Must win presence / IM – OCSAgain this is key for MSFT as presence is embedded in there OCS
if the customer is using another solution there may be repetition of investment
“Be aware of what MSFT will say and also WHY they take this position so you are able to counter these arguments ”
© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 24
Understand the Microsoft UC Solution Components
Office Communication Server OCS
P2P Call Control focused around Instant Messaging with Presence
Exchange 2007
Voicemail and Unified Messaging platform
Microsoft Office Communicator MOC
Key client interface at the desktop or mobile device
Feature rich “MSN client” with presence and IM
Microsoft Live Meeting & Round Table
Conferencing application utilising Round Table
MS Sharepoint for Hosted, Enterprise or Proxy Collaboration
“It is important to understand that Exchange will be one of the key routes for MSFT into an account and upgrade to turn a MSFT
customer into a MSFT UC customer”
© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 25
Understand the key differences in OCS release 2 (cont.)Enhanced Collaboration
Desktop Sharing, Persistent Group Chat HD Video
Enhanced Voice and Mobility
Enhanced SIP Trunk ‐ direct connectivity to SIP based carriers
Response Group IVR, Queuing, and Music on Hold
Enhanced Mobility
Mobility and Single Number Reachability
Embedded Communications Tools in MS Applications
“OCS release provides greater feature within the desktop space, but they are limited to the enterprise”
© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 26
Cisco & MSFT Product Overlap
MOC
IPPhone
CUPS
Unity
IPWAN
Exchange 2007
CUPC
PSTNLiveMeeting
OCS 2007MeetingPlace
Audio
SIP PSTN
Gateway
PublicIM
OCS
A
Unified CommunicationsManager – Call Control
Cisco LAN
Cisco LANSecure Router
Cisco Component Microsoft Component
OCS2007
Soft Client
Presence
Call Control
Conferencing
Unified Messaging
3rd party phone
Handsets
SharepointWebex
Connect
Collaboration
© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 27
Microsoft Volume Licence Agreements
Depending on the type of business you are you will buy your licenses in a
different way from various sources
At the High‐level Structure;
Open licencesprimarily for small‐mid size companies. (5‐250 licences)
Select licencesmid‐large size companies (>250 licences)
Enterprise Agreementsmid‐large size companies (>250 licences)
“At present it seems Microsoft is focusing the bulk of it’s activity in UC at the customers with Enterprise agreements and there is a particular play for them with these customers”
Microsoft Licenses the Basic Structure
“You do not need to understand everything about MSFT licensing as it is a detailed subject, however make sure you remember the two main bundles”
© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 29
Microsoft UC Client –
Office 2007
Microsoft Office
Standard
2007
Microsoft Office
Professional
Plus 2007
Microsoft
Office
Enterprise
2007
Microsoft Office
Ultimate 2007
Word 2007
Excel 2007
Outlook 2007
Outlook 2007 with Business Contact
Manager
PowerPoint 2007
Publisher 2007
Access 2007
InfoPath 2007
Communicator 2007
OneNote 2007
Groove 2007
Accounting Express 2007
© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 30
Learn How to Respond the MSFT; ‐ Around their Solution‐ Around their licensing ‐ Around their Strategy
© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 31
Enhancing the Microsoft Solution
Cisco has an Any‐to‐Any Solution
This has been a cornerstone of Cisco’s UC SolutionCustomers are proven to want a choice in phones that Cisco hasUC is only successful if it is secure and Cisco has appliances to ensure
that it is
Microsoft will rely on third party relationships for key hardwareThey require gateways (Cisco are already tested)In telephony 3rd party phones have historically lacked features
Think about multi‐site environment common in most companiesCisco’s UC solution is highly scalable Cisco can provide local cost effect redundancyMicrosoft needs to deploy servers at each site
“ Don’t use this to discredit the Microsoft approach but simply use it to build a case for Cisco UC as the more flexible solution,
enhancing the Unified Collaborations proposition ”
© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 32
Responding to Microsoft –
The Solution
QOS vs. QOE
This is one of the fundamental differences between Cisco and MSFTANY Real‐time communications will always require QOSReal time Voice and Video can not be guaranteed without QOSCisco UC solution is embedded in the network to guarantee qualityEvery other voice vendor also says QOS is critical
MSFT use their adaptive Codec because they are not part of the network
A customers network traffic will vary massivelyIf you can’t tell the network to priorities types of traffic how can
ensure a “quality experience”What happens to the Codec when it hits a slows down in peak
periods on the network – without QOS this is unavoidable
“QoS is the key fundamental of any Communications, Convergence or Collaboration solution”
© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 33
Responding to Microsoft –
The Licensing Strategy
MSFT UC is NOT Free
This is a key myth that you must quickly addressUC is not part of the Standard CAL bundleIf customers upgrade to the Enterprise Bundle they pay more and
more Software AssuranceAlso the client software MOC is not freeThere are many different ways to buy MS Office without MOC
Cisco Unified Workspace Licensing is a flexible and simpleStandard and Pro costs per user include all server and client licenses
including those for MSUC integrationWith MSFT you need to buy a server license then CALsCUWL Pro provides the client access on multiple devices not just the
desktop or phone
“Microsoft charge for their UC solution. Cisco CUWL is much simpler and more flexible for the customer because it supports
any vendors desktop applications”
© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 34
Responding to Microsoft – The General Strategy
Cisco Workspace vs. Microsoft
Remember and Understand the Cisco Workspace ConceptCustomers want a solution that is flexible “any media to any
device”It is important you offer a wide variety of devices to interfaceAlso it is critical that you don’t charge each user for each device –
Cisco response around this is CUWL Pro
“VOIP as You Are” as a Migration Strategy Customer to keep their existing system and migrate slowlyMSUC on a PABX/existing voice infrastructure limits featuresno “true” UC Strategy (Windows Device and Enterprise only)Many Collaboration and Business Transformation features absentUnified Communications should be device independent, to ensure
collaboration – i.e. “any-to-any”
© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 35
Understand why being open and Integrated is Important?Cisco and Microsoft Integration Cisco and IBM Integration
© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 36
Why is Being Open and Integrated Important?
Being Open is Important because:There will never be just one vendor that can supply a customer with everything they need to do businessThere will always be specialist in a given fieldCustomers will always want a choice Customers will want there choices to work together and to be integratedCustomers do not like to be tied into one vendor’s standards
© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 37
Examples of Cisco and Microsoft Integration
Cisco UC with Microsoft UC Interoperability:
For customers can have a joint Cisco & MSFT UC environment:CM Call Control and OCS for MSFT clientsCisco IP Phones and MSFT MOC Cisco Gateways providing Connectivity to outside worldA choice of Cisco Unity or Exchange 2007
Customer may choice Exchange or may wish to keep voicemails off the email system for security
Cisco offers the following inter‐operability:Presence between OCS and CM clientsConferencingClick to call
© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 38
Cisco Unified Client Services Framework
Cisco Unified Infrastructure Services
Collaboration Architecture for Clients
© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 39
SIP/SIMPLE
XMPP
BORDERLESS COLLABORATION
Open Standards supportMulti-Vendor Federation
SCALABILITY
COMPLIANCE
SECURITY POLICY
RichExtensible
OpenUnified
Presence Enabled Business Process
Presence Applications beyond only IM
Cisco Borderless Collaboration
© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 40
What you should take from the courseKey Take‐AwaysConclusion & Next Action
© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 41
Key Take Away 1“Cisco provides choice through it’s workspace
strategy”
Customers and Users need to collaborate effectively, anytime, anywhere and on any deviceThere are many variations of workspaces that exist in organisations for different roles, and requirementsCisco unify the workspace, regardless of device, operating system, or applicationThe key to successful integration of a workspace is User Adoption
© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 42
Key Take Away 2
“Cisco focus around an open, integrated collaboration solution, end‐to‐end solution”
Cisco guarantees any vendor’s desktop solution through integration with the Cisco Workspace and UCSFCisco can guarantee the User Experience within any vendor’s collaboration through Reachability and MobilityQOS is critical for real‐time communications such as voice, video and collaboration within an end‐to‐end solution
© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 43
Key Take Away 3
“Unified Collaboration Solutions from Cisco provide Communication without Borders”
Cisco has a solution to provide “any‐to‐any”collaboration, over any “end‐to‐end” networkCollaborations solutions for the essential user adoption, cannot be focused entirely a PC, an IP or a single enterpriseCollaboration is only possible with flexible and open solutions, that leverage existing technologyCisco uniquely placed, providing multi‐vendor federation of all areas within Unified Collaborative Communications
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