Six Options for Managed IP Communications

Many traditional businesses maintain separate networks for data and voice communication. With a converged voice-and-data network, companies can often reduce costs and gain significant productivity benefits.

However, the cost of implementing and managing the solution internally can be prohibitive. A more affordable option is to out-task IP communications to a managed services provider. This arrangement avoids initial CapEx and provides economies of scale -- because the service provider already owns the required infrastructure.

You can choose from several options for managed IP communications services. The following describes typical managed IP communications service offerings, and how you can apply them.

Business IP Telephony Services
This includes both subscriber and group calling services. Companies that need sophisticated PBX features can use a managed IP telephony service. Many small businesses can also receive the functionality that they require with a managed IP telephony solution.

Site-to-Site Voice
This service is really useful for companies with several branch offices that communicate regularly. A site-to-site voice service enables you to call from one site to another using the service provider's voice-over-IP (VoIP) infrastructure, avoiding long-distance toll costs. You can maintain a private dial plan, including support for simple 4-digit dialing.

Public Switched Telephone Network Access
Access to the traditional public switched telephone network (PSTN) can be enabled centrally over the service provider's network. Central PSTN access provides economies of scale, which, in turn, help reduce your costs.

Unified Messaging
These capabilities enable you to retrieve and respond to voice, fax, and e-mail messages from any phone or PC within your organization. Your team can check any type of message from the same inbox -- either the voicemail box, accessed from a phone, or the e-mail inbox, accessed from a computer. Rules-based call routing and speech recognition can further enhance usage for you, and your callers.

Voice over VPN
This service can reduce toll charges for your telecommuters and mobile team members. Using an IP phone from home, or SoftPhone software on your laptop during travel, you can easily make voice calls over the same, secure Virtual Private Network connection that's used to access data network applications.

Other Enhanced Services
You can also increase productivity by delivering new applications and information directly to your team's IP phones. As part of a managed IP telephony service, providers can provide customized Extensible Markup Language (XML) applications -- for example, to access team calendar information or read news stories relevant to your business.

Contact a managed service provider, to learn more about these IP communication capabilities, and the associated cost savings or productivity benefits. Most providers will have customer case studies for your consideration.

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Can Managed Services Rescue Financial Services?

Turmoil and struggles in the financial services sector are splashed daily on the front page of newspapers around the world. The industry faces a number of monumental challenges that are threatening and shaping its future. To remain competitive, forward-looking firms need to:

• Reduce costs
• Improve cross-sell and up-sell results from existing customers
• Shift capital expenditures to operational expenditures through variable costing and on-demand capabilities
  

Progressive companies in the financial services sector are aggressively using managed services technology to address some of these current challenges.

Serving Market Growth
The financial services sector currently spends more than 2.5 times more on technology than other industries. The way they can attack challenge number one is to shift the management of desktops, data centers, and call centers to a managed services model. Companies are using this option not just to reduce costs, but as a way to reallocate investment into growth initiatives.

One regional U.S. bank came to Cisco ISBG (the company's strategic consulting arm), wanting to quickly enter a new niche market faster than a competitor and increase its market share. Its tactic: deploy an end-to-end managed service, including both technology and business processes.

The economics of managed services lower the barriers of entry to niche markets that might not have been economical before; it also helps them determine success or failure more quickly, and act accordingly.

Managed Services Increase Customer Ties
In developing markets, companies are looking to use managed services to target customers who might not have used banks at all previously. A managed service that offers the underlying network infrastructure, including phones, provides them with an on-demand and scalable service that they can roll-out ahead of competitors.

To increase the amount of business conducted with customers, financial services firms are looking beyond the traditional world of financial transactions and services. One large bank we're working with wants to expand its relationship with its small and mid-size customers by providing them with essential services as payroll, procurement, and human resources.

Because the bank wants to roll out these services quickly, they will be created, delivered and managed by another entity through a managed services model.

Next generation managed services offer a real opportunity to transform the financial services sector. But success will require creative thinking, as well as both the development of strategic partnerships with managed services providers and proper governance models.

About the author: Stuart Taylor is a Director in Cisco IBSG. Stuart leads thought leadership and engagements with key Service Providers in managed services. He has over 15 years of experience focused on strategy, corporate development, business unit strategy, M&A and operational improvement with large mobile and wireline operators and high technology clients.

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IP Virtual Private Network Service Options

Service providers offer a variety of options for managed services. The following describes the first of the top three most popular managed services, and the associated options, to help you determine which services would be most useful for your company.

Businesses gain both tactical and strategic advantages when adopting IP Virtual Private Networks (VPN). In the short term, they benefit from cost-effective, secure network connectivity to branch offices and secure access to remote workers, teleworkers, and global partners.

In the long term, they position themselves to take advantage of new value-added, IP-based applications and to support more users and applications at a lower cost.

Choosing a Best-Fit IP VPN Solution
Cisco commissioned the Yankee Group to describe the decision-making process that enterprises used to select one of three broad types of IP VPN managed services (click on image to enlarge).


You can use the decision tree to determine which of the three options for managed IP VPNs is most appropriate for your company:

• Network-based IP VPNs – Service provider provides complete management services.
• Managed CPE-based IP VPNs – Service provider installs and manages the equipment on the customer premises and provides connectivity.
• Do-it-yourself IP VPNs – Business installs and manages the equipment; service provider provides connectivity.

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Retailers Upbeat About TelePresence Applications

Companies with extended supply chains frequently need to collaborate with multiple partners -- simultaneously and visually. Yesterday at the National Retail Federation Conference in New York, AT&T and Cisco reminded attendees that they have added multipoint capabilities to their telepresence offering, which AT&T delivers as a managed service.

Attendees visiting AT&T's booth participated in videoconferencing discussions with Cisco employees in San Jose, and expressed confidence that they could apply the teleconferencing capabilities in their business immediately. Collin Cupid of high-end handbags and accessories manufacturer Coach said, "It made you feel like everybody's in the same room."

Sally Curtis of Planet Retail, a market research firm, said, "We can use this in our own context for communicating with customers. It's absolutely real." A couple of executives from United Rentals wanted an installation "yesterday," but were willing to settle for getting the equipment from the show floor. "Can we take that one right now?" asked Michael Ellis.

According to the companies, the AT&T Telepresence Solution works over the AT&T Virtual Private Network transport and provides:

• AT&T-owned Cisco TelePresence equipment
• Visual experience with the simplicity of a phone call
• Installation, monitoring and management of the application
• On-site equipment maintenance and repair, plus remote support
  
• Ability to handle complex, multinational, inter-company communications
• Security and reliability, as well as reduced IT staff requirements and limited impact on existing network applications
• Reduced exposure to technological obsolescence, reduced upfront capital expenditure
  

Global companies with extended supply chains can use telepresence to improve communications and accelerate time-to-market. They can also apply the visual medium to transcend cross-cultural communication hurdles, and thereby improve the speed of decision-making and overall operational efficiency.

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AT&T Telepresence Gets Retailers Talking

AT&T demonstrated its telepresence capabilities at this week's National Retail Federation conference in New York City. Retailers and other attendees are already talking about how the global industry could use Business Video technology to improve supplier and customer relationships, reduce travel expenses, and make supply chains more efficient.

Using Cisco's TelePresence technology for videoconferencing, AT&T offered attendees the chance to participate in sessions with Cisco employees in San Jose. Chris Eubanks of athletic equipment retailer Sports Authority said, "It was one of the most real things I'd ever seen. It was like being in the same room as the people in San Jose." Carlo Pochinesta of clothing manufacturer Gucci said, "It was as close to meeting in person as you can get and yet not be in the same room together."

As a salesperson, Erik Kostelnik of employment Web site careerbuilder.com found it helpful in his work. "I started reading the body language of the people. I'm in sales, so it's real important that to understand who I'm talking to and how they're responding to my questions."

Telepresence for Training and Improved Customer Experience
In addition, AT&T and Cisco announced that several retailers were already using AT&T's telepresence solutions. Office products retailer Staples is using it for corporate training, while Cabela's, one of the leading retailers of outdoor equipment is using it to improve the customer in-store experience.

Cisco's TelePresence solutions are part of its Connected Retail strategy to help retailers collaborate better with suppliers, partners and internal staff, while lowering operating costs.

Based on the reactions in the above interviews, telepresence is on its way to becoming a clear alternative to air travel for companies with a global presence. They can benefit from maintaining face-to-face discussions and relationships, while still avoiding the time and expense required for on-site visits.

Watch another video to learn more about the fully managed AT&T Telepresence solution.

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