right place : right time oss telephony adoption trends
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Right Place : Right Time OSS Telephony Adoption Trends. Worldwide markets still reeling from global economic crisis IT markets predicted to decline in 2009 Enterprise spending down 30% yoy Carrier spending down 20% yoy Public sector spending down 15% yoy. Economic Upheaval. 1. - PowerPoint PPT PresentationTRANSCRIPT
Right Place : Right Time
OSS Telephony Adoption Trends
Economic Upheaval
• Worldwide markets still reeling from global economic crisis
• IT markets predicted to decline in 2009• Enterprise spending down 30% yoy• Carrier spending down 20% yoy• Public sector spending down 15% yoy
1. Thomas Wiesel
Creative Innovation – Customer Satisfaction – Continual Quality Improvement
1
Economic Upheaval
• Buyers currently undergoing a ‘reset-tion’• Once spending begins to return, buyer
behavior will change• Buyers much more cautious• Buyers looking for value• ROI terms shortened• Lower cost alternatives get more airplay
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Economic Upheaval
• Markets contract as a result of lower cost alternatives gaining share
• Open Source-based alternatives gaining momentum and acceptance as a result of the economic turmoil and changes in buyer behavior
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Open Source Software
Adoption Trends
Function/ApplicationOpen Source
SolutionOperating System Linux
Web Server ApacheBrowser Firefox
Telephony/Communications AsteriskDatabase MySQL
Customer Relationship Management SugarCRMBackup Zmanda
Productivity Suite Open OfficeCollaboration Suite Zimbra
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Open Source Trends
Source: SavatarCreative Innovation – Customer Satisfaction – Continual Quality Improvement
The Market for Open Source
• Stand Alone Open Source Market will reach $5.8B by 2010/2011 (26% CAGR)1
• Tens of millions of new downloads of some version of open source software in 2009
1. IDC
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Voice over IPAdoption Trends
VoIP – an upheaval survivor• VoIP as a technology category will fair well
in comparison to other technologies• VoIP enables …
• Communications expenditure cost reductions• Non-centralized work force structure
• Lower commute costs• Lower facilities cost
• Mobile work force productivity
Creative Innovation – Customer Satisfaction – Continual Quality Improvement
Total IP PBX Market ForecastIP PBX Market Forecast (Global), 2006-1013
0
10
20
30
40
50
60
2006 2007 2008 2009 2010 2011 2012 2013
Year
Units
(Mill
ions
)
0
1
2
3
4
5
6
7
8
9
10
Reve
nue
(US$
Bill
ions
)
Units (Millions) Revenue (US$ Billions)
Source: Frost and Sullivan 2008
IP Telephony Adoption• IP PBX market will reach $7.9B by 2010 (21% CAGR)2
• 2010 IP PBX penetration will still be less than 50%• This year, IP line shipments will pass TDM
shipments3
• Growth in IP Telephony (IPT) systems dominates PBX market segment3
• 19% CAGR
2. Gartner Group3. TEQConsult Group
Open Source VoIPAdoption Trends
Open Source IP PBX Downloads• 2008 total worldwide downloads of Open
Source PBX software– Total - 1,750,000– Asterisk - 1,540,000– Non-Asterisk - 210,000
• 2008 total North America downloads of Open Source PBX software – 490,000– North America is 28 percent of total downloads
Source: Eastern Management Group
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Open Source IP PBX Metrics• Total 2008 North American Open Source
PBX Business Telephone Systems– 86,872
• Total 2008 North American Open Source Business Telephone System end points– 2,854,749
• Average 2008 Open Source PBX Business Telephone System end points:– 32.8 end points
Source: Eastern Management Group
Creative Innovation – Customer Satisfaction – Continual Quality Improvement
2008 Total North America Business Telephone System
Market Traditional PBX and Key System Lines
13,029,148
Open Source lines 2,854,749
Total Lines 15,883,897
Open Source as a % of Total 18%
Source: Eastern Management Group
Creative Innovation – Customer Satisfaction – Continual Quality Improvement
2008 New PBX End Points2008 Largest Suppliers End Points
Open Source 2,854,749
Nortel 2,632,145
Cisco 1,990,255
Avaya 1,752,885
Mitel 1,228,887
NEC 1,222,578
Source: Eastern Management Group
Creative Innovation – Customer Satisfaction – Continual Quality Improvement
2008 Business Communications Systems Market Share
Source: Eastern Management Group
Creative Innovation – Customer Satisfaction – Continual Quality Improvement
Asterisk Share of OSS IP PBX MarketBased on most recent implementation
Source: Eastern Management Group
Creative Innovation – Customer Satisfaction – Continual Quality Improvement
2008 New PBX End Points2008 Largest Suppliers End Points
Nortel 2,632,145
Asterisk 2,512,179
Cisco 1,990,255
Avaya 1,752,885
Mitel 1,228,887
NEC 1,222,578
Source: Eastern Management Group
Creative Innovation – Customer Satisfaction – Continual Quality Improvement
OSS IP PBX Vendor Market ShareOpen Source Manufacturers Percent
3 Com 2%
Aastra 2%
Critical Links 2%
Digium 68%
Fonality 21%
Intuitive Voice Technology 2%
Nortel (including Pingtel) 3%
SimiComm <1%Source: Eastern Management Group
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How does Open Source Telephony get adopted by end-users?
Creative Innovation – Customer Satisfaction – Continual Quality Improvement
How end users benefit from OSS
• IP PBX (based on OSS)• Media Gateways (based on OSS)• Soft Switch (based on OSS)
Buy a complete OSS-based
product
• OSS Software• Commercial Software• Hardware Platforms• Training• Services• 3rd Party Add-ons
Build you own – or have an
integrator build a solution for you
Tool KitComponents
Lo ….…. End-User Technical Competency ….… Hi
Packaged OSS Based Solutions
Custom Engineered OSS Solution
Market Needs vs. End User Technical Skill
Market Needs vs. Size of Business
The OSS IP Telephony ‘Long Tail’
Turn-key OSS-based products
Custom-built OSS-based solutions
Creative Innovation – Customer Satisfaction – Continual Quality Improvement
Demand /Revenue
STD IP PBX
Digium Product Relationships
OSS Asterisk V1.4 OSS Asterisk V1.6
Turn-Key Products (Switchvox 4.0)
Commercial Edition Version C.x
Testing and Qualification
Turn Key Products (Switchvox 5.0)
Commercial Edition Version D.x
Testing and Qualification
Asterisk Development
OSS Enables Customizable Solutions
• The holy grail for communications solutions • Tightly integrate communications with
existing business processes– Reduce cost– Improve productivity
• Enabled through– Software-based communications engines– APIs and/or custom development
Creative Innovation – Customer Satisfaction – Continual Quality Improvement
Summary• Next 12-24 months will be challenging• VoIP is an investment that pays a tangible
ROI - today• Open Source solutions are gaining popularity
– Lower cost– No vendor lock-in– Easily customizable
• OSS + VoIP = Right Place, Right Time
Creative Innovation – Customer Satisfaction – Continual Quality Improvement
Questions & Discussion
Digium - The Answer is Open
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