WHITEPAPER. Flexible, cost-effective and always up to date CLOUD TELEPHONE SYSTEMS

Transcription

1 WHITEPAPER Flexible, cost-effective and always up to date CLOUD TELEPHONE SYSTEMS

2 EXECUTIVE SUMMARY The classic telephone system that businesses operate themselves is becoming outdated. The high installation and operation costs as well as the limited scalability are now outmoded. As these telephone systems have been in operation for five to ten years, or even longer, they are failing to keep pace with the speed of technical innovations and the changing demands of business. Modern telecoms systems need to provide options for the integration of telephony functionalities in IT (E- mail, CRM, ERP) and take account of the increasing mobility in business. In addition to this, they must adapt quickly to the specialist needs of the field as well as being simple and straightforward to use. An example of the combination of IT and telephony is CTI (Computer Telephony Integration). Here, the user makes the call via the computer with a soft phone and has, at the same time, access to the complete customer history (contact details, contracts, purchases etc.) on the data bank or the CRM System on the monitor. He is able to do this whether he is in the office, working from home or en route with his Notebook. 2 A public cloud telephone system fulfils these requirements. In contrast to classic telephone systems, no initial expenditure is required for communication hardware for example, as a service provider supplies the telecoms solution via the internet, and bears full responsibility for its operation and maintenance as well for ongoing updates. With the cloud solution, there are no long-term maintenance contracts, instead fees are simply charged monthly per user on a pay-as-you-go system. Customers also only pay for the number of extensions actually used. Cloud telecoms systems are freely scalable and can be flexibly extended for other uses thanks to open interfaces. Furthermore, the operator can configure and manage the telephone system conveniently via a web-browser. IT-INTEGRATION, FLEXIBILITY, MOBILITY: THE DEMANDS ON TELEPHONE SYSTEMS ARE INCREASING The role of telephony in business is changing. Whilst the classic telephone system previously operated mostly in isolation, it is becoming more and more enmeshed with IT and becoming an integrated part of business processes and applications., alongside this, new technical demands are also arising: therefore telecoms solutions must provide options for telephony functionalities in IT (E- Mail, CRM, ERP) and support mobile devices. STATUS QUO: TELECOMS SYSTEMS ARE NOT SUITABLE FOR IT REQUIREMENTS However, current telephone solutions in German business are less and less able to keep up with the pace of technical innovation and the requirements of businesses. A classic telephone system is, in principle, already out of date almost from the outset. It is true that many functions can be added later through Firmware-Update, but the technical possibilities have been more or less exhausted. Furthermore, the telecoms systems in the majority of businesses have already been in operation for five or ten years, or even longer. Therefore investment cycles in the field of telecommunications are considerably longer than in IT. In this respect, the study 'Are we seeing a Radical Change in Business Telephony?' in which Pierre Audoin Consultants, on behalf of NFON, interviewed the IT administrators of 153 small, medium-sized and large businesses, is very revealing According to this study, 60 to 70 percent of German businesses are somewhat dissatisfied with their current telephone solution and acknowledge that it has not kept sufficient pace with IT requirements in the following respects: Integration with IT applications such as the CRM-System 3 Flexibility of administration

3 IT INTEGRATION, MOBILITY AND FLEXIBILITY ARE OFTEN NOT SUFFICIENTLY SUPPORTED BY TELECOMS SYSTEMS Seruvey Results Reliability and Availability Payment only for Lines Actually Used Self-Service in der Administration Reasonable and Flexible Contract Periods Integration With IT Applications e.g. CRM Systems Flexibility and Simplicity of Administration (MAC) Integration of Various Mobile Devices Supporting Flexible Ways of Working Ability to Keep Pace with Technical Innovation Straightforward Connection to New Locations Unsatisfactory Poor Sufficient Satisfactory Good Very Good In seven out of ten criteria, the majority of people responsible for IT rate their existing telephone systems at most as satisfactory % of German businesses are somewhat dissatisfied with their current telephone system with regard to: Integration with IT applications e.g. CRM systems Flexibility of administration Integration of mobile devices Supporting flexible ways of working Ability to keep pace with technical innovation This shows that current telecoms systems do not measure up adequately to current IT Demands. NB: Figures (weighted) as a percentage of all businesses, n = 153; Figures have been rounded up Source: PAC 2013 for NFON AG Integration with mobile terminals 3 Supporting flexible ways of working 3 Pace of technical innovation INVESTMENT IN TELECOM SYSTEMS IS IN UPSURGE Those with responsibility for IT therefore have need of systems which can be adapted to changing requirements and technical innovations without high investment costs. And yet recently, according to the PAC study, only 14 percent of businesses surveyed are investing in modernising their telephone systems - amongst these the larger firms in particular. However, half of the German businesses surveyed plan to invest in their telecoms system in the next three years. Forty percent of businesses, amongst these the smaller firms in particular, do not want to invest money in renewing their telephone systems for another three years or more. Therefore a greater upsurge in investment is in the offing over the next few years.. The most important reasons for new investment are technically outdated systems, changing requirements from telephone 3

4 ONLY FEW BUSINESSES HAVE DEDICATED RESOURCES FOR THE MANAGEMENT OF THEIR TLELPHONE SYSTEMS Skills and resources: telephone solution is managed by... Total EMPLOYEES EMPLOYEES or more EMPLOYEES % 100 % In spite of increasing strategic significance, dedicated resources are only seldom provided for the management of telephone solutions: in three quarters of businesses, the telephone system is managed incidentally by the IT department. In only one in six large businesses is there someone looking after the telephone system full time. In 17% of all businesses, the telecoms systems are operated by external service providers, especially in the case of small and medium-sized businesses. Dedicated full-time workers IT workers incidentally Other workers Incidentally External service providers NB: figures (weighted) as a percentage of all businesses n = 153 (53, 60, 40) Source: PAC 2013 for NFON AG 4 systems and high costs. IP migration (VoIP) and new, cutting-edge functionalities such as CTI or Unified Communications are central themes that lead to investment in new telecoms systems. Further background: almost 60 percent of those responsible for IT in large companies reckon that the strategic significance of telephony in their businesses will increase in the future. Only a few businesses have dedicated resources for the maintenance of their telephone systems. For this reason it is certain that companies the one hand need technically up-to-date telephone solutions in order to support their business, but on the other hand are subject to their limited personnel and financial resources. Although according to the NFON commissioned study, the majority of businesses (91 percent) operate their telecoms systems themselves, they only rarely allocate dedicated funds for their operation and maintenance. In three quarters of businesses, the IT department looks after the telephone systems as well. Only one in six large companies has full time staff looking after the telephone systems. SOLUTION: A PUBLIC CLOUD-BASED TELEPHONE SYSTEM Yet even with full time employees looking after the telephone systems, administration is more expensive, and costs increase in order to keep the telecoms system up-to-date technically and adapt to the ever-changing needs of the business. Furthermore, personnel have to constantly undergo training. What happens when the IT expert is on holiday? What is his availability? Also, questions of back-up and insurance need to be clarified. These demands increase with the size of the business. Also, scalability is limited by the growth of the business. In these circumstances, public cloud-based telephone systems offer an attractive alternative to conventional company-run telecoms systems. A cloud-based telephone system is not installed and operated internally within the business instead, an external service provider supplies all its functions over the internet.

5 The telephone system is outsourced to a highperformance data processing centre and is accessible from anywhere via the World Wide Web. In this way, more customers can share a virtual telecoms infrastructure with the so-called Multi-Tenant-Model. The service provider normally takes full responsibility for operation, maintenance and updates. Essential quality and performance features are adhered to via Service Level Agreements (SLA). ADVANTAGES OF A PUBLIC CLOUD TELECOMS SYSTEM Connection to a public cloud telecoms system has many advantages for businesses: No Initial Investment In contrast to classic telephone systems, with a cloud-based system, no initial outlay is necessary for communications hardware, as the service provider supplies the telecoms solution over the internet and bears full responsibility for operation and maintenance as well as for ongoing updates. Furthermore, the cloud telephone system can be used with practically any device that has internet connection, whether it be a VoIP phone, a computer/ Notebook with Softclient or a Smartphone with a mobile app. Always Technically Up-To-Date The service provider regularly upgrades the telecoms system's performance features through free Software-Updates in order to be able to react to new demands and the latest trends in technology. Flexible Pricing And High Scalability With the cloud solution, there are no long term service contracts, instead monthly costs are simply incurred on a pay-as-yougo basis per user. So customers only pay for the extensions that they actually use. The length of contracts is usually short and flexible. Cloud-based telephone systems grow with the number of employees and can be adapted to special requirements. In this way, it is relatively inexpensive to include (international) branch offices, or colleagues working from home in company communications. Calls can then be more easily be taken or transferred. In this way, costs can be split between branches. Simple Administration: Convenient use of the telecoms solution for operators and administrators with the browser with easy to use graphics. Potential To Expand: For the most part, cloud-based telecoms systems provide open interfaces for integration with other applications. Security: Probably the greatest stumbling block to installing a cloud-based solution in business is the question of data security, not least after the Edward Snowden revelations. Companies that give out their data have to trust their cloud provider. For this to happen, they need transparent information concerning the general technical, organisational and above all legal terms and conditions, including security of information. Cloud telephone systems are located in data processing centres where there is often better protection against failure. This is because the cloud providers provides extra backup and are generally subject to high technical and organisational safety standards, and are ISO and SAS 70 Type II certified. Regarding the costs of the cloudbased solution, small and medium-sized businesses in particular must therefore ask themselves whether they are in a position be able to guarantee the high availability and security of data, including external mobile access, within their own data processing centres. 5

6 FOR EVERY THIRD BUSINESS, A CLOUD-BASED TELEPHONE SOLUTION IS A POSSIBILITY Given equivalent quality, functionality and cost, would your business consider a cloud-based telephone solution? % of businesses are already either definitely or probably considering the option of a cloud-based telephone solution. Businesses are just as open to Cloud telephony as to other Cloud IT applications such as CRM or COLLABORATION. With around 1% of businesses currently using a Cloud-based telephone system, there is clear room for growth in the near future. Yes, definitely Probably Probably not Definitely not Undecided Source: PAC 2013 for NFON AG BUSINESSES ARE OPEN TO CLOUD TELEPHONY 6 How do businesses rate the future of cloud telephony? Pierre Audoin Consultants also put this question to the IT administrators on behalf of NFON for the Study 'Are we seeing a Radical Change in Business Telephony?' The result was that in the long term, over 40 percent of German IT administrators believe in the future of cloud telephony. Only a minority of businesses (17 percent) do not believe that cloud telephone solutions will become established in the market in the long term. According to this, the cloud is developing into an important alternative to conventional captive systems, not only for IT applications but also for communication use. This applies to businesses of all sizes. Against the background of around only one percent of businesses today using cloudbased telephone systems, we can count on a clear increase in this area in the years to come. According to this, an important driver of cloud-based solutions will be that they can be continually adapted to technological progress and the evolving needs of businesses through updates at no extra cost. Other important reasons are better integration with mobile devices, lower overall costs (TCOs) including maintenance, and simple administration, as well as short and flexible contracts.

7 CRITERIA FOR CHOOSING A PROVIDER The choice of a suitable cloud provider depends on the individual requirements of each company. The following questions should be considered when making a decision: Functions And Performance Features: Does the chosen system offer the functions that are important for your business? Are the most important telephony functions adequate (e.g. call management, call answering/voice mail, call groups, call queueing with interactive dialogue, telephone conferencing, fax functions), or is there a need for complex performance such as Contact-Centre-Functioning? Integration With Back-End Systems Which IT systems should telecoms functionalities be integrated with? Are the interfaces supplied by the provider adequate, or are individual developments necessary? Service and Support: Is straightforward online maintenance sufficient, or do you require on-site support from the provider or one of its partners? Infrastructure: Are you free to choose your carrier services independently (outside lines, tariffs, minutes packages, flat rates etc.) or do you have to choose a carrier in conjunction with your cloud system (dependence)? Mobility: How important is integration with mobile devices and how well can this be implemented by the service provider? Do you want or need additional mobile telephone systems contracts? Organisation: If the solution no longer suits your needs or is discontinued, or the provider goes under, it must be made clear in advance how this scenario will be dealt with. How will I receive my number with another solution? How can I switch quickly to another solution? Quality: What Service Level Agreements (SLAs) does the provider offer (availability of the solution in the data centre, local redundancy, defined response times etc.)? Security: Even if the data stored in the cloud telephone system is not particularly sensitive, can the provider tell you exactly where the data will be stored, how access is controlled and whether there is a consistent policy for the protection and security of data? 7

8 DIFFERENCES BETWEEN A CORPORATE TELECOMS SOLUTION AND A PUBLIC CLOUD TELEPHONE SYSTEM Classic Telephone System High start-up costs Costs dependent on requirements Long contracts (generally five years) Technical updates are associated with charges and have to be implemented yourself Poor flexibility and scalability High administration costs Cloud- Telephone System High administration costs Clear costs per user, usually monthly Short contracts Automatic upgrades by the provider at no extra cost Flexible and optional scalability up or down; costs rise and fall according to the number of users Simple Administration WHAT NFON OFFERS NFON is currently the only provider in the German market that serves every size of business, from 1 to 100,000 extensions, with its public cloud telephone systems. Along with small and medium-sized businesses, this also includes in particular large businesses with more than 1,000 extensions to their clientele. Large companies with international business are also addressed through our branches in eight European countries. NFON's range of services include 24/7 support, on-site supervision by our own staff or those of our partner companies, extensive possibilities for integration with open interfaces to leading IT systems such as Salesforce.com and Microsoft Lync, as well as a strong focus on security (against breakdown and interception). As well as cloud-based telephone systems, the sales portfolio includes international broadband connections via SDSL and mobile telephone contracts in association with O2. In addition, in conjunction with O2, NFON offers the integration of mobile telecommunications with the cloud-based telephone system via a VPN link, so that mobile devices can be utilised as fully functioning extensions of the network. Furthermore, NFON has a large network of qualified partners who can provide round the clock support to its customers. Here, services range from Cloud-Readiness- Checks, through integration of the telephone system to the customer's back-end, to support services such as replacement of devices and seamless migration to the Cloud. With NFON, thanks to Pay-per-Use and the flexible scalability of extensions, up to 50 percent of the costs of a conventional telephone system can be saved. 8 The NFON Cloud Telephone service and access to Emergency Services (999,112) will not be available during any power cuts and network outages affecting the Customer. PREPARED FOR NFON AG Leonrodstraße München