VoiceCon Spring 2006: SIP And Today’s IP-Telephone Market 8 March, 2006

1. VoiceCon Spring 2006:SIP And Today’s IP-Telephone Market8 March, 2006 Irwin Lazar Senior Analyst Ilazar@burtongroup.com SIP: 1-747-606-4120 http://www.burtongroup.com/

2. Agenda • SIP Today • Communications Convergence • SIP-Based Services • Enterprise Recommendations

3. The Future Is SIP…But what about the present? • Consumer Reality: • SIP is widely used by almost every vendor of IP telephony services • Vonage, CallVantage, Lingo, etc. are all SIP-based services • Direct peering among providers is increasing, bypassing the PSTN • Free SIP-based telephony services emerging (Earthlink, Gizmo Project) • Peering among these services is creating a growing fabric of interconnected SIP-based user agents • CableLabs Distributed Call Signaling (DOCSIS) standard based on SIP • SIP is basis for signaling in all future 3G IP wireless networks (IMS)

4. The Future Is SIP…But what about the present? • Enterprise Reality: • Hosted services almost always based on SIP • Leading platforms from Broadsoft and others are based on SIP • Enterprise IP telephony vendors have a SIP story • But capabilities differ • Most only support SIP for system interconnection, not for end-device signaling on their core platforms • H.323 or its variants (Cisco “Skinny”, Siemens “CorNet”, Mitel “MiNet”, Nortel “UniStim”) still dominate • Why? • Lack of agreement for SIP feature implementation • A desire to protect phone system revenues??? ;-) • Enterprise impact • Lack of end-point choice - proprietary solutions

5. Arguments Against SIP • It isn’t mature • SIP is over six years old, core standards are mature • It doesn’t support traditional telephony features • SIP primitives and feature packs support widely used telephony features in a standardized manner • Implementations still vary, often proprietary extensions are used • It isn’t secure • SIP supports per-hop and end-to-end security models including encryption and user authentication • But - several tests have discovered implementation-specific vulnerabilities • It doesn’t work over NAT • Numerous NAT mitigation techniques have been well defined and widely deployed

6. SIP IP-PBXs • You can buy a SIP-based IP-PBX today! • Commercial Examples: • 3Com VCX 7000 • Siemens HiPath 8000 • Broadsoft Broadworks • Mitel 3300 • Open Source Examples: • Pingtel SIPxchange • SIPfoundry sipX • Asterisk • SIP-base converged communications servers • Nortel MCS 5100, Avaya Converged Communications Server

7. Agenda • SIP Today • Communications Convergence • SIP-based Services • Enterprise Recommendations

8. The Communications Detective • How Do I Contact Someone? • How can I contact them? • IM, voice, cell, e-mail, video? • Can my system talk to their system? • Are they available? • Are they on the phone or in a meeting? • Are they the right person for the inquiry? • How do I arrange a conference call? • What if they don’t dial into the teleconference? • How do I share information?

9. The Big Picture • Goal: a single communications infrastructure unifying collaboration, real-time communications, and presence • Convergence not of voice & data, but rather convergence all forms of real-time communications into a unified application • Combined with collaboration tools • Integrated into business applications & processes • Extensible beyond organizational boundaries • Delivering measurable business benefit by streamlining and improving the ability for individuals and groups to communicate • Converge non-real time communications (e-mail) • Voice but just one component of a converged communications & collaboration infrastructure

10. An Example • Converged communications in action: • April 1st 2005 - new product launch • April 2nd 2005 - 10:00 AM, warehouse reports inventory shortage • Inventory control application sends an IM to product manager alerting her of the problem • Product manager calls a teleconference via presence portal • System calls team members preferred devices • Team members collaborate with real-time application information in current environments • All done via a single click through a unified user interface

11. SIP and Presence • SIMPLE extends SIP to create a “glue” for converged communications Converged Presence-Based Client Presence Services SIP / SIMPLE Collaborative Applications Digital Phone Mobile Phone IP Phone Soft-phone IM Client PC w/ USB Camera

12. SIP and Collaboration In the IM Corner: Microsoft Office Live Communication Server 2005 w/ Office Communicator client IBM Lotus “Hanover” client Public services (e.g. Skype) In the VoIP Corner: Siemens HiPath OpenScape Nortel Multimedia Communications Server 5100 Avaya Converged Communications Server Mitel “Your Assistant” • Vendors are rapidly delivering solutions in this space, but forces are colliding: Who Owns the Interface????

13. SIP and Web Services • SIP will be increasingly extended beyond traditional voice systems • SIP capabilities in CRM, ERP applications • Example: BEA WebLogic SIP Server for extending SIP applications via J2EE • Web services capabilities in IP-PBXs (e.g. support for SOAP/SAML/XML) • Goals • Enable application-to-application as well as application to person communications

14. Agenda • SIP Today • Communications Convergence • SIP-based Services • Enterprise Recommendations

15. Peering and Federation • Instant Messaging, VoIP, and Presence • SIP/SIMPLE-based federation of real-time applications • Both within and outside of an organization • Example: • Microsoft Live Communications Server using SIMPLE to interface with Yahoo IM and AIM • Lotus SameTime interfacing with Jabber among departments or business partners • “Direct peering” versus “clearinghouse” models

16. Federation Example Clearinghouse Enterprise B Enterprise C Enterprise D Enterprise A Direct Federation Connection

17. SIP Trunking Services • Eliminating local loops • Enterprise sends calls to service provider via SIP • Service provider routes calls to PSTN gateway nearest destination • End result: • Reduction in toll charges • Elimination of local loops • Service evolution • IETF defining common interface standards • SIP Forum defining policy standards • Numerous vendor/carrier certification programs

18. SIP Trunking Example PSTN Provider Network Provider Gateway LA PRI SIP PRI SIP Provider Gateway NY Enterprise Location IP-PBX PBX Customer Location New York Los Angeles

19. Agenda • SIP Today • Communications Convergence • SIP-based Services • Enterprise Recommendations

20. Enterprise Recommendations • Pressure your vendors • Improved SIP support broadens your choices of endpoints & systems • Require SIP network interfaces on all communications products & services • Open-standards based systems imply greater interoperability • With each other, as well as emerging SIP trunking services • Follow standards development • Much work still being done in IETF SIP, SIPPING, SIMPLE WGs and SIP Forum

21. More Enterprise Recommendations • Determine an “owner” for collaboration & communications • Typically a cross-functional group from voice, messaging, instant messaging groups • Prepare for network management challenges • Determine business case benefits • Can you establish a tangible benefit to converged communications? • Make converged communications part of your long-term plans • Improved communications = lower costs and greater efficiency • May lead to easier regulatory compliance