The growing demands for Hosted PBX services in the SMB and Enterprise markets have opened up profitable opportunities for service providers. It is easy to decide to capture these opportunities but how should you build your business model? In this webinar, we will discuss the differences in the two most popular strategies for entering into the Hosted PBX space and answer the question that many growing ITSPs have on their mind: "Should I be a provider or a reseller?"

1. Hosted PBX:
Should You Be A Provider Or A Reseller?
Thursday August 27, 2015
2:30pm ET/ 11:30am PT
Presented By:
Kevin Selkowitz
Moderated By:
Peter Bernstein

2. Unified Communications Platform for Service Providers
 Class 4/5 Softswitch
 Geographic Redundancy
 Session Border Controller
 SIP Trunking
 Feature Server
 Mobile App
 Device Provisioning
 Recording
 WebRTC
 Call Center Applications
 Multi-tenant
 Call Routing
 Monitoring
 User Portals
 Flexible API
www.netsapiens.com | @NetSapiens

3. My Perspective
https://www.youtube.com/watch?v=6KeG_i8C
WE8
Director of Product Management
Previously Director of Business Communication
Systems for a Regional CLEC
www.netsapiens.com | @NetSapiens

4. Hosted PBX Market
Analyzing the industry.

5. Trend: SIP is a Growing Market
0
20
40
60
80
100
120
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
CY13 CY14 CY15 CY16 CY17 CY18
Revenue Seats/Trunks
Hosted VoIP, UC & SIP Trunking
Source: Infonetics, 2014
SIP is a growing market.

6. Voice communication is
extremely or very
important
Voice Communications
Planning to look at new
phones in the next three
years.
Looking to upgrade
because of something
other than saving money.
This is what businesses have to say:
50%74% 69%
“ “ “
“ “ “
Source: Hanover 2015

7. Hosted PBX Opportunities
The market is wide open!
94%
83%
78% 78%
71%
6%
17%
22% 22%
29%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1 to 4 5 to 19 20 to 49 50 to 99 100+
TDM IP
Source: Marketvision 2014
Now is the time to offer HPBX!

8. Before you take the leap into HPBX
Considerations before choosing a solution.

9. Before you take the leap into HPBX
 Provider vs Reseller Basics
 What Does It Really Cost?
 Pricing Flexibility
 Amount of Control
 Staffing
 Diagnostic Access
 Quality of Service
 Redundancy & Reliability
Considerations before choosing a solution.

10. Provider vs Reseller Basics

11. Provider vs Reseller Basics
Reseller
Their Data
Center
The software is
controlled by a third
party who owns the
software in their data
center.
Provider
Your Data
Center
You control the
software and
own/lease it in your
data center or a data
center of your
choosing.
VS

12. Provider vs Reseller Basics
Reseller
Bundles
Often locked in to
their carriers,
supported devices,
billing system, etc
Provider
Choices
Choice of carriers,
devices, billing
systems, etc
VS

13. What Does it Really Cost?
The cost of service vs. ownership.

14. What Does it Really Cost?
“Margins are significantly better with NetSapiens”
- Ron Kohn, Fidelity Voice
The cost of service vs. ownership.

15. What Does it Really Cost?
The cost of service vs. ownership.
“Whitelabel
Provider A”
NetSapiens
SNAPsolution
User Cost
Assuming 15
users/active call
~$11500
User and
bandwidth costs
~$6000
Includes estimated
server & data
center costs, switch
licensing, billing
software
3000 Users

16. What Does it Really Cost?
The cost of service vs. ownership.
“Whitelabel
Provider A”
ThinQ
Average
Termination
Domestic US
$.0125/min $.0035/min
Termination

17. What Does it Really Cost?
The cost of service vs. ownership.
“Whitelabel
Provider A”
VoIP Innovations
Origination
Domestic US
99¢/DID
$.0076/min
50-75¢/DID
$.0035/min
Origination

18. Pricing Flexibility
Don’t let pricing limit your business model.

19. Pricing Flexibility
“With our whitelabel we get charged per active phone,
while with NetSapiens we're based on concurrent calls, so
we can decide how we want to bill customers”
- Cody Anderson, AWI Networks
Don’t let pricing limit your business model.

20. Pricing Flexibility
Don’t let pricing limit your business model.
Common Ways to Price HPBX
 Per Seat Pricing
 Different seat levels
 Free seats for paging units, door
phones, etc
 Seat and Trunk pricing
 Trunk only pricing

21. Amount of Control
Will you be able to control your product?

22. Amount of Control
“When we had a new phone or device that they hadn't
tested, they wanted a pretty large amount of money to
test that and make it work”
- Cody Anderson, AWI Networks
Will you be able to control your product?

23. Amount of Control
 Supported Devices
 Device Firmwares
 Device Configuration & Control
 Security
 Dial Plan
 Carriers
 Features
Will you be able to control your product?

24. Features
“There were some features that a few customers
wanted that they didn't offer, call recording and call
queues were one”
- Cody Anderson, AWI Networks
Will you be able to control your product?

25. 1. Voicemail to email (38%)
2. Remote desk phones (25%)
3. Music on hold (25%)
4. 3 way calling (24%)
5. Mobile client for desk phone (24%)
6. Interoffice dialing (24%)
7. Interface to manage phone (21%)
8. On Demand call recording (20%)
9. Integration with 3rd party systems (15%)
10. Conference bridges (13%)
11. Call reporting (13%)
Source: Hanover 2015
Will you be able to control your product?
SMBs Most Wanted Features

26. Staffing
Do you need technical/ engineering staff?

27. Staffing
“We haven't had to hire any additional staff since switching from
whitelabel to premise”
- Cody Anderson, AWI Networks
What are their core competencies?

28. Staffing
Either way you’re responsible for
 Tier 1/2 Support
 Provisioning
And that’s most of the work!
What are their core competencies?

29. Diagnostic Access
How can you troubleshoot when things go wrong?

30. Diagnostic Access
"[troubleshooting] was cumbersome…when we tried to
troubleshoot something, our engineers never felt that the
reseller was doing as good a job as they would have done”
- Ron Kohn, Fidelity Voice
How can you troubleshoot when things go wrong?

31. Diagnostic Access
 Switch logic/Call Flow
 Registration Logs
 PCAP Files
How can you troubleshoot when things go wrong?
12.345.67.890:1234 tls/12.345.67.890:5432

32. Quality of Service
End to end QoS is a huge advantage!

33. Quality of Service
“Having it in our backbone itself, its much better call quality”
- Cody Anderson, AWI Networks
End to end QoS is a huge advantage!

34. Quality of Service
 If you’re an ISP, putting services in your network helps ensure
call quality and reliability
 This is a HUGE advantage in the marketplace against BYOB
providers
 We’ve seen HPBX providers NNI with ISP providers for QoS
 BYOB does work if you have a good carrier and proper network
design
End to end QoS is a huge advantage!

35. Redundancy

36. Redundancy
 An untested redundant system isn’t redundant!
 SNAPsolution features HA & Active/Active Georedundancy

37. ROI Analysis

38. ROI Analysis
“Whitelabel
Provider A”
NetSapiens
SNAPsolution
3000 Seats,
$25/seat
$900,000 $900,000
Estimated Service
Cost (250 min
orig/term per seat)
$354,000 $163,000
Net $546,000 $737,000
3000 Seats

39. ROI Analysis
“Whitelabel
Provider A”
NetSapiens
SNAPsolution
500 Seats, $25/seat $150,000 $150,000
Estimated Service
Cost (250 min
orig/term per seat)
$60090 $52650
Net $89910 $97350
500 Seats

40. Final Thoughts

41. Final Thoughts
 Whitelabel Hosted PBX makes great sense
for a small operation with limited
engineering experience.
 Facilities based Hosted PBX makes sense
for larger installs, carriers, and ISPs.

42. Questions?
Connect With Us Today!
1 (858) 764-5213
info@netsapiens.com
www.netsapiens.com
Twitter: @NetSapiens