The leader

in session border control

for trusted, first class

interactive communications
SIP trunking – Overcoming the obstacles
and enjoying the benefits

Michael Leo
Director, Enterprise & Contact Center
Solutions Marketing
How Do Your Children Communicate?

IM / Video
Cellular

Email
FutureNet APKT SIP Trunking May 2010
Agenda

What is SIP trunking

Challenges facing SIP trunking deployment

Benefits of deploying SIP trunking

Why you need a Session Border Controller when deploying SIP

trunking

SIP trunking example

Case studies

Net-Net

About Acme Packet

FutureNet APKT SIP Trunking May 2010 4

What is SIP trunking?

Direct IP peering between SIP- Based on reference architecture

enabled IP PBXs and Service
Provider SIP-enabled networks
Converts TDM trunks on-site to
SIP-based media streams to the
carrier network
Based on mature SIP standards
defined by SIPConnect Forum
Replacement of TDM-based
trunking (PRI and CAS trunks)
Logical SIP trunk overlaying
IP network

FutureNet APKT SIP Trunking May 2010

Positive outlook for SIP trunking

Still in early stages

– CY08, $130M in revenue,
208.5K SIP trunks
North America driving
SIP trunking
– 74% total trunk shipments
in CY08
$4 6

Trunks (M)
Revenue (US$B)
$3
SIP Trunking
5
2008-2013 CAGR of 91%
$3
4
$2
3
$2
2
$1

$1 1

$0 0
CY08 CY09 CY10 CY11 CY12 CY13
Revenue Trunks

Infonetics: June 2009

FutureNet APKT SIP Trunking May 2010 6
Challenges facing SIP trunking

Adoption
– Under 3% of current trunk installations,
but growth is rapid (300%+/year)

Availability
– Limited pool of providers, but expanding rapidly

Standards
– Service Providers’ offers diverge greatly

Interoperability
– Legacy TDM platform must be converted to SIP
through voice enabled router

SIP signaling implementations can hamper

performance/security
– Some vendors only implement specific
SIP signaling mechanisms

Security
– IP communications and UC networks require
security, just like data network

FutureNet APKT SIP Trunking May 2010

Benefits of SIP trunking
Lower telecom costs by 30-70%
Improve stability by moving all
technology into centralized data centers
Business continuity/disaster recovery
Answer all calls all the time no matter
which number a customer calls on (local
or toll free)
Improve productivity by further
integrating communication with people,
process, and information
100% call recording for industry
compliance, quality monitoring, and
speech analytics
Foundation for UC deployments
(audio/video conferencing, presence,
chat)

FutureNet APKT SIP Trunking May 2010 9

SIP trunking driving rapid adoption for
UC applications

Irwin Lazar, Nemertes Research VoiceCon SF, 11/4/09

FutureNet APKT SIP Trunking May 2010
Industry observations

―SIP trunking services have been commercially available since 2005, but
only now are enterprises grasping the business case, which can be very
compelling within certain enterprise segments‖
Brian Partridge, Yankee Group analyst

―SIP trunking revenues will be about twice as large a revenue stream as

hosted PBX services by 2012, possibly representing about $10 billion
worth of annual revenue.‖
Frost & Sullivan

―There are some technical hurdles to overcome when deploying SIP trunks,
but most of them were related to the fact that most firewalls and other
traditional security cannot handle the bidirectional nature of voice and
other communications— most of which can be overcome through the
use of a session border controller.‖
Zeus Kerravala, The Yankee Group

FutureNet APKT SIP Trunking May 2010 11

What is a session border controller?

Session – real-time, interactive

communications—voice, video & PSTN
multimedia—using SIP, H.323,
MGCP/NCS, H.248, RTSP
PSTN origination PSTN
& termination termination
Border – IP-IP network borders
1. Interconnect/peering:
IP transit Directory services
between service providers IP contact center
2. Subscriber access:
enterprise, residential
or mobile services
3. Data center:
retail or wholesale services
4. Enterprise: intra- & Residential
Large
extra-enterprise enterprise
Mobile & business
services services

Control
1. Security
2. Service reach
maximization
3. SLA assurance
4. Revenue & cost optimization
5. Regulatory compliance

FutureNet APKT SIP Trunking May 2010

SBC solution controls four IP network borders

1. SIP trunking border 4. Hosted services border

VoIP & UC security
IP Contact center,
subscribers audio/video conferencing,
PSTN IP Centrex, etc.
SIP trunking

SIP & H.323 interoperability Service

providers

Data center disaster recovery

Data
Remote site survivability centers
IP PBX UC
Contact center virtualization

Remote site & worker connectivity

via the Internet
Private network Internet

Regulatory compliance H.323 SIP SIP

– recording & privacy
Regional Remote HQ/ Nomadic/ Tele- Remote
site site campus mobile user worker site

2. Private network border 3. Internet border

FutureNet APKT SIP Trunking May 2010

Example case study

Fortune 1,000 healthcare organization

5,000 employees

500 agent call center

Challenge – reduce costs by

consolidating trunking into a
centralized data center

FutureNet APKT SIP Trunking May 2010 14

 Current trunk costs

Trunk Type Access Trunks Usage Usage Features Sub Total

T1/PRI Inter-State Intra-State Basic
Toll Free 33 750 4250000 750000 750
Default $300 0 0.02 0.05 $50
Sub Total $9,783 $0 $85,000 $37,500 $37,500 $169,783
Long Distance 22 500 3750000 1250000 500
TDM trunks

Default $300 0 0.02 0.05 $3

Sub Total $6,522 $0 $75,000 $62,500 $1,500 $145,522
Local 43 1000 0 2500000 1000
Default $300 $35 0 0.01 $5
Sub Total $13,043 $35,000 $0 $25,000 $5,000 $78,043
Support 2.5 people $20,000
Taxes 10% $39,335
Monthly Total $452,683
Yearly Total $5,432,196

FutureNet APKT SIP Trunking May 2010 15

 New SIP trunk costs

Trunk Type Access Trunks Usage Usage Features Sub Total

T1/PRI Inter-State Intra-State Basic
Toll Free 33 750 4250000 750000 750
Default $300 0 0.02 0.05 $50
Sub Total $9,783 $0 $85,000 $37,500 $37,500 $169,783
Long Distance 22 500 3750000 1250000 500
TDM trunks

Default $300 0 0.02 0.05 $3

Sub Total $6,522 $0 $75,000 $62,500 $1,500 $145,522
Local 43 1000 0 2500000 1000
Default $300 $35 0 0.01 $5
Sub Total $13,043 $35,000 $0 $25,000 $5,000 $78,043
Support 2.5 people $20,000
Taxes 10% $39,335
Monthly Total 2,250 $160,000 $44,000 $452,683
Yearly Total $5,432,196
Trunk Type Access Trunks Usage Usage Features Sub Total
Ethernet Inter-State Intra-State Basic
SIP trunks

SIP Trunks 4 1500 0 0 0

Default $5,000 $25 0 0 $5
Sub Total $20,000 $37,500 $0 $0 $7,500 $65,000
Support 1.25 people $10,000
Taxes 5% $3,750
Monthly Total $78,750
Yearly Total $945,000

FutureNet APKT SIP Trunking May 2010 16

Savings using SIP trunks

Reduction of telecom costs of

$4.4 million dollars a year

Savings summary
– Access - 4 Ethernet/MPLS vs.
98 T1/PRIs
– Trunk aggregation - From
2,250 voice trunks to 1,500 SIP
trunks
– Flat rate usage - $25/month per
trunk including 1,000 minutes
LD
– Tariff/Rate Reductions - Less
advanced feature costs like
transfers, no intrastate or local
usage charges

FutureNet APKT SIP Trunking May 2010 17

SIP trunking
case study - TruGreen
Application SIP trunking border
– SIP trunking (VzB) for IP- PBXs to reduce
PSTN costs
– Net-Net SBC at trusted access and PSTN
interconnect borders support
approximately 225 locations

Problems overcome
– High costs and inefficient PRIs and FX lines
for 225 individual TruGreen locations
– Protect data center from attacks
Data
– Call routing & load balancing centers
– Need for high VoIP call quality
– Centralized routing table admin IP PBX CC

Acme Packet advantage

– Interoperability with service
provider Acme Packet SBCs
– Net-SAFE security features Private network
– Policy-based routing and load balancing SIP
– Strong recommendations from other large SIP
SIP
enterprises
– Better than Cisco!
Regional Remote HQ/
Solution overview site site campus
– Acme Packet Net-Net 2600-SD
Private network border

FutureNet APKT SIP Trunking May 2010 18

Net-Net

TDM-to-IP transition well underway

– Reduce costs, improve communications efficiency
– Mobility, collaboration, presence and
video drive IP transition and complexity
– Compliance – call recording, emergency services,
domain separation
– IP PBX extensively deployed but exist as islands

Unified Communications (UC) is the new focus

– Migrate mission critical applications onto IP network
– Integrate chat, voice and video into contact center
and business applications
– Introduce presence and mobility into application delivery process
– Transition call centers to multimedia customer care centers

SIP trunking can reduce voice trunking cost for an organization by

50% of more
– Most implementations have a positive ROI in less than one year

SIP Trunking is not an all or nothing endeavor

– Start with moving outbound voice traffic to SIP trunks to get a quick
ROI with little risk and keep the existing PSTN trunks as a backup

FutureNet APKT SIP Trunking May 2010 19

Acme Packet at a glance
Session Border Control (SBC) category creator
and leader with 50-60% market share Founding team

980 customers in 104 countries,

many with multiple applications/projects
Over 790 service providers
– Wireline, wireless & cable
– 183 tier 1 service providers
– 90 of top 100
– 13 of top 15 North American MSOs

Over 185 enterprise & contact centers

– 11 of Fortune 25
Revenue ($M) EPS (non-GAAP)
Premier distribution & integration partners $184 $0.46
- 100+ worldwide
$0.35
$142
Experienced, long-standing leadership team $116 $0.27

450 employees in 31 countries,

Burlington, MA headquarters
Public company (NASDAQ: APKT)
with strong financials 2008 2009 2010
guidance
2008 2009 2010
guidance

FutureNet APKT SIP Trunking May 2010 20

Q&A

Visit www.acmepacket.com for more information

Follow us on Twitter @ Acme_Packet
or at www.sip-enterprise.com