Hosted VoIP

Boasting a 20-year legacy and more than 6,500 customers coast-to-coast, Cypress is a provider of fully managed communication solutions for mid-sized businesses. Cypress provides advanced IP phones and hosted VoIP services with multimedia desktop applications like Microsoft Outlook integration; unified messaging; video calling and audio, video and Web conferencing. Later this month, Cypress Communications be showcasing the latest version of its CaaS (Communications as a Service) and Unified Communications (News - Alert) solution on display at ITEXPO East 2008, January 23-25, 2008 at the Miami Beach Convention Center in Miami, Florida

 

I spoke with Frank M. Grillo, Executive Vice President of Marketing at Cypress Communications. Who shared his thoughts regarding what trends he is seeing in the industry as well as what attendees can expect top hear from Cypress at the upcoming event.

 

 

FG: The changes in communications and computing are being shaped by several broad shifts and key megatrends.

 

FG: As expected, hosted VoIP has continued to flourish. The Cypress Communications 2007 launch of C4 IP has been successful. If anything, results have surpassed our expectations. We’re ending the year as the named provider in a new, cutting-edge category, termed Communications as a Service (CaaS) by Gartner (News - Alert) in a recent report entitled “Market Trends: Multiple Delivery Models Driving the Demand for Hosted VoIP Services, North America 2006-2011” written by Gartner analysts Daniel O’Connell and Eric Goodness, dated November 19, 2007. According to the report, “Communications as a Service (CaaS) is the most recent and innovative of the hosted VoIP delivery models. Moreover, CaaS is a high-touch marketing concept and is often complemented with support services for LAN/WAN management, remote monitoring, moves, adds and changes (MAC), and quality of service (QoS). CaaS is essentially an outsourced solution that requires little oversight on the end-user side.

 

FG: 2008 is looking very good for our CaaS and managed solutions. We’ve just been awarded the 2007 Frost & Sullivan North American Product Innovation Award in the field of hosted VoIP solutions for telecom disaster recovery in recognition of our introduction of a fully managed VoIP offering — the C4 IP platform — that integrates private branch exchange (PBX), unified messaging and multimedia capabilities in a single solution.

 

Also, look for Cypress to announce new hosted VoIP solutions for the smaller business as well as innovative mobility solutions for companies of all sizes. Industry pundits are predicting promising market growth which only confirms our own experience with our customers and prospects. Communications as a Service is here to stay and will continue to grow at an unprecedented rate in the industry.

 

FG: IP technology has most altered the market, with Communications as a Service (CaaS), a hosted VoIP delivery model, being one of the most recent technology innovations. The CaaS solution provides users with a comprehensive, flexible and simple to understand VoIP service. As a bundled VoIP service, it typically includes a handset, local and long distance voice services, voicemail, VoIP technology infrastructure, advanced PBX functionality and a wide array of unified communications features, such as desktop video, presence, chat, file sharing, Web conferencing and other collaboration tools. Cypress Communications is an example of a service provider with a high-end CaaS solution.

 

FG: Although Skype is well-known as a peer-to-peer VoIP service, their two-day outage in August 2007 reinforced my belief that not all VoIP solutions are equal. While peer-to-peer or public Internet VoIP may be adequate for consumers, business users — especially mission-critical operations — should look for vendors who use a multi-tiered redundancy approach, for solutions that incorporate best practices in business continuity, and for reliability that is enforced with service quality guarantees.

 

FG: Innovation and competition drive vendors to more quickly deliver superior products and services, benefiting the customer, expanding the market and ultimately enhancing the overall U.S. economy. Consumer critical mass use of Voice over IP solutions depends on a number of factors and will engage multiple vendors. Apple, Google and Microsoft are definitely strong competitors for the consumer VoIP business. However, for consumers to fully embrace VoIP, vendors will need to eliminate proprietary technology in favor of SIP or other standard technology, provide "plug-and-play" seamless connectivity between users’ PCs, Macs and mobile devices, and provide a private managed network to enforce voice quality of service.

 

FG: Regardless of how the 700 MHz auction goes down, the real winners will be the consumers. The eventual winning vendors will be required to give customers the right to download any application they want on their mobile device, and the right to use any device they want on the network, transforming the relatively closed wireless world to be more like the open realm of the Internet.

 

FG: As a provider of managed services for more than 20 years, the forecast of the hosted VoIP market is a bright spot in Cypress Communications’ future. The hosted VoIP market is forecasted to increase from $376 million in 2006 to over $3 billion in 2011. Compliance requirements and the growing technical complexity of the corporate network will mean that organizations will increasingly look to third-party hosted solutions. And only a hosted VoIP solution can deliver the inherent redundancy and business continuity that is required by today’s leading enterprises.

 

FG: Right now, I don’t see anything as a threat to Cypress’ success.

 

FG: For companies looking for an alternative to a premise-based communications system, there are many available, and they all provide different features. Managed IP PBXs, IP Centrex and Communications as a Service solutions are all viable alternatives to the do-it-yourself model. But these hosted VoIP terms are often used interchangeably — causing confusion among decision makers as to which product is best for their particular business.

 

Understanding the range of options available when implementing a hosted VoIP solution is essential for today’s business executive. With an ever-increasing array of communication choices, the task of determining the right blend of service and technology for a particular business can be daunting. It is imperative that decision makers understand the key advantages and disadvantages of their communication options in order to make the appropriate choice for their business.

 

I’ll clarify the differences between the hosted VoIP models, highlighting the benefits and drawbacks of each solution.

FG: CIOs, CTOs, and other IT decision makers who are interested in leveraging technology as a competitive differentiator, to improve customer satisfaction, increase market share and revenues, cut costs and to ensure business continuity.

FG: For the past year, I’ve been working closely with one of our customers to implement what I believeis the largest hosted VoIP solution to date with 2,800 users across 11 offices nationwide. Cypress Communications is providing a next-generation VoIP communications solution for one of the country’s largest, most prestigious law firms — Pillsbury Winthrop Shaw Pittman LLP. Hosted VoIP and more specifically, Communications as a Service models are no longer considered only for the SMB market. Enterprises of all sizes are boosting productivity by enabling employees to interact with clients more efficiently and communicate among themselves seamlessly with multimedia desktop applications like instant messaging, presence, conferencing, video and Microsoft Outlook integration.

 

FG: Interoperability and mobility will continue to be driving forces in communications technology. Users can expect a more seamless communications experience. The “office” will no longer be considered just four walls. Users will no longer rely on a solitary phone handset, but will transfer their phone usage to their PC or laptop or cell phone. There’ll also be an influx of productivity enhancing wireless applications. Wireless technologies will provide the user with a more seamless experience as the lines between traditional phone service, voice over IP and cell service become blurred and the natural synergies between these technologies are optimized.

FG: Led Zeppelin will reunite for a worldwide tour.