As enterprises are migrating to Voice over IP (VoIP) to take advantage of the cost savings gained by converging voice and data traffic onto a single network structure, and business advantage of the many associated benefits. However, the ability of a network to support high-quality VoIP calls and the configuration of various hardware and software considerations are important to ensure caller satisfaction.
Globalnet Solutions Australia's collective understanding and delivery capability in all aspects of converged communications makes us a leader in this market. Our knowledge of network architecture and IP technology is combined with expertise in business realities. We also have a breadth of experience in data and voice. Our knowledge of voice, both in the IP and legacy space, and skills to migrate traditional voice onto IP networks, are invaluable in our plan, build and support approach of VoIP infrastructures.
IP Convergence Assessment
Globalnet Solutions Australia uses sophisticated profiling tooling and practical deployment experience to assist our clients to converge their network to support VoIP traffic. This is a consultative analysis which begins with our system engineers gathering information such as telephone bills, call patterns, the existing technology already in place – all the issues required to determine how long distance calls can be cut and carrier charges rationalised. The information is then analysed and we make future recommendations based on the outcome of the analysis.
Business Case for Convergence
Enterprise voice communications are in the midst of a dramatic transformation. Forward-thinking businesses are rapidly migrating from traditional PBX systems, based on time division multiplexing (TDM), to systems that use a fundamentally different architecture - IP telephony. With VoIP (Voice over Internet Protocol) voice, data, video, and fax are all converged over a single platform and a single network. The benefit to the enterprise is convergence.
IP telephony is simply the mechanism
Converged systems have been available for only a few years but already account for one-third of all spending on business communications systems. Leading manufacturers have all but discontinued production of TDM systems. Early IP telephony systems from large companies like Avaya, Cisco, and Nortel were costly, complex, and lacked even the base functionality of older generation TDM systems. Companies like Zultys Technologies are bringing out bold new designs that make IP telephony affordable and deliver modern communications tools to even small or medium sized businesses.
So why are businesses switching to IP telephony at such a rapid pace?
According to a survey conducted by Sage Research, the two reasons most often cited are cost savings and productivity gains. The initial cost of a traditional telephone system is only about half of the total cost of ownership (TCO). Since businesses typically keep their telephone systems for seven years or more, the TCO for a $25,000 system could easily be $50,000 over the full lifecycle of the equipment.
The reasons for this are that a business's telecommunications needs grow and evolve with the enterprise.
The following are key components of a communications system's life cycle costs.
• Moves, Adds and Changes
Moves, adds, and changes require costly service calls to physically relocate instruments and modify system software. Telephone equipment dealers will typically charge for four hours of labour to add or relocate an instrument and reprogram system software.
According to a Sage Research study, the single most frequently reported IT benefit of an IP communications deployment was the ease of workspace relocation. Almost 75% of the survey respondents reported that their businesses realised substantial benefits from faster moves, adds, or changes.
With IP-based systems, there is no cost associated with moving a phone. Moving the phone can be compared to the way a laptop computer is moved within the enterprise. Users can plug in the computer anywhere on the network and still access email and documents from the new location without any intervention from an administrator.
• Expansion
It is equally possible to expand beyond the capacity of an IP Telephony system, just as it is possible to expand beyond the capacity served by a legacy PBX. The focus needs to be altered. The expansion costs of adding a new user ("terminal") may be higher with an IP phone.
However, there are no additional wiring charges as there might be to service the new user's phone with a legacy system. Also, you have to add a user license and pay for it, but it is much easier and cheaper than adding line cards. As your business grows you will need to add capacity to your TDM system. In addition to more telephones, this often requires circuit cards to add line and telephone capacity to the central switching unit and the labour costs to install the expansion boards and terminate wire terminations at the central control unit. However, if your growth exceeds the maximum capacity of your base system, then the cost of adding additional switching and control units (or
perhaps replacing the old system altogether) could easily run into tens of thousands of dollars.
With IP-based systems, businesses can grow from 5 to 250 users without adding any more circuit cards in the one location. Adding new employees is as simple as purchasing additional phones and software licenses. And new enhanced software features make it possible to expand a base unit system at a single site to include multiple systems located worldwide but all with a single, seamless interface.
• System Enhancements
Similarly, the cost of adding major enhancements like unified messaging, call centre functionality, or integrated voice response (IVR) to a traditional voice system could easily exceed the original cost of the entire system. Remember that traditional systems use proprietary architectures.
Adding equipment or software from third parties requires costly integration. From a practical standpoint, businesses are virtually forced to purchase enhancements from the same company that made the switching system.
Imagine what applications software and printers would cost today if you could only buy them from the original vendor? IP-based systems already include voice mail, instant messaging, ACD, and presence, along with all of the standard PBX functionality. Future enhancements are merely software downloads.
With the growing acceptance of interoperability protocols, businesses can expect to see a rapid growth in third party applications, many specific to your industry. This is exactly what happened in the computer world with the de-facto standardisation of operating systems. Specific savings with IP telephony depend on the application, but the savings in installation costs alone should shave 15 – 20 percent off the cost of the enhancement. Over time, competition from third party software companies will continue to drive down the cost of add-on tools and system enhancements.
• One Wire to the Desktop
For businesses opening new offices, the savings in cabling alone will be significant. Since both voice and data travel over the same LAN, the number of wiring drops declines by up to 50 percent. PC's and telephones use the same Ethernet ports. As well, there is only one set of cables to monitor and maintain. This can also reduce the number of Ethernet switching ports required in the network closet since IP handsets have multiple ports allowing the connection of additional phones and peripherals.
• Centralised Administration
IP-based telephone systems do not require switching units at each branch of a multi-location business. Everything is controlled and administered from one central point with a user interface that can be accessed from virtually anywhere. A small inexpensive gateway at each branch assures smooth interoperability across the entire enterprise. Employees can even call their colleagues at other locations by dialing an internal extension, just as if they were sitting across the hall. Site visits to correct minor problems or to add or remove system features are all but eliminated. Furthermore, companies using IP systems at remote locations are saving up to four weeks in the time it takes to open new offices.
• Reduced Toll Costs
Although toll costs have dropped dramatically in recent years, long distance charges are still a significant expense. The average business spends about $5,000-$20,000 a year on national and long distance calls. If we consider only mid-size businesses, the annual cost grows to $25,000 a year or more (and millions for giant corporations). With IP-based systems, voice traverses your WAN or the Internet. Like surfing the web, there is no incremental cost. For businesses that are already paying for high-speed private networks, adding voice and video means more efficient utilisation of network facilities. The savings can be substantial, particularly for intra-state calls, which remain regulated. If IP telephony reduced toll costs by only 20 percent the investment could easily pay for itself in toll savings alone.
In addition to these hard savings from the IP architecture, most businesses find that the more important benefits to them are that their businesses simply run more efficiently and productively.
• Three questions to ask yourself
"What is the most important investment in my office?"
"What is the one system that is most essential to building positive customer relationships, stimulating employee teamwork, and maintaining real-time access to my customers, suppliers, and investors?"
"What is the one system I cannot afford to do without?"
In all cases, the answer has to be your communications system. Your telephone system needs to be the focal point for future-proofing your business. No matter how hard you work, you do not know for certain what the future holds for your business. The one thing you do know is that your business must and will change. And you need a modern communications system that can grow and change with your needs. An affordable, reliable IP telephony system is the best way to meet your communications needs today and in the future.
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