Research suggests a possible savings, but most are proceeding with caution
Analysts say that IP telephony, or shifting phone calls from traditional voice networks to data networks, still is the wave of the future. But it seems few IT managers have been able to pull the trigger on an IP-based phone system.
IP telephony allows an employer to merge its data and phone networks. Forrester Research, a technology research firm based in Cambridge, estimates that voice-over IP systems will displace 4.26 million traditional phone lines by 2006, accounting for almost $1.5 billion in annual revenues.
"For about the same price point as a traditional PBX (private branch exchange) system, you get many times the functionality," said Marc Carpenter, a senior network engineer at UNICOM who integrates Cisco IP telephony systems for the networking company’s customers. Carpenter also is helping Woonsocket-based UNICOM migrate its phone system from PBX to a Cisco IP phone system.
The ease of deployment and maintenance is the biggest benefit of IP telephony, Carpenter said. Because IP phone systems are software-based, rather than hardware-driven like traditional phone systems, user changes can be made with a few clicks of the mouse using a Web interface. That can put a big dent in the costs associated with traditional line installations when employees and offices are moved around.
"Adds, moves and changes are the biggest costs of owning a PBX system," Carpenter said. "But the (IP telephony) system is tied to the network, so there’s no more punch downs. The network is very streamlined and dynamic."
Similarly, upgrading the entire phone system to a new version of the IP software is accomplished simply by installing the software on the network server, avoiding the need for big capital outlays for new phone equipment. And the savings of having IT personnel running the phone system can be significant, Carpenter said.
There are infrastructure cost savings too, because only one Ethernet line must be deployed for each employee, instead of running separate voice and data lines. And companies can avoid long distance charges stemming from calls between offices by routing phone calls over its network.
All those factors can add up to savings when compared to traditional phone systems. According to Forrester research, the cost to a large company of owning a traditional PBX system over five years is lower to migrate to an IP-based system than if it were to keep its existing PBX system.
While the cost savings appear to be real, the reality of putting voice and data traffic on the same network can be harrowing for IT managers, says Bill Annino, director of Northeast sales for Synet Inc., a Warwick-based technology consulting firm.
"What gets people excited about voice-over IP are the cost savings and the ease of deployment and administration," Annino said. "But for IT managers, what gives them knots in their stomach is thinking ‘Can I trust this new technology to deliver the same quality service on the network?’"
Annino said that the subject of IP telephony is broached in virtually every phone call with clients who are considering changes to their network. But, he said, "the discussion only goes so far," and he has yet to have a client deploy an IP telephony system.
"IT managers are going to need to be convinced that by putting voice and data services online together, the network will perform the way it would in a traditional environment," Annino said.
IP-based phone systems also offer plenty of bells and whistles.
For instance, voicemail messages are saved to employee hard drives as audio files, allowing employees to check their voicemail from their PCs. Conversely, data-to-voice technology allows users to listen to their e-mail messages by accessing their voicemail systems.
Those functions could be useful for traveling sales reps, for example, who might not have convenient access to their e-mail. Or, if they are able to access the Intranet, they can check their voicemail online, saving a phone call to the home office.
Cisco earlier this year released IP telephony products to small and mid-sized companies. Prices for most of Cisco’s offerings are "around $600 to $800 per user," according to Network World magazine.
