May 2003
The Smart And Safe Way To Transition To IP
Telephony
BY MICHAEL DURANCE
When IP-based telecom solutions first became available in the mid-1990s,
predictions for market acceptance were very aggressive. Some analysts
predicted that 5 to 10 percent of the market would adopt IP-based telephone
systems by the year 2000. The reality was less than 1 percent. Hindsight
being 20/20, we know that there are a lot of reasons why the adoption rate
has come nowhere near the initial predictions. From the Y2K scare to the
tech industry�s bubble bursting, economic factors dramatically affected IP
telephony�s rise to power, but what has held it back the most has been
acceptance of the technology itself.
Today, analysts estimate that by the year 2006, as much as 40 percent of
all new PBX telephone stations sold to enterprises may be IP-based. This is
an ambitious leap from today�s estimated 12 percent installed base of IP
systems, but there is no doubt that it is beginning to take hold.
Traditional PBX Versus IP-PBX
Perhaps it is just human nature not to want to jump in to find out if you
can swim, but wade in gradually, testing the waters as you go. Or perhaps
it�s a new conservatism driven by today�s economy that says, �If it ain�t
broke, don�t fix it.� Or, perhaps more simply, knowing that telephones are
the core of their communication and having experienced downtime with their
computers, users are simply afraid to take the leap of faith to an IP-based
system.
The rock solid reliability of traditional TDM-based PBX systems cannot be
argued. They almost never go down, and when paired with durable digital
telephones, they offer all the telephony features anyone could need.
The reason that IP-PBX systems go down more often is that they operate in a
pure IP environment, based upon PC server technology, using a single network
of communication devices and wiring for both data and voice traffic. This
network consolidation is designed to result in decreased network
administration, thus making deployment of services and applications easier.
However, being a server-based application, it does not have the reliability
of a traditional PBX system.
That�s not to say that today there aren�t IP-based systems that are
impressively reliable. Even so, they simply cannot match the 24/7 undaunted
reliability afforded by a traditional TDM-based PBX system. For decades,
traditional TDM-based telephone systems have kept working day and night
through disasters of all kinds, manmade and natural, and through untold
abuses by employees (such as teenagers working the phones at the local pizza
place) to environmental (the dirt and grime of an auto repair shop for
example). In many businesses, you�d be hard pressed to find users who can
remember their telephone system ever being down, but if you ask them if
their computer network has ever gone down, well, it�s another story.
Investment To Move To IP Telephony
It can also be expensive to move to an IP-based system. Viewing IP
telephony strictly from a financial decision, does it make sense? Don�t we
all want to make most long-distance calls for free anywhere in the world? It
sounds good enough until you look at the fact that you have to replace your
existing telecom system and start all over.
Even after spending the thousands for the new IP system plus the time and
effort to re-train employees to use the new system, does it mean you can
really make long distance calls for free anytime, anywhere? Unfortunately
not. With most systems, users actually need one at each end of where calls
are being made. If users have satellite offices all over the world,
especially in places where things like T1 lines are virtually unheard of, it
can make sense, but for most systems, there still has to be an IP telephone
system in each office. One way to work around this is to set up remote IP
telephones that act as extensions on the main system back at the
headquarters office, which is effective on some systems, but doesn�t work on
others.
Moving to a completely new system also means the users need re-training,
which can be costly and result in time away from their other work.
Users also need to make sure the system either has an integrated voice
processing solution or find one that�s compatible. So IP is not necessarily
an inexpensive proposition, nor can it do everything that a TDM-based PBX
can, at least not today.
Hybrid Systems Provide the Best of Both Worlds
Despite the reality shock, the promise of IP telephony is very alluring --
and it can deliver if implemented correctly. IP telephony has the potential
to not only deliver free long distance, but a completely integrated and
unified communications system with full anytime, anywhere mobility and near
24/7 reliability. So what is today�s answer to IP telephony?
A hybrid system provides the best of both worlds, mixing the best of a
traditional TDM-based digital telecommunications system with IP telephony
where it makes sense for the enterprise. With an IP-enabled digital
communications system, users simply get the 24/7 reliability, durability,
and virtually industrial strength of traditional PBX systems, but all the
benefits of IP telephony applications. The blending of a hybrid system does
away with the financial issue of having to forklift to a completely new
system while delivering today�s promise of IP in a non-threatening way that
is unlikely to bring down your entire network. Adding IP telephony to a
traditional PBX system protects the enterprise�s investment in existing
voice, video, and data networks and represents a low-risk, less-disruptive
migration path.
But how does it work? IP-enabling existing PBX systems provide VoIP trunk
access and remote telephone user applications over IP networks, which
supplements access through the public switched telephone network. The
IP-enabled PBX architecture typically involves the addition of IP trunk
cards and IP station cards, with Ethernet interfaces, to existing PBX
systems.
Hosting telephones connected through one IP network, either locally via a
LAN or remotely in any location via a private Intranet or the public
Internet, provides the flexibility of distributed configurations and remote
telephone users. The IP network will provide all the call switching,
regardless of whether calls originate from the public switched telephone
network, digital or analog telephones, or IP telephones.
Choosing a hybrid system allows users to move into IP at a reasonable pace,
testing the waters, seeing how users and budgets benefit, and allowing time
to determine if an IP-only system is truly the right solution for their
enterprise.
The Channel: A Critical Component to IP Acceptance
It sounds pretty easy to add IP telephony to your existing telephone system,
so why aren�t more users doing this? In some cases, it�s because the
distribution channel is struggling to play catch-up in understanding the
hybrid play. There are interconnects struggling to become data players, and
data players struggling to understand the traditional telecom world. And
it�s not just a learning curve -- it�s a whole new way of doing business.
Traditionally, in the telecom world, interconnects have sold their customers
on a fairly substantial initial investment in a telephone system that came
from a single manufacturer. After the installation, they are �on call� to
handle their customers� changes, do repairs, and upgrade the system when new
capabilities are needed, but are typically not providing service on a daily
basis.
This is completely opposite of how the data world operates. The upfront cost
is a pieced together system, depending on what the customer wants, with
devices potentially coming from various manufacturers. PCs are a cheap
commodity today, and network components, such as routers, can be had for
less than $100 at Best Buy. The data vendors aren�t making their money
upfront on equipment. Unlike interconnects who are hunters and gatherers
always focused on making more sales, data vendors work really hard on
selling a small number of clients and then farming each one, ostensibly for
the life of each company.
For the channel to successfully sell IP-only or IP-enabled systems, they
have to blend their cultures into a completely new selling and servicing
environment. Manufacturers on both sides are realizing this, even as they
create their own blended cultures of telecom and data technology, and are
putting into place programs to help bridge the gap. In addition, savvy
interconnects and data vendors are reinventing themselves and the way they
do business, but it is taking time.
So What Does The Future Hold?
While it may be years before organizations fully exploit the potential of
the Internet and IP network technology, having a hybrid system provides a
new way of communicating and conducting business. The successful
implementation of IP telephony will not require business users to conform to
the technology, but rather the technology will conform to the users and how
they want to interact with the world. Adding IP telephony to the traditional
PBX has the potential to change the way enterprises communicate with their
customers, vendors and each other. The successful manufacturer will have to
both provide a sensible migration path for the enterprise as well as deliver
the promise of IP to the end-user -- not just the protocol itself.
Michael Durance is vice president/general manager of Toshiba
Telecommunication Systems Division. Toshiba Telecommunication Systems
Division is a leading provider of business communication systems for small-
to medium-sized enterprises. Based in Irvine, CA, Toshiba TSD markets its
Strata CTX, Strata DK, Strata CS and Stratagy systems through its network of
more than 500 authorized dealers. For more information, visit the company on
the Web at telecom.Toshiba.com.
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