Much has been written this year about deploying voice over IP (VoIP) in
a corporate setting. While large enterprises can leverage their
infrastructure and extensive resources to move toward IP integration,
small and medium-sized enterprises (SMEs) -- with leaner budgets and space
limitations -- may be left behind. Yet the same efficiencies that makes
VoIP attractive to large companies are even more valuable to smaller
organizations.
Consequently, property owners catering to SMEs should look for service
providers that appreciate how integrated multimedia applications can
reduce communications and infrastructure costs, and that have a scalable
communications network in place to meet the growing needs of SMEs in
multi-tenant commercial units (MTUs).
Ultimately, a network designed for both current and future business
technologies will most successfully support SMEs' need to maintain their
competitive stature and increase profits.
The Potential Of VoIP In MTUs
The MTU market itself holds much promise. While telecom providers vie for
the business of large companies in central business districts (CBDs),
non-CBD MTUs get far less attention. Due to their suburban location,
smaller size, and diverse tenant structure, these MTUs are often
overlooked. Of approximately 7.6 billion square feet of commercial
multi-tenant office space, 72.6 percent (more than 115,000 buildings) is
in suburban settings. These companies are smaller than
"downtown" businesses, averaging 44,000 square feet per
building, and accommodating modest-sized work forces. Ninety-one percent
of U.S. companies have 500 or fewer employees.
Recent construction trends illustrate the continued growth of the
suburban-based SME sector. Oncor
International recently reported that within eight suburban markets,
each had more than three million square feet of space under construction.
These markets alone account for 45 percent of all new North American
office construction today. As a result, an expanding and virtually
untapped marketplace awaits MTU service providers -- one which is
perfectly suited to the advantages of VoIP and other e-business
applications.
Taking Advantage Of Multiple Benefits
While the lower costs of VoIP continues to be debated, it's clear that
reduced long-distance rates make voice savings increasingly negligible. Instead, the
real value for SMEs will lie in the efficiencies VoIP and other converged
applications offer. Ultimately, when voice and data traffic are converged
on a single platform, everything from Web-integrated call centers, VoIP
phone cards, PIN access, and cardless calling will be simply a click away.
Cost-effectively delivering these voice services directly to subscribers'
desktops will allow MTU tenants to compete with large corporations in an
unprecedented manner.
These efficiencies can be further extended when VoIP is offered in
conjunction with a broad range of e-business applications and services.
Because MTU businesses are themselves so widely varied, providers have
numerous options when developing customized, turnkey solutions. Service packages could include unified messaging,
click-to-talk customer service via the Web, click-to-chat,
click-to-conference, groupware, collaboration via VoIP, and real-time
video services in combination with existing e-commerce, accounting, human
resources, and managed services.
Such business-enhancing services are particularly valuable to MTU
tenants. First, a wide range of services allows the subscriber to utilize
only those that their needs or budgets allow. As businesses' needs
grow, so can the breadth of their selections.
From a cost standpoint, current managed services like Web hosting and
managed voice mail also eliminate the need for SMEs to pay for and maintain large
network infrastructures and technical support staff. Outsourcing eliminates the
need and much of the cost related to purchasing and dedicating space for
servers, groupware, and file servers. Moreover, managed services bridge
the competitive gap between small and large businesses. This is especially
important during times of economic downturns, when being efficient and
staying competitive is even more critical to business survival.
For the building manager, multiple services combined with onsite
technical support reduces workloads. Building
managers can focus on growing and maintaining occupancy in other ways.
Moreover, IP-based amenities make the building more competitive and
provide a point of differentiation from other MTUs.
Challenges In Implementation
Numerous challenges will slow the growth of voice and data convergence.
Telcos' enormous investments in circuit-switched equipment and extremely
long equipment amortization cycles make offering VoIP a costly endeavor.
Legacy telco switches don't support VoIP, as they were designed for the
circuit-switched, not packet-switched, world. Consequently, the need to
purchase the necessary and required equipment for VoIP can present an almost
monolithic challenge.
In addition to these obstacles, many MTUs are currently served by the
traditional CO (telco Central Office) model. So an MTU's desire to deploy VoIP and other
evolving services may be constrained by the "minimum common
denominator" syndrome -- what is done for one company is done for
all, at a very high cost. Until there is critical mass requesting VoIP,
SMEs remain largely unserved.
The PBX model is also problematic. Both the cost and space
requirements for equipment create a bottom-line problem for MTUs.
Additionally, common intelligent telephony features such as custom
calling, number portability, toll-free numbers, national prepaid card calling,
and emergency 911 are not yet reliably available over packet-switched
networks.
Finally, VoIP does not yet achieve the same quality as traditional
telecom over the public switch telephony network (PSTN). As a result, a dedicated IP
network on public IP networks will be required to avoid congestion during
periods of heavy use. Nevertheless, there are solutions which will make
VoIP/business application integration a scalable, and attractive option.
Making It All Work, On One Network
With an eye towards providing converged services in the future, providers
can best position themselves by building a network which is both capable
of delivering the current carrier-class, digital voice, and e-business
applications MTUs immediately require, and is also ready to accommodate VoIP deployment. To accomplish this, providers need to
consider a balanced, optical network approach. This is best achieved
through a regulated Competitive Local Exchange Carrier (CLEC) featuring an
in-building infrastructure tied to a regional network center (RNC).
This scenario provides multiple advantages over the CO or PBX model.
Foremost, CLECs already run both telco circuit-switched and
packet-switched IP networks, and thus have the needed expertise in both
areas. This enables a facilities-based CLEC with an RNC to
cost-effectively support incremental changes as underlying VoIP
technologies advance.
In addition, the RNC ties into a national network, providing the right
amount of flexibility to meet the needs of customers (both for
circuit-switched and IP-based services). As a result, a perfect balance is
achieved: Building owners are no longer burdened to keep up with
technology changes, nor are they tied to the CO's rollout schedule.
Finally, the CLEC can integrate directly into the national PSTN. This enables the flexibility to
eventually evaluate and choose the best VoIP strategy, while still
controlling its integration into the PSTN. Alternatively, non-BLECs
(Building Local Exchange Carrier) will
have to purchase service from a CLEC, LEC, or RBOC (Regional Bell
Operating Company) who may not have a VoIP
integration plan in place.
With the balanced network in place, providers will also need to develop
a "blended" system during the transition to VoIP. Until
standards are fully implemented, the conversion will require backfill VoIP
capabilities with circuit-switched technology to provide the intelligent
network services to which people have become accustomed.
Future-Ready Networks Benefit MTUs, Service Providers, SMEs
Being connected to a future-ready infrastructure is essential for
SMEs. This type of design will be flexible enough to allow MTUs to take advantage
of the broadest range of current digital voice and high-speed e-business
applications, while preparing the way for VoIP deployment.
Additionally, the RNC approach reduces communications and infrastructure
costs as VoIP technologies advance, enabling SMEs to benefit from
infrastructure improvements. It also allows SMEs to better compete with larger corporations, at the lowest possible cost. Finally, a fiber
optic network enables providers to deliver carrier-class, immediate online
access and services, as well as 24x7 service -- a significant value to MTU
management.
With a solid understanding of the MTU market and a scalable architecture in place,
the combination of existing value-rich e-business packages and future
VoIP services offer the ultimate combination: Productivity and profits.
Jeff Barnell is UrbanMedia's
vice president of marketing and is responsible for creating marketing and
service leverage through branding, partnerships and programs. UrbanMedia
creates and manages a network of business customers through the deployment
of communications and commerce services. The company provides subscribers
with comprehensive e-business solutions to the desktop, including dynamic
content, e-commerce applications, and advanced voice and data services.
Affiliated with the nation's leading real estate investment trusts (REITs)
and property owners and managers, UrbanMedia is the first service provider
to deliver free broadband access-a service giving property owners and
managers a valuable new amenity for their tenants. |