[January 19, 2005]

Is Your Company Ready for VoIP?

BY ROBERT MESSINGER
Network Management Columnist

VoIP, or Voice over Internet Protocol, has emerged as one of the fastest-growing technologies to be adopted by enterprises of all sizes. While around for more than 10 years, VoIP has recently caught on due to the increased bandwidth and reliability of corporate data networks, combined with improved IP hardware and software.

Benefits of VoIP

VoIP benefits fall into two basic categories: enhanced productivity and reduced costs. Companies can enhance productivity since VoIP facilitates collaboration as well as unified and "follow me anywhere" messaging, which helps employees, wherever they are located, work together more effectively. VoIP reduces costs in multiple ways: It lowers capital costs by enabling companies to create a single, multiservice network, vs. maintaining two separate networks. It reduces staff costs since the combined network requires just one network maintenance team. When used in call center applications, VoIP enables agents to be located literally anywhere in the world, enabling true 24/7 service.

Are Businesses Adopting VoIP?

A recent study by ZD Net reports that one-third of 400 IT managers surveyed have converted 25-50 percent of their voice and data networks. The study further stated that an additional 25 percent of respondents will deploy VoIP over the next 12 months. Just 10 percent claimed they had no current plans to adopt VoIP.

When to Consider Implementing VoIP

At the end of the day, VoIP, like any other technology has to meet tangible business needs. IT managers considering converting their circuit-switched phone service to VoIP should create a working committee within the company to assess the business's telephony needs today and 3-5 years into the future. The group should include representatives from all major areas to be affected by the changeover. Among the drivers of VoIP adoption are:

• The ability to improve how the company does business; e.g., will customers be able to obtain important information more quickly or easily, or at lower cost to the company
• A significant number of mobile workers, with "mobile" defined as workers away from their desks least 25 percent of the time
• A business environment characterized by a large number of meetings, frequently with participants at multiple locations
• A business that requires workers to access and share information in multiple formats frequently; e.g., voice, email, text and graphics
• Businesses moving and planning to replace existing circuit-switched systems
• Businesses upgrading existing circuit-switched systems either as a result of growth or replacement of obsolete equipment

Vector Advice: The identification of business needs related to VoIP is a critical step to ensure that the implementation is successful. In many industries, a move to VoIP will enable the creation of new ways of doing business; in others, it will streamline existing processes.

Preparing Your Enterprise for VoIP

A VoIP deployment includes much more than simply replacing handsets and installing software. Implementing IP telephony begins with creating a network design that factors in current and projected company needs from both the data and voice perspectives. Next, the company should complete a comprehensive network audit to ensure that existing routers, switches and other hardware can handle the increased data loads. For many companies, it will be necessary to upgrade this hardware. The audit should also include analyzing telephony use patterns and the potential for improving operations, customer service and other business functions through the many extra features IP telephony allows.

Vector's Advice: Because telephone service is a critical function and IP telephony features can help companies improve core business functions, IT managers should take the time required to research company needs, existing functionality, potential vendors and integrators carefully. This research should include reviewing trade journals and analyst reports, talking to peers at other companies, interviewing as many equipment vendors and integrators as time allows.

Questions IT Managers Need to Explore:

1. What are the business drivers of a potential move to VoIP?

2. What ROI timeframe is acceptable to management?

3. Will management provide adequate budget and training to ensure the transition is successful?

For More Information

To learn more about networking issues and solutions, please contact Lauren Ruberry of Vector Resources, 310-436-1000, or [email protected].

About the Author

Robert Messinger is a co-founder and principal owner of Vector Resources. He has more than 15 years experience in the telecommunications and networking industries.