September 2004

The Battle Rages: IP Centrex Versus IP PBXs (continued)

FEATURES CAN MAKE OR BREAK THE DEAL
Features play an important role in the decision. If all the user wants to do is make and receive calls, the most straightforward solution is IP Centrex. It is like leasing a basic model car. It may not come with the big engine or the bells and whistles, but it works. IP Centrex cannot win in all scenarios because IP PBXs typically have the edge in the number of features, the types of features that users are accustomed to from legacy TDM systems, and security.

With users wanting more and more sophisticated features and in many cases customization, how can IP Centrex compete with IP PBXs? Typical IP PBX systems offer 20–25 percent more features than IP Centrex systems and can include such features as database integration and screen pops, which can be a deal breaker for the IP Centrex provider.

Users are accustomed to the features they have had in their legacy TDM systems, and they do not want to give them up. IP Centrex providers seem to be figuring this out and are adding features, but it is important to review the features to know what is there — and what is not.

ADAPTABILITY: A UNIQUE DIFFERENTIATOR
There are new features available, including adaptability, which allows users to customize certain features and capabilities using a scripting language in a macro-like setting. This capability lets users do creative, useful things with their phones, such as allowing important information scroll across their telephone screen (or softphone screen), such as inventory statistics, currency valuations, or even stock prices. This is in addition to unique call handling capabilities, customizable for a variety of triggers.

MULTI-LOCATION COMPANIES
The jury is still out on what the best solution is when a company has multiple sites. Since IP phones or softphones can be plugged in anywhere there is Internet access, they can basically function as nodes off the home office’s IP PBX or from the IP Centrex. With either system, companies can have IP telephony in as many offices or home offices as they’d like, without any geographic limitations.
Another option for multi-location companies are hybrid solutions, either IP Centrex with IP and PBX or an IP-hybrid PBX.

SECURITY FEATURES MOVE TO THE FOREFRONT
Security is quickly becoming a differentiator among communications systems of all types, and IP telephony is no exception, whether it is IP Centrex or IP PBX. However, IP PBX has an edge here. Because the equipment is owned, security can be handled, and increased, in any way they desire. Viruses are here to stay, and experts are predicting that they will soon be aimed more at the voice systems. Therefore, security is becoming a major consideration.

DISASTER RECOVERY AND SURVIVABILITY
For users concerned with disaster recovery and survivability, there isn’t a clear winner. It all depends on where the disaster takes place. For maximum survivability, the system, whether it’s an IP PBX or IP Centrex, needs to be redundant and not physically co-located. Calls need to be automatically rerouted when the system goes down. The one advantage IP PBX systems has is that because the user can set it up themselves, they have the control to establish the level of potential disaster recovery that is a priority for their business.

IP Centrex systems are also very reliable during a disaster, if it occurs at the client site. IP Centrex can usually reroute calls very quickly, and because the IP phones can be plugged in anywhere, users can be connected very quickly in the event of a disaster. However, if the disaster happens at the IP Centrex Switch, it’s “game over.”

INVESTMENT PROTECTION
Like buying a car, the money that goes into the IP PBX system goes into ownership. With IP Centrex, users are essentially “leasing” the service, so there is no investment being made. For investment protection, IP PBXs clearly have the edge because most equipment manufacturers have built their systems to allow upgrades and migration to future products.

IP PBX systems definitely have the edge when it comes to migration. For a system to grow with the company, or decrease during cutbacks, the company needs to own the system. With IP Centrex, companies must buy their lines in batches, so they may be adding a great deal more lines than they really need in order to add phones for one or two users. With IP PBX, users can add one or two or many more ports, up to the maximum size of the system. They also have options to add other capabilities as tied to their system’s limitations.

WHAT IS RIGHT FOR YOUR COMPANY?
According to Gartner’s June 2004 report on IP Centrex and IP Telephony, IP telephony provides greater functionality, but IP Centrex lowers the total cost of ownership. But what it really comes down to is preference, so there are some caveats.

• If you want to own it a long time, buy the IP PBX. It will be cheaper in the long run.
• If you want to keep the system a shorter time, buy IP Centrex. It will not cost you as much upfront and you can contract for less time.
• If you want special services or customization, buy the IP PBX.
• If you want basic services — calls in, calls out — use IP Centrex.
  Consider the trade-offs and be clear on what you really must have in your system today and into the future.

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Christopher Labrador is vice president of product technology, Toshiba America Information Systems, Digital Solutions Division. For more information, visit the company online at www.telecom.toshiba.com.

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