White Papers

March 2005

MIGRATING TO VOICE-OVER IP TELEPHONY: A ROAD MAP

By Richard Lennon

"When you come to a fork in the road, take it." - Yogi Berra

If you bought or leased your telephone system 5 to 10 years ago, eventually you will need to replace it. You may be realizing that you have outgrown your system and it does not support your branch offices and telecommuters. Replacement parts may become harder to find and your vendor may discontinue support. The time to evaluate this situation and identify solutions is now - before your system becomes obsolete or you are faced with a costly service interruption.

As you explore your options, you will see a clear trend towards Voice-Over IP (Internet Protocol) telephony. In corporate communications, "Voice-Over IP" does not necessarily mean making telephone calls over the Internet. Generally, it means using a single network to route voice and data traffic over your Wide Area Network (WAN). In our field, this is known as Voice-Over IP (VoIP) Telephony on a converged network.

This trend is so pervasive that there are an estimated two million IP Telephony users on converged networks worldwide. Over 40% of businesses with more than 500 employees have begun to converge their voice and data networks. Why this dramatic trend?

First, there are financial benefits such as reduced toll charges and network administration costs. Second, there is the potential for advanced applications like Unified Messaging and Multimedia Contact Centers that enhance productivity and profitability. In a recent survey by Sage Research, 66% of responding companies felt IP Telephony gave them a competitive advantage.

So, the question is not should you migrate to VoIP, but how should you migrate? There are several paths you can take: 1.) upgrade your system with a hybrid IP-enabled PBX (switchboard); 2.) replace your system with a pure IP solution; or 3.) contract for Voice-Over IP communications through hosted services. The route you choose will be influenced by your organization's size, budget, communications needs and age of your equipment. Below we describe the advantages and disadvantages of each migration path and give guidelines on choosing best road for your organization.

Upgrade Your System

If you made a significant investment in a traditional PBX (switchboard) within the past seven years, check if the manufacturer offers an upgrade to IP Telephony. Basically, you would upgrade your system with software and hardware to use IP networking, applications and telephones.

Upgrading to a "hybrid IP-enabled PBX" is a low-risk, cost-effective way to maintain your equipment investment. You can keep all the features of your current telephone system, yet realize the advantages of VoIP toll savings and advanced applications. This is why approximately 65% of Voice-Over IP implementations are hybrid solutions.

Before you upgrade, ask the vendor if their solution supports open standards, so it will be compatible with other hardware and software on the network. Also ask your vendor how they will assure voice quality (or Quality of Service) when you move your voice traffic onto your data network.

Replace Your System

If your telephone system was installed over 10 years ago, or if you have a smaller "key" telephone system, upgrading may not be an option. Or you might be starting a new business, moving, or opening a branch office. In any of these situations, you have an opportunity to move directly to a "pure IP" solution.

A pure IP solution is an IP-based platform comprised of a server and gateways that support IP digital, analog and wireless telephones. These platforms are based on open standards and integrate XML-based applications, for maximum flexibility and functionality.

Generally, a pure IP solution offers low initial cost as compared to a traditional PBX telephone system. There is a wide array of options available from telephone manufacturers and data equipment manufacturers. However, some solutions lack the numerous telephony features that users are accustomed to. In evaluating systems, look closely at available features, as well as reliability.

Hosted Communications

What if you are a large business with a number of branch offices? Or a small business that needs a sophisticated communication system? In these situations, IP Telephony is an ideal solution. However, you may not have the staff to implement and manage a new system, or you may not want to make a significant infrastructure investment. Now you can realize all the benefits of IP Telephony through hosted services.

With hosted services, you pay a monthly "per seat" fee for a remotely managed communications system. These services can range from Internet access and network monitoring to audio conferencing and voice mail. Services are delivered over broadband access, such as a T1. The only equipment installed at your site is routers or Integrated Access Devices (IADs) and IP Telephones.

With a hosted services solution, you do not have to worry about installing or maintaining a communication system. It is easy to add equipment and features as your business grows. Besides the usual cost savings of an IP solution, hosted services offer low upfront capital requirements, tax deductible payments, and predictable monthly costs. Additionally, you can access services, such as unified messaging and call center functionality, that you could not cost justify if you wanted to purchase the necessary hardware and software.

If you opt for a hosted services solution, be sure to sign with a carrier with a secure, robust network, who continually monitors both the network and call quality. You should also ask how and where your calls will be routed. Subscribers could experience problems with latency, even with calls to nearby locations, if calls are being routed through a remote or offshore location.

Assuring your Success

Whichever migration path you choose, be sure your data infrastructure can handle the increased traffic, and pay close attention to network back-up. Because your communication system is now vulnerable to the same threats as your data network, ask your vendor about security solutions. Choose a technology partner with both voice and data experience. By addressing quality of service, network back-up and security, and choosing the right integrator, you can begin to realize the financial and technical advantages of your Voice-Over IP Telephony solution immediately.

Richard Lennon is President of member company Total Communications, Inc., a 24-year old East Hartford based telecommunications company.