The escalating cost of telephony has reached excessive proportions when considering the charge for a two-minute local telephone call has increased by 1622% in the last 10 years. The impact of these costs on a business bottom line and operations is considerable. Network convergence through Voice Over Internet Protocol (VoIP) is an alternative that can reduce these costs substantially.
To put this into perspective, in 1995 a one-minute long-distance call cost 2.4 cents per minute, yet in 2003/4, the same call cost 99 cents per minute. In 1994, a call was classified as long distance if the call was made to a destination over 600 kilometres away, yet today a long distance call is defined as anything further than 50 kilometres. In comparison, data call costs increase at approximately 10% per annum, which is substantially less than voice call costs, making convergence of voice over data a viable business proposition.
Andre Maree, managing director at HP partner Kunene Solutions & Services believes that although the local market is gaining awareness about the virtues of this technology, not enough credence is given to it. When VoIP first emerged as an alternative to a dedicated, separate and more costly telephony network, there was much speculation about whether this option was legal, he explains. However, it has become apparent over the last few years that VoIP is legal within certain parameters. More recently, new legislation has further relaxed the constraints of carrying VoIP traffic. This should be an added incentive for organizations to adopt a converged form of communication to contain costs and achieve one of the fastest forms of return on investment (ROI).
Depending on a company`s infrastructure, one of two forms of VoIP can be of benefit. The first is the initial Toll Bypass approach, which uses traditional Private Automated Branch Exchange (PABX) equipment to route voice traffic via the WAN as opposed to using the public switched telephone network (PSTN). Integrating from the PABX to the routed WAN infrastructure provides an alternative route for PSTN calls thus resulting in VoIP cost containment. In this instance ROI is based on the reduction of PSTN telephony costs which is realized within a relatively short time as costly inter-branch long distance calls are reduced to zero.
A second form of VoIP is IP Telephony. This is a Local Area Network-based (LAN) solution that offers true convergence of a data and voice network. It is also the most technologically advanced route to VoIP. In essence, it involves the replacement of traditional PABX and telephone equipment with LAN-attached IP PABX and IP telephone equipment. Advantages include a reduction in cabling costs, maintenance and support as the solution is integrated onto a single network and cabling infrastructure. This allows businesses to deploy resources into other critical areas, further improving the ROI. In addition, telephony costs are also reduced while mobility and flexibility are increased.
Costs are further driven down if IP Telephony is implemented on a national basis, as a significant saving on inter-branch telephone calls is automatically realized through the transparent integration of the IP telephony infrastructure over the WAN.
IP Telephony not only reduces business costs, it also provides flexibility and new functionality that allows the organization to run more efficiently. IP telephony provides the ability to easily deploy Computer Telephony Integration (CTI) -enabled applications such as Customer Relationship Management (CRM), call center functionality and unified messaging across the enterprise. Furthermore, it supplies the functionality to deploy a single IP-PABX nationally with remote sites using IP phones via the WAN to the central voice switch.
Previously, legislation only allowed break in or break out calls, not both. This means a person could call from outside the company`s VoIP network and use the IP infrastructure to route a call to another branch within the company`s network at the cost of a local call. However, routing that same call out of the network again constituted carrying third-party traffic, which was considered illegal. The new legislation allows for break in and break out on a single call, making it now even more compelling for companies to move towards a VoIP platform.
For companies wanting to migrate to a VoIP platform, it is important to begin standardizing on equipment, as this is one of the key enablers of IP Telephony.
HP has aligned itself to a strategy of secure, mobile and converged networks based on IEEE standards, as reflected in our Adaptive EDGE architecture which is developed to support Ethernet technology.
Says Maree, "Through advances in technology we are now seeing the emergence of a new class of consolidation device, further simplifying a customer`s communications infrastructure. This device allows customers to connect all branch located workstations, servers, IP telephones, traditional phones and faxes through a single cabling infrastructure."
Current convergence developments include video over IP, which also has a positive impact on businesses. Closed circuit television is one example: instead of storing the images onto VHS tape, video can be streamed across an IP network and saved onto hard disk, providing instant retrieval, faster distribution and remote monitoring.
Maree concludes, "A global, converged network changes the telephony landscape completely and has seen the emergence of new services, applications and paradigms. This shift in traditional networking is bursting with opportunities and businesses need to realize that convergence is designed to enhance, improve and redefine the way businesses manage their communications infrastructure."
EditorsNote = KSS
KSS is a converged network integrator focusing on integrated data, voice and/or video solutions leveraging the benefits of a single converged network architecture. Based on a philosophy of "enabling Continuous Business Operation" all solutions are designed to offer optimal resilience and redundancy. Using its national support infrastructure KSS is able to deliver a full range of managed services to support customers on a 24 * 365 basis.
KSS has been committed to the asset, employment and social equity principles of black economic empowerment (BEE) since its inception in March 2000. This commitment is reflected in its employment profile, share equity and community involvement.
For more information about KSS, visit www.kss.co.za or call +27 (011) 545 6300.
Share