Migrating to Internet Protocol (IP) telephony does not make financial sense if viewed in isolation, the Gartner conference in Cape Town has heard.
Gartner research VP Neil Rickard said there is no clear cost-saving argument to justify an upgrade for the voice network in more than 80% of business networks.
"Although IP telephony is recognised for offering savings for IT organisations, the incremental costs of upgrading the data network and investment in IP private network branch exchange handsets far exceed savings in the majority of cases," his research showed.
Despite this, by 2010, more than 70% of companies are expected to build hybrid telephony networks, comprising traditional and IP end points.
One area in which it makes sense to move to an IP system is when a company has branch networks. Even so, said Rickard, most of the cost savings will emanate from the act of consolidation.
"Most branch offices are linked via the public switched telephone network. This means all calls, including those made between branches and to the head office, are charged at national and international tariffs," he said.
However, despite IP telephony on its own not justifying itself from a cost point of view, it is not more expensive than a traditional system. As such, it would still make sense for a company having to install a system from scratch to look at this option.
Moreover, the system can justify itself if it can add value to other business units. Rickard cites an example: a local branch that allows calls to be forwarded to a call centre after three rings. "Start with the stuff that touches the customer first," he said.

