NBS saves over 50% on private voice network with DiData, Cisco

NBS, a division of BoE Ltd, has sliced its private voice network (PVN) communications bill by more than 50% following the implementation of a voice-over-IP (VOIP) solution from Dimension Data.

The Cisco-based IP solution across the bank`s existing networking infrastructure has now been live for the past year. Cost savings are expected to be as high as 70% as branches come online in the next 18 months.

The solution, installed jointly by BoE`s technical staff and Dimension Data, replaced a dial-up architecture that had been running at the bank since 1997.

This has paved the way for BoE and its group companies to implement similar cost-cutting systems using existing network backbone and PABX structures, negating the need for large infrastructural expenses.

The NBS solution - one of the first digital implementations of VOIP in SA - cost less than R500 000 and is expected to pay for itself within the first six months of operation.

Mervyn Savary, communications infrastructure manager at BoE, says the commissioning of the solution by Dimension Data was based on a business requirement.

"Five criteria had to be met, namely the functionality had to be the same or better; the system had to support a heterogeneous PABX environment; it had to meet international communications standards and be able to offer effective management on our managed online network services environment. The last criterion was based on a cost-effective pricing structure," says Savary.

He points out that BoE employs a strategy of using technology to solve business problems and this latest solution illustrates the policy effectively.

"Our brief was to find an alternative method of intra-company communications without impacting the business negatively and we have succeeded beyond expectation. Using our internal skills and those of our IT business partners Dimension Data and Cisco we implemented the technology at minimal costs and maximum benefit," maintains Savary.

Craig Butler, voice communications manager at BoE, says escalating costs on the previous private voice network dial-up architecture prompted the bank to look for a more cost-effective solution.

"The technology from Philips SA was the most effective at the time offering three-to-one compression (three calls at the price of one) in conjunction with Telkom`s Primenet solution, linking our three primary hubs, Durban, Johannesburg and Cape Town. The VOIP solution now links these primary hubs via the existing data network, comprising of a 1MB link between Durban and Johannesburg and Durban to Cape Town with a 512kb link between Johannesburg and Cape Town.

"We selected Cisco VOIP technology in conjunction with Cisco`s WorksManagement suite of telephone management software and we are now achieving a compression rate of six to one," says Butler, adding that Cisco architecture is designed to support disparate PBX systems.

NBS plans to roll-out VOIP to its branch network as Cisco releases scaled down versions of the product. The bank also examining the feasibility of introducing videoconferencing across the network as well as extending IP telephony as an alternative to its PABX installation throughout the country.