The IP Telephony Revolution by leader6


									                      The IP Telephony Revolution
While the late 1990s may be remembered as the dawn of Internet telephony, the
early 2000s will undoubtedly be recorded as the period in which it became a
force in the enterprise world. Whether being employed for ERP (Enterprise
Resource Planning), CRM (Customer Relations Management), customer
support, inventory management or SFA (Sales Force Automation), the
convergence of voice, video, data and multimedia onto a single Internet Protocol
(IP) network is revolutionizing communications. This new technology
         Transport and infrastructure - one network that now carries all
          electronic traffic over the same physical cable backbone, both on
          campus and to and from the outside world.

         Telephony servers - computers (often Unix- or NT-based) that
          reside on the campus network and convert ("packetize") traditional
          calls to network protocols and then route them over public or
          private data networks.

         User interface and computer telephony integration - a single device,
          that is, the PC, handles all transmissions seamlessly and in an
          integrated fashion (voice calls, database access, video
          conferencing, Web access, e-mail, faxes, and so forth).

         Management - one set of tools that now handles all aspects of
          network operations, network management, and billing.

As early as 1999 it was recognized that widespread acceptance of IP telephony
technology had moved from an 'if' market opportunity to a 'when' market
opportunity. Since then, its rapid adoption has been driven by the success of the
Internet and IP and the debate has shifted from “will IP Telephony be accepted”
to “which solution to implement.” The flexibility and cost-effectiveness of IP
packet-based transmission has been key in the accelerating momentum toward
widespread use of a single network for carrying data, voice and video. The
business case for widespread IP Telephony application in the enterprise world is
clear and growing stronger every day.

Why move to IP Telephony?
Often, the result of new technology implementation is difficult to clearly
demonstrate and measure. In contrast, IP and Telephony systems have a direct
impact on the company’s ability to reach its business goals. By linking them a
company can forward those goals and have a positive impact of the bottom line.
How well a company converges its communication networks will determine how
far it can go in the new customer economy. A converged network opens the door
to lower communication costs, simpler network management and most important,
business-enhancing applications to better serve customers while creating more
responsive and productive organizations. In the future, all communications
networks will be converged networks.

Through convergence, a company can reinvent both its communications
networks and its entire enterprise. A converged network supports vital, business-
building applications—from IP Telephony to collaborative videoconferencing to
CRM—that make businesses more efficient, effective and responsive to their
customers. These businesses find that the benefits of convergence go directly to
the bottom line.

IP Telephony positions a company to:
Reduce Costs
Enhance Productivity
Gain Operational Advantage

Reduce Costs

In this soft economy, companies are increasingly concerned about managing
costs, and current economic conditions are putting expenses into the spotlight. In
a recent study, the META Group found that the primary reasons businesses
invest in technology is the cost savings resulting from reduced equipment and
infrastructure investments, increased productivity, and simplified network
management. While cost projections will inevitably vary enormously from one
company to another, most equipment vendors and IP telephony integration
specialists would claim return on investment within one or two years.

Cost savings can be separated into three basic categories:
 Reduction in Equipment and Maintenance Costs
 Reduction in Network Administration Costs
 Reduction in Network Carrier Costs

Equipment and Maintenance Costs
As voice and data networks continue evolving to meet the pressures placed upon
them, they grow significantly more complex and expensive because
organizations must scale up multiple networks instead of one. A converged
network can reduce equipment and maintenance costs by:

• Combining multiple network infrastructures into a single IP-based network. An
organization will no longer need to invest in a dedicated device such as a PBX
(Private Branch Exchange) or maintain a separate integrated services digital
network (ISDN) for its videoconferencing needs. The City of Dallas was able to
converge incompatible data networks—five in all—and one voice network into a
single, converged network that will generate $21M in savings over a ten-year
period. Another example is Cray Inc.—this company purchased a new converged
data and voice network for its new facility in Minnesota for almost the same cost
as a PBX alone would have incurred.
• Allowing enterprises to centralize call processing. Centralized call processing
with IP telephony gives enterprises with many independent sites the ability to
centralize their voice and data networks on a headquarter or regional basis,
thereby eliminating the need for smaller key systems and resulting in a reduced
investment in equipment for individual branch offices. The City of Houston’s
network once comprised 27 PBXs, 175 key systems, and 43 voice mail systems
linking more than 23,000 city workers at 400 individual sites. Using centralized
call processing, the City of Houston was able to replace its previous voice
network with 16 call processing servers.
• Reducing the number of wiring drops in a new facility by 33 to 50 percent per
user. Many enterprises that are deploying IP telephony in ‘Greenfield’ situations
are realizing savings of approximately $200-300 per seat because they can now
run a PC and an IP phone on the same Ethernet port. In its own IP telephony
deployment, Cisco Systems saved over $1.5M on wiring costs across six new
• Lowering hardware connection costs. For instance, connecting an existing voice
mail server to a PBX requires a channelized T1 line with 1.5 megabits of
bandwidth that can support 24 users and costs approximately US $6,000. In a
converged IP-based network running 100 megabit Ethernet with a unified
messaging solution, a single server can support a similar number of sessions at
a cost of only US $600. In other words, for one-tenth of the cost, an organization
is able to increase its performance 100 times.
• Reducing or eliminating PBX/ACD (Automatic Call Distribution) upgrade costs.
For example, the City of Houston had a disparate network of standalone voice
systems, many of them nearing obsolescence. For many of these systems, the
City was unable to find new parts or was forced to pay exorbitant amounts.
During its transition to IP telephony, the City of Houston is realizing savings of
$765K a year on annual PBX upgrade costs.

Network Administration Costs
IP Communications can enable enterprises to reduce network administration
costs by:

• Improving the productivity of network support staff through simplified network
management. Many customers are seeing improvements in productivity in the
range of 10-40 percent. Cray Inc. was able to increase the productivity of its
network support staff by 33 percent when they converged their network.
• Allowing an organization to minimize its outsourced contract costs. The
improved productivity of internal network support staff has allowed many
organizations to reevaluate the need to outsource certain responsibilities, thus
providing them with greater control over their network and oftentimes leading to a
faster response time for their users.
• Enabling network support staff to manage much larger user communities with
the same number of personnel. After converging its network, The Ministry of
Social Policy in New Zealand was able to support an additional 2,500 users with
the same network support staff of 10 people.
• Minimizing expenditures associated with moves, adds, and changes. Moves are
estimated to cost an organization between US $75 and US $135. IP phones
offering extension mobility allow organizations to significantly reduce this ongoing
cost. For example, a typical enterprise with 5,000 employees that performs 2,000
moves per year at an average cost of $105 per move will save over $210K per

Network Carrier Costs
Network carrier costs include toll-bypass charges and also refer to the impact
that a converged network can have on a reduction in voice circuits. A converged
network can enable enterprises to reduce network carrier costs by:

• Reducing PSTN tariffs via toll-bypass. This has become less relevant as
domestic per-minute telephone rates have dropped as low as three to five cents,
but continues to be a significant area of savings for international calls.
• Reducing voice circuit costs. The ability to use the data network to transport
voice traffic has allowed enterprises like the City of Houston to significantly
reduce its annual voice circuit costs. By converging its network, the City of
Houston was able to save $5M a year in voice circuit costs.

Enhance Productivity

The power of the networked world is in its ability to allow people to communicate
more rapidly through multiple delivery mechanisms. Voice messaging, e-mail,
and fax technologies have greatly enhanced organizational communications.
However, these technologies have also created a staggering amount of
inefficiency in the enterprise. Employees now spend an average of 2.5 hours per
day retrieving and responding to e-mail, voice, and fax messages—not to
mention the productivity losses resulting from downtime many mobile workers
experience while away from the office. Identifying ways to make business-wide
communications more efficient is crucial to a company’s success.

An IP-based network enhances business communications by providing a flexible
foundation upon which all types of new applications and services can be
deployed, quickly and easily. These applications maximize productivity and
improve communications by facilitating increased mobility, delivering advanced
functionality, and streamlining administrative tasks. As a result, employees are
able to communicate more effectively—with co-workers and customers alike—
and can focus their efforts on activities that create new revenue streams or
generate cost savings.
Gain Operational Advantage

Increased operational efficiency and productivity are also widely seen as
byproducts of a converged business, by:

• Simplifying administration & equipment maintenance. By simplifying the
administration of the network, the IT staff can manage larger user communities
and focus on strategic initiatives targeted at generating business benefits.
• Consolidating IT staffs. By merging once disparate support and administrative
staffs for voice and data networks and eliminating redundant efforts, companies
can direct their assets toward strategic core business objectives. Specific
customer deployments have shown a 10-40% improvement in network support
staff productivity.
• Streamlining employee and equipment moves. IP Telephony enables easy
adds, moves and changes so that employees can be productive no matter where
they are.
• Increasing optimization of network capacity. Other factors aside, with one
network instead of two, optimization efforts are more likely to be successful.
• Preparing your network for a multi-service future. While the future is impossible
to predict in detail, it is likely that a converged network will be the best
preparation one can make for new services which have yet to be fully defined.

Why Use NCR?
Imagine this –
You are finally going to do it - replace those incompatible data networks and the
analog voice network with a single digital network for both voice and data. This
new network must accommodate 119 new integrated applications across 88
corporate departments in 14 locations. This could be your worst nightmare or a
dream come true. It depends on your IT partner.

The NCR IT Infrastructure Services Team arrives, armed with expertise in IP
technologies and a superb record of delivery. They immediately show an in-depth
understanding of the issues. They design the new system. It moves you from a
PBX voice system to an IP telephony system supporting voice, data and wireless
connectivity. They even minimize costs by integrating existing equipment along
with new hardware. A dedicated NCR project manager works closely with your
team, integrating products and services from multiple vendors. Despite a tight
deadline, the new network is integrated with existing systems and deployed on

Your company sees immediate and significant cost reductions. Your staff gets
connected anywhere within the office. Your solution allows for future scalability
and improvement in the data and voice networks for all those branch office
locations. The dream ends well.
Access to Information Through NCR @ Your Service™
NCR @ Your Service is the online service portal through which you can access
information about your network, anytime and anywhere. It offers performance
metrics, ability to initiate and track service invoices and insight into real-time
incident status.

NCR Partners with the World’s Finest Solution Providers, such as Cisco
NCR has met the rigorous requirements to become Cisco IP Telephony
specialized, meaning that Cisco is confident of our services and our employees
and engages us to provide services to their customers. In fact, NCR is currently
providing services for the largest Cisco IP Telephony implementation to date.
      NCR was the partner Cisco engaged to develop methodologies for Call
       Manager Deployment.
      NCR has over $1M invested in multi-service labs for customer demos and
       proof of concept.
      NCR has over $750K invested in developing our proprietary
       implementation methodology.
      NCR is currently supporting over $2 billion in Cisco products.

For over 10 years, NCR has taken a leading role as a Global Service Partner and
Integrator in helping Cisco provide new world IP solutions. NCR has invested
significantly in our employees around the globe to make sure that we meet the
high standards/specialization requirements set by Cisco for their IP Telephony
       Metro Optical transport ATP
       IP Telephony Revised Specialization
       Wireless Specialization
       VPN Security Specialization

NCR is a Cisco Gold Certified Partner worldwide:
     USA
     Japan
     United Kingdom
     France
     Germany
     Middle east
     China/Hong Kong
     Singapore
     Australia

NCR is ready to help your enterprise take an evolutionary step ahead—
maximizing your network investment with a minimum of service disruption. Our
products work well in an open network environment and our data services group
can size up your network and quickly prepare it for next generation applications.
And since is a global company with 25,000 employees, we can service and
support your MSNI (Multi-Service Networking Infrastructure) solution wherever
you do business.

Why Now?
This is a fragile economy. How well you converge your network may determine
how far you go in business. Why? A converged network opens the door to many
advantages – lower communication costs, simpler network management and
applications to better serve customers. In short, you get a more responsive and
productive organization. In the future, all communications networks will be
converged IP and Telephony. The question isn’t ‘IF” but “WHEN”. So, what’s
holding you back? There’s really no question but that:

You want productivity now

Having to use outdated technology and equipment can cripple the most talented
and dedicated workforce. And today’s workers are becoming more and more
mobile. IP Telephony enables employees to match their productivity to their
mobility, to be equally productive anywhere they are – in the office, at home, on a
customer site, or hotelled in a branch office. Solutions like IP telephony, unified
messaging and IP contact centers have been designed to provide an ideal
foundation to support today’s increasingly mobile workforce. This is especially
important for salespeople, consultants, telecommuters, and computer technicians
who spend much of their time away from their office, but still need access to the
same network capabilities regardless of where they are. IP telephony in particular
provides significant benefits in the areas of telecommuting and hoteling.

In a traditional voice environment it has been cost prohibitive to provide voice
network capabilities to the telecommuter. Several different alternatives are
available, but all are difficult to execute and can cost upwards of $1,500 per
remote worker. With IP telephony and IP contact center solutions—using a VPN
solution owned by the enterprise or managed by a service provider—a company
is able to securely extend the voice capabilities of its network to the remote
worker. In this deployment scenario, the remote worker with high-speed access
can use their existing hard phone both in and out of the office or use a soft phone
application that runs on their PC. Both scenarios allow employees to have full
access to all network capabilities and to be free from the constraints of the home
office, thereby increasing productivity while reducing calling charges, leased-line,
and additional handset costs.

The flexibility of allowing call agents to work from home improves an
organization’s ability to attract and retain higher quality workers as well as cutting
down on long-distance calling charges back to the home office. Most companies
have employees who are constantly on the road and rarely use their offices.
Unfortunately, other employees cannot effectively use these unoccupied office
spaces, because their phone extensions do not travel with them. The practice of
hot-desking or hoteling has been in existence for almost a decade and originally
promised significant savings in real estate and facilities costs. However, many
organizations found that the costs of adapting their current networks to
accommodate mobile employees outweighed the benefits. A converged network
can help a company optimize the use of its facilities—and reduce associated
costs—by providing a more flexible foundation to serve the needs of its users. A
converged network with IP phones enables employees to freely move about the
office to available spaces, while allowing their phone extensions to travel with
them—as well as any services or applications that they have loaded on their
phone. This is allowing many companies assign more workers to shared
workspaces, thereby reducing the costs associated with office equipment and
real estate.

You want cost saving now

IP telephony has been a reality since 1998 but the dramatic cost savings,
increased revenues and application rollout capabilities associated with the
technology are only now being fully realized. Delayed deployment of converged
solutions only delays the implementation of the power the new technology
provides and the cost savings that come with it. Even if new technology is not
sought for its benefits, the cost savings can be tremendous. One business
reported, “We also discovered that we could install a converged network for the
same price as a traditional PBX network by itself.”

It should also be recognized that maximizing technology investments and
minimizing mistakes and headaches always involves timing. An evaluation of the
position of IP Telephony in its life cycle gives an additional reason to consider its
integration into your organization now. Technology begins in a research and
development phase, moves to a specialty system phase, then a commodity
phase and finally an obsolete phase. During the specialty system phase, the cost
of the technology is relatively high, but the value to the buyer is also seen as
high. In the commodity phase, costs have fallen but the value remains high. A
strong case could be made that IP Telephony is now moving from the specialty
system phase into the commodity phase. Technology acquisition at this point in
the life cycle will provide the maximum value for the longest period of time - the
most bang for the buck. Isn’t that what you are looking for in your business?

Customers Want Service Now

Delivering customers what they want goes right to the bottom line of any
business. One example is a retailer’s need to process credit card transactions
more quickly. Authorizing a credit card transaction over PSTN used to take
around 24 seconds—a nuisance to customers purchasing small-ticket items such
as T-shirts. Queues could grow very long very quickly. Now that Sports Soccer
can send credit card information via Frame Relay with a 32-kbps CIR, approval
time has plummeted to 8 seconds. “A permanent, low-bandwidth network was
the perfect solution for time-critical, very small transactions,” reported Sports

Lower network costs, improved productivity, increased customer retention, faster
time to market—these are the bottom-line benefits that converged network
solutions make possible. Whether it is creating a multimedia customer contact
center, or laying the foundation for the future with a converged, multiservice
networking infrastructure, we have the applications and solutions that let
businesses take advantage of convergence. Now is the time to start.

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