VoIP: Cost saving or cost driver?

VoIP continues to be perceived as the essential alternative to traditional telephony, but is this really the case? If today you’re running separate voice and data networks, potentially from two different suppliers then looking at how to move voice services onto the data network may well appear an attractive proposition. Removing duplication, simplifying management and hopefully reducing the size of the phone bill in the process are surely all ‘good things’ and VoIP promises to deliver all of this in one simple, swift and dramatic move.

In our experience, VoIP as a standalone technology rarely delivers the cost savings it promises. The cost of change will far outweigh the benefits in any sensible business case over the short to medium term if they are properly assessed.  Also having two services on the same network increases the cost if the network goes down so the cost of additional redundancy and protection need to be taken into account.

So why are businesses so keen to embrace Next-Generation Networks (NGNs)and add VoIP as part of that network convergence?  The key is understanding how convergence can transform the way that your business communicates, how it can transform the way essential business ICT services are provided and how in turn this can provide not only savings in total cost of ownership (TCO) but deliver some important productivity improvements that contributes to a businesses bottom line.

The foundation of this convergence solution and business case is the IP based VPN so getting this part right is vital to create a convergence architecture that will support additional services, including VoIP.  Deploying an NGN based on core MPLS technology and then selecting access for each site related to its size will provide this solid foundation and also flexibility.

From this first stage the key benefit is to effectively remove the distinction between LANs (Local Area Networks) and wide area network links – not to mention remote workers as well – in terms of speed, performance and reliability.  This means IT services can now be deployed anywhere on the network as remote services and applications will appear to users just the same as local servers on a LAN.

Into this new universal converged network voice communications, as VoIP, can de deployed just as easily as any other business application, without many of the old complications of specific connection requirements, proprietary hardware, site specific servers and infrastructure.  And as the VoIP services are available to users anywhere on the network this enables mobility of users by giving the same powerful functionality wherever they are.  This can provide solid productivity improvements, especially for remote users who can stay just as productive when working from customer sites, home or on the road.

In a converged architecture the intelligence of the VoIP application is centralised which means deploying new features is so much simpler: software upgrades or new features are added on to a central server, which can even be done by IT staff working from home to implement out of hours, and then they are instantly available to all users.  As well as the operational cost savings this brings it means businesses are ready to deploy multi media communications applications such as desktop video conferencing or collaboration, which in turn provide more productivity tools.

Linking VoIP communications into business applications and business data is when the benefits of convergence really start to accelerate.  Providing key data to users when they need it and more importantly capturing data back and then sharing this in real time will make a business far more intelligent and agile a whole.  A converged NGN makes this possible by using common standards to simplify communications between different applications, data stores and end user devices.  So having your field service team receive real time fault and fix data whilst attending a remote customer site and then report back so that customer service agents can liaise with a customer’s head office at the same time will immeasurably improve customer satisfaction and ultimately profit.  

As VoIP services are easier to manage for the local super users then this provides an ideal opportunity for them to look at wider communications and working practices and an ideal tool to improve the productivity of these.  Capturing this potential business benefit, as well the more tangible savings, is important to show the real ROI that a converged solution can deliver.

The benefits that convergence and VoIP bring should not be limited to just your own enterprise: linking with key suppliers, customers or other parts of your supply chain is far easier on a converged network as your VoIP service can be extended to work securely with other networks via secure encrypted links.  Communicating and collaborating via VoIP in this way can provide a strong business return and in many industries with integrated supply chains this will soon become a necessity.

Together the powerful new services that convergence brings with the streamlined delivery method means an ideal base for improving other basic common IT services into the future.  Applications such as network management, backup services, application deployment and resilient server platforms can all become centralised within the wider network whilst actually providing a rich experience to a wider spread of users, no matter where their location.  These future benefits and the reduced risk for future IT projects should also be a key part of the ROI business case for convergence and VoIP.