Introduction: What is everyone else doing about IP Telephony (and VoIP)?
According to new research from BT, 37% of SMEs have migrated to fully converged voice and data networks almost two-thirds making the switch in the past twelve months. In terms of payback, half of these reported significant reduced infrastructure costs, productivity increases and improved organisational agility. However, nearly one third of SME surveyed admitted to having little or no understanding of what a converged network actually is. What is your situation?

What is VoIP and why is it such a big thing now?
Voice over Internet Protocol enables telephone calls to be made over the Internet. A high speed Internet connection is essential to ensure quality of service that is comparable to landline calls. When you speak into a VoIP phone or headset your voice is converted into digital packets and then it is transferred down the connection much like an email. At its destination the process is reversed. For many years VoIP was considered too unreliable for business use but now it is difficult to find organisations that are not either in the process of adopting VoIP, or at the very least contemplating how VoIP can help their business. Business analysts argue that VoIP has moved from being an emerging technology to a critical business solution faster than any other previous telecommunication development and this is solely due to the ongoing need to drive down costs. Market forecasts indicate phenomenal growth in VoIP deployment.

Why bother with VoIP at all?
VoIP can deliver significant cost savings by:

Drastically reducing long distance call charges
Delivering free inter-office calls (and calls between the home worker and the office)

Further cost reductions can be gained from convergence with a converged voice and data network there is only one set of hardware to implement and manage. This helps cut the cost of set-up, support and bandwidth between sites. With only one network to manage maintenance becomes simpler and cheaper. Administration of the converged network is the responsibility of the IT department or external IT support company no need to use expensive telecoms service firms just to add another telephone extension!

Efficiency gains can also be discovered in the additional functionality that IP telephony brings to an organisation. A recent Telindus survey highlighted that 42% of IT managers stated productivity gains as the main reason to move to VoIP, especially in the areas of:

Simplified remote working and improved communications for remote/mobile employees
Simplified network as all devices are IP, no TDM
Ease of adding new users (no need to call out an engineer)
IT convergence linking with e-mail and web facilities
Computer telephony integration making a call using the PC rather than a telephone
Simplifying the management of internal communications
Reducing technical and operational staffing costs
Lower cabling costs fewer CAT-5 sockets required

The functionality enhancements that new IP telephony systems deliver include:

Simple integration with software packages, such as CRM or accounting software
Voice message forwarding and remote access to voicemail
Direct dial
Follow me (where the system can track you down, wherever you are, and put a call through to you still using your extension number!)
Personal messaging
Voicemail password protection
Automatic call routing, e.g., most valued customers routed immediately to specified call centre staff
Voice guided menus
Waiting call management
DECT hand sets (for mobile use within and outside buildings)
Bluetooth headsets
Call monitoring and recording

ROI
Siemens calculates that the average business can reduce its annual phone bill by 31% through IP. BT is reporting a 6000 saving per head on the cost of calls for their home workers. Return on investment usually ranges from 25% -50%.

In addition to bottom line savings, recent research highlights that organisations are achieving productivity savings in terms of:

Flexible location of office staff
Improved communications for mobile staff
Reduced technical staffing costs
Improved customer service

Implementing VoIP solutions
Organisations are currently implementing VoIP enabled solutions but typically only route certain calls through the IP network relying on traditional PBX (private branch exchange) for the majority of calls. Often these organisations install an IP PBX and migrate to IP telephony slowly when business drivers call for changes in telecommunication processes, such as an office move or cost pressures. An IP PBX switches calls between a VoIP and a landline user or between two traditional users just like a conventional PBX but works with a single converged network instead of requiring separate voice and data networks. Companies such as Alcatel have developed products that enable companies to migrate gradually.

There can be a downside to implementing a VoIP solution and it certainly is not the solution for every organisation. One common problem is the quality issue with the lines. Relying on growing band width will not resolve the problem. Continuous proactive management of data and voice traffic is the key ensuring optimal performance of the network. An audit of the network is essential to ensure that it can handle both data and voice. Older networks are at greater risk and might require an upgrade. Business continuity plans must be in place and reflect that voice and data now rely on the same network: If the email goes down how are you going to call your IT support company the telephones and the email are on the same system! Any IT provider worth their salt will be remotely monitoring the network and will be aware of problems and rectify them - before the end user is even alerted that a problem exists.

Summary: Not if, but when
The question for SMEs is not if, but when, to start on the road to converged data and voice solutions. The evidence indicates that the VoIP technological movement is an unstoppable force. Start contemplating IP telephony now so that you dont miss out on real business benefits or worse, saddle your business with a telephone system that you will be replacing within two years! IP telephony can provide proven cost savings for the right sort of company as well as a whole host of additional functional benefits that your employees and, more importantly, your customers will take note of.