IP is Everything Management Report

1. Executive Summary

IP convergence increases staff productivity, provides a flexible network that is easy to adapt to business needs and cost savings through merging voice, data and video traffic onto a single network. Benefits are further increased when voice, voice data and video are integrated into desktop applications. This management report examines the development of IP convergence, reports on the benefits that it is delivering to medium and large enterprises alike and highlights some of the issues to be considered when switching to a converged network.

2. Development of IP Telephony

IP telephony is no longer simply an ‘interesting’ option when mainstream companies look at purchasing telecom systems. It is an absolute requirement driven by bottom line cost savings and hard return on investment metrics.
IP networks are set to come of age during 2004, with the ability to reduce network purchasing and operational costs by up to 25 per cent according to customer research undertaken by GEOFACTO BUSINESS SOLUTIONS.
Ironically it is a recessionary climate that is driving companies to investigate IP telephony. IDC Europe claims that the downturn in Western Europe is resulting in a rise in IP telephony making the market worth $2.4 billion in 2006.
Frost and Sullivan agrees with IDC’s analysis. It’s own research shows that IP telephony could account for more than 50% of PBX shipments by 2006. Cisco meanwhile says that it last shipped over a million handsets in the last two years.
But it is not just traditional telephony where IP telephony offers considerable savings: the first wave of contact centre deployments is showing early signs of lower operating, infrastructure and network management costs.

3. Who’s Implementing Converged IP Solutions?

The financial sector is one of the earliest adopters of converged IP solutions. This sector is typically characterised by highly competitive organisations, spread over multiple locations with high level of voice and data traffic.
Beyond the financial sector organisations with a large number of users spread over a large network of offices benefit, meaning it is also being adopted by government, leisure and retail organisations.

GEOFACTO BUSINESS SOLUTIONS has found that companies investing in converged IP solutions typically roll out to branch offices and new locations initially and then look to cover the whole organisation.

4. Business Benefits

Cost saving is the primary driver for voice and data convergence. But it is by no means the only driver. Converged solutions are becoming more about the productivity advantages that they deliver.
IP as a common networking platform ensures that staff have access to the right information through a flexible enterprise structure wherever they are working. And applications such as integrated CRM and unified messaging means that staff are more productive when working either inside or outside the office.
Summary: Business Benefits of Converged networking

1. Cut total cost of system and operational ownership

2. Make staff more productive through mobility and integration of desktop applications

3. Remove inflexibility of legacy networks in terms of changes and scalability

4. Reduce amount of voice and data hardware required

5. Reduce reliance on expensive operator networks

6. Single cable network instead of voice and data cabling

7. Simplified MAC and network management

5. Switching Networks

IDC believes that 33 per cent of companies will move to converged networks by 2005. Deployments of an IP network can be complex and companies should only switch after comprehensive planning and through analysis of the investment return it brings.
For new installations, IP is the obvious choice although companies must look at the their business needs and plan carefully too ensure they get the maximum benefit. IP connectivity can be delivered in almost any environment. The true value only comes from the communication applications delivered over these networks.
Hybrid-IP telephone systems offer customer investment protection for legacy equipment as well as providing a path to converged IP-based telephony systems. For many organisations that have extensive voice traffic, this is a good starting point to gain some of the advantages of convergence.
Moving any business-critical process is a risk to the business. GeoFacto Business Solution believes that in the case of converged IP solutions this risk can be mitigated by the support of knowledgeable partners.

6. Case Studies

Stockton Council with 160 sites in the UK says it will realise €500,000 per annum savings from a combination of reduced call costs, lower management expenses and savings in bandwidth usage by replacing their legacy voice and data network with a converged IP solution.
Zürcher Kantonalbank, a leading full service bank in Switzerland has replaced 103 disparate systems covering a total of 9,500 user connections, including a helpdesk with an a single IP hardware and software platform based on the Alcatel OmniPCX solution, which will reduce operational, management and maintenance costs.

The Archive Office for the Yvelines department, near Paris, has deployed a powerful converged voice and data communications solution. On top of the savings achieved through centralised administration and fewer cabling requirements, the relocated Archive Office now enables individuals carrying out searches to gain instant access to millions of documents, for examination on-site or via the Internet. At the premises, visitors can use secure Wi-Fi Internet connections.

7. GeoFacto Business Solution

GeoFacto Business Solution has 2,600 service engineers trained in IP telephony. It has installed networks covering more than 45,000 Telephony over IP (ToIP) users, combining voice and data; and 300,000 pure Voice over IP (VoIP) user licenses across Europe.
GeoFacto Business Solution is a leading global provider of integrated enterprise network solutions and services that enable effective, reliable business communications. It covers everything from planning and design to the implementation, support and management of voice, data and converged communications networks.

GeoFacto Business Solutions also provides best-in-class technologies from leading partners including Alcatel, Cisco Systems, Genesys and Nortel Networks. It offers consultation and solutions development ranging from contact centre applications to network infrastructure outsourcing.

8. Further Information

[email protected]