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. 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