Is IP Telephony an option for your business?

There has been so much hype around the benefits, pitfalls and implementation of VOIP [Voice over IP] in South Africa in the last few years that anyone in business would be forgiven for struggling to know whether the costs involved would be worth the potential savings.

For the uninitiated, VOIP is the conversion of voice into “packets” of data, which are transported via a data network to reach the person you are trying to contact. And once they arrive, the “packets’ are converted back into voice, allowing a conversation to take place.

All this happens seamlessly for the people making and receiving the call – but it results in the call being far cheaper than, for example, a normal fixed line call via Telkom.

In the first world country where Internet is freely available and bandwidth is so cheap, VOIP is fast becoming the norm. But in South Africa, where Telkom’s monopoly keeps the cost of bandwidth high, cost reduction is not the norm when it comes to VOIP. Telkom’s monopoly allows them to high charges for connectivity [bandwidth]. Interconnect charges between service providers are high and VOIP service providers are always on the back foot when it comes to providing quality of service.

Another issue affecting the decision by a potential client of whether to convert to VOIP is the problem of poor delivery by the some suppliers and, too often, I hear scepticism from corporates in South Africa when it comes to successful implementation of VOIP.

Despite all this, it is inevitable that of most South Africa companies with high telephone costs will go the IP telephony route in the future – a case of not if but when, and it is only a matter of time before IP telephony becomes main stream in South Africa.

So what do you need to understand in order to make that decision?

Most importantly VOIP is not a status symbol, or a must have because it’s the latest tech trick and there should be a business need for you to make the switch.

And, as important, is how you do you decide whether you are ready to move to IP Telephony?
Below are a few indicators:

· Call costs are escalating because of high cell and national and international calls - indicate are such that you can benefit from a VOIP solution;
· You are moving into a new building and installing VOIP could save the cost of duplicate cabling requirements, as phone lines and data lines can be channelled one single point of connection;
· Making use of Centralised Contact Centers [Call Centers] nationally or globally make IP
Telephony attractive to your company;
· Redundancy (backup) may be required for your Contact Centers and or IP based PBX systems;
· Managing your voice infrastructure can be cheaper when using IP Telephony, as your IT department can access and manage change remotely on one single integrated voice platform.

Then there are other factors to take into account before signing off on a project or choosing a vendor and proceeding with implementation:

· Can you change your voice infrastructure using innovative Service Providers solutions and achieve the same result? In other words, if your SP supplies the bandwidth and cheaper rates along with carrier grade voice solutions, then why do it yourself if you can cut costs and hold your SP to a written Service Level Agreement
· You need to understand your requirements fully before making any decision and ask the right questions. Like:
o What infrastructure and bandwidth do I require to operate optimally?
o Who pays for what?
o Will I need to upgrade my own infrastructure – and, if so, what will it cost?
· Costs and ROI
o What hidden costs are there [if any] in managing the solution on an ongoing basis?
o Remember, the moment you move into the IT world, everyone wants you to pay for licenses on a per user basis. So, for example, you might need to pay for each employee who uses the phone;
o And, does my company have the knowledge – or capacity to manage this?
§ Is it cost effective to manage voice infrastructure ourselves?
§ Do we want to outsource the management of voice infrastructure?
o Will the move to VOIP require large capital expenditure and, if so, how much?
§ Is this a once off or a recurring cost?
§ Who will manage your WAN to ensure continuity of voice and data?
§ Can voice have priority over data?
§ Do you need to upgrade your WAN and what will it cost?

And then there is the most important decision on choosing a vendor with a strong track record. Without the right vendor and the correct support structure, your venture into VOIP will fast become an object lesson in frustration.

Your vendor should allow you to “try before your buy” as most reputable vendors are quite comfortable with this approach and will offer you a service level agreement outlining roles and responsibilities as well as response times in times of need.

And lastly, we cannot emphasize enough the importance of understanding your own business need - before you go to market. Get contactable references on successful role outs from your vendors and call them.

All these investments should bear fruit when you finally roll out your VOIP solution.

Peter_Walsh_14thJune2007 / http://www.dataroom.co.za/