Making the Case for Enterprise IP Telephony Sébastien Boire-Lavigne Vice-President Technology...
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Transcript of Making the Case for Enterprise IP Telephony Sébastien Boire-Lavigne Vice-President Technology...
Making the Case for Enterprise IP Telephony
Sébastien Boire-LavigneVice-President Technology
Agenda
• What is IP Telephony?• How has it evolved over the years?• Factors driving IP Telephony • ROI analysis• Case studies• Is your organization a perfect candidate
for FoIP?• Q&A / wrap up
What is IP Telephony?
• It is a means of delivering Telephony applications using packet-based networks
• Two main Telephony applications are:– Voice Over IP (VoIP)– Fax Over IP (FoIP)
Making The Case For Enterprise VoIP & FoIP
– A quick look at the factors that make VoIP a viable investment
– A compelling look at FoIP (includes ROI analysis & case studies)
Why VoIP?• Flexibility
– Easier management (configuration & accountability)– Scalability
• Convergence– voice & data share the same line
• Single wiring to the desk• Shared data & voice connectivity for multiple-location
deployments
– Staff only needs one skill set to use voice & data– New applications (voice mail, fax, etc) can be easily
added
Why should You Care About Fax? Almost every organization uses fax, and it isn’t going
away any time soon!
Still the easiest way to exchange legal documents (purchase orders, invoices, contracts, forms, etc.)
Fax accounts for 10-20% of all telephony lines
Fax is mission critical in financial, medical, real estate and insurance verticals
Contributing Factors To High Fax Costs
• Fax lines
• Hardware purchase / lease
• Maintenance– Consumables– Software & Hardware
Typical Fax Expenditures
• Fax hardware & consumable costs– A leased fax machine: $50 / month– Consumables: $0.05 / page
• Fax line costs– Analog line: $30 / month– T1 Channel: $35 / month
• MFD hardware & consumable costs– A leased MFD: $70 / month– MFD consumables: $0.02 / page
Fax Machines vs MFDs
• Consumable cost based on 100 Pages per day, 20 days month.– Fax machine: 100 x 20 x $0.05 = $100 / month– MFD: 100 x 20 x $0.02 = $40 / month
• Total cost per month (consumables + line)– Fax machine: 100 + 30 = $130 / month– MFD: 40 + 0 = $40 / month
Fax Server Advantages
• Consolidates fax lines – Ex: 60 fax machine 20 fax server lines
• Reduces number of printed faxes by using direct inbound routing– Cuts consumable cost– Cuts the number of fax machines/MFDs/printers used
to print/scan faxes
Small EnterpriseCase: 50-150 Users, 8 Fax Machines, 1040 $ / monthSolution: 2 Channel Fax Server With 2 Leased MFDs
- If fax machines are leased, ROI is cut by 4 months- If MFDs are purchased, ROI takes 2.5 more months
*Includes Software maintenance, Fax Server line cost, MFD consumable, MFD lease
Fax Board FoIP + VoIP Gtwy FoIP OnlyNumber of MFD: 2 2 2Number of Fax Line: 2 2 2Fax Server Software ($): 5700 6200 6200Fax Server Hardware ($):Fax Board ($): 3295VoIP Gateway ($): 1000Fixed Cost ($): 8995 7200 6200Monthly Cost* ($/month): 375 383 383ROI (months): 13.5 11.0 9.4
Medium EnterpriseCase: 1000-2000 Users, 60 Fax Machines, 7800 $ / monthSolution: 20 Channel Fax Server With 20 Leased MFDs
*Includes Software maintenance, Fax Server line cost, MFD consumable, MFD lease
- If fax machines are leased, ROI is cut by 3 months- If MFDs are purchased, ROI takes 4 more months
Fax Board FoIP + VoIP Gtwy FoIP OnlyNumber of MFD: 20 20 20Number of Fax Line: 20 20 20Fax Server Software ($): 20000 26000 26000Fax Server Hardware ($): 1400 1400 1400Fax Board ($): 17000VoIP Gateway ($): 6000Fixed Cost ($): 38400 33400 27400Monthly Cost* ($/month): 3233 3333 3333ROI (months): 8.4 7.5 6.1
Large Enterprise
*Includes Software maintenance, Fax Server line cost, MFD consumable, MFD lease
Case: 8000-10000 Users, 300 Fax Machines, 39000 $ / monthSolution: 96 Channel Fax Server With 100 leased MFDs
Fax Board FoIP + VoIP Gtwy FoIP OnlyNumber of MFD: 100 100 100Number of Fax Line: 96 96 96Fax Server Software ($): 85000 110000 110000Fax Server Hardware ($): 1400 1400 1400Fax Board ($): 68000VoIP Gateway ($): 35000Fix Cost ($): 154400 146400 111400Monthly Cost* ($/month): 15777 16193 16193ROI (months): 6.6 6.4 4.9
- If fax machines are leased, ROI is cut by 2.5 months- If MFDs are purchased, ROI takes 4 more months
FoIP Effect on ROI
• ROI reduction is more important for small enterprise
• The benefit of the synergy between FoIP and VoIP is more important for large enterprise
FoIP Alone FoIP + VoIPSmall Enterprise 18% 30%Medium Enterprise 11% 27%Large Enterprise 3% 25%
ROI Reduction
Cost Per Line
VoIP Gateway vs Fax Board Cost
0
10
20
30
40
50
60
70
80
4 8 24 48 72 96
Number of ports
Cos
t (k
$)
Fax Board
VoIP Gateway
Other Productivity Advantages
• Automatic inbound routing to the desktop• Consolidate voice & fax lines
– Share lines between voice and fax– Use voice lines during off hours to broadcast
• MFD serves as printer• Fax board solutions are limited to 4 T1, no
hardware limitation for FoIP (10 T1)• Faster composition & automatic archiving• Least Cost Routing• Usage accountability
Case Study: IMPAC FundingBackground• Largest real estate investment trust (REIT) on the American Stock
Exchange (ASX)• Handles over $6.6 billion in assets.
Challenges• Each loan application was 8 -10 pages long and was received by fax• Cost of fax broadcasting rate sheets to mortgage brokers was
$40.000/month• 60 fax machines handled inbound & outbound faxing
IP Telephony Results • $480,000 / year saved in fax broadcasting costs• 100% FoIP ROI realized in six months• FoIP system now handles 300,000+ pages per month
Case Study: Stewart Title of Kansas City Background• Provides professional closing and title insurance services to buyers, sellers,
realtors, mortgage lenders, and more • Has 27 regional locations• A Fortune 1000 company
Challenges• Previously faxed using dozens of fax machines connected to the PSTN with
POTs lines• Very costly, time and labor intensive
IP Telephony Results• Switched from 250 POTS lines to 4 PRIs• New FoIP systems handles 23,000+ faxes a month• Company saves $24 ,000 a year in long distance costs • Estimates $12,000 saving a month in overhead
Is FoIP For You?
• Already have VoIP deployed and no Fax Server
• Small company with VoIP and circuit-based Fax Server
• Planning to deploy VoIP in the future, but looking for a Fax Server solution now
• Massive faxing needs (4 T1, 8 T1 solutions)