VoIP - Abridged -

Stephen R. Nelson

November 11, 2005

www.zentality.com

November 11, 2005 Page 2

Agenda

• What is VoIP?• The Opportunity• Vendor Approaches • Sample Implementation• Benefit examples• Key take-aways

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VoIP Defined

Definition:Voice Over Internet Protocol (VoIP) is defined as making

telephone calls over the Internet.

Internet telephone calls can originate from:• traditional phone sets, through gateways; • PC’s using software and headsets; • and VoIP phones.

Telephone calls can be made within the established Internet network, called “on-net” calls, or

Calls can be completed to locations “off-net” via hand-offs to the public switched telephone network “PSTN.”

What’s VoIP?

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VoIP is different

What’s VoIP?

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A significant cost reduction• Implementing VoIP for business has a savings potential

far beyond a savings in long distance expense• Today:

– Virtually all businesses have two networks – one voice, and at least one data

– Businesses with several locations often have several voice networks – one for each facility

– Most voice communications systems are over configured and highly underutilized

– Virtually all voice communications systems are implemented on expensive specialized or proprietary hardware and software platforms

• Combining voice and data networks yields a significant savings

The Opportunity

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Vendor Approaches

VoIP Implementations

Implementation Type

Phone Number Phone

Local Network PBX

Premise Switch / Router

Wide Area Net / Internet LD PSTN

Residential Hosted Vendor Either Customer - Customer Customer Vendor Vendor

Commercial Hosted Vendor Either Customer - Customer Either Vendor Vendor

System Customer Vendor Customer Vendor Customer Customer Customer Customer

Integrator Vendor Either Vendor Vendor Vendor Vendor Vendor Vendor

Vendor Approaches

November 11, 2005 Page 7 A Sample Implementation

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The resulting savings - #1Was: As Proposed:

Headquarters: Monthly

Employees 16Local Lines 24 720$ Taxes & Surcharges 24 144$ Fractional T-1 1 350$ PBX Maintenace 200$ PBX MAC 200$ Usage 7000 280$

Remote Location:

Local Lines 6 270$ Taxes & Surcharges 6 54$ DSL 1 60$ Usage 1200 72$

Home Office:

Local Lines 2 60$ Taxes & Surcharges 2 12$ DSL 1 60$ Usage 600 36$

Total 2,518$

Headquarters: Monthly

Employees 16Zentality extensions 16 464$ Taxes & Surcharges -$ T-1 1 200$ PBX Maintenace -$ PBX MAC -$ Usage 3500 102$

Remote Location:

Zentality extensions 6 174$ Taxes & Surcharges -$ T-1 1 300$ Usage 600 17$

Home Office:

Zentality extensions 2 58$ Taxes & Surcharges -$ T-1 1 200$ Usage 300 9$

Total 1,524$

Savings 39% 994$

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The resulting savings - #2Traditional: Open-source:

Headquarters: NRC Monthly

New IP PBX 60 80,000$ 600$ Voice Mail System 18,000$ 225$ Installation 6,000$ Sets 60 18,000$ PRI's 2 600$ 1,800$ Local Lines 10 400$ Data T-1 1 300$ 600$ Usage 20000 800$

Remote Location:

Remote 24 4,000$ 100$ Sets 24 7,200$ Local Lines 14 630$ DSL 1 150$ Usage 3000 180$

Total 1,596$ 134,100$ 5,485$ per set

Headquarters: NRC Monthly

HP or IBM Server 60 3,500$ IP PBX Software -$ -$ Additional Licenses 2,000$ -$ Installation 6,000$ Sets 60 15,000$ T-1 3 600$ 750$ Local Lines 4 160$ Usage 15000 435$

Remote Location:

Remote 24 600$ 174$ Sets 24 6,000$ -$ T-1 1 200$ 400$ Local Lines 5 200$ Usage 3000 87$

Total 404$ 33,900$ 2,206$ per set

Savings 100,200$ 3,399$

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Key take-aways

• VoIP works

• Significant savings can come from consolidating networks

• Open-source, non-proprietary IP PBX’s running on commodity servers will be broadly adopted

• IP PBX solutions have great application capabilities for call handling

• Start by examining your network spend

– Components

– Contract terms

• Avoid upgrading existing voice systems

• Don’t buy a proprietary solution for voice communication

• Utilize an Open-source solution as a media gateway; or for voice mail

Thanks for having me on!