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When IT executives make the strategic decision to implement VoIP and other converged applications, cost savings is one of the key drivers.
But is VoIP really a money saver? Based on a Nemertes Research survey of 90 IT executives, the answer is yes - over time. In other words, steep start-up costs will be offset in the long run by significant savings.
One of the key findings in this year's study is that companies are spending more time and money on planning, installation and troubleshooting, compared with last year.
The reason is that VoIP increasingly is being deployed as part of a strategic, enterprisewide convergence project, rather than as a pilot project or a technology deployed in a limited setting, such as a branch office or contact center.
Another important finding of the study is that VoIP equipment generally costs about the same as TDM gear, with the exception of handsets.
Since 2004, the amount of time spent planning a VoIP rollout has quadrupled. This is where participants spend most of their overall operational start-up time. They have learned from peers about the nightmares that result from a poorly planned deployment.
Because VoIP is typically part of a larger convergence effort, organizations are spending more time upfront trying to identify steps in the project - and preparing the networks for them. Several early adopter IT executives who participated in the study said if they had spent more time planning, they would have had a smoother rollout and spent less time troubleshooting.
As part of planning, IT staffs should perform or hire someone to perform baseline network assessments, also known as network readiness tests. Companies typically spend $3,000 per location for small implementations (usually five or fewer sites) or an average of $63,500 for a comprehensive, multisite evaluation. Comprehensive evaluations range from $12,000 to $150,000.
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As companies install VoIP in more branch offices and give handsets to more users (as opposed to simply IP-enabling a TDM PBX), the amount of time staffs spend installing the gear increases.
Troubleshooting time also is increasing, but not at the same rate as planning and installation. Troubleshooting includes the time spent repairing problems after installation and until the system is considered full-production. Companies with higher-than-normal troubleshooting times typically devoted lower-than-normal time to planning. So it makes sense that as IT staffs spend more time upfront planning the rollout, troubleshooting time should grow more slowly.
There are three primary reasons behind the increases in operational start-up time - and thus, cost. First, organizations are taking their VoIP projects more seriously because they are the first step of an overall convergence effort, and consequently need to devote more people from different disciplines (applications, security, voice, data) to the rollout. In 2004, companies devoted an average of 12 people to convergence projects, compared with 27 people by late 2005.
Second, the salaries of IT staff working on convergence projects have increased. The average salary with benefits was $96,766 in 2004, compared with $98,621 in 2005.
Third, companies are devoting more money to consulting costs related to design and implementation. The median consulting cost is $23,125, but the range is from $500 to $2 million, according to the survey. The goal is to take advantage of the experience of systems integrators and resellers, maintain flexibility with internal staffs, and improve the rate of project success.
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