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RSS feedsVoice over IP (VoIP) has its very own roller coaster of a hype chart. It's become the perennial nearly technology - always next year's big thing.
The benefits of internet protocol (IP) networks seem as clear as its threat to traditional telco revenues. So business adoption is not a matter of if, but when.
Forrester Research stuck its neck out last week, and predicted that in 20 years' time VoIP will run all fixed-line voice traffic.
That's the long-term macropicture, but already more and more companies are sending voice and data in digital form using IP.
About 35 per cent of the 250 individuals pre-registering to attend the forthcoming Enterprise IP Technology (eIPt) conference say they have already combined their voice and data networks. It's easy to see why.
The big advantage of data and voice services over IP is that it avoids the tolls charged by a traditional private branch exchange (PBX) telephone system. A PBX switches calls between individuals on local lines, and allows users to make external calls.
IP-based systems fall into two major categories: pure IP-telephony, and hybrid-IP solutions that provide the benefits of converged telephony, such as reduced call costs and unified messaging.
Boosting business confidence
UK companies are beginning to recognise how IP technology and convergence can boost business performance.
Growing pressure to reduce costs means it can be difficult to justify new technology spend to the board. Enterprise IP technology, however, can help UK companies reduce costs.
About 10 per cent of the respondents to eIPt's survey estimated that IP provided cost savings of about £500,000 a year.
Other major business drivers for IP telephony deployment include increased infrastructure flexibility, broader access to new business applications and scalability.
"Early adopters of IP telephony have done so for clearly-defined business reasons, making the commercial case that it is the most effective way to modify current telecoms systems to meet changing business needs," says eIPt event director Liz Wood.
Adoption is set to increase, but choosing the right system is still the key issue for today's organisations.
"IP technology is set for wider deployment over the next 12 months, with convergence playing a major part in most communications strategies," says Alessandra Fitzpatrick, Canalys director and senior analyst.
"Major organisations are now starting to move their old networks across to IP, and this means that many others will be expected to follow suit."
While most businesses are familiar with the concept of IP telephony, there is still confusion about how to assess its suitability.
The first step businesses should take is to develop a clear case for IP adoption. IT decision-makers will need to understand the value and cost justification of IP telephony. And this will require a thorough comprehension of the market.
Research from analyst Canalys reveals that the product lines of the leading European suppliers, such as Alcatel, Ericsson and Siemens, are dominated by hybrid, or converged, IP offerings.
This technology approach also represents an increasing number of Avaya and Nortel shipments.
The proportion of pure-IP telephony shipments in the Americas, on the other hand, is more than twice the equivalent figure in Europe.
"To a large extent, the different markets are shaped by the power of the local vendors and their long-standing relationships with the incumbent service providers," says Fitzpatrick.
BT and Cisco signed a letter of intent in the summer, covering partnership in the provision of converged IP services. Fitzpatrick suggests these two providers may create a strong combination in the converged IP market.
"The market leaders in the UK are Nortel and Avaya, with Siemens in third," she says.
She also says that the data specialist's desire to take share from voice competitors should not be underestimated - and IT decision makers should keep a close eye on how the relationships evolve between suppliers and service providers.
Too much choice?
The wide breadth of choice is leaving IT managers confused about which systems to adopt, says Bob Tarzey, service director at business analyst Quocirca.
"Managers are concerned about a decrease in reliability and the high costs of change over from their existing functional systems," he says.
There are also cultural issues to overcome as the business changes from traditional PBX to enterprise IP.
"Voice and data networks have traditionally been purchased and run by different teams," he says. "Suppliers are starting to recognise the barriers to adoption by introducing systems that you can install by an evolutionary process, rather than a revolutionary one."
Surely and slowly, suppliers are beginning to educate businesses to the benefits of enterprise IP.
Richard Bayton, European enterprise channel manager of business VoIP gateway specialist VegaStream, says IT managers are beginning to understand how IP can improve productivity and cut costs.
"But there's still work to be done in raising awareness of the enterprise readiness of VoIP," he says.
Take a risk and join the battle between the competing telecom networks - now would be a good time for IT decision-makers to get hands-on experience of IP telephony.
eIPt: Offering help to it decision-makers
The emergence of IP technology in the enterprise is to be addressed through a new event for senior IT professionals.
Enterprise IP Technology (eIPt) will take place on 19 to 20 November at Olympia in London.
eIPt will feature an exhibition and educational programme to help IT and business decision-makers choose the most appropriate enterprise IP system for their organisations.
The event will also offer an interactive programme of master classes, case studies, supplier keynotes and panel debates.
Sandy Fitzpatrick, senior analyst and director at analyst Canalys, will present a keynote speech that looks at current market trends and forecasts for enterprise telephony.
The session will also consider the drivers and barriers to market adoption.
Neal Tilley, Alcatel's Northern European solutions marketing manager, will discuss how to create a unified communication network in his keynote speech.
The theatre will also host strategic sessions from invited industry experts and the Computing Panel Debate, an interactive session focusing on the key issues surrounding IP technology.
eIPt will include a free educational programme and analysts Canalys and Quocirca will offer advice on IP adoption.
The show aims to provide a meeting place for IT decision-makers and major suppliers. Exhibitors include Alcatel Telecom, VegaStream, Siemens Communications and Central Telecom.
Companies will be able to browse a range of manufactured IP products, including gateways, PBX technologies, videoconferencing systems and telephones.
IP applications, such as network security and management, will also form a key element of the exhibition.
A Solutions Centre programme will run throughout the two-day event, featuring daily sessions from four leading manufacturers who will present IP case studies.
For more details click here.
VoIP: What the experts say
"Convergence is happening between data and telephony VoIP providers, but it's going to take years rather than months. The differences between the two groups are huge, and both camps are missing some vital skillsets."
Sandy Fitzpatrick, senior analyst, Canalys
"If we don't go into IP, we are dead. There's a lot of new players in IP who can devastate incumbent businesses such as BT. This is the biggest thing we are doing in IT. Broadband is just a side note by comparison."
Pierre Danon, chief executive, BT Retail
"Eventually, IP telephony will prevail, and the traditional PBX will be a museum piece. It isn't clear when or how the vendors will get there, or how users will end up in that position."
Bob Tarzey, alliances services director, Quocirca
"As equipment depreciates, people decide it's a dumb decision to buy another core PBX. People expect there will be future services that will require voice and data integration."
Johna Till Johnson, president of research group Nemertes
"A shift to VoIP networks threatens incumbents' pricing model of multiple subscription charges for the same copper line and metered, distance-dependent usage charges. But contrary to vendor hype, this shift will take 17 years.
"Such a massive, long-term shift requires telcos to get out of their complacent mood, and respond with an integrated, consistent migration strategy that spans the network and service provider divide."
Lars Godell, senior analyst, Forrester Research.
See also:
Voice over Internet Protocol can deliver significant cost savings and management efficiencies. Yet businesses have so far been reluctant to adopt the technology. 14 Jun 2004
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