A Closer Look at VoIP in the Enterprise

Note:  They make a nice case study for VoIP in general.  A good read for anyone at the enterprise level that would like to learn more and read about some other large scale deployments using VoIP.

Is VoIP reliable? Scalable? Ready for prime time? For the answer, you only need to look at the raft of ambitious enterprise VoIP projects -- with multiple-thousands of phones -- announced in recent months, or the latest telephony market research, which shows VoIP outselling digital PBX lines for the first time.

"IP telephony has gone mainstream," says VoIP analyst Brian Riggs, of Current Analysis. "There's no doubt about it."

Planned and ongoing VoIP rollouts at Bank of America, The New York Times Co., Amazon.com, Chicago public schools, University of Pittsburgh Medical Center and dozens of other enterprises all point to the acceptance of VoIP as the new standard for business telephone and messaging systems, analysts and users say.

Not that telecom professionals are entirely abandoning more than 50 years of digital PBX technology. Many are mixing IP and time division multiplexing TDM technologies for now as they wean employees off of the old phone equipment.

Call VoIP King

The shift in market dominance from TDM to IP really became apparent in the first quarter of 2006, according to research firm Synergy Research Group. Two years ago, only a third of business phone system lines were IP, but by this year's third quarter, more than 60% were. (Enterprises have spent $7.7 billion on telephony in the first three quarters of 2006, according to Synergy).

So what has prompted the shift?

"What changed over the past few years is that nothing changed," Riggs says. Products from companies such as 3com, Avaya, Cisco and Nortel have matured, not undergoing the disruptive changes seen in the early 2000s. Many of the questions regarding feature sets, stability and quality have been addressed, he adds.

IP telephony products and standards are at the point where some organizations are even comfortable with open source technology.

Amazon.com announced earlier this year that it is deploying the Pingtel SIPxchange Enterprise Communications System, an open source IP PBX, based on Linux servers and SIP phones, to support thousands of users at its Seattle headquarters. Separately, Sam Houston State University in Texas and the Southern Co. are going live with the open source Asterisk VoIP platform, in enterprisewide rollouts and in small-pocket deployments.

"We have a lot more peace of mind with the open source system," says Aaron Daniel, senior voice analyst, Sam Houston State University.

Following the Leader

Many companies now embarking on IP telephony projects are following the lead of early adopters, such as Bank of America, which in 2004 announced plans to deploy 180,000 IP phones to all of its U.S. retail branches and offices.
 
 

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