January 27, 2003

By Terry Moos, News@Cisco

The telephony industry has come a long way since Alexander Graham Bell's words - 'Mr. Watson, come here, I want you!' - crackled through a crude device made from a wooden stand, a funnel, a cup of acid, and some copper wire back in 1876.

The history of telephony is filled with innovation. Features and functionality once only dreamed of have eventually become standards. The Internet has changed the way we seek information, and has also changed the way we communicate that information. Ten years ago, the idea of converging voice and data, based on the Internet Protocol (IP), seemed light-years away, yet now, telephony has leap-frogged into the IP realm, and companies realize that IP Communications (IPC) can bring more functional value, ease system management issues and provide greater life cycle ROI to telecommunications platforms.

IP Communications is the transportation of applications (data, voice, video and fax) over TCP/IP-based networks as packetized data, enabling voice and data to converge on a single, business infrastructure. Voice is integrated into the business computing environment, with phone calls enabled over a private local or wide area network (LAN or WAN).

IPC is not just for large enterprises. Small and medium sized businesses are leading the way, taking advantage of technology that enables them to reduce costs, increase productivity and gain a competitive advantage. Although traditionally have relied on circuit-switched voice networks, IP-based voice offers more flexibility for organizations as they grow and change, according to Developing a Business Case for IP Communications, a new white paper from The Yankee Group. The paper explores the value of IP Communications for medium-sized organizations as they manage their changing business environments.

Now, on the market are more choices for mid-sized organizations with 50 to 1000 users. Cisco this week announced enhancements to its broad IPC solutions portfolio, including new features for the Integrated Communications System (ICS) 7750, an advanced IP-PBX which implements voice gateway routing, call processing and business communication applications in an integrated chassis-based system. Cisco also kicked-off the IPC leg of its SMB strategy, which is focused on delivering Cisco expertise, solutions, and brand to the company's fast growing small and medium business customers with an emphasis on the new networking technologies of mobility, security and IP Communications. The company announced new voice packages, pricing, and financing for mid-market businesses, as well as education, training and marketing tools for its Channel partners

Key Factors Triggering IP Communications Adoption According to The Yankee Group, four major factors are triggering the adoption of IP Communications by mid-market companies: organizational changes; a need to improve customer service; single network maintenance; and improving user productivity and experience.

Contributing to these factors are the desire of mid-market companies to lower the total cost of ownership over the life cycle of the solution, centralize management of its network, improve employee productivity, scale to size, and access new business applications.

The conclusion of the research is that an IP-based system can accommodate the dynamics of a growing, changing organization - efficiently, cost-effectively, and with the reliability that is essential for achieving top-tier customer satisfaction. As mid-sized organizations migrate to IP Communications, they are also discovering the mobility it brings. No longer are phone systems tied to one geographical location. Employees can move from office to office or travel and still receive their phone calls, access their personal phone setting and access all of their messages. With IPC, the phone number is associated with the person, not the desk.

In addition, administrators can perform moves, adds and changes more easily, and from remote locations. In one example from Cisco, a hotel IT administrator estimates that he save 2-3 hours per week by responding, monitoring and resolving hotel guest issues from his home during off-hours.

But the white paper also cautions that managers need to consider how the IP Communications decision will affect the entire organization before diving into the waters. What impact will this have on network infrastructure? Will there be a need for PC and server upgrades? What about power failures? And can current telecom technology work in tandem with IPT?

Cisco Solutions Provide the Path Because a phone system is a long-term investment and commitment, organizations have to decide whether the current phone technology will continue to fit the needs - or is it time to explore the improved productivity and cost savings associated with a converged IP network? Cisco can help answer these questions and provide a migration path from a legacy system to an IPC system.

Cisco understands this market segment, which is reflected in new and newly priced Cisco voice packages that provide a clear set of core solutions, which are easy to understand and order. It is also reflected in the programs that focus on enabling Channel partners to sell to medium-sized businesses more quickly, such as the SMB solutions for IPC, as well as security and mobility. The solutions include materials such as network blueprints, case studies, road maps and how-to-sell and why-to-buy presentations.

And, Cisco's solutions are designed specifically for medium-sized businesses - these are not scaled-down versions of larger sized solutions. That's why the timing is just right - now - for Cisco's IP Communications solutions.

Terry Moos is a freelance writer based in Seattle, Washington.