News Release

Australian Exporter ANCA Slashes Communications Costs with Global IP Telephony Solution from Cisco Systems

SYDNEY -- 18 October 2000 -- Australian industrial equipment
Oct 18, 2000

SYDNEY -- 18 October 2000 -- Australian industrial equipment exporter ANCA has implemented an Internet Protocol based communications platform from Cisco Systems which will allow ANCA to make significant reductions in its telephony costs and to take advantage of efficiencies offered by IP.

With assistance from systems integrator Netstar, Melbourne based ANCA has installed a Cisco IP Telephony Solution comprising around 100 Cisco IP Phone handsets and Call Manager 3.0, Cisco's server-side product for managing telephone calls over Internet Protocol (IP) based data networks. ANCA is in the process of extending the new network internationally using UUNet as their Internet Service Provider (ISP). The new IP data network will dramatically reduce ANCA's international voice call costs.

ANCA Managing Director, Mr Pat Boland said; "Reducing our telecommunications costs will increase our international competitiveness and make our location in Australia even less of an obstacle to doing business around the world."

ANCA supplies sophisticated tool grinding machines for many of the world's top aerospace and automotive manufacturers, including Boeing, Ford, Harley Davidson, Samsung Aerospace and Rolls Royce. It is the number one supplier of such equipment in the United States and exports to more than 25 other countries. However, it maintains its design, manufacturing and other key functions in Australia where it employs 300 of its 400 staff.

ANCA implemented its new Cisco IP Telephony solution in August 2000 after taking over a new building located 200 metres from its Melbourne headquarters. The new facility had no wiring in place and was too far from ANCA's established buildings to work with its existing PABX. The company considered installing a PABX at the new building but realised that, partly because its existing PABX was already stretched, it would have to pay the cost of a local phone call every time a call was made between buildings.

ANCA Managing Director and Co-founder, Pat Boland, said that even if the company had paid the $120,000 it had been quoted for a new PABX, it would have been up for another $250 to $300 every time it completed adds, moves and changes to the phone system.

"An added drawback was that ANCA would remain dependent on external consultants that understood the workings of proprietary PABX machines, hampering its flexibility. We knew that we needed new data infrastructure so we though we should look at some new, converged solutions," Mr Boland said.

"The solution was IP. By placing fibre optic cable between its new and old buildings and installing Cisco Call Manager, we could run all the phones in the new building off its existing PABX. The fibre link is driven by Cisco Catalyst 3500 switches and provides a gigabit Ethernet connection between the new and old buildings."

At around $100,000 including all the IP phone handsets, the solution was already cheaper than a single new PABX. However, this is just the beginning of the savings ANCA expects to make by switching to IP Telephony.

As well as installing IP phones, ANCA has moved its international data network that connects the Melbourne office to branches in China, France, Germany, Japan, Korea, the UK and the US to the international Internet carrier UUNet. This additional capacity has made it possible for ANCA to transmit phone calls for 'free' by using spare capacity on this new global data network.

"Our international call costs will basically go down to zero since we're already paying for the data network," says Mr Stuart Richards, ANCA's IT Manager.

Cisco Managing Director, Australia & New Zealand, Terry Walsh said; "ANCA is a great example of an Australian company embracing the savings and flexibility offered by Internet-based communications."

"Innovations such as IP Telephony really are changing the fundamental costs of doing business," Mr Walsh said.

About NetStar

NetStar, Cisco's Integrator of the Year, is the leading Converged Networking Integrator in Asia-Pacific, with over 600 specialist staff in the region. Netstar designed and delivered ANCA's IP Telephony network, and provided consultancy on all aspects of the implementation. See for more information.

About ANCA

ANCA is a world leader in the design and production of computer numerical control-driven grinding machines used in conjunction with aerospace and automotive manufacturing cutting tools. The company was founded in 1974 by Australian engineers Pat McCluskey and Pat Boland. Today it employs 400 staff, exports to more than 25 countries and has branch offices with full technical support in China, France, Germany, Japan, Korea, the UK and the US. For further information, see Beyond stretching between two buildings in Melbourne, ANCA's new phone network can be used to create a common global network on which all IP phones, and even personal computers, in Australia and overseas can be treated as extensions of the PABX in Melbourne. In practice, this means ANCA can add an IP phone to the network -- anywhere in the world - by plugging it in to the UUNet network. It will take its number and other information from Melbourne. ANCA will be installing Cisco Call Manager servers in each overseas branch to improve performance and redundancy.

About Cisco Systems

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