VoIP Enabled WAN Solutions: Is it time to converge your infrastructure?A COLT Business Briefing

Data Voice Managed Services

IT’S SIMPLE: YOUR INFRASTRUCTURE SHOULD ENABLE YOU TO COMPETE

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Voice and data convergence technologies are real; they exist, and they are being putto good use by enterprises of all shapes of sizes. The hype surrounding this subjecthas obscured a simple truth: whatever you decide to do about taking yourcommunications infrastructure into the future, it has to be right for your organisation,and enhance your ability to compete. This means that you have to start with abusiness and not a technological objective: you want to work smarter, faster, moreefficiently and productively, whilst cutting costs.

In this briefing, we’re going to examine how you can reap the financial benefits ofConvergence, whilst delivering productivity enhancements enabling your people toseamlessly make use of services like conferencing and unified messaging more easily.

Convergence can help you compete more effectively giving you the flexibility andresponsiveness you need to satisfy the demands of ever more sophisticatedcustomers, suppliers and end-users.

Convergence is not, as some have claimed, the Holy Grail for business in the 21stcentury. You need a cost-efficient and flexible infrastructure that gives you the rightplatform from which to do business in a smart and dynamic way.

What we want to prove is that you need to address all the infrastructure issuesright now, and avoid trying to migrate toward convergence in a piecemeal waywithout a clear plan.

We believe that the best and most complete way to deliver a convergedinfrastructure is to VoIP enable your data network. The following pagesmake our case.

“The effort which organisations are currentlyexpending on the transition to internet protocolvoice will, in the long term, be rewarded withlower infrastructure opex costs, reduced

telephony tariffs and increased productivityfor their employees.”

IDG, Managing the Transition to an IP network, 2007.

WHAT’S HAPPENING OUT THERE RIGHT NOW?

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Despite all the claims about an increase in agility and the ability to reduce costs, it is fairto say that the concept of Convergence, though much touted, has yet to really take offin any practical sense.

That’s because moving voice from its own separate network and merging it with thedata network is a big decision.

Enterprises are, despite impressive technological advances, moving to IP telephonycautiously. IT managers are keen to maximise the investment that’s represented by theirtraditional voice systems (TDM), and they’re worried about quality of service and their ownlack of experience in using IP networks for both voice and data. To overcome those fearsand concerns, enterprises often trial new technologies resulting in a mixture of networksbeing used.

That caution doesn’t mean that the promise of Convergence isn’t understood andwelcome: far from it. Datamonitor recently found that over 60% of IT decision makershave deployed some form of voice and data Convergence within their organisations.

In our opinion, it makes sense to embrace IP telephony in stages, especially if yourenterprise is large and complex. What we’re seeing is the deployment of IP telephonyin new sites and integrating them into the existing infrastructure. That way, you get totry out VoIP technology, learn how it works and then use its success as a model fortotal Convergence.

So, by putting in place a VoIP enabled WAN solution you can open up the promiseof Convergence in an efficient and managed way.

Let’s define what the solution actually is.

WHAT IS A VoIP ENABLED WAN SOLUTION?

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The traditional model is familiar: voice and data networks are separate. Each uses discreteequipment at different sites and is supported by different teams of people who areexperienced with the various enabling technologies. It’s a rigid set up that’s hard to changeor enhance and takes a lot of investment to transform.

The power and utility of the simple phone call has not been diminished by all the technologythat’s come out over the last two decades. All the surveys show that the cost of calls makesup a major element in the operating budgets of all kinds of organisations.Voice over InternetProtocol (VoIP), on the other hand, turns voice into digital packets and sends them outacross the data network. So, VoIP, which is often facilitated by the purchase of a new PBX,enables you to connect to the “PSTN” at an IP level.

Access to your network is converged. Your IP WAN can now be used to carry voicecalls within sites and to move “off-net” voice around your network using VoIP to deliverthose calls for less. You can, therefore, remove or reduce the need for separate voiceand data circuits.

A VoIP enabled WAN also facilitates the integration of voice with a host of other cleverapplications that make us more productive, flexible, mobile and, most importantly,more responsive.

For many VoIP is the gateway to true Convergence: it’s the point where mostorganisations start their journey. Most want to evolve into the future, gently nudgingtheir people and systems into a new way of working and then continue to build oneach success as they reap the benefits of each wave of change.

It makes sense; VoIP is the perfect place to start as you migrate to a converged future.

Traditional Model – seperate voice and data networks Converged Model – voice delivered across the data network

IS YOUR NETWORK READY FOR IP VIDEO?

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IP Video is usually discussed in the context of wide area communications or providingvideoconferencing between distant sites yet the bulk of IP video traffic is generated fromvideo on demand and videoconferencing applications that are being layered on top oftodays converged voice and data IP networks. With recent developments IP videostreaming is adding to an already large and complex matrix of traffic patterns and logicalnetworks, with unique requirements and attributes, which propagate throughout aconverged network. All this has the potential to drive up operational and network capitalcosts - if not planned carefully.

Preparing a corporate network for IP video can be a daunting task comments Swartz, butit is necessary. IP Video offers a wide range of corporate value including economic andproductivity advantages. He continues for many business and IT leaders, IP Video is animportant component in their corporate Green, risk management and physical security andmarketing strategies.

Traditionally broadcast and videoconferencing services have not been integrated; theywere physically and logically separate networks and services from both each other andother corporate networks. The value proposition for the video services of the 90s weremainly economic (reduced travel expense, increased productivity, etc) but they lackedvideo quality, ease of use and subsequently broad adoption.

But video conferencing and in particular IP Video is fundamentally changing access,usefulness and quality as IP video is layered on top of a converged network. IP video is theenabler for a wide range of new video communication and collaboration services wherevideo and audio quality is now outstanding and ease of use has been radically simplified.

IP Videos value proposition to business and IT leaders is multi-variable. IP video is not justdelivering the traditional economic and productivity advantages comments Swartz. Hestresses that as energy costs rise, macro economic conditions worsen and airport travelsecurity requirements consume more time spent per trip, the benefits from IPvideoconferencing dramatically amplify e.g. reduced personal and corporate carbonfootprint. Professionals are beginning to view IP videoconferencing solutions aseconomically feasible, commercially smart and corporately acceptable.

So with the advent of IP Video, network infrastructure decisions have far reachingconsequences and the capacity to offer huge benefits but to yield the expected benefits itis essential to carefully plan the deployment and implementation across a high qualityconverged network.

Source: Lippis Report, Nathan Swartz, 2008.

DELIVERING AGILITY AT LOWER COST IS THE REAL PRIZE

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Advocates of Convergence always cite the same business reasons in its favour. It’s important that these are defined in terms of the specific ways that an IP WAN can deliverthem in the real world. Few talk about the fact that there are up-front costs, or `the need for new technical skills to make convergence work. You have to take into account theissues of service levels and reliability as well as security. You need to make the most of your existing investment in TDM, and work out the best way to migrate. We’ll discusssome of those points later, but first let’s look at the main business benefits that can be achieved:

» The old way of working used two distinct sets of technology,with multiple wires to every desk, and costs associated withsupporting them all. Each site would also, traditionally, have itsown PBX. It’s a complex arrangement, and a costly one.

» By carrying voice as a service on the data network, operationalcosts can be reduced. In fact, even if you are running a VPNdedicated to voice you will still have to carry the cost of runningthe network itself and so by running VoIP over the data networkthe cost of maintaining the Voice network is eliminated, as is theneed to continually invest in the voice network to accommodatebusiness change.

» By running voice across a single IP network all equipmentassociated with voice traffic is centralised. The capital cost ofequivalent services, such as a voicemail server, also tends to bemuch lower for IP than for a PBX based solution.

» Conventional PBX systems route calls from one branch office toanother over the PSTN and that incurs a charge. But the samecall using VoIP is free, (though it does share the burden ofnetwork operational costs).

» Calls on VoIP enabled WAN’s are routed to “hop on” the enterpriseWAN using the IP PBX and then “hop off” again at the location thatoffers the most savings. For highly distributed organisations withmultiple branches, these telephony cost-savings can be significant.

» Free on-net inter site calls using an IP VPN

» No on-site gateways required

» Reduced dependence on expensive multiple PRI circuits forcarriage of calls to PSTN by using optimised “breakout” pointsfrom the VoIP network

» By using data circuits for voice calls, the customer will be able toaggregate their voice and data traffic which ultimately brings costand operational benefits

» In the past, dual networks required a lot of infrastructural work –new lines, new hardware and constant software changes – but aconverged infrastructure simplifies all that and reduces costs atthe same time. Importantly, it means you can grow and changein a more flexible and timely fashion. You can deliver bettercommunications faster and use a single team to do it all.

» Simplified flexible infrastructure enabling responsive expansionand management

» Provides ability to seamlessly and cost effectively extend IP PBXbased corporate applications and features to whereveremployees are operating

» More and more enterprises are increasing their productivity byenabling workers to operate remotely. For example, a remoteworker using a ‘soft phone’ on her laptop can make and receivecalls over an IP virtual private network (VPN) with the samefacilities and at the same call rates as if she was using a deskphone in the office.

» Technology cycles mean that consumer and enterprisetechnologies often interconnect and influence one another.Internet telephony such as Skype and the use of instantmessaging in the home is having an influence on the availabilityof software and advanced features in the workplace.

» A converged infrastructure gives you the ability to consolidate yourvoice applications and merge them with more sophisticatedmethods of enabling your people to communicate. You canintegrate voice with multimedia applications such as videoconferencing which can support customer relationship solutionsmaking your business more responsive. You can stream video, setup video conferencing very easily and also use unified messagingsolutions that enable your network to sense the presence of yourpeople when they are logged on wherever they are.

» Built with business continuity in mind

» Seamless rerouting of traffic in the event of disasters avoidingcostly disruptions to the business

» All IP calls are carried on dedicated network circuits and routedover a secure fully encrypted IP VPN delivering businessconfidentiality both on and off network

» Enhanced employee productivity provided by enabling thedeployment of applications that sit on the converged infrastructuree.g. IP PBX functionality can be seamlessly utilised between sitesso that productivity gains are delivered across the business

Cost Efficiency Flexibility Productivity

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DEPLOYMENT OPTIONS

The business justification seems clear, but you still have one of three options: you can donothing; invest in a new IP PBX only; or converge your infrastructure with a VoIPenabled WAN solution.

As we said up front: we believe the third option is the best one for organisations seekingto achieve all the benefits we’ve described. But, it makes sense to look at the case forchoosing the other two as well.

Should you do nothing? You can keep on working with separate voice and datanetworks and avoid any complications that might arise from moving voice onto anIP network. But how long can that last? Your competitors will be cutting costs andbecoming more productive whilst you are inhibited by the structural limitations ofrunning two separate networks.

Should you just buy a new IP PBX? That means your new IP PBX works on yourexisting infrastructure. But to get the most out of moving to IP you have to consideryour entire infrastructure. Purchasing an IP PBX and connecting it to a TDM linewithout an efficient IP gateway, using conventional instead of IP handsets, does notget the most out of your IP PBX or the potential of VoIP. Of course, this could form aninterim step towards integration.

Do you opt for a VoIP enabled WAN Solution? You can only reap the businessbenefits of convergence once you address the issues right across your infrastructure.This does not necessarily mean doing everything at the same time. Equally, because acompany needs to consider the network, the applications and the processes that theywish to use, it’s a valuable exercise in creating a clear plan for evolving your IP WAN.

So, at some point in the very near future you’re going to have to make a decisionabout VoIP and, possibly, convergence. Do you resist the wave of enthusiasm forboth, or do you embrace the future wholeheartedly?

The VoIP enabled WAN solution enables you to move into the future at your own pace.

But who can you trust to get you there?

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WHO CAN YOU TRUST TO DELIVER?

Voice communication is such a vital business tool. However, with well managedservice level agreements struck with the right provider, organisations can smooth theirtransition to a converged infrastructure and benefit from a resilient and flexible solution.

Naturally, we believe that at COLT we have the right experience and expertise toenable you to generate all the benefits we’ve described above. We also believe thatthe answer to the question on the front page is – ‘yes’.

It’s important that you start to plan your migration. Our experience at COLT is thatorganisations that migrate site by site achieve the best results in the long term. Youalso need to think about your needs in terms of security and resilience, and ensurethat you can be sure that you have the right business continuity plans in place. Youthen have to work out what skills you have in-house, and which you need from aspecialist provider.

When you choose your partner on your journey to a converged infrastructure you haveto ask them to detail precisely where your business will save money and becomemore efficient.

You have to check their technical competency, and ask whether they can provide atruly end-to-end service. Will they add value to your business and can they deliver thegeographical reach that you need to conduct and grow your business?

Don’t compromise with an off-the-shelf solution: demand one that’s tailored to yourneeds and that can match your ambitions for the future. Clearly define the CSFs andsuccess metrics and check how stringent the SLA’s are. It’s also important to be clearabout the phases between now and full operation of your IP network.

At COLT we believe we’re best placed to do all of the above. Let’s explain how.

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WHY COLT?

At COLT we think a VoIP Enabled WAN is the essential first step for an efficientcommunication platform. We work with you, at your pace, customising a plan toenable your business to benefit from increased productivity and reduced costs. Wehave the experience to advise you on the factors that achieve success, and we alwayswork to inform and support your decision making.

We believe that the real benefits of convergence will only result from looking at thebroad context of your telecoms needs: from calls to networks to applications to mobileand home workers. We will work with you to understand how you can get the most outof your infrastructure. And we focus on flexibility ensuring you invest in the righttechnology (TDM or IP), management (DIY or COLT managed) and commercial options.

The COLT approach is to work with your existing capability and to maximise andintegrate it.

You won’t be surprised to learn that we believe COLT is best placed to deliver thebenefits of VoIP on the best possible terms.

COLT operates and manages a network infrastructure that spans most of Europe,reaching 13 countries, 34 cities and over 14,000 buildings, with high quality links to therest of the world. It’s a high-quality network that is constantly being improved, serviced,and monitored. You get stringent Service Levels that are supported by local staff whospeak your language and respond swiftly to any problems as soon as they arise.

We have built our reputation for customer service on our ability to work with ourcustomers to deliver real results based on their own, very specific objectives. Thatapproach has won us numerous customer service awards over the years – a trendthat keeps on going with many recent accolades such as Frost & Sullivan’s 2007Award for Best Customer Service.

The key to our reputation for customer service is the fact that we createpartnerships that endure. They’re partnerships that are focused on the specificobjectives of the enterprise, and enable us to create a carefully worked out planthat takes into account the unique needs of each customer as they migrate to anew world of communications.

So, we’re not just suppliers who deliver isolated elements that you then have to puttogether into a coherent whole: we deliver the coherence and certainty you need sothat you can successfully deliver on your objectives at your own pace.

In short, we will work with you to review your current position, advise on what benefitswill be generated by moving to VoIP, then work out a strategic plan that will get youthere in the most efficient way.

By working with COLT you won’t have to deal with a variety of vendors and theirdiffering SLAs, to ensure you get a consistent user experience across your network.

COLT’s focus is on taking the complexity out of communications and ensuring thatyour network infrastructure is a real benefit to your business. You will be sure toget the end-to-end services you need, and can rely on, to deliver all the criticalapplications that drive your business now, and into the future.

So, it is time to start on the journey to convergence. And by working with COLT youcan take the first steps with complete confidence and benefit from our experienceof having successfully delivered solutions across Europe for nearly 20 years.

Data Voice Managed Services© 2008 COLT Telecom Group Limited. The COLT logo and COLT pennants are trade marks. All rights reserved.

For further information on COLT VoIP Enabled WAN Solutions,

visit www.colt.net