Transcript Hosted Versus Premise based VoIP Deployment

Hosted Versus
Premise based VoIP
Deployment
By Mohamed El-Mohri
CTO
What is Hosted IP telephony?
September 10-12, 2007 • Los Angeles Convention Center • Los Angeles, California
The ASP model for phone systems
• Service provider hosting the telephony Service
• Voicemail
• IP-Phones deployed on the customer data network, no
need for a phone switch
• Provider connects the PSTN calls thru softswitch
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What is SIP Trunking?
September 10-12, 2007 • Los Angeles Convention Center • Los Angeles, California
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Where DID numbers are available.
It provides the PSTN connectivity to a carrier via
Internet
Reduces or eliminates the need of a PSTN Line
Replaces PRI circuits to Virtual circuits
SIP trunks are scalable -> increase number of
channels unlike PRI (23 channels)
No fixed geographical phone numbers –
anywhere in the world
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What is hosted VoIP services?
September 10-12, 2007 • Los Angeles Convention Center • Los Angeles, California
• Separating Telephony Services from Hosted VoIP
applications such as:
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Collaboration
Conferencing
Fixed to Mobile Convergence – One Number
Fax to email
• Hybrid Solution: CPE IP-PBX with SIP trunking
• Keep Telephony Services local
• Hosting the Virtual Circuits and long distance
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Type of Services
September 10-12, 2007 • Los Angeles Convention Center • Los Angeles, California
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Conferencing
Collaboration
Remote workers
Unified Communications
Enterprise Inter-communications
Contact Center
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Why Hosted VoIP?
September 10-12, 2007 • Los Angeles Convention Center • Los Angeles, California
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No PBX to maintain at any site
Much lower capital costs
Built in disaster recovery with Guaranteed Call Delivery
No telco maintenance for IT staff
No telco contracts to manage or PRIs to troubleshoot
No annual maintenance fees
MACs are free
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Hosted PBX vs. IP PBX Comparison
September 10-12, 2007 • Los Angeles Convention Center • Los Angeles, California
Hosted PBX
Premise IP PBX
•Unlimited users
•Limited users
•Multi location
•Multi Tenant
•Single office location
•Single tenant
•Low Total Cost of
Ownership
•Higher total costs
•Robust, Remote Fail-over
•Multiple points of failure
•High Reliability
•5 9’s for system
•4 9’s for system
•Low risk of obsolescence
•Ready for NextGen
•Vendor dependant for upgrade
or replacement
•Centralized system mgmt.
•Mgmt. based on each system
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Benefits of Hosted VoIP
September 10-12, 2007 • Los Angeles Convention Center • Los Angeles, California
• Low risk of technology obsolescence
• Disaster recovery: Remote Fail-Over
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Transparent to user, no extra investment
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Reduced Total Cost of Ownership (TCO)
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Acquisition Cost
Monthly Recurring Costs
Annual Maintenance Costs
• Enhanced Productivity
Headquarters and remote offices can take advantage of the same
productivity applications and features, including integrated IP
applications.
Geckotech LLC Confidential
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Pros & Cons
September 10-12, 2007 • Los Angeles Convention Center • Los Angeles, California
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Cost
Future Expansion
Control
Flexibility
Enhanced Features
Ease of implementation
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Enterprise Value Proposition
September 10-12, 2007 • Los Angeles Convention Center • Los Angeles, California
• Enterprise-wide communication solution
• Single system for voice, data, video
• Self-paced migration plan to IP network
• Link all employees and locations without geographic
limitations
• Improved total cost of ownership
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Converged access = cost efficiencies
Open standards = lower cost equipment
Web-based self-service = lower MAC costs
On-net voice calling = lower long distance
• Improved service assurance
• Carrier-grade performance, survivability and risk
management
• Increased employee productivity
• Speed projects and reduce travel with collaboration
• Tele-worker/mobile support; find-me, follow-me
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Low TCO: A case
September 10-12, 2007 • Los Angeles Convention Center • Los Angeles, California
• Infotech, an independent consultancy, performed a threeyear financial analysis on three IP alternatives;
• IP-Enabled PBX;
• IP PBX;
• IP Centrex Hosted Solution;
• for converged IP communications in both a 100-user
configuration with 10 teleworkers and a 400-user
configuration with 80 Teleworkers.
• Total Cost of Ownershipexcluded migration costs, upgrade
costs for premises based solutions, and the differences in
CPE costs.
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CPE transition to Hosted
September 10-12, 2007 • Los Angeles Convention Center • Los Angeles, California
• Hosted solutions are less likely to have post-installation
problems because pre-installation site reviews are usually
conducted by experts
• Because there is less need for customer participation in a
hosted solution, hosted providers can provide a project
time-frame with a good degree of accuracy.
• Hosted services can be deployed on a line-by-line basis.
Premise-based equipment to a hosted service can co-exist
with previously existing premise equipment.
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Cost Analysis: Part1
September 10-12, 2007 • Los Angeles Convention Center • Los Angeles, California
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First Costs (Implementation)
– System
– Phones ($300/IP phone, <$50/soft phone)
– Gateways
– Installation
– LAN Costs (in addition to existing network)
– Administrator Training
– User Training
– Soft Client Phones
– DSL Modems
– Remote Modules
– Local Facilities Installation (Trunks, PRI, ISDN and ADSL)
On-Going Costs
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IP-Centrex Line Charges ($25/month)
Facilities Charges (Local Trunks, PRI, ISDN and ADSL/Cable)
Hardware Maintenance
Space, HVAC, Power, Backup and Insurance
Staffing
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Cost Analysis: Part2
September 10-12, 2007 • Los Angeles Convention Center • Los Angeles, California
Not Included In the Analysis
– Migration costs
– Savings due to one-phone at a time migration (large number of cost
scenario permutations would have been impractical to present clearly)
– Cost to upgrade or replace PBX and IP PBX hardware or software (PBX
equipment typically replaced after five years: beyond scope. IP PBX is
expected to need massive upgrades in years 2-3, due to rapid technology
change)
– End-user training (should be anticipated for IP implementations, but will
vary widely. IP Centrex, for instance, has an option which will allow users
to retain existing desk sets, eliminating such training costs)
– Economic benefits of virtual office (Teleworkers, multi-location, etc.).
These soft benefits were covered and quantified in another Infotech study
that appears separately.
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Advantages of Hosted
September 10-12, 2007 • Los Angeles Convention Center • Los Angeles, California
• With a hosted solution, problems are fixed. Premise-based solutions
often require on-site visit to the premise. Hosted solutions circumvent
this delay and can reduce down-time.
• In the hosted situation, a customer only pays for what they use; in the
premise-based solution, a customer pays for everything that they could
use.
• Hardware and software upgrades can be managed more easily via a
hosted solution than a premise-based solution..
• Maintenance issues can be more quickly and efficiently addressed in
hosted solutions because the majority of equipment is centrally located
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Deploying Hosted VoIP
September 10-12, 2007 • Los Angeles Convention Center • Los Angeles, California
• Deployment Issues
• CPE: T1 router, managed switches, VLANs, QoS
• Project Management: 30-45 day implementation with
many variables
• LNP: Timing number ports and RCF
• Installation: Upgrading data network prior to adding
voice
• Implementation: IT consultants don’t know voice as well
as data
• Training: Very important!
• Work with customer’s IT consultant to coordinate
network changes including DNS and IP address
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TCO: Hosted vs. Premise IP-PBX
September 10-12, 2007 • Los Angeles Convention Center • Los Angeles, California
Networked PBXs
Networked IP PBXs
Centralized Softswitch
$140,000
$120,000
$100,000
Monthly
Total
$80,000
$60,000
$40,000
$20,000
$0
5K
10K
15K
25K
Enterprise Stations
“Lower TCO for all size enterprises in Softswitch solutions
Source: TEQ Consult Group – June 2005
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CAPEX and OPEX: A comparison
September 10-12, 2007 • Los Angeles Convention Center • Los Angeles, California
Networked PBXs
Networked IP PBXs
Centralized Softswitch
$80
$70
$60
$50
Monthly
$40
Cost/User
$30
$20
$10
$0
CapEx *
OpEx
Telecom Services
*Assumes PBX network infrastructure in place
Better CapEx, OpEx, and equivalent Telecom Services for Hosted VoiP
Source: TEQ Consult Group – June 2005
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