Transcript Kool Smiles - ROI of VoIP

Case Study:
The ROI of SIP Trunking
Date:
Tuesday 2/3, 8:30-10:00am
Track:
SIP-05 –SIP Trunking
Room:
B114 / B115
Agenda
Case Study: ROI of SIP Trunking
8:30am
Introduction
8:35am
Kool Smiles
8:55am
Bandwidth.com
9:15am
InGate Systems
9:35am
Q&A
Slide 2
Who is Kool Smiles PC?
• Kool Smiles PC is a network of local dental offices with a mission to expand
access to high quality dental care to underserved children and young adults
- Achieved significant ROI and payback in 12 months with a 40% reduction in
recurring telephony costs
- Accomplished through an IP-PBX upgrade and a SIP trunking deployment with
InGate Systems and Bandwidth.com throughout all offices and the centralized
call center
• What is SIP Trunking?
- SIP lines are JUST LIKE T1 lines or POTs lines to the end-user… except better !

They use the VoIP Protocol and are provided by an ITSP instead of a LEC

You don’t have to buy them in chunks of 23 channels anymore 

They don’t have the same cost structure or geographic restrictions as legacy
telephony
Slide 3
Kool Smiles Environment before SIP
• Kool Smiles in late 2007…
- Growing company
- Old style TDM PBX from 3COM fully deployed but lacking features of the newer
IP PBX systems
 No
global address book and distribution lists
 No
fully redundant configurations : 5-9s of reliability
 No
unified messaging or hot desking
 No
centralized management
- Telecommunications costs escalating and taking on a bigger percentage of the
IT OpEx budget

POTs lines at the locations….

T1s and long distance in the call center…
- IT Budget constraints and headcount pressure starting in 2008
Slide 4
The SIP Solution to Multiple Problems
We needed a solution for less headcount, more PBX functionality and less cost ! ? !
Enter SIP Trunking… Just like a phone line, but 40%-60% less !
• Upgrade proposal to Executive Management
- Evaluate offerings from Phone Equipment vendors
- Evaluate offerings from ITSP vendors and ongoing cost savings
- Purchase new Enterprise phone system centralized components and phone lines
- Create connectivity between the new system and existing NBX platform
- Stage each location to be trained and migrated to the new system
- Port phone numbers and consolidate/eliminate un-needed circuits
• Benefits
- 40-60% per year voice telecom cost savings (reduced costs and reduced lines)
- Reduced downtime
- Eliminate scalability concerns (10,000+ users)
- Feature rich enterprise phone system – better communications
- Lower administrative costs – reduce IT headcount
Slide 5
The Partner Search…
• Categories to rate vendor solutions
- Existing customer base with similar deployments and good references
- Unified messaging, find me - follow me, teleworker, ease of use
- Reliability, high availability, scalability (10,000+ users)
- Centralized management, SIP interoperability, standards and security
- Re-use of existing equipment, capex requirements, install complexity
- Business disruption risk
• Equipment and ITSP service interoperability and security was a key concern
- The SIP Trunk solution required some middleware to accomplish all the
signaling and security that we needed
- InGate systems fit perfectly because of their partnership with our preferred IP
PBX Vendor and preferred SIP trunking provider
Slide 6
Kool Smiles Network Diagram
Slide 7
High Level Project Plan & 2008 Results
4Q 2007
Oct
Nov
1Q 2008
Dec
Jan
Feb
2Q 2008
Mar
Apr
May
Jun
Porting
Porting
Porting
Tech training
Order SIP numbers/trunks
Test central components
Migrate call center
Sites training/migration
Sites training/migration
Sites training/migration
Porting
Porting
Initial SIP Deployment only (no growth reflected)
Voice telecom run rate pre-SIP (T1, LD, POTS)
IP PBX and SIP appliance CapEx
Network upgrades required
Existing Telecom contract buyouts
Voice telecom run rate post-SIP and porting
Annualized SIP based savings
Cash Basis Payback Months
Accrual Basis Payback Months (36 Month CapEx)
SIP Savings (net of equipment charges - accrual)
$427,000
$375,000
$0
$0
$121,000
$306,000
14.7
5.3
40%
Annualized Full SIP Deployment with growth (12/2008)
Voice telecom run rate pre-SIP (T1, LD, POTS)
Voice telecom run rate post-SIP and porting
Annualized SIP based savings
$816,000
$277,000
$539,000
Slide 8
Lessons Learned
• Porting existing phone numbers
- Make sure your account is in good standing and completely paid up before issuing any
port requests
- Notify the losing LEC that the number will be porting and authorize it
- Be extra careful if you are moving numbers from a non-facilities based LEC
• Check your existing telecom contracts for terms and auto-renewal language
• Having QoS on your data network will greatly decrease the probability of voice quality
problems
• Having robust bandwidth in between your IP PBX and the SIP trunking ITSP will also decrease
the probability of voice quality problems
• G.729 Codec should be used because of the decreased bandwidth requirements
• Plan out your E911 capabilities and test calls to the public safety providers to test the ANI/ALI
delivery is correct for each location
• Select equipment and services providers that have a proven track record and can provide
good reference accounts and great customer service
- 5,000,000+ calls since 2/2008 with very few issues
Slide 9
Key Partners
Slide 10