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Is VoIP the Future of Telecommunications?

Is VoIP the Future of Telecommunications?. Yes, but it’s only the subplot!. Conclusions. Voice over IP (VoIP) is the strategic direction for both the wide area network (WAN) and premise PBX equipment. VoIP is rapidly becoming a viable technology for some implementations.

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Is VoIP the Future of Telecommunications?

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  1. Is VoIP the Future of Telecommunications? Yes, but it’s only the subplot!

  2. Conclusions • Voice over IP (VoIP) is the strategic direction for both the wide area network (WAN) and premise PBX equipment. • VoIP is rapidly becoming a viable technology for some implementations. • The biggest reason for using VoIP in the WAN today is cost savings. • Full and complete telephony application functionality will not arrive until 2003.

  3. Technology Conclusions • New technologies are becoming available that leverage the universal deployment of TCP-IP within the LAN, WAN, and Metropolitan Area Network (MAN) • Passive Optical Networking (PON) dramatically lowers the cost of deploying broadband municipal fiber networks. • Free Space Optics (FSO) will dramatically lower the cost of deploying broadband municipal wireless networks. • The TCP-IP protocol represents the strategic direction for both the Local Area Network (LAN) and the Wide-Area Network (WAN) • Voice over IP (VoIP) represents the strategic direction for both the wide-area network (WAN) and premise PBX equipment. • VoIP is rapidly becoming a viable technology for some implementations. • The biggest reason for using VoIP in the WAN today is cost savings. • Full and complete telephony application functionality will not arrive until 2003.

  4. What Is VoIP? VoIP = Voice over the Internet Protocol It is not:Voice over the Internet • Instead of using traditional circuit switch systems for voice communications, VoIP uses a packet protocol originally designed for data communications. • VoIP can be used within the LAN, WAN, MAN, and/or the PBX

  5. Enterprise VoIP Economics Local PSTN PBX Intranet VoIP Requirements Router upgrades • shorter packet • VoIP processing Router cards Gateways PBX upgrades PBX table changes Increase bandwidth Staffing requirements Local PSTN PBX IP Gateway

  6. The IP Telephony Solution Analog 2500 Phone Palm Pilot PC Phone Client IP BusinessPhone Video Switch Fax H.323 ConneXtions • Call Control • Gateway • Applications Router PSTN WAN

  7. Applications — A Field of Dreams johan@abc.se Dear Johan, It’s over. Contact Center Unified Messaging Internet Remote Workers Collaboration

  8. Vendor Push Drives PBX Transformation Telephony Server PBX

  9. VoIP Hype Cycle Peak of InflatedExpectations Plateau of Productivity Hype VoIP Slope of Enlightenment Technology Trigger Trough of Disillusionment Type A Adoption Type B Adoption Type C Adoption Maturity

  10. Voice Quality Is More Than Low Delay Voice QoS Requirements: • Latency/delay • Packet loss • Jitter

  11. Is Reliability Really a Problem? Is Microsoft NT as stable as a proprietary operating system? WAN Why shouldn’t the data network be resilient enough for voice needs? Will management risk reduced service levels for telephony?

  12. VoIP Perceptions: No Hardware IP phones cost as much or more than the existing feature set Server-based hardware is not necessarily cheaper than proprietary hardware Adding IP devices is not any easier than upgrading legacy hardware

  13. Extending the Voice Network IP-Based Network government Private Voice Network • Retain resilience in head-office network • Extend core functionality to all locations • Experiment with unified desktop functionality • Benefit from an upgraded network infrastructure Small Office/Branch Office Locations Voice Mail QSig Centralized Operator Home Workers

  14. Improving Staff Mobility IP-Based Network Voice Application Servers In the Office On the Road • Maintain single user profile across the enterprise • Unify user messaging through one application interface • Work smarter, not harder WWW Working at Home

  15. Centralize Management Control IP-Based Network • No disparate branch-office platforms • Central control of telephone calls/routing • Single interface for moves and changes • Seamless functionality across the network PSTN Management Interface Branch Offices

  16. IP PBX Timing Percentage IP/PBX for less than 100 desktops 100 Approximately 308,000 systems in 2004 75 IP/PBX for more than 100 desktops 50 25 12.5 Less than 3,000 systems in 2004 0 1999 2000 2001 2002 2003 2004 2005 2006 Year

  17. Converged V/D Telephony Equipment Providers — North American MQ Less than 100 lines More than 100 lines

  18. Recommendations Where to Deploy VoIP Where Not to Deploy VoIP When justifying based only on TCO With existing multiple PBX vendors When an application doesn’t require it! All new data WAN upgrades Remote dial-in users Hoteling workers in multiple locations As part of unified messaging At new SOHO sites When less than 100 stations Don’t implement for the next 18 to 24 months Implement as trial first Implement now

  19. Packet access networks dramatically lowers costs Ethernet switches provide QoS via inexpensive TCP-IP protocols Ethernet interfaces are also very inexpensive Add Drop ATM and/or SONET Multiplexers provide QoS via expensive “nailed down” bandwidth between locations ATM and SONET interfaces are also very expensive

  20. Cost Comparison between OC-192 and Gigabit Ethernet The costs for Ethernet are often 1/10 of the cost for equivalent ATM or SONET bandwidth

  21. Passive Optical Network Access System

  22. FSAN Model for PON The Full Service Access Network standards initiative defines a set of passive-optical-network architecture standards using ATM as the transport technology.

  23. Free Space Optics • Advantages • Quick time of deployment • Cost-efficient network investment • No license acquisitions • Investment protection for leased buildings • Excellent for temporary installations

  24. What is the future of Telecommunications? Anything over IP and IP over anything! LAN MAN WAN Wireless Optics Copper Voice Intranet Video Extranet E-gov IP Real-time Store and forward Organizations that achieve end-to-end convergence will achieve the lowest TCO.

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