Making the Case for Enterprise IP Telephony

1. Making the Case for Enterprise IP Telephony Sébastien Boire-Lavigne Vice-President Technology sboire@interstarinc.com

2. Agenda • What is IP Telephony? • How has it evolved over the years? • Factors driving IP Telephony • ROI analysis • Case studies • Is your organization a perfect candidate for FoIP? • Q&A / wrap up

3. What is IP Telephony? • It is a means of delivering Telephony applications using packet-based networks • Two main Telephony applications are: • Voice Over IP (VoIP) • Fax Over IP (FoIP)

4. PBX & FAX Machine

5. PBX & Fax Server

6. IP PBX & Fax Server

7. IP PBX & IP Fax Server

8. Multi-Locations

9. VoIP Call

10. FoIP Call

11. Making The Case For Enterprise VoIP & FoIP • A quick look at the factors that make VoIP a viable investment • A compelling look at FoIP (includes ROI analysis & case studies)

12. Why VoIP? • Flexibility • Easier management (configuration & accountability) • Scalability • Convergence • voice & data share the same line • Single wiring to the desk • Shared data & voice connectivity for multiple-location deployments • Staff only needs one skill set to use voice & data • New applications (voice mail, fax, etc) can be easily added

13. Why should You Care About Fax? • Almost every organization uses fax, and it isn’t going away any time soon! • Still the easiest way to exchange legal documents (purchase orders, invoices, contracts, forms, etc.) • Fax accounts for 10-20% of all telephony lines • Fax is mission critical in financial, medical, real estate and insurance verticals

14. Contributing Factors To High Fax Costs • Fax lines • Hardware purchase / lease • Maintenance • Consumables • Software & Hardware

15. Typical Fax Expenditures • Fax hardware & consumable costs • A leased fax machine: $50 / month • Consumables: $0.05 / page • Fax line costs • Analog line: $30 / month • T1 Channel: $35 / month • MFD hardware & consumable costs • A leased MFD: $70 / month • MFD consumables: $0.02 / page

16. Fax Machines vs MFDs • Consumable cost based on 100 Pages per day, 20 days month. • Fax machine: 100 x 20 x $0.05 = $100 / month • MFD: 100 x 20 x $0.02 = $40 / month • Total cost per month (consumables + line) • Fax machine: 100 + 30 = $130 / month • MFD: 40 + 0 = $40 / month

17. Fax Server Advantages • Consolidates fax lines • Ex: 60 fax machine  20 fax server lines • Reduces number of printed faxes by using direct inbound routing • Cuts consumable cost • Cuts the number of fax machines/MFDs/printers used to print/scan faxes

18. Small Enterprise Case: 50-150 Users, 8 Fax Machines, 1040 $ / month Solution: 2 Channel Fax Server With 2 LeasedMFDs *Includes Software maintenance, Fax Server line cost, MFD consumable, MFD lease • If fax machines are leased, ROI is cut by 4 months • If MFDs are purchased, ROI takes 2.5 more months

19. Medium Enterprise Case: 1000-2000 Users, 60 Fax Machines, 7800 $ / month Solution: 20 Channel Fax Server With 20 Leased MFDs *Includes Software maintenance, Fax Server line cost, MFD consumable, MFD lease - If fax machines are leased, ROI is cut by 3 months - If MFDs are purchased, ROI takes 4 more months

20. Large Enterprise Case: 8000-10000 Users, 300 Fax Machines, 39000 $ / month Solution: 96 Channel Fax Server With 100 leased MFDs *Includes Software maintenance, Fax Server line cost, MFD consumable, MFD lease • If fax machines are leased, ROI is cut by 2.5 months • If MFDs are purchased, ROI takes 4 more months

21. FoIP Effect on ROI • ROI reduction is more important for small enterprise • The benefit of the synergy between FoIP and VoIP is more important for large enterprise

22. Cost Per Line

23. Other Productivity Advantages • Automatic inbound routing to the desktop • Consolidate voice & fax lines • Share lines between voice and fax • Use voice lines during off hours to broadcast • MFD serves as printer • Fax board solutions are limited to 4 T1, no hardware limitation for FoIP (10 T1) • Faster composition & automatic archiving • Least Cost Routing • Usage accountability

24. Case Study: IMPAC Funding Background • Largest real estate investment trust (REIT) on the American Stock Exchange (ASX) • Handles over $6.6 billion in assets. Challenges • Each loan application was 8 -10 pages long and was received by fax • Cost of fax broadcasting rate sheets to mortgage brokers was $40.000/month • 60 fax machines handled inbound & outbound faxing IP Telephony Results • $480,000 / year saved in fax broadcasting costs • 100% FoIP ROI realized in six months • FoIP system now handles 300,000+ pages per month

25. Case Study: Stewart Title of Kansas City Background • Provides professional closing and title insurance services to buyers, sellers, realtors, mortgage lenders, and more • Has 27 regional locations • A Fortune 1000 company Challenges • Previously faxed using dozens of fax machines connected to the PSTN with POTs lines • Very costly, time and labor intensive IP Telephony Results • Switched from 250 POTS lines to 4 PRIs • New FoIP systems handles 23,000+ faxes a month • Company saves $24 ,000 a year in long distance costs • Estimates $12,000 saving a month in overhead

26. Is FoIP For You? • Already have VoIP deployed and no Fax Server • Small company with VoIP and circuit-based Fax Server • Planning to deploy VoIP in the future, but looking for a Fax Server solution now • Massive faxing needs (4 T1, 8 T1 solutions)

27. Thank you! www.interstarinc.com