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Hosted Versus Premise based VoIP Deployment

Hosted Versus Premise based VoIP Deployment. By Mohamed El-Mohri CTO. What is Hosted IP telephony?. 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

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Hosted Versus Premise based VoIP Deployment

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  1. Hosted Versus Premise based VoIP Deployment By Mohamed El-Mohri CTO

  2. What is Hosted IP telephony? 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 3

  3. What is SIP Trunking? • 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 4

  4. What is hosted VoIP services? • Separating Telephony Services from Hosted VoIP applications such as: • 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 5

  5. Type of Services • Conferencing • Collaboration • Remote workers • Unified Communications • Enterprise Inter-communications • Contact Center 6

  6. Why Hosted VoIP? • 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

  7. Hosted PBX vs. IP PBX Comparison

  8. Geckotech LLC Confidential Benefits of Hosted VoIP • Low risk of technology obsolescence • Disaster recovery: Remote Fail-Over • Transparent to user, no extra investment • Reduced Total Cost of Ownership (TCO) • Acquisition Cost • Monthly Recurring Costs • Annual Maintenance Costs • Enhanced ProductivityHeadquarters and remote offices can take advantage of the same productivity applications and features, including integrated IP applications.

  9. Pros & Cons • Cost • Future Expansion • Control • Flexibility • Enhanced Features • Ease of implementation 10

  10. Enterprise Value Proposition • 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 • 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

  11. Low TCO: A case • Infotech, an independent consultancy, performed a three-year 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. 12

  12. CPE transition to Hosted • 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. 13

  13. Cost Analysis: Part1 • 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 • IP-Centrex Line Charges ($25/month) • Facilities Charges (Local Trunks, PRI, ISDN and ADSL/Cable) • Hardware Maintenance • Space, HVAC, Power, Backup and Insurance • Staffing 14

  14. Cost Analysis: Part2 • 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. 15

  15. Advantages of Hosted • 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 16

  16. Deploying Hosted VoIP • 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 changes 17

  17. TCO: Hosted vs. Premise IP-PBX “Lower TCO for all size enterprises in Softswitch solutions 18 Source: TEQ Consult Group – June 2005

  18. CAPEX and OPEX: A comparison * *Assumes PBX network infrastructure in place Better CapEx, OpEx, and equivalent Telecom Services for Hosted VoiP 19 Source: TEQ Consult Group – June 2005

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