March 21, 2011

The True Cost of Voice Over IP

  • As VOIP Becomes Mainstream, Costs Level Out, Benefits Increase
  • Robin Gareiss, Executive Vice President & Sr. Founding Partner, Nemertes Research
  • On behalf of Avaya
The majority of companies are doing something--ranging from pilots to full deployments--with Voice Over IP. At the same time, nearly 80% of IT professionals say it's vital to build a business case for any technology deployment, particularly given macro-economic problems, reduced IT budgets, and smaller IT staffs. It's often difficult to build the business case, though, since it's hard to judge how much implementation and ongoing operations will cost prior to actually deploying the technology. VOIP represents a new paradigm for real-time communications--it's different from expanding TDM by adding a new PBX or a network with new routers. For six years, Nemertes has tracked how much companies spend on their IP telephony deployments within the LAN and VOIP across the WAN. This paper reviews the latest deployment trends and costs associated with VOIP for midsize and large rollouts.

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This is an excellent paper that details the full costs of a VoIP installation, as presented by Nemertes Research. In particular, it looks at issues such as staffing in addition to capital costs.

An excellent benchmark for your decisions moving forward.

Disappointed that Siemens was not included in the comparison. They have a large enough presence and a well developed platform that would seem to warrant inclusion.

Interesting point, Douglas. Thanks!

Since I didn't author the paper, I obviously can't comment. However, I've forwarded your question to our colleague Robin Gareiss at Nemertes and I hope she will have an opportunity to respond.

Thanks to Robin for the quick reply.

She states, "We didn't get enough responses on cost data for Siemens from both our benchmark pool (whom we interview directly) and our survey pool (who respond to a survey link). We only list vendors when we have sufficient cost data for them. Since many of Siemens' customers are in Europe, and this focused on U.S.-based companies and U.S.-based multinationals, that is most likely why we didn't have enough responses."

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