|
A stagnant economy is driving the need for companies
to examine their business practices and look for
cost-effective ways to function at increased
productivity levels. Traditionally, companies have
relied on layoffs, consolidating their office space
and perusing income statements to free up cash on debt
they've accumulated. Today, companies are electing to
outsource their IT functions, particularly their
message function, as an alternative that will directly
affect their bottom line.
Outsourcing has undeniably become a standard
business practice that is mandatory for companies
seeking business innovation, global expansion, and a
strong competitive advantage in today's fast-paced,
e-commerce-enabled market environment. Predictable
costs, guaranteed performance levels, and special
expertise are all strong contributors to the growth in
outsourcing.
RAPID GROWTH OF TREND
According to the Radicati Group, the trend to
outsource part of your business function will continue
to experience growth at a rate of approximately 38
percent a year over the next four years, with demand
progressively growing faster in the next 12-18 months.
One segment of IT that is experiencing rapid growth is
unified messaging.
Ovum Research notes that direct revenues for
unified messaging service providers worldwide are
expected to reach $1.9 billion by 2002, and $10.2
billion by 2006. Unified messaging combines voice
mail, e-mail, and fax mail into one central mailbox
where users can send, retrieve, and manage all their
messages using any communication device. In the past,
businesses were inhibited from embracing unified
messaging solutions because they required not just the
installation of fax and e-mail servers, but also the
smooth integration with the voice mail system.
Prohibitive equipment cost, complex installation
and maintenance, and the confusion between corporate
telecom and data infrastructures also contributed to
the slow growth and adaptation. Unified messaging on a
non-ASP model is a complex and overwhelming project to
implement necessitated by additional training for
management, maintenance, and trouble shooting.
Electing to outsource the message function offers
corporate users the competitive advantage of
convergence while keeping their existing telecom and
IT investment, including PBX and Centrex systems, and
e-mail servers.
CHOOSING TO OUTSOURCE
When electing to outsource any IT function, companies
can refocus their resources on their organization's
primary business. More companies are realizing that
there is no reason to internally own expertise that
can be outsourced more efficiently. Selecting the
right service provider can set you on the path to
success. By understanding your company's goals and
objectives, the right outsource partner can ensure a
strategic vision and improve the company focus.
Outsourcing the messaging function frees IT
professionals from having to manage voice as part of
their overhead and offers the benefit of additional
storage space. By choosing a solution that easily
integrates with existing systems, IT professionals are
able to concentrate on other areas of IT. In addition,
outsourcing the message function enhances
competitiveness by returning a focus on core
competencies.
Smaller up-front costs, no costly equipment, and
rapid implementation are all reasons to choose an
outsourcing partner for the messaging function.
Companies should look for a subscription-based service
that provides all the required hardware and software.
Costs to maintain infrastructure and employees far
exceed that of outsourcing.
A good outsourcing partner also enables you to have
access to more high-caliber solutions than ever
before. By electing an outsource partner, companies
can take advantage of more current hardware and
software technology that is available from outsourcing
firms. Outsourcing also offloads the messaging
application processing from the mainframe processor,
and eliminates the need for an expensive hardware
upgrade, data center expansion, or data center
relocation. And, message outsourcing allows access to
full scalability. Unified messaging on an outsource
model is a solution that is easily upgraded to ensure
a continuous high level of communication as business
needs expand.
Outsourcing the message function also allows for
smaller IT staffing. When electing to outsource, your
organization does not need to manage the day-to-day
aspects of owning the application or the
infrastructure. Locating trained, expert talent is a
challenge facing the IT industry. Outsource providers
are specialized and make up for the scarcity of IT
talent. As a result, functionality is increased and
specialty expertise is guaranteed, as there is no need
to staff up to support the application or
infrastructure.
THE BOTTOM LINE
The Radicati Group predicts that the services segment
of the unified messaging market will see the strongest
growth over the next four years as the market for
unified messaging services grow from $38.8 million in
2000 to $9.8 billion by 2004. Reducing and controlling
operational costs remains a top priority for companies
examining their IT, spending, but companies outsource
to improve company focus and to gain access to
world-class capabilities that directly affect the
bottom line.
Cost-effectiveness and improved Return On
Investment are the most dramatic advantages of
choosing unified messaging on an outsourced model. To
bring a system in house, companies have to take into
consideration the licensing, installation, support,
IT, and training needed to sustain a system in house.
A unified messaging solution on an outsourced platform
comes out as far more cost-effective over a five year
period.
| Table
1: Financial Scenario |
|
Financial
Scenario |
|
DESCRIPTION
OF COSTS |
APPROXIMATE
AVERAGE COSTS |
| Initial
set up and development (application hardware,
TTS software, OS, licenses, application
software) |
$63,500 |
| First
year hardware/software maintenance |
$6,350 |
| External
integration assistance |
$20,000 |
| First
year IT staffing (two people) |
$190,000 |
| First
year IT support (one person) |
$45,000 |
| Total
first year costs |
$324,850 |
Table 1 is a financial
scenario for a company with 250 users setting out to
purchase, install, and implement a unified messaging
solution. With an estimated first year cost of
$324,850, the first year cost per user would total
$1,300. Given this figure of $1,300, it is obvious
that with a far more modest monthly fee from an
outsourced unified messaging service provider of
approximately $15 it would be possible to fund several
years or more of outsourced service for the same
amount spent in the first year of a purchased-system.
And, by choosing an outsource solution, the savings
continue beyond the first year. Using the sample
scenario, applying continued staffing and maintenance
of hardware and software, the cost per user remains as
high as $206 per month for the purchased in-house
system. Once again, a fee of $15 compares very
favorably.
Research from the Radicati Group shows unified
messaging increases productivity by 30 minutes per
employee day and keeps businesses ahead of the
competition with faster, more informed decisions.
Choosing to outsource the messaging function saves
money while saving time.
Melissa Prusher is a freelance writer and an
account supervisor for San Jose-based blue-silicon.
blue-silicon is a leading provider in extended
enterprise messaging and unified multimedia messaging.
Established in 1997, blue-silicon offers a
carrier-grade messaging solution with points of
presence in over 100 cities around the world.
[
Return
To The August 2001 Table Of Contents ]
|
|
Freedom Of
Messaging
BY CAROL BANCROFT
Remember the old days of unified messaging? The
appeal was that you could have all of your messages in
a single, unified in-box. While this is a great idea,
it never really took off within the enterprise to the
extent that industry gurus thought it would. Lately,
however, we have seen solutions pitched to both the
enterprise and service providers. These solutions
focus on the ability to access any kind of message
(voice mail, e-mail, fax, SMS messages, etc.) from any
device (cell phone, PDA, etc.) so the user is not
tethered to a PC.
CTI2 recently
announced UC Trial Package, a full-featured unified
communications platform especially designed for
evaluation and trial purposes. UC Trial Package is
targeted at telecommunications service providers that
want to use CTI2's
Unified Communications platform, W.W.Office, as part
of a trial or pilot program. It provides the exact
same suite of enhanced services applications as
W.W.Office, but limits the number of subscriber
accounts to 1,000. With UC Trial Package, service
providers can test the waters and evaluate subscriber
experiences and acceptance at a low cost. UC Trial
Package supports any commonly used e-mail server and
telephony and IP networks. The full package includes
both hardware and software, as well as a pre-built
communications portal -- delivered as a turnkey system
ready to use. It will enable service providers to
quickly implement a fully operational trial and test
business models and marketing assumptions.
CommWorks recently announced the availability of a
new unified messaging platform that bridges circuit-
and packet-switched networks to deliver advanced
messaging capabilities. By supporting seamless
transport over circuit-switched and packet-based
infrastructures, the CommWorks 8250 unified messaging
system is designed to allow service providers to offer
customers advanced messaging services, while
maintaining carriers' investment in current equipment.
The system integrates with legacy voice mail systems
so service providers can upgrade their messaging
systems and networks with no disruption in service to
subscribers as they move to an all IP-based
infrastructure.
MessageMachines introduced its carrier and
enterprise application servers, designed to enable the
rapid development and deployment of cross-device
routing, alert, and notification applications. The
servers seamlessly integrate what were once mutually
exclusive devices and protocols and empower users with
mobile remote control of their messages. For
softswitch developers and vendors, the MessageMachines
Carrier Server is the first Message Switch to support
SIP.
BroadSoft has introduced extensive product
enhancements to the BroadWorks product suite, focusing
on four key areas: integrating multiple business
communications devices and functions; adding new
enterprise services; enhancing service creation tools;
and expanding wholesale and resale capabilities. New
capabilities now enable BroadWorks to link users'
Microsoft Outlook, Palm OS-based handheld devices, Web
browsers, IP phones, and mobile devices.
"To bring about truly unified communications,
service providers and enterprises require an
all-encompassing solution that combines desktop
applications such as contact databases, newer
communications tools such as Web browsers, wireless
and handheld devices, and traditional network
services," said Chris Heckart, president of TeleChoice,
a strategic consulting firm. As you can see, there are
some exciting developments in this area, as unified
communications continues to evolve.
[ Return
To The August 2001 Table Of Contents ]
|