September 2001
 

This Old Enterprise -- Deploying The IP-PBX For Network Improvement

BY KEVIN MAYER AND DAN CALLAHAN

Years ago, when public broadcasting's This Old House was new, the show's emphasis was very much on the small-scale, fix-it-up project. Again and again, This Old House depicted homeowners on tight budgets who scaled back their renovation plans after they learned how quickly they could sink into a "money pit." But the frugality theme didn't last forever. Eventually, the show's emphasis shifted, in sympathy with a booming economy. This Old House started depicting free-spending homeowners unwilling to compromise their ambitious plans. Soon, the show started to resemble Contractors of the Rich and Famous.

SEE YOU AT COMM DEPOT
By now, however, with prospects of a protracted economic downturn, the show may yet complete a cycle, and again feature penny-pinching homeowners content to "make do" and patch up what they've already got, as opposed to gutting large interiors, preparing for rebuilds with pricey materials, or erecting spacious extensions. All in all, homeowners may demonstrate less patience with contractors. Similarly, the enterprise may demonstrate less patience with technology vendors and solution providers.

The enterprise, like the hard-pressed homeowner, may demonstrate a preoccupation with the practical. Already, such a preoccupation is evident with respect to communications systems, particularly the IP-PBX. Not long ago, IP-PBX vendors were almost dismissive of narrowly conceived cost-containment measures. For example, the vendors typically suggested that a preoccupation with long-distance savings was short sighted. Yes, they admitted, a packet telephony infrastructure could permit the enterprise to bypass the public telephony network for at least some long-distance calls, but packet telephony, they emphasized, was really about the value of the applications the enterprise could eventually deploy.

Technology and solutions providers invited the enterprise to exercise its imagination, to consider visions of an extended or even a virtual enterprise. Such visions were so much more diverting than discussions of voice quality, reliability, scalability, E911 support, or even updates on exactly what new applications were available.

But here we arrive at the ultimate irony: When development of the IP-PBX has finally progressed to a point where many longstanding practical concerns are being resolved, when you might think the time was ripe to exercise some creativity and vision, the economy sours, and few enterprises are in the mood for anything else but a squinty-eyed view of their return-on-investment prospects, of the possibility for a quick payback. Consequently, IP-PBX vendors have shifted their emphasis to such practicalities as ease of maintenance, of simpler (and cheaper) adds, moves, and changes. (Assuming enterprises take to administering their own systems, via "user friendly" administration packages.) Also, some vendors suggest that mere attrition will eventually shift the balance from circuit-switched to packet-based telephony infrastructure.

ANALYST PROJECTIONS
Despite the bearish economic outlook, the analysts are fairly bullish on the prospects for the IP-PBX. According to Allied Business Intelligence (ABI) , enterprises will migrate their voice from traditional networks to data networks at a rate that will create a $16.5 billion IP-PBX market by 2006. According to ABI, enterprises are increasingly exploring the migration of voice to their data networks since it is more efficient in terms of network management and more open in terms of future service creation. However, ABI also notes that hybrid solutions leveraging the installed base of traditional equipment will become increasingly prevalent as enterprises look for ways to use IP technology while maximizing their existing investment.

Another analyst, Cahners In-Stat Group, projects that pricing, ease of use, administration, and -- most important -- applications, will drive the adoption of LAN telephony, leading slowly to the cannibalization of the once dominant PBX market. In-Stat predicts that despite the negative effects of U.S. economic conditions, LAN telephony handset, server, and application sales will exceed three billion dollars by 2005. "In the beginning of 2000, most vendors were only beginning to ramp up their sales, and there was little actual revenue to speak of. Now half-way into 2001 the LAN telephony market has proven itself," said Brian Strachman, senior analyst for voice applications at In-Stat. "There are real revenues, which is rather unusual in today's market, and a growing installed base."

The ultimate success of the IP-PBX is also predicted by Frost & Sullivan, which calculates the North American IP-PBX market generated $375 million in 2000, and which projects the number will reach $4.8 billion by 2007. "IP PBX is undoubtedly poised to grow explosively despite a slow initial market adoption of IP telephony," said Frost & Sullivan analysts Ronald Gruia. "It is no longer a matter of whether or not the enterprise sector will adopt this strategy, but when and how." The analyst anticipates that IP-PBX desktops will account for more than half the total number of CPE stations shipped by 2006.

Finally, Synergy Research Group calculates that LAN telephony was up 199.7 percent year over year, posting $112 million in sales for the first quarter of 2001. According to Synergy, the market continues to be driven by broader market acceptance of the technology and the entry of established PBX manufacturers bringing their IP solutions to market. At present, "new guard" providers, which include Cisco, 3Com, Shoreline, and Sphere, control over 65 percent of the market. The "old guard" providers, which include Alcatel, Avaya, Nortel, and Siemens, represent 32 percent of the market. Synergy expects that LAN telephony will approach $500 million in 2001, representing under 3 percent of the traditional PBX market.

NETWORK SWEET NETWORK
While most of the recently released studies attempt to anticipate the future, at least one looks back at existing IP-PBX installations, to assess enterprise satisfaction. This study, by InfoTech, surveyed 27 users of IP telephony systems, assessing system planning and selection processes, system installation and administration experience, overall satisfaction and future plans for IP systems and use. "The enterprises we interviewed had so many positive things to say about their experiences with IP telephony that this can only be a sign that demand will accelerate," said Joan Huber, a consultant with InfoTech.

"Our most recent research shows the market for IP telephony is picking up pace, and the mangers we spoke with certainly confirm the reasons for this. Users reported cost savings of up to 30 percent, and, more important, the ability to add new, standardized features across entire enterprises," reports Huber. "There is a lot of excitement about the potential for even further voice and data integration among these early adopters." The report notes that even with some early technological hurdles to overcome, the enterprises studied are highly satisfied with their IP telephony systems. Almost two-thirds of the enterprises will be adding features and applications to their systems this year, with even more planning to install IP telephony at additional sites.

WHO'S WHO
We can confirm Synergy's observation that LAN telephony providers include an interesting mix of "new guard" and "old guard" companies. We invited representatives of both groups to contribute to the directory that follows.

3Com
3Com, in keeping with the emphasis on market projections in this article, cites numbers culled from an InfoTech study, which notes that 3Com shipped 1,515 new systems and 32,800 new lines during the first quarter of 2001. "While the traditional PBX market remained flat this quarter, the IP-PBX market grew by 10 percent, which represents over 37 percent of all PBX system purchases," said Ed Wadbrook, director of voice solutions for 3Com's Business Network Company. "InfoTech's report confirms the market inflection is occurring now, and 3Com continues to drive the adoption of IP-PBX systems." Available in over 50 countries, 3Com NBX Networked Telephony systems provide customers with an IP-based business telephony solution that the company asserts is easy to own, install, and manage. 3Com's solutions offer administrative simplicity and a rich feature set that enable organizations to manage their operations more efficiently, improve customer relations, economize on costs, and enhance overall productivity.

Alcatel
818-880-3500
The Alcatel OmniPCX 4400 is an advanced IP-based voice communications system. Based on a client/server UNIX architecture, the Alcatel OmniPCX 4400 includes scalability from 50 to 50,000 users, 99.999 percent reliability, one-number mobility, unified messaging, voice-over IP networking with QoS management, and comprehensive network management. The OmniPCX's ability to support TDM connections as well as IP on a single platform allows users to protect existing investments and migrate to IP at their own pace. The Alcatel OmniPCX 4400 provides all the traditional call handling features of a PBX, plus the following application suites: OmniMessage consists of an integrated voicemail system and an external unified messaging platform; OmniMobility includes an integrated in-building wireless system and a one-number access application; OmniDesktop is a line of digital and IP phones, attendant console options, and a PC telephony application; OmniTouch is a suite of integrated contact center applications; OmniVista is a state-of-the-art network management application.

alexis
866-7-ALEXIS
alexis communications inc. (formerly COM2001) has been at the forefront of IP-PBX communications. Their first product was even named and trademarked the "Internet PBX." Today, the Internet PBX has evolved into a completely software-driven unified communication solution called alexis. Their latest product is a workgroup for PBXs using SMDI interface, and for the IP telephony purists, a workgroup for Cisco Call Manager. The alexis solution integrates with Cisco Call Manager and Microsoft Exchange server (voice-enabling outlook) with support for Exchange 2000 active directory and Call Manager administrator. This centralized point of administration appeals to the IT departments, while the rest of the company responds to the feature-rich alexis personal assistant, which includes unified messaging, a conference bridge, Outlook WebAccess, speech recognition, text-to-speech, and follow-me functionality.

AltiGen Communications
AltiGen designs, manufactures, and markets next-generation, IP-PBX telephone systems that use both the Internet and the public telephone network to enable an array of applications that take advantage of the convergence of voice and data communications. The company claims that its AltiServ system can be installed for a fraction of the cost of a traditional PBX system, and can be maintained and upgraded by a company's in-houses IT staff, dramatically cutting costs for the small- to mid-sized business. Altigen recently announced that it shipped over 22,000 phone lines of capacity to its small business customers in the first quarter of 2001. A full 15 percent of these lines were voice over IP for customers to take advantage of the cost savings and virtual call center capabilities associated with Altigen's IP-PBX phone systems.

Artisoft
617-354-0600 x214
In addition to the new TeleVantage Call Center, Artisoft has announced the availability of its TeleVantage 4.0 phone system. New features include the ability to drag and drop one item onto another item to make a call, transfer a call, or add a call to a conference; bookmark key portions of voice messages; and define powerful call rules to route all calls intelligently. Custom personal statuses such as "at client site" keep colleagues aware of each user's availability and define call routing and greeting behavior. New workgroup capabilities boost productivity for businesses organized into departments or teams. TeleVantage operates on Microsoft Windows 2000/NT servers, industry-standard Intel communications hardware, and any H.323, ADSI, or CLASS feature phone. By employing open standards, TeleVantage enables small to medium-sized businesses to scale up to a variety of applications, from unified messaging to industry-specific CRM.

Avaya
800-784-6104
Avaya's "no-compromise" Enterprise Class IP Solutions (ECLIPS) portfolio of products, applications, and services set the benchmark in IP telephony by bringing reliability, scalability, voice quality, feature/functionality, interoperability, and applications-richness to the world of IP communications, for any company of any size. Avaya's products, including the DEFINITY IP Solutions and IP600 Communication Server platforms, enable companies to manage telephones and computers on a single network in a consistent applications environment, saving money, easing growth and improving workflow. Avaya is a leading global provider of communications solutions and services that help businesses, government agencies, and other institutions -- including more than 75 percent of the Fortune 500 -- excel in the customer economy. Recent customers for IP solutions include SCANA Corp., American Red Cross, Buena Vista University, Sentara Healthcare Systems, and LEAP Wireless International.

Cisco
800-553-NETS
Cisco's IP telephony solution, with the Cisco Architecture for Voice, Video, and Integrated Data (AVVID) at its core, is designed to help companies make a successful migration from old-world communications systems to systems that make converged multimedia services available on an end-to-end, policy-based network. By integrating essential business communications into a single infrastructure with a single point of management, administration, and control, enterprises benefit from a significant reduction in administration costs. The benefits of IP telephony are also realized from IP-based applications that improve individual and group productivity while providing companies with the ability to conduct highly personalized user and customer experiences. Cisco's IP telephony products include: the line of Cisco IP phones, Cisco's XML applications, Cisco Personal Assistant, Unity unified messaging, Cisco IP SoftPhone, Cisco IP Contact Center, Cisco IP Video Conferencing, Cisco IP IVR, Survivable Remote Site Telephony, the Catalyst 4224, Cisco WebAttendant, and Cisco CallManager call processing software.

Ericsson
650-324-6138
Ericsson Enterprise's MD110 C.E. is a complete enterprise-level communications solution for small businesses and branch offices. The MD110 C.E. combines over 500 features with computer telephony integration and unified messaging services, allowing users to benefit from the ease of administration and lower total cost of ownership associated with powerful business communications systems. The MD110 C.E.'s IP infrastructure enables IP phone and IP appliance access with full multimedia support. Organizations can add mobility to their work force by incorporating Ericsson's wireless LAN to offer in-building wireless capabilities or integrate cell phone users with the MD110 C.E.'s Mobile Extension. Ericsson's Solidus E-Care Contact Center can also be implemented into the MD110 C.E. to help revenue-generating customer interaction and Web-based transaction solutions. Finally, utilizing its modular, distributed architecture, the MD110 C.E. can grow to match an organization's needs with additional modules that offer TDM and IP networking capabilities.

ESI
972-422-9700 x118
The ESI IP Series is suitable for small to midsize businesses. KSU's: IP 200 System: 198 maximum call processing ports; IP 40 System: 70 maximum call processing ports; IVX 128 Plus: digital system with IP capabilities for remote phone and multi-site. Phone sets: IP Feature Phone (on-site extensions via LAN); Remote IP Feature Phone (off-site extensions via WAN); Digital Feature Phone (on-site extensions via twisted pair). Advantages: single all-in-one platform integrates business features such as auto-attendant, voice mail, ACD, and enhanced caller ID; Remote Phone permits an off-site extension virtually anywhere a high-speed data port exists; ESI-Link is ESI's multi-site network product that allows individual KSUs to connect seamlessly via a WAN, using ESI's distributed architecture, which avoids the need for a centralized server/processor common to others. ESI's operating system conveys telephony features, functions, and status across the entire interconnected multi-site grid, yet requires far less IP bandwidth than many standards-based vendors.

Inter-Tel
602-302-8900
Inter-Tel offers a converged communications platform that new and existing customers can migrate into. By offering traditional and next-generation features in the same platform, customers benefit from choosing from a variety of different applications and technologies. This includes analog, digital, VoIP, and wireless technologies integrated together for full-featured connectivity. The platform is designed with an Open Architecture Interface (OAI), which allows it to be customized in endless ways by Inter-Tel, the customer, or third-party developers alike. This platform is designed to deliver the extensive feature set that users have come to expect, while delivering the benefits of converged voice and data. The idea is to give customers the ultimate control over how they communicate, so that they may choose which technologies and applications to implement while deciding where and when to do so.

Interactive Intelligence
317-872-3000
Interactive Intelligence recently released a new version of its interaction management software that adds a variety of communications applications to the Cisco AVVID VoIP communications platform. Interactive Intelligence's Cisco AVVID integration is available with the Interaction Center Platform, the company's core platform for its enterprise solution, Enterprise Interaction Center (EIC), and its contact center solution, Customer Interaction Center (CIC). The new versions of EIC and CIC integrate with Cisco's 7800 series of AVVID systems, which extend enterprise telephony features to packet telephony network devices such as IP phones, media processing devices, and VoIP gateways. The Interactive Intelligence software installs on a standard Intel-based server running Windows 2000. By interfacing directly with the Cisco CallManager software, the solution eliminates the need for proprietary voice processing boards. EIC and CIC add a variety of features to a Cisco AVVID installation, including IVR, auto attendant, ACD, screen-pop, unified messaging, Internet text chat, and more.

IQ NetSolutions
508-870-3228
Industry analysts call iQ's MediaPhone the Napster of telephony because of its peer-to-peer distributed architecture. The platform's distributed architecture creates a new class of telephony called the Distributed Softswitch. MediaPhone allows the elements of telephones, applications, and the PBX or LAN telephony server to be distributed and networked throughout the enterprise. Voice and IP convergence occurs where and when needed. CTI applications can be personalized on the desktop for the individual or to a workgroup via a server platform. MediaPhone moves the PBX out of the wiring closet, miniaturizes it and puts it on the desktop. With MediaPhone's distributed switching and call processing, there is no need for a telephony call server, centralized PBX, or specialized power failure backup facilities. MediaPhone does not compete with data for bandwidth, delivering voice with full QoS. MediaPhone's auto-discovery and self-configuration reduces or eliminates the cost of adds, moves, and changes.

Mitel
613-592-2122
March Networks 3100 is an integrated communications system that provides a small enterprise with a voice and data solution in one unit. March Networks 3100 Integrated Communications Platform (ICP) provides a small/branch enterprise with such integrated features as a router, 8-port Layer 2 switch, voice mail, attendant, DSL connectivity, hard drive for voice mail storage, and browser-based management. With the addition of the March Networks 3100 16-port expansion unit, the March Networks 3100 becomes a fully integrated 24-port switch. March Networks 3300 Integrated Communications Platform (ICP) is a centrally managed voice application platform capable of operating on any QoS LAN or WAN infrastructure to deliver IP voice communications and integrated applications that scale to serve large single and multiple site enterprises. March Networks 3300 ICP provides fully featured call control services for up to 700 IP devices. March Networks 3300 ICP delivers call management, applications, and desktop solutions for businesses with 40 users and above.

NEC America, Inc.
212-326-2400
NEC's product philosophy is centered around allowing users to adopt IP telephony when business needs dictate, while still providing the quality of service and the hundreds of features offered by traditional PBX systems. Though IP telephony has received much hype, TDM-based systems still account for 98 percent of all new devices shipped today, and 75 percent of all calls made nationally must traverse a traditional PBX. The adoption of IP Telephony will be tempered by the demand for consistent voice quality, reliability, and functionality. Another essential requirement of this technology is its capability to handle voice in any setting -- IP, TDM, LAN, WAN, or any combination thereof. The NEAX 2400 IPX also allows for almost unlimited extension of the telephony network to provide end-to-end feature transparency.

Nortel
800-4-NORTEL
Over the past 25 years, Nortel Networks Meridian Communications Solutions have become synonymous with quality, reliability, and scalability. From remote and branch office solutions to large campus networks, customers have come to trust and depend on Meridian's profit-building advanced applications and features for their mission-critical voice communications. Meridian 1 and Meridian SL-100 can be Internet-enabled at a pace that's right for one's business. Combined with Internet-Enabled Solutions for Meridian, Meridian 1, and Meridian SL-100 offer all of the rich features and benefits of traditional telephony solutions today while taking advantage of the latest in converged network technology. As a business grows and changes, Meridian systems and applications is designed to grow along with it from 60 to 100,000 lines.

Siemens
800-765-6123
Siemens' HiPath enterprise convergence architecture offers businesses a flexible evolution path to integrated, IP-based communications. HiPath applications are designed using open standards and offer a range of voice-data convergence solutions and a high degree of interoperability. Now in its third generation, the HiPath 5000 family combines PBX feature-richness with the flexibility and speed-to-market of an IP-based application. Moreover, HiPath 5000's next-generation technology allows businesses to move immediately into a distributed native IP communication environment. The HiPath AllServe 150 leverages the IP network to reduce infrastructure costs by sharing applications with as many as four branch offices. The Hicom 150 H is a solution for small to medium size businesses or regional/branch offices looking to embrace IP/convergence at their own pace. By adding the HiPath HG 1500 to a Hicom 150 H, businesses can support Voice over IP while offering local and remote users access to both legacy and next-generation applications.

Sphere
847-247-8200
Sphere Communications, based in Lake Bluff, IL, is a private company that provides voice-over-data communications technology, announced its Sphericall IP PBX solution in December 2000 and has received quality recognition for its product. The company notes that Mier Communications has announced that Sphere and Cisco both received the industry's highest overall score for their IP-PBX products. Mier also compared similar IP-PBX products from Avaya, Nortel, Shoreline, Cisco, and other telecom giants. Sphere asserts that it was recognized for achieving lowest latency, perfect call completion, and high voice quality amongst all of their competitors. Some of Sphere's customers include G.A. Sullivan, the City of Oceanside, CA, Supreme Court of Mexico, Hurlbert Air Force Base, and several school districts across the United States.

TeleSynergy
TeleSynergy notes that its TelePCX is an enhanced PC-PBX platform with an integrated VoIP gateway. The TelePCX is designed to provide business with all the functionality offered by IP PBXs: one-number follow-me, unified messaging, screen phone, Web-based remote configuration and setup, user-friendly management utilities, etc.

The difference between an IP-PBX and the TelePCX is that the TelePCX uses IP to transport calls through the Internet between corporate sites, employees working at home, and salesmen in the field, while it relies on circuit-switched phone wiring for the final loop to desktops and analog phone handsets in conjunction with the PC. The integration of the Internet and PSTN not only solves the problem of voice fluctuation by reducing the LAN loads, but also saves money, for there is no need to invest in expensive network equipment and IP telephones.

Toshiba Telecommunication Systems Division
Strata CS 4.0 is a communications server-based business system that provides the benefits of both IP and circuit-switched communications. Users can connect an IP telephone locally to the system via their LAN, or can connect an IP telephone remotely to the system via the Internet or private, IP-based intranet. Internet/intranet calls can be placed from or to the Strata CS desktop via an IP telephone or analog or digital telephone through the gateway to a remote IP telephone, a PC using NetMeeting or Quicknet, or another Strata CS system. IP telephone users have the same feature set and functionality as those using analog telephones. In addition, remote IP telephone users have similar usage of station and client functions as a virtual station on the Strata CS system. Implementing IP telephony on the Strata CS 4.0 requires the appropriate Dialogic IP card to accept the connection and H.323v2-compatible IP telephone sets.

Vertical Networks
408-585-3285
Vertical Networks' flagship product, the InstantOffice Integrated Communications Platform, supports up to 180 voice users in multi-site enterprise branch offices and small to medium-sized businesses. To eliminate the complexity of managing multiple systems, the remotely manageable InstantOffice system includes the functions of a packet and circuit-switched PBX, voice mail system, automated attendant, multi-protocol router, Ethernet LAN, and VoIP gateway, as well as support for business-enhancing applications. A variety of WAN access types are supported, and InstantOffice allows integrated broadband services for voice and data on a single trunk, thus reducing WAN access charges. In addition, the InstantOffice interoperates with a company's existing installed hardware and software, while providing an adaptable application platform that enables smaller work sites to integrate enterprise branch office communications with their existing corporate networks.

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