Making the Case for Enterprise IP Telephony

Sébastien Boire-LavigneVice-President Technology

sboire@interstarinc.com

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

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)

PBX & FAX Machine

PBX & Fax Server

IP PBX & Fax Server

IP PBX & IP Fax Server

Multi-Locations

VoIP Call

FoIP Call

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)

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

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

Contributing Factors To High Fax Costs

• Fax lines

• Hardware purchase / lease

• Maintenance– Consumables– Software & Hardware

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

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

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

Small EnterpriseCase: 50-150 Users, 8 Fax Machines, 1040 $ / monthSolution: 2 Channel Fax Server With 2 Leased MFDs

- If fax machines are leased, ROI is cut by 4 months- If MFDs are purchased, ROI takes 2.5 more months

*Includes Software maintenance, Fax Server line cost, MFD consumable, MFD lease

Fax Board FoIP + VoIP Gtwy FoIP OnlyNumber of MFD: 2 2 2Number of Fax Line: 2 2 2Fax Server Software ($): 5700 6200 6200Fax Server Hardware ($):Fax Board ($): 3295VoIP Gateway ($): 1000Fixed Cost ($): 8995 7200 6200Monthly Cost* ($/month): 375 383 383ROI (months): 13.5 11.0 9.4

Medium EnterpriseCase: 1000-2000 Users, 60 Fax Machines, 7800 $ / monthSolution: 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

Fax Board FoIP + VoIP Gtwy FoIP OnlyNumber of MFD: 20 20 20Number of Fax Line: 20 20 20Fax Server Software ($): 20000 26000 26000Fax Server Hardware ($): 1400 1400 1400Fax Board ($): 17000VoIP Gateway ($): 6000Fixed Cost ($): 38400 33400 27400Monthly Cost* ($/month): 3233 3333 3333ROI (months): 8.4 7.5 6.1

Large Enterprise

*Includes Software maintenance, Fax Server line cost, MFD consumable, MFD lease

Case: 8000-10000 Users, 300 Fax Machines, 39000 $ / monthSolution: 96 Channel Fax Server With 100 leased MFDs

Fax Board FoIP + VoIP Gtwy FoIP OnlyNumber of MFD: 100 100 100Number of Fax Line: 96 96 96Fax Server Software ($): 85000 110000 110000Fax Server Hardware ($): 1400 1400 1400Fax Board ($): 68000VoIP Gateway ($): 35000Fix Cost ($): 154400 146400 111400Monthly Cost* ($/month): 15777 16193 16193ROI (months): 6.6 6.4 4.9

- If fax machines are leased, ROI is cut by 2.5 months- If MFDs are purchased, ROI takes 4 more months

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

FoIP Alone FoIP + VoIPSmall Enterprise 18% 30%Medium Enterprise 11% 27%Large Enterprise 3% 25%

ROI Reduction

Cost Per Line

VoIP Gateway vs Fax Board Cost

0

10

20

30

40

50

60

70

80

4 8 24 48 72 96

Number of ports

Cos

t (k

$)

Fax Board

VoIP Gateway

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

Case Study: IMPAC FundingBackground• 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

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

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)

Thank you!

www.interstarinc.com