NEW YORK … July 1, 2003 – IP telephony is approaching critical mass among U.S. businesses: Nearly 84% say they’re using or testing the technology at an average cost of $636,000, according to “Implementing IP Telephony,” a 100-page report from Nemertes Research, a research firm that specializes in analyzing the business value of emerging technology.
Although 68% said cost reduction was their primary goal for IP telephony, they’re often challenged to find a compelling business case that justifies expanding the rollout to more than a handful of locations. Companies have found cost savings in three primary areas: moves, adds, and changes (MACs); bandwidth/networking; and personnel.
The report includes 18 recommendations, based on detailed discussions with IT executives, about where vendors and carriers should focus their efforts in the coming year. Topping the list are improved management tools (51%); better security and improved ROI tools (25%), and lower prices (23%). “Vendors must address these concerns if they want IP telephony to become the de facto method of voice communications,” says Robin Gareiss, Nemertes principal research officer.
Like any emerging technology, the experience of early adopters helps those who follow. One third of the seasoned IT executives recommend their peers educate themselves on the vendor and product before installation; 26.9% say mandatory end-user training is key to success; and 25.9% say not to underestimate the time and expertise required.
Other key findings include:
• One quarter of the participants recommend their peers don’t automatically select Cisco and assess products from competitors.
• Customer service is the most important vendor-selection criteria, followed by the vendor’s technology and financial viability.
• Mobility is a key driver for implementing IP telephony.
• Locating qualified personnel to deploy and manage IP telephony installations is problematic.
• About 58% of companies are using or considering MPLS—in part to prioritize voice traffic.
The report contains input from organizations across a range of industries, including financial services, healthcare, manufacturing, and retail. Nearly 70% of companies had annual revenues of $1 billion and up.
Nemertes Research is a leading research firm providing in-depth analysis on emerging technologies for IT executives, vendors, and venture capitalists.
###