Business Case for VoIP

Business advantages that are driving implementations of VoIP networks have changed over time. Starting with simple media convergence, these advantages have evolved to include the convergence of call-switching intelligence and the total user experience.

Originally, ROI calculations centered on toll-bypass and converged-network savings. Although these savings are still relevant today, advances in voice technologies allow organizations and service providers to differentiate their product offerings by providing advanced features.

VoIP business drivers include the following:

Cost savings Traditional time-division multiplexing (TDM), which is used in the public switched telephone network (PSTN) environment, dedicates 64 kbps bandwidth per voice channel. This approach results in bandwidth being wasted when there is no voice to transmit. VoIP shares bandwidth among multiple logical connections, which makes more efficient use of the bandwidth, thereby reducing bandwidth requirements. A substantial amount of equipment is needed to combine 64 kbps channels into high-speed links for transport across the network. Packet telephony statistically multiplexes voice traffic alongside data traffic. This consolidation results in substantial savings on capital equipment and operations costs.

Flexibility The sophisticated functionality of IP networks allows organizations to be flexible in the types of applications and services they provide to their customers and users. Service providers can easily segment customers, which helps the service providers provide different applications, custom services, and rates that depend on the traffic volume needs of the customer and other factors.

Advanced features Current VoIP applications provide advanced features such as the following:
- Advanced call routing When multiple paths exist to connect a call to its destination, some of these paths might be preferred over others based on cost, distance, quality, partner handoffs, traffic load, or various other considerations. Least-cost routing and time-of-day routing are two examples of advanced call routing that can be implemented to determine the best possible route for each call.

- Unified messaging Unified messaging improves communications and boosts productivity. It delivers this advantage by providing a single-user interface to messages that have been delivered over a variety of mediums. For example, users can read their e-mail, hear their voice mail, and view fax messages by accessing a single inbox.

- Integrated information systems Organizations are using VoIP to affect business process transformation. Centralized call control, geographically dispersed virtual-contact centers, and access to resources and self-help tools are examples of VoIP technology that have enabled organizations to draw from a broad range of resources to service customers.

- Long-distance toll bypass Long-distance toll bypass is an attractive solution for organizations that are charged long-distance fees for a significant number of calls between sites. In this case, it might be more cost effective to use VoIP to place those calls across the IP network. If the IP WAN becomes congested, the calls can overflow into the PSTN, ensuring that there is no degradation in voice quality.

- Encryption Security mechanisms in the IP network allow the administrator to ensure that IP conversations are secure. Encryption of sensitive signaling header fields and the message body protects the packet in case of unauthorized packet interception.

- Customer relationship The ability to provide customer support through multiple mediums, such as telephone, chat, and e-mail, builds solid customer satisfaction and loyalty. A pervasive IP network allows organizations to provide contact-center agents with consolidated and up-to-date customer records along with the related customer communication. Access to this information allows quick problem solving, which, in turn, builds strong customer relationships.

Business Case for VoIP

Business Case for VoIP

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