Time for a connectivity makeover
IP telephony and the wider world of unified communication systems are often poorly understood by small businesses. What is the true impact of the technology and how is it best implemented? By Vikki Bland
Reliable phone lines are typically the first and arguably most important technical service any business needs. Internet access can fail, internal networks can crash, databases can be inaccurate, but loss of the famous ‘dial tone’ is more likely to hurt a business and affect its customers than all other technology components within a business put together. It’s hardly surprising then that when, some years ago, the IT industry began to get excited about using the Internet Protocol (IP) to carry voice calls across data networks, even big businesses reacted cautiously. The benefits were certainly there: reduced telecommunications charges, integration of telephony with other business applications, the potential to tie all modes of communication together for one view across business, and improved customer service and productivity. But a data network needs to be capable of carrying voice and this may require investment in new network hardware and often, a subscription to a faster broadband service. Additionally, network readiness is only one part of the solution; the other is the need for a range of smart, useful communication applications that ensure IP telephony is more than a collection of cool technologies – it must also be a useful, productive and ultimately profit-enhancing business tool. A few years ago, such applications began to emerge and big business began to invest and install. Small businesses demurred for three main reasons: the cost was too high, the business benefits were uncertain, and there was a risk the business would suffer a loss in the quality of its voice calls. But these traditional barriers have started to crumble. IP telephony software developers, PBX makers, and telecommunications providers are increasingly finding ways to make IP telephony and unified communication systems reliable, affordable and compelling for small businesses. Full integration of mobile and fixed line telephony across an entire business operation is a particularly bright ‘carrot’, as is the IP-enablement of call centres and introduction of hosted IP telephony services which allow small businesses to access unified communications incrementally according to need. This is attractive because it both lowers the cost of entry to unified communications and leaves the responsibility of network readiness and performance and voice quality in the hands of the service provider. IP in action Time for a few concrete examples. When the Whakatane District Council got fed up with its aging telephone system it went in search of a solution able to improve customer service through more efficient call management. The Council needed to know at a glance when staff was available to answer calls and when they were expected to return if out. It also sought to boost internal communications by creating a more efficient link to staff at remote sites. “Our system was a small KSU (Key Service Unit). It was old and tired and did not integrate with anything. If we had problems with the system, the vendors were less timely in their response and support of it due to the aging platform,” says Donald Hudson, acting corporate information manager. The Council installed a Siemens IP telephony solution using SieTec and in doing so created a single system for more than 150 staff across four locations. The system integrates with Microsoft Outlook and lets staff know the communication status of each other. Calls can also be automatically forwarded to a mobile phone. The IP-based system runs on the Council’s Ethernet network and wireless is used to connect other sites, which Hudson says encourages collaboration between geographically distant offices because the cost of communications is reduced. “When people know that the phone meter is running they’re a little more apprehensive about picking it up. We wanted to provide a sense that we are all one organisation, all one team. We have four-digit extensions that will get us to all those locations and there’s a fixed cost for our internal calls and maintenance of the network and data circuits that come from Siemens,” says Hudson. He says the Council can now see and predict calling patterns, which it plans to analyse further. After opening an Auckland office in August 2007, Provoke, a Wellington-based online solutions provider with 65 staff, realised it lacked the technology it needed to collaborate between the offices. “We had an aging communications tool set, limited to applications and solutions we were simply making do with,” says chief technology officer Brendon Ford. “Some dated back to a time when we had a head count of ten and had simply not scaled with our business growth. This was causing increasing frustration. People began to work less with their colleagues in the Auckland office, lessening collaboration at a time when it was needed most.” Ford says employees adopted a ‘mix-and-match’ approach to communication challenges, using mobile and landline calling, email, Skype and MSN Messenger accounts. As a result, the company had limited control over the technology being used; air travel between the offices increased and costs grew. Using Fujitsu and Microsoft Consulting Services (business partners of Provoke) the company bought a range of Microsoft communications software and server technology to provide a number of collaborative communications features including visibility across the company so any employee could see the communication status of another (often called ‘presence’). Ford says the immediate benefits included a 20 percent drop in toll call and air travel costs, and reduced need for mobile and toll calling. Productivity gains have also been there. “Now you click against contacts’ names and launch an invitation to collaborate or send a document directly over the network rather than as an email attachment. With presence, employees can immediately see whether someone is available, making contact between offices much more efficient. We no longer play phone and email tag and the individual is still in control of how and when they are contacted.” Vendors speak Victoria Krone, head of business marketing for Telecom, says Telecom offers OKI brand and other IP telephony solutions via small business specialist partners including Orb Communications and Telecom subsidiary Gen-i. Like TelstraClear and Vodafone, Telecom also plans to offer small businesses a hosted unified communications solution, available early next year. “Up until then we will be doing a range of trials. We have both the fixed line and mobile environments covered and integrated and have partnered with Microsoft to bring this technology to market,” says Krone. She says the features expected to appeal to small businesses include call control, integration of voice and email into one mailbox, and the ability to hold phone conferences. “There is a lot more, such as IVR, extension-to-extension dialling, a receptionist console, and Presence – which allows you to see where people are – but we have locked on the three or four ‘hero features’ that we know SMEs need and want to have,” says Krone. Meanwhile, TelstraClear has jumped ahead and launched its hosted IP based telephony system, available to small businesses on the TelstraClear network. Called IP Gateway, the service offers call management via a web browser, caller ID, integration with Microsoft Outlook contacts, call prioritisation and a fixed line or mobile work number can be extended to a home phone if required. Antonios Karantze, portfolio strategy manager voice and applications for TelstraClear, says most small business customers fall into two categories; those for which an installed IP telephony system makes better business sense, and those that will benefit more from access to a hosted system. He says for the former, TelstraClear and its partners advocate the Avaya IP Office range of IP telephony systems and can support others, while IP Gateway is better for customers that need to tie together multiple locations in a unified communications solution. “We get businesses saying ‘I don’t have the headspace for [IP telephony]’, so we say ‘we’ll do the work for you when you are ready.’ Some people like Avaya systems, others Cisco, and others hosted models like IP Gateway. Some customers say just give me dial tone,” says Karantze. He says IP telephony has long been marketed as a way to reduce call charges, but it is also a programmable interface able to integrate with, and trigger, other business and communications systems. Mobile drivers Many unified communications and telephony vendors say investment in IP telephony services and equipment is driven by the desire to integrate mobile and fixed line communications. Paul Woodhams, general manager for Compass Communications says small businesses are more ‘hands on’ than larger businesses, want to be as available as possible for clients, and are into any cost saving that enables them to be more competitive than their competition. “IP telephony means they can get their email, appointments and calendars delivered to a mobile device. Small businesses tell us it is so important to them to get that phone call, because it means business. While unified communications products are not new, they are just now starting to fly because they can be delivered to mobile devices,” says Woodhams. Compass supports and services Samsung IP telephony systems and others and has also developed its own hosted ‘IP Centrix’ product, which runs across its wireless network and is designed for businesses with up to eight staff. Woodham says small businesses are often “talked into IP by the excitement of it” but should always insist on seeing a minimum of three IP telephony systems working well in businesses of a similar size. “Quite often people say ‘we bought this, but it has never really worked.’ There are also sales people who deal a bit in smoke and mirrors; so you need to see it working, and impartial IT specialist advice can be a good idea,” says Woodham. Dinesh Divakar, director Asia Pacific (voice and applications) for Alcatel-Lucent says the demand for integrated telephony systems prompted Alctael-Lucent to develop its own office communications server product for small businesses. He says the price is comparable to traditional telephony system costs but supports between 20 and 50 lines and is also a data solution. Divakar says it’s also important small business telephony specialists are trained to ensure a business network can deliver the quality of service required for voice communications. “Otherwise things can go wrong and voice quality can be bad. Our resellers [Cogent, Datacraft and Zintel] know to audit an existing data network and ongoing support and maintenance of the network is also down to the reseller. IP Telephony is about network management, not just installing a system and leaving it,” says Divakar. Steve Bower, unified communications manager for NEC, says NEC (which also has Cogent as a channel partner) is set to announce a new IP telephony platform and product range able to scale down to 10 extensions for small businesses. Features will include integrated mobility, unified messaging, VoIP, instant messaging, and contact centre features. The products will also integrate with Microsoft Outlook and key CRM applications. “The strength of this platform is that it is a hybrid solution able to address the analogue or traditional telephony market as well as be an IP solution,” says Bower. He says a small business customer will not ask for unified communications, but for telephony applications including integrated mobility, tying in a remote worker from home, call centre features or one number for a home and desk phone. “People working from home even one or two days a week can save money,” says Bower. Vikki Bland is an Auckland-based IT writer. Email [email protected]