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Cost Factors for IP TelephonyCost Factors for IP Telephony

Robin Gareiss of Nemertes Research was kind enough to give me a peek at the slides from which she'll be drawing her talk for this Friday's VoiceCon Webinar (register here ), and one thing I'm really glad about is that Nemertes is continuing to ask enterprises about the costs and benefits of a fundamental IP telephony implementation. The reason I'm glad is that this might seem like an outdated issue and one that could easily be neglected as old news, but of course it isn't--the cost picture has continued to evolve, as has the enterprise's own abilities to deal with the deployments as they gain experience. What Nemertes found should help you understand the ongoing picture.

Eric Krapf

September 9, 2008

2 Min Read
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Robin Gareiss of Nemertes Research was kind enough to give me a peek at the slides from which she'll be drawing her talk for this Friday's VoiceCon Webinar (register here), and one thing I'm really glad about is that Nemertes is continuing to ask enterprises about the costs and benefits of a fundamental IP telephony implementation. The reason I'm glad is that this might seem like an outdated issue and one that could easily be neglected as old news, but of course it isn't--the cost picture has continued to evolve, as has the enterprise's own abilities to deal with the deployments as they gain experience. What Nemertes found should help you understand the ongoing picture.

Robin Gareiss of Nemertes Research was kind enough to give me a peek at the slides from which she'll be drawing her talk for this Friday's VoiceCon Webinar (register here), and one thing I'm really glad about is that Nemertes is continuing to ask enterprises about the costs and benefits of a fundamental IP telephony implementation. The reason I'm glad is that this might seem like an outdated issue and one that could easily be neglected as old news, but of course it isn't--the cost picture has continued to evolve, as has the enterprise's own abilities to deal with the deployments as they gain experience. What Nemertes found should help you understand the ongoing picture.Here are some of Robin's key findings about IP telephony costs:

Overall, capital costs are dropping
* Vendors are becoming much more competitive in pricing.
* Large companies report saving 30%-90% off list price when dealing directly with vendor-manufacturer.

Implementation/operational prices higher first 2 years when compared to TDM * As expertise grows, costs decrease.

IT training (and cross-training) important

More companies spending budget on management tools

Implementation/operational prices higher first 2 years when compared to TDM * As expertise grows, costs decrease.

IT training (and cross-training) important

More companies spending budget on management tools

Many of these, such as the initial higher cost to run IPT, represent no change from the early days of the technology, but it's encouraging to see that aggressive negotiations can help you save money on the pricing.

That's especially important because, as Robin notes, enterprises are finding a need to deploy management systems and spend money on IT employee training as part of an IP telephony rollout. The more you can beat up your vendor on price--and with the competitive market being what it is now, they should be highly motivated to win customers--the more you can put that savings toward shortening the payback time via solid management and training.

I'm looking forward to Robin's talk--she'll be spending the entire hour (2 p.m. Eastern/11 a.m. Pacific) detailing key findings about IPT/UC business case, and of course she'll take questions as well. I hope you'll join us.

About the Author

Eric Krapf

Eric Krapf is General Manager and Program Co-Chair for Enterprise Connect, the leading conference/exhibition and online events brand in the enterprise communications industry. He has been Enterprise Connect.s Program Co-Chair for over a decade. He is also publisher of No Jitter, the Enterprise Connect community.s daily news and analysis website.
 

Eric served as editor of No Jitter from its founding in 2007 until taking over as publisher in 2015. From 1996 to 2004, Eric was managing editor of Business Communications Review (BCR) magazine, and from 2004 to 2007, he was the magazine's editor. BCR was a highly respected journal of the business technology and communications industry.
 

Before coming to BCR, he was managing editor and senior editor of America's Network magazine, covering the public telecommunications industry. Prior to working in high-tech journalism, he was a reporter and editor at newspapers in Connecticut and Texas.