Yes, but it’s only the subplot! Is VoIP the Future of Telecommunications?

Conclusions Voice over IP (VoIP) is the strategic direction for both the wide area network (WAN) and premise PBX equipment. VoIP is rapidly becoming a viable technology for some implementations. The biggest reason for using VoIP in the WAN today is cost savings. Full and complete telephony application functionality will not arrive until 2003.

Technology Conclusions New technologies are becoming available that leverage the universal deployment of TCP-IP within the LAN, WAN, and Metropolitan Area Network (MAN) Passive Optical Networking (PON) dramatically lowers the cost of deploying broadband municipal fiber networks. Free Space Optics (FSO) will dramatically lower the cost of deploying broadband municipal wireless networks. The TCP-IP protocol represents the strategic direction for both the Local Area Network (LAN) and the Wide-Area Network (WAN) Voice over IP (VoIP) represents the strategic direction for both the wide-area network (WAN) and premise PBX equipment. VoIP is rapidly becoming a viable technology for some implementations. The biggest reason for using VoIP in the WAN today is cost savings. Full and complete telephony application functionality will not arrive until 2003.

What Is VoIP? VoIP = Voice over the Internet Protocol It is not:Voice over the Internet Instead of using traditional circuit switch systems for voice communications, VoIP uses a packet protocol originally designed for data communications. VoIP can be used within the LAN, WAN, MAN, and/or the PBX

Enterprise VoIP Economics PBX Intranet IP Gateway Local PSTN Local PSTN VoIP Requirements Router upgrades shorter packet VoIP processing Router cards Gateways PBX upgrades PBX table changes Increase bandwidth Staffing requirements

The IP Telephony Solution Route r IP Business Phone Switch WAN PSTN Call Control Gateway Applications PC Phone Client Fax Video H.323 ConneXtions Analog 2500 Phone Palm Pilot

Contact Center Internet Unified Messaging Collaboration Applications — A Field of Dreams Remote Workers Dear Johan, It’s over.

Vendor Push Drives PBX Transformation PBX Telephony Server

VoIP Hype Cycle VoIP Technology Trigger Slope of Enlightenment Trough of Disillusionment Plateau of Productivity Peak of Inflated Expectations Hype Maturity Type A Adoption Type B Adoption Type C Adoption

Voice QoS Requirements: Latency/delay Packet loss Jitter Voice Quality Is More Than Low Delay

Is Reliability Really a Problem? WAN Is Microsoft NT as stable as a proprietary operating system? Why shouldn’t the data network be resilient enough for voice needs? Will management risk reduced service levels for telephony?

VoIP Perceptions: No Hardware Server-based hardware is not necessarily cheaper than proprietary hardware IP phones cost as much or more than the existing feature set Adding IP devices is not any easier than upgrading legacy hardware

Extending the Voice Network Retain resilience in head-office network Extend core functionality to all locations Experiment with unified desktop functionality Benefit from an upgraded network infrastructure IP-Based Network Small Office/Branch Office Locations Home Workers QSig government Private Voice Network Centralized Operator Voice Mail

Improving Staff Mobility Maintain single user profile across the enterprise Unify user messaging through one application interface Work smarter, not harder IP-Based Network Voice Application Servers WWW In the Office Working at Home On the Road

Centralize Management Control No disparate branch-office platforms Central control of telephone calls/routing Single interface for moves and changes Seamless functionality across the network IP-Based Network Branch Offices PSTN Management Interface

IP PBX Timing Year Percentage Less than 3,000 systems in Approximately 308,000 systems in 2004 IP/PBX for less than 100 desktops IP/PBX for more than 100 desktops

Converged V/D Telephony Equipment Providers — North American MQ More than 100 lines Less than 100 lines

Recommendations Where to Deploy VoIPWhere Not to Deploy VoIP All new data WAN upgrades Remote dial-in users Hoteling workers in multiple locations As part of unified messaging At new SOHO sites When less than 100 stations When justifying based only on TCO With existing multiple PBX vendors When an application doesn’t require it! Implement now Implement as trial first Don’t implement for the next 18 to 24 months

Packet access networks dramatically lowers costs Add Drop ATM and/or SONET Multiplexers provide QoS via expensive “nailed down” bandwidth between locations ATM and SONET interfaces are also very expensive Ethernet switches provide QoS via inexpensive TCP-IP protocols Ethernet interfaces are also very inexpensive

Cost Comparison between OC-192 and Gigabit Ethernet The costs for Ethernet are often 1/10 of the cost for equivalent ATM or SONET bandwidth

Passive Optical Network Access System

FSAN Model for PON The Full Service Access Network standards initiative defines a set of passive-optical- network architecture standards using ATM as the transport technology.

Free Space Optics Advantages Quick time of deployment Cost-efficient network investment No license acquisitions Investment protection for leased buildings Excellent for temporary installations

What is the future of Telecommunications? Anything over IP and IP over anything! Voice Intranet Video Extranet E-gov IP LAN MAN WAN Wireless Optics Copper Real-time Store and forward Organizations that achieve end-to-end convergence will achieve the lowest TCO.