Making the Case for Enterprise IP Telephony Sébastien Boire-Lavigne Vice-President Technology

Agenda What is IP Telephony? How has it evolved over the years? Factors driving IP Telephony ROI analysis Case studies Is your organization a perfect candidate for FoIP? Q&A / wrap up

What is IP Telephony? It is a means of delivering Telephony applications using packet-based networks Two main Telephony applications are: –Voice Over IP (VoIP) –Fax Over IP (FoIP)

PBX & FAX Machine

PBX & Fax Server

IP PBX & Fax Server

IP PBX & IP Fax Server

Multi-Locations

VoIP Call

FoIP Call

Making The Case For Enterprise VoIP & FoIP –A quick look at the factors that make VoIP a viable investment –A compelling look at FoIP (includes ROI analysis & case studies)

Why VoIP? Flexibility –Easier management (configuration & accountability) –Scalability Convergence –voice & data share the same line Single wiring to the desk Shared data & voice connectivity for multiple-location deployments –Staff only needs one skill set to use voice & data –New applications (voice mail, fax, etc) can be easily added

Why should You Care About Fax?  Almost every organization uses fax, and it isn’t going away any time soon!  Still the easiest way to exchange legal documents (purchase orders, invoices, contracts, forms, etc.)  Fax accounts for 10-20% of all telephony lines  Fax is mission critical in financial, medical, real estate and insurance verticals

Contributing Factors To High Fax Costs Fax lines Hardware purchase / lease Maintenance –Consumables –Software & Hardware

Typical Fax Expenditures Fax hardware & consumable costs –A leased fax machine: $50 / month –Consumables: $0.05 / page Fax line costs –Analog line: $30 / month –T1 Channel: $35 / month MFD hardware & consumable costs –A leased MFD: $70 / month –MFD consumables: $0.02 / page

Fax Machines vs MFDs Consumable cost based on 100 Pages per day, 20 days month. –Fax machine: 100 x 20 x $0.05 = $100 / month –MFD: 100 x 20 x $0.02 = $40 / month Total cost per month (consumables + line) –Fax machine: = $130 / month –MFD: = $40 / month

Fax Server Advantages Consolidates fax lines –Ex: 60 fax machine  20 fax server lines Reduces number of printed faxes by using direct inbound routing –Cuts consumable cost –Cuts the number of fax machines/MFDs/printers used to print/scan faxes

Small Enterprise Case: Users, 8 Fax Machines, 1040 $ / month Solution: 2 Channel Fax Server With 2 Leased MFDs - If fax machines are leased, ROI is cut by 4 months - If MFDs are purchased, ROI takes 2.5 more months *Includes Software maintenance, Fax Server line cost, MFD consumable, MFD lease

Medium Enterprise Case: Users, 60 Fax Machines, 7800 $ / month Solution: 20 Channel Fax Server With 20 Leased MFDs *Includes Software maintenance, Fax Server line cost, MFD consumable, MFD lease - If fax machines are leased, ROI is cut by 3 months - If MFDs are purchased, ROI takes 4 more months

Large Enterprise *Includes Software maintenance, Fax Server line cost, MFD consumable, MFD lease Case: Users, 300 Fax Machines, $ / month Solution: 96 Channel Fax Server With 100 leased MFDs - If fax machines are leased, ROI is cut by 2.5 months - If MFDs are purchased, ROI takes 4 more months

FoIP Effect on ROI ROI reduction is more important for small enterprise The benefit of the synergy between FoIP and VoIP is more important for large enterprise

Cost Per Line

Other Productivity Advantages Automatic inbound routing to the desktop Consolidate voice & fax lines –Share lines between voice and fax –Use voice lines during off hours to broadcast MFD serves as printer Fax board solutions are limited to 4 T1, no hardware limitation for FoIP (10 T1) Faster composition & automatic archiving Least Cost Routing Usage accountability

Case Study: IMPAC Funding Background Largest real estate investment trust (REIT) on the American Stock Exchange (ASX) Handles over $6.6 billion in assets. Challenges Each loan application was pages long and was received by fax Cost of fax broadcasting rate sheets to mortgage brokers was $40.000/month 60 fax machines handled inbound & outbound faxing IP Telephony Results $480,000 / year saved in fax broadcasting costs 100% FoIP ROI realized in six months FoIP system now handles 300,000+ pages per month

Case Study: Stewart Title of Kansas City Background Provides professional closing and title insurance services to buyers, sellers, realtors, mortgage lenders, and more Has 27 regional locations A Fortune 1000 company Challenges Previously faxed using dozens of fax machines connected to the PSTN with POTs lines Very costly, time and labor intensive IP Telephony Results Switched from 250 POTS lines to 4 PRIs New FoIP systems handles 23,000+ faxes a month Company saves $24,000 a year in long distance costs Estimates $12,000 saving a month in overhead

Is FoIP For You? Already have VoIP deployed and no Fax Server Small company with VoIP and circuit-based Fax Server Planning to deploy VoIP in the future, but looking for a Fax Server solution now Massive faxing needs (4 T1, 8 T1 solutions)

Thank you!