However, the expense to replace every phone, beef up the data network and provide employee training is hard to recoup just from savings on the telephone bill, says George Hamilton, a Yankee Group analyst.
Yet some companies are finding that IP telephony can pay back. Ingersoll-Rand, for instance, was spending up to $17,000 per month for AT&T teleconferencing services at its Huntersville, N.C., headquarters. The industrial-equipment maker eliminated that expense when it installed a voice system built on Internet standards last year and began managing voice conferencing internally, says Damon Cahill, Ingersoll-Rands director of infrastructure strategy. (For more on telephony systems using IP, see "Voice on Data Networks: A Sound Move?")
Analysts say it usually makes the most sense to consider sending voice over Internet Protocol networks when retiring an older private branch exchange (PBX) phone system. Major PBX suppliers, including Avaya, Nortel Networks and Siemens, have added IP-telephony capabilities to their existing products, enabling customers to phase in Internet Protocol-based equipment where it makes sense.
The shift is already underway: Gartner Dataquest estimates that sales of IP-capable corporate phone systems totaled $2 billion in 2003, compared with $1.6 billion for traditional circuit-switched PBXs. By 2007, 97% of all phone systems shipped will be IP-capable.
This quiz, which Baseline developed with telephony customers, vendors and industry analysts, will help you figure out if your plans for IP telephony are ready to connect. You can click on the download button above or click here for the downloadable Quiz ("Does Internet Protocol Telephony Make Sense for You?").