So, has the great migration of phone services from circuit-switched networks to IP begun yet? What companies would be good candidates for such a move? First, a little background.

The merger of voice and data over one network is generally called Convergence: one common iteration is Voice over Internet Protocol (VoIP) telephony. Convergence is hailed by everyone from Cisco, with its AVVID (Architecture for Voice, Video and Integrated Data) to any number of resellers and integrators for the following reasons:

     Reduced IT infrastructure and personnel costs

     Lowered phone bills

     Reduced cost of programming and maintaining
     PBX systems

     Increased functionality of IP-based PBXs

Obviously, there are savings to be had, as telecom industry analysts IDC predict that by 2003, 152 billion minutes of voice traffic will be carried as Voice over IP traffic. Other analysts say that roughly 50% of enterprises are considering a move to converged networks. TeleGeography reports that over the last four years, VoIP minutes increased from less than 0.5 to 2 percent of outbound international calls.

Reduced IT infrastructure and personnel costs:

Savings in personnel costs depend on a company's capacity to structure its IT department so there's a balance among voice and data expertise. But a better bet is that companies could see a reduction in networking equipment capital expenditures as the cost of packet switching drops.

Lowered phone bills

The real savings in Convergence are found in situations where the cost of long-distance is prohibitive. For example, enterprises with a preponderance of US-only calls would likely see little cost-benefit from implementing a VoIP solution, because they're already paying as little as 3 cents a minute for long distance service.

But, for the company with heavy international calling, where costs can reach close to a dollar a minute, Convergence can literally save hundreds of thousands of dollars annually.

Reduced cost of programming and maintaining PBX systems:

Other companies with complex PBX requirements might see their third-party PBX programming costs drop when they converge their voice and data. The comparatively simple interface of computer-based telephony allows even small businesses to customize their available voice features. If your business could use greater flexibility in customizing phone systems, but needs to avoid extra phone maintenance costs, Convergence is a good idea. Plus, moving phones around, or adding or dropping new ones becomes a simple matter of "plug-n-play", without calling in the PBX vendor.

Increased Functionality of IP-based PBXs

One of the key benefits of Convergence is in the realm of the virtual office. With more and more enterprise workers based full- or part-time in remote or home locations, the ability to seamlessly integrate their voice and data needs within a centrally managed company network pays big dividends. Reduced office space costs are just one financial gain. Worker productivity and job satisfaction are intangibles that can affect the bottom line.

Plus, with the momentum that Convergence brings to the development side, no doubt there are applications in the works now that will portend greater functionality in ways no one has thought of yet.

Convergence is happening: enterprise by enterprise, phone by phone, across a broad spectrum of users. Whether your company can reap the benefits today depends on a solid analysis of the pros and cons of Convergence and the unique nature of your company's voice and data needs.

For more info on carrier-level VoIP offerings, visit http://www.primustel.com/docs/carriers.html

For more info on enterprise-level VoIP products, visit http://www.primushost.com/products/voip.html

For more information on how VoIP works, check out our Flash presentation.