U Michigan Voice Service IT Central Services Andy Palms January 5, 2005

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U Michigan Voice Service

IT Central Services

Andy PalmsJanuary 5, 2005

University of Michigan page 2

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Agenda

• Overview of U Michigan situation

• Voice cost components

• A few VoIP options

• Our direction


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Voice Stats

• MSL-100 with 15 remotes– Few hi-cap circuits: T1, DS3

• Campus faculty/staff 28,000 legacy lines• Campus 1,500 VoIP lines• Hospital 10,000 legacy lines (in transition)• Residence Halls 5,800 legacy lines• Family Housing 1,500 legacy lines• Off campus 1,200 Centrex lines• ~47,000 phones


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Data Stats

• Very robust backbone

• LANs– 85% cat5 or better (excluding Res Halls)– Mostly 10/100 switched– Few switches on UPS’

• ~55,000 PCs


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What voice service do faculty/staff want?

• Faculty and staff– Basic service (dial-tone)– Identify with their UM phone number– Display for caller ID– Voicemail– MOBILITY

• Administrators– Online ordering and reporting, live ordering– Predictable rates, lower rates– Full service (dept’s don’t need/want their own voice staff)– Portability of phones


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What voice service do students want?

• Students in Residence Halls– 88% have a cell phone

• Do not identify with their UM phone number• Basic service (dial-tone) for local calls• Use cell phone for LD

– Voicemail (a la answering machine) - one per room

– Services available via cell phone (single device), integration with other communication services

– Emergency 911– Summer camps


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Voice Infrastructure - Today

UM SL100

LongDistance

LocalLegacyTrunks

Internet

VoIP Server

LegacyLine

Legacy Set (35,000)

Meridian Mail(decommission)

Unified Messaging

CampusNetwork

VoIP Set (1,500)

Analog Gateway

Legacy Set (0)

LegacyLine


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Voice Costs

Component Portion of Cost

Central Management 2%

Advanced Services (VoIP/Unified) 16%

Account and Project Management 6%

MACs 23%

Infrastructure Management 6%

Infrastructure 13%

Centrex and Remote Services 4%

Long Distance (old rates) 14%

Local Calling 11%

Operators 5%


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Advanced Services - Voice “R&D”

• No legacy R&D

• VoIP (10%)– Be on the cutting edge

– Instead of…• Wait for new technology and upgrade

– Preference for continued centralization


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VoIP Pilots• Cisco proprietary system

– 1,200 lines in production– Standards based product expected in ‘05

• Nortel MCS-5100– 200 lines in production– Well connected applications

• Broadsoft Broadworks– 150 lines about to go into pilot– Standards based (SIP), integrated into MSL-100– Supports Cisco and many other sets


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Advanced Services - Unified

• Unified Messaging (6%)–Integrated e-mail, voicemail,

faxing

–MS Exchange back-end

–Follow me, Find me• Increased staff productivity??


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Account and Project Mgmt (6%)

• Mgmt for large projects

• Raceway coordination

• Billing services

• Information Systems


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MACs (23%)

• Most potential for cost savings

• Decrease truck rolls– Implement dedicated plant for legacy

service


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Infrastructure and Management (19%)

• Switch (maintenance and operation)

• Remotes

• Machine rooms

• Outside plant (copper and 225 manholes)

• Repair of damaged infrastructure

• (bear portion of full cost not marginal cost)


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VoIP Options (magic/work)• Pure VoIP (full speed ahead for a campus-wide

deployment) - ”PUSH” approach– Would require an investment of at least $8M over 5 years

– Net effect=$370K in additional cost over 5 years

– Does not include cost of separate network for VoIP, additional UPS’, network upgrades, or end user/admin cost shift

• Digital-Analog Gateway - “PUSH” approach– A bridging solution only. Hardware would have to be tossed at the

end. Would free up machine room space from main switch and switch itself, removing legacy maintenance expenses. Users could move equipment easily and feature changes are software.

– Would require an investment of $6M over 5 years

– Net= - $920K in savings over 5 years (assumes “dedicated plant” model; most of savings is “dedicated plant”)


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Legacy Option

• Move to “Dedicated Plant” and improvements in workflow– Reducing the cost of MAC’s (especially

Moves and Adds)

– Re-engineering the order and billing process

– Estimated reduction of 9 FTE for savings over 5 yrs=$3.5M


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Off Campus Calls

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05

Number of Calls

Long Distance

Local

80% of calls are terminated on campus


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LD Minutes

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

45,000,000

50,000,000

FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05

Number of LD Minutes


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Local and LD

• Using VoIP for LD (14%)– Decreased per minute charge

• 1.6 cents versus 3.4 cents

– No trunks• Save ~0.7 cents/minute

– Consider not charging for LD

• Local IP service becoming available (11%)


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Voice Infrastructure - 1 Year?

UM SL100

Local and LongDistance Internet

VoIP Server

LegacyLine

Legacy Set (35,000)

Unified Messaging

CampusNetwork

VoIP Set (1,500)

Analog Gateway

Legacy Set

LegacyLine


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VoIP Plans for Next 1-2 Years• Deliver increasing amount of LD via VoIP• Continue to replace Centrex with VoIP as needed• Continue to use VoIP for temporary rental spaces• Continue to deploy VoIP when units choose it, but, with SIP-based systems

(VoIP sets, Softphone, or Analog-Gateways)– RFP for VoIP equipment will allow an upgrade to SIP-based systems instead of

current proprietary systems. RFP for software solution (“softphone”) for any users who wish to use it (2,000 stations estimated)

• In new buildings, deploy VoIP and depending on need either:– Install VoIP sets or– Install Digital/Analog gateways and analog sets

• Encourage vendors to incorporate more security into VoIP solutions• Encourage units to “harden” the campus infrastructure with UPS throughout

campus as opportunity exists

• Wait for the right ROI/functionality/reliability/security combination before legacy conversion


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Complete VoIP Conversion - When?

• Not interested in simply replacing legacy sets w/VoIP sets

• Major shift is expected with VoIP/wireless capable mobile phones

• Intriguing story from Verisign


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Technology - Future Vision

Internet

VoIP Server

CampusNetwork

Wireless Access Point

Cellular &VoIP/WiFi

Phone

Wireless Access Point

Broadband

Residence

Campus

Cellular &VoIP/WiFi

Phone

The same mobile device will work in a residence to access personal service and on campus to access business service


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Cheers!

Documents

U Michigan Voice Service IT Central Services Andy Palms January 5, 2005