Whitepaper Jive Hosted Voip

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    Hosted VoIP:Comparison & Value PropositionJive Communications, Inc.

    866-768-5429www.getjive.com

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    2Hosted VoIP: Comparison & Value Proposition

    Technology Description

    TraditionalPBX/Key Systems

    Traditional PBXs are telephone systems that serve one organization at onelocation. These systems reside on-premise and are owned and maintained bythe organization. Users share access to the trunk lines physically connected tothe PBX. Though feature-rich, Traditional PBX systems require a substantial cashoutlay and are cost-prohibitive for many organizations.

    Centrex

    Central Office Exchange Service (Centrex) is an enhanced telephone serviceoffered by local phone providers. Institutions do not purchase a phone system,and no specialized hardware is required on-premise. Many disparate institutionsare served by the same Centrex equipment. Though less expensive than a Traditional PBX, Centrex does not offer the same level of features.

    On-premises

    IP PBX

    An On-premises IP PBX is similar to a Traditional PBX, but utilizes IP (InternetProtocol) as the transport mechanism. These systems allow organizations tocombine voice and data traffic on a single network, producing cost savings.Similar to Traditional PBX systems, there is signicant up front cash outlayrequired, and organizations are responsible for maintenance.

    Hosted VoIP

    Hosted Voice Over IP (VoIP) combines the best aspects of Centrex and On-premise IP PBX systems. The provider owns and manages all necessaryequipment, and the service is delivered via broadband Internet access. HostedVoIP provides enterprise-grade features to many institutions on a scalablehardware infrastructure. Hosted VoIP is a cost-effective and feature-richtelephony solution.

    Table 1: Common Voice Technologies

    solutions can be customized to t current budgets andprojected growth requirements without forkliftupgrades. Hosted VoIP also provides excellent ROI andcost savings through increased staff efficiencies andtechnological effectiveness.

    It is hard to impossible to save money in the long termwith on-premises systems. The staffing, system upgradesand maintenance needed create an costly, ongoingexpense. By eliminating these costs, Hosted VoIPprovides a dramatically reduced total cost of ownershipto organizations. The consolidation traditional telecomexpenses with IT infrastructure in a Hosted VoIP solutiongives IT directors and facilities (M&O) management staff

    the opportunity to focus on important site issues, ratherthan worrying about telephone system availability.

    Todays budgets are tight and IT decision makers morethan ever are concerned with the nancial impact oftheir communications solutions. Hosted VoIP can oftendeliver the greatest return for telecommunicationsbudgets.

    Low Capital Requirements

    Hosted VoIP has very low initial capital requirements,especially if a data network already exists. In particular,IP phones are the only capital expenditures necessaryin most cases. In comparison, Analog PBX and On-

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    3Hosted VoIP: Comparison & Value Proposition

    premises IP PBX technologies requires large capitaloutlay for the servers, the required phones, andexpensive maintenance and licensing contracts. Thesecosts often reach millions of dollars. For this reason,many institutions decide to avoid up front capital-intensive solutions and utilize a Hosted VoIP provider.

    Standards-Based Equipment

    The equipment necessary for Hosted VoIP is standards-based, which means it can be easily reused orredeployed to work with other equipment that supportsthe same open standards. It also offers more exibilityand equipment options from a variety of vendors,typically at lower costs. By contrast, On-premises IPor Analog PBX solutions typically have proprietaryequipment that can only be used with that particular

    Financial Savings PBX/Key Centrex IP PBX Hosted VoIPLow capital requirementsStandards-based equipmentLow risk of obsolescence

    Converged voice, data, and video linesOne provider, one numberUtilize stranded capacitySimplies moves, adds, and changesPredictable monthly expensesNo payment until service onFlexible to organizational changesGreater ReliabilityProfessionally hosted voice infrastructure

    Managed class-of-service internet accessEnd-user controlDisaster recoveryLocal survivability via PSTN*Enhanced ProductivityCohesive services for distributed workforcesSupport for remote usersEasy rollout of new featuresMobile phone integration and applications

    End-user productivity featuresUnied Communications

    Table 2: Value Comparison of Voice Technologies

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    4Hosted VoIP: Comparison & Value Proposition

    vendors equipment. This proprietary equipmentcannot be reused or redeployed in most circumstances,resulting in vendor lock-in. It also results in an inexiblesolution with limited equipment choices and higherhardware prices.

    Low Risk of Obsolescence

    Technology changes at a rapid pace, and it is commonfor equipment to become obsolete quickly. Hosted VoIPreduces this risk in several ways. First, since the amountof necessary equipment is low, the risk also remains low.Second, the risk of obsolescence shifts to the HostedVoIP provider since they own and manage the voiceinfrastructure. Third, Hosted VoIP allows institutions

    to grow or shrink their number of lines as theirorganization changes, without the risk of outgrowingthe solution. As an organization grows, the same systemthey used with only 100 handsets can scale up to 10,000handsets or more.

    Converged Voice, Data, and Video Lines

    The merging of multiple networks down to oneconverged network can save on the number of

    necessary access lines and subsequent maintenancecosts. In many cases, current voice traffic and data trafficutilize two separate internet access linesone for voiceand another for data. After merging the two networks,one of those access lines can typically be dropped,used solely for backup purposes, or combined to allowmore bandwidth on the single converged network. Ineither case, access costs will be lowered or availablebandwidth will increase. This is true for all types of datatransport service including DSL, Cable, T1, DS3, ber, etc.

    This benet is especially pronounced when HostedVideo is deployed. Rather than purchasing dedicatedISDN or similar connections solely for the videoequipment, the converged network can be leveragedto provide connectivity on an as-needed basis. When

    no video is being used, this bandwidth is available to beused for other network activities.

    Utilize Stranded Capacity

    In certain circumstances, converging voice and datacan assist in eliminating stranded capacitymeaningcapacity that is not being consistently utilized and istherefore wasted. Adding voice onto an existing internetaccess line will increase the traffic over the connectionand utilize the stranded capacity. This makes theexisting infrastructure more cost effective.

    Internal Cable Infrastructure

    Existing voice and data networks are separate in manydistricts. Voice is transported over traditional Cat 3 whiledata is on an IP network. Organizations are looking toconsolidate and transmit both voice and data over asingle physical network to decrease costs and increaseoptions. Voice, video and data consolidation on a singlephysical network provides many benets to supportstaff by reducing operational costs, maximizing efficientuse of network resources and providing a exibleplatform. These capabilities are important for adapting

    to a constantly evolving, unpredictable, and increasinglycompetitive communications landscape.

    One Provider, One Number

    Hosted VoIP allows institutions to receive both voice anddata service from one service provider, with one numberto call for both questions and support. This helps tosimplify the support process and reduce the number ofnecessary support personnel.

    Simplied Moves, Adds and Changes

    Some of the biggest telecommunications expensesincurred by organizations are generated as a result ofmoves, adds and changes (MACs) to their phone system. Traditional phone systems require intensive effort every

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    5Hosted VoIP: Comparison & Value Proposition

    time an employee moves offices or locations, often bythird parties that charge hourly or per-visit fees. HostedVoIP simplies this process, allowing these changesto be quickly and easily performed by the enterpriseadministrator through a point-and-click web-based

    interface. Many changes can be accomplished by end-users themselves. MACs in a Hosted VoIP environmenttake just seconds, are completed in real-time, and donot require any budget expenditure.

    No Payment Until Service Is On

    With Hosted VoIP, monthly service charges are typicallynot billed until the service is turned on and fullyfunctional. This provides additional exibility to the

    organization with regard to the start-of-service date,and reduces wasted spending due to duplicate services.

    Predictable Monthly Expenses

    Hosted VoIP allows organizations to know exactly whattheir telecommunications costs will be each month. There are no unexpected costs associated with softwareupgrades, licensing, or hardware maintenance. Inaddition, local and long-distance calling are typicallyincluded with the service, without any per-minutecharges. This makes monthly budgeting predictable andeasy.

    Flexible Organizational Changes

    Todays workforces are constantly growing andshrinkingcreating problems when using traditionalphone systems. Legacy solutions may not easily expandor contract if the workforce changes over time. Hosted

    VoIP services allow institutions to buy only whatthey need, with the ability to add or remove lines asnecessary. Organizations only pay for the number oflines needed at any given time. Associated congurationchanges are also provided at no charge.

    Greater Reliability

    The ability to communicate is a critical element ofsuccess. For this reason, voice reliability cannot be

    compromised. Hosted VoIP has been engineered withthis in mind. In fact, Hosted VoIP has distinct reliabilityadvantages over both traditional voice and on-premisesIP PBX services.

    Professionally Hosted Voice Infrastructure

    Few organizations would consider themselvesexpert data center operators. But On-premises PBXsolutions require organizations to do just thathost

    their own phone system at their own location, andat their own expense. If something goes wrong, theorganization is responsible for correcting the error.Given the importance of communication, this createsa large burden on the institution to be prepared forthe unexpected.

    In contrast, Hosted VoIP relieves the institution of thisresponsibility. Since the phone service provider ownsand manages the server equipment, it is responsible forits upkeep. It is much more cost-effective for the serviceprovider to hire experienced IT managers and datacenter operators because they can spread the expenseacross a much larger user base than any one customercould.

    Moves, additions, and changesin a hosted VoIP environmenttake just seconds and do notrequire specialized techniciansor per-incident service charges.

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    6Hosted VoIP: Comparison & Value Proposition

    Managed Class-of-Service Internet Access

    A select group of Hosted VoIP providers offer managedclass-of service internet access. This access refers to theactive prioritization of voice and video over other typesof network traffic. When this type of internet access is

    offered by the provider as part of the service package,the institution can be condent that voice quality will bemaintained even during periods of network congestion.

    Disaster Recovery

    Users of Hosted VoIP have a variety of disaster recoveryoptions. In the event of re, earthquake, severe weather,or even a simple failure of their internet access lines,users have the ability to reroute all calls to wireless

    numbers, a home phone or a third party answeringservice. Many hosted VoIP solutions can be set up toautomatically make these changes for users in thecase of a disaster. IP phones can also be taken off site,where they can be used with any high-speed internetconnection and continue to function as part of theHosted VoIP system.

    The location of the servers in a Hosted VoIP solutionis another critical feature. Service provider points of

    presence (POPs) are secure facilities built to withstandmore than traditional office buildings. For this reason,servers in a POP have a higher chance of surviving adisaster and maintaining service than a PBX sitting in abusinesss office complex. Even if a customers locationis destroyed by a disaster, users will have phone serviceor the exibility to obtain phone service. In practice thismeans that callers ability to access menus, voice mail,etc will be preserved, even if the organizations on-sitecommunications are completely severed.

    Local Survivability via the PSTN

    In the event of a local internet access line failure,options for emergency dialing from a local gateway areavailable with Hosted VoIP. This preserves an important

    safety element by allowing continued access to 911/emergency services via the PSTN, even if the internetaccess line used to connect to the Hosted VoIP service istemporarily unavailable.

    Enhanced Productivity

    Hosted VoIP enables many features, functionalityand enhanced applications that are not possible withtraditional solutions. Although nancial savings andservice reliability are critical considerations whenmoving to Hosted VoIP, these productivity-enhancingitems are what organizations learn to leverage,appreciate, and eventually depend upon for dailyoperations.

    Cohesive Services for Distributed Workforces

    Hosted VoIP services break down the boundariesassociated with traditional telephone service. Sincetraffic can be routed to any location connected to thenetwork, functions that use to be tied to a particularlocation can now be moved anywhere or evendistributed to multiple locations. For instance, a callcenter can be centrally managed while supporting

    geographically-dispersed agents and multiple locations. This allows call center agents to work from anywhereeven from home.

    Similarly, a single voice mail system can serve ageographically dispersed group of users. This not onlysaves money by having just one voice mail system butalso allows all users to access their voice mail fromanywhere.

    Likewise, functional groups can office in variouslocations and use extension dialingsaving theinstitution money previously spent on inter-officecommunications while still ensuring emergency andlocal dialing plans remain intact.

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    7Hosted VoIP: Comparison & Value Proposition

    Support for Remote Users

    More and more employees want the ability to workeffectively from home or while traveling. At the sametime, institutions gain from remote employees byreducing required real estate and increasing employee

    satisfaction.

    Hosted VoIP enables remote users in a variety of ways:

    Users with a home broadband connection canplug in their phone and access the same featuresavailable in the office.

    Users who travel frequently can carry their deskphone with them and operate as if they were stillin the office.

    Users can access a web portal for their corporate

    directory, to view call logs, and to setup nd meservices.

    These features provide the means for remote users toeffectively work while at home or traveling.

    Easy Rollout of New Features

    As new features become available on a Hosted VoIPplatform, the provider can automatically make them

    available to institutions and end-users. This is donewithout performing any truck rolls or installingadditional equipment at the customer premises. Bycontrast, On-premises IP or Analog PBX solutions oftenrequire an expensive software upgrade by the customerto access the new feature. The customer must alsoimplement the feature throughout the organizationthemselves or pay a third party for this service. Again,the burden is placed on the customer to perform thesemaintenance tasks.

    Mobile Phone Integration andDesktop Applications

    Even though enterprises are increasing the number ofcompany-paid mobile and smart phones, few phonesystems today allow integration with desktop and

    mobile productivity tools. Hosted VoIP applicationsallow employees with a browser-enabled smart-phoneto access their end user portals. Employees are readilyaccessible to clients and coworkers and can enable/disable call routing functions and features for their

    extension. Employees with traditional mobile phonescan also use simultaneous ring services to sendincoming calls to both their desk and mobile phones atthe same time.

    End User Productivity Features

    Hosted VoIP technology offers end users and institutionssignicant new features that can greatly enhance theirproductivity and streamline business processes. Some

    enhanced features enabled by IP-based voice solutionsinclude the following:

    Unied messaging. Hosted VoIP allows users to havetheir voice mail messages sent to their email inbox. Thisallows a user to listen and then le the voice mail orforward it to another user.

    Find-me Follow-me. Users set up a prole of wherethey will be throughout the day, and their calls are

    automatically forward to the correct phone andlocation. This helps ensure that users never miss animportant call.

    Dial-In Conferencing. Users may be invited to join adial-in conference line to increase productivity for aproject. Some enterprises pay large monthly expensesto third party vendors for this feature, which is oftenincluded at no additional charge with Hosted VoIP.

    Auto-attendant. An organization using a HostedVoIP system can set up automated answering on anyincoming number without purchasing any additionalhardware. This feature can reduce the need for a humanreceptionist and enable the organization to provideafter-hours service or information in an economical way.

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    8Hosted VoIP: Comparison & Value Proposition

    Unied Communications (Email, E-Fax, EMS)

    Hosted VoIP providers offer organizations theopportunity to unify their communication tools andmediums. For example, all system voice mail messagescan be forwarded to one or more users via email.

    Additionally, E-Fax services can be integrated with theHosted VoIP system, eliminating the need for analog,paper-based fax machines.

    ConclusionHosted VoIP introduces a powerful new set ofenterprise-grade and productivity-enhancing featuresto organizations and individuals. These features aredelivered at a superior price point compared with legacy

    telephony solutions and give Hosted VoIP a dramaticallylower total cost of ownership.

    The telecommunications industry is undergoing atechnological shift away from TDM and On-premisesPBX products and moving towards Hosted VoIPsolutions. Hosted VoIP substantially reduces thecomplexity of system installation, conguration,upgrades, and maintenance by shifting the burden fromthe customer to the Hosted VoIP provider. An ever-

    increasing number of organizations are evaluating andimplementing Hosted VoIP as a means of lowering costsand increasing productivity.

    Copyright 20062013 Jive Communications, Inc.

    About Jive CommunicationsJive Communications is the premier hosted IP telephonyprovider to government, education, and business institutions.

    Jive Communications, Inc. Toll-free: 866-768-5429Fax: 866-372-5429http://www.getjive.com

    http://edu.getjive.com/http://edu.getjive.com/