The widespread acceptance that data, voice and video will routinely travel
across the corporate network is indicative of how the concept of converged
communications – where a single IP-based network carries all enterprise
communication – has taken root. And yet, for such a near-universally accepted
approach, it has been something of a slow burner.
The notion of network convergence emerged nearly two decades ago with frame
relay – an early virtual private network (VPN) technology – and ATM-based
infrastructures. However, these were cumbersome to manage, expensive to install
and the surrounding technologies were immature. The introduction and
availability of private IP networks in the late 1990s, with vendors such as
BT and
Cable
& Wireless launching multi-protocol label switching (MPLS) VPNs, meant
that enterprises could finally segregate and manage the traffic on their
systems. This allowed voice and data packets to be carried on the same network.
Nevertheless early adopters needed in-depth understanding of both their voice
and data requirements to avoid massive bottlenecks and breaks in service.
While the benefits of a converged network – cost reduction from managing a
single network, opportunities for improved productivity and more effective
collaboration and the potential to develop new revenue-generating streams –
have been noted, uptake has been slow.
According to recent research by analyst Ovum, only 40 per cent of the largest
companies in the UK have moved to MPLS networks. “Increasingly, over the last 10
years we have seen companies converge their networks, migrating from legacy
infrastructure to IP networks,” says Peter Hall, research director at Ovum.
But momentum is building. Today, even mid-sized companies are recognising the
potential benefits and are commonly deploying converged infrastructures.
“The fact that companies have migrated to a converged network doesn’t mean
that they are supporting both voice and data,” says Hall. “It means that they
may be thinking about doing so in the future and have developed the
infrastructure to support that possibility.”
Once enterprises have accepted the concept of a converged communications
strategy they need IT infrastructure capable of supporting voice, video and data
– usually across both fixed and wireless systems.
Migration of the telephony system onto all, or part, of the corporate IP
network is commonly the first step, as and when the business or the technology
refresh cycle dictates. Despite this slow start, Ovum estimates that 80 per cent
of all the voice traffic in large enterprises will be running across the
converged network within five years.
The drivers for this migration vary from ease of management to improved
collaboration and decision-making. However, in most cases cost is not usually
the compelling factor.
For British fashion brand
Ben
Sherman, its global infrastructure is essential to its success in the
wholesale and retail markets. IT director Cormac McCarthy says the network has
been developed and upgraded over the years and now every location around the
world has a flexible fixed and wireless IP infrastructure.
“Whenever we open a new site we put in the best technology available that
will allow us to run voice, video and data; however, our main problem is in
justifying the expense,” he says.
While McCarthy recognises the benefits of integrating his telephony services
across the network, he is also aware that the costs do not stack up. “Call
charges used to be a big driver for moving to voice over IP (VoIP), but when I
can talk to New York for 8p an hour and Northern Ireland for 10p, there is no
way I can justify ripping out perfectly serviceable PBX equipment. The only time
it is acceptable is when building from new,” he says.
Restaurant chain Yo!
Sushi implemented a converged voice and data network between its UK outlets
in 2007 to run its point of sale and credit card services, as well as a pure IP
voice system from Swyx. With the rollout of 10 new restaurants planned, having a
robust infrastructure was an important consideration for IT manager Billy
Waters. “Using a converged network solution simplifies the process, allowing us
to plan each new site ahead of time, allocate IP numbers and deliver a full set
of communications to each restaurant on day one, without the need for
third-party carrier intervention,” he says.
Improving business efficiency, especially in the area of client contact, was
a major consideration for legal services company
Shoosmiths
when installing a Siemens 8000 voice platform. “One of our values is that
clients should be able to get hold of us easily, therefore our telephony system
is an important asset,” says IT director David Basin.
The voice platform has been in place in the firm’s new Nottingham office for
nearly a year, but has so far delivered very little in the way of cost savings,
although Basin expects to see up to 30 per cent savings as it is rolled out to
the other nine offices around the country and all 1,500 staff.
“With telephony now part of the corporate network and under central
management, we have seen a reduction in support costs. Disaster recovery is
quicker and we are looking to exploit its features to support home working,”
says Basin. “Our aim isn’t to force it in; as and when offices are refurbished
we will move the telephony onto the network.”
Converged communications also opens up possibilities for new applications and
services. One of the most talked about, and possibly misunderstood, is unified
communications (UC). Integrating voice, video, data, instant messaging and
conferencing components into a flexible, personalised, controllable
communications delivery system, unified communications is a philosophy not a
product. UC is about bringing together a raft of communications technologies and
standards to reflect specific business requirements, while facilitating the
improvement of existing, and the creation of new, business processes.
Implementing unified communications is part of gas and oil exploration
company Oilexco’s plans to
optimise further its communications channels across the business. Technical
manager Pieter voor de Poorte says the next step is to integrate the offshore
oil platforms into the ShoreTel VoIP system.
“With up to 90 rig workers doing shifts of two weeks on, three weeks off,
Oilexco’s explorations in the North Sea are a continuous operation,” he says.
“We want to see how well we can maintain quality of service offshore by
installing high quality data links to the oilrig platforms. Productivity has
improved as a direct result of installing ShoreTel – you can actually get hold
of people now, even though geographically we’re all in very different areas.”
One of the fastest growing applications in the converged enterprise is
desktop videoconferencing, with travelling and time costs encouraging greater
use. However, this technology, with its requirement for huge amounts of
bandwidth, is putting pressure on networks and needs to be carefully managed.
Industrial technology manufacturer Smiths Group has embraced videoconferencing
as a complement to face-to-face meetings and as part of its strategy to improve
collaboration through communication.
Recognising that IT is not its core business, Smiths Group has outsourced its
worldwide communications infrastructure to AT&T. “We are brilliant at making
machines that detect chemical substances in airport luggage, or keep blood at
the right temperature, but we are not experts at managing a global network,”
says chief information officer Brian Jones.
Pooling its global requirements has resulted in economies of scale and the
company expects to achieve annual savings of at least £2.9m on IT and related
costs. But for the company raising the performance bar around effective
communication, collaboration and better decision-making are the key elements of
its converged strategy.
“We want to ensure that the communication is better, not just give people
another way of communicating,” says Jones. “Because people communicate visually
as well as audibly, videoconferencing makes the experience more realistic and
allows us to tap in at the emotional intelligence level, giving a better
understanding of what is being said. Our emphasis is on quality of
communication, not quantity.”
Next week: In part two, IT leaders share lessons from implementing
converged communications.
Reader comments