Federal market for VoIP heats up

NETWORK WORLD NEWSLETTER: CAROLYN DUFFY MARSAN'S ISP NEWS REPORT
06/29/05
Today's focus: Federal market for VoIP heats up

Dear networking.world@gmail.com,

In this issue:

* Why VoIP is one of the hottest apps in the U.S. federal market
* Links related to ISP News Report
* Featured reader resource
_______________________________________________________________
This newsletter is sponsored by Oracle
Boost the quantity and quality of customer interactions!

How can companies get a fuller, sharper picture of their
customers to boost the quantity and quality of customer
interactions? By creating a standardized customer-data model
via an "information grid." IDC analyst Stephen Hendrick
explains how to achieve a "360-degree view" of customers
for better selling and marketing.
http://adserver.fattail.com/redir/redirect.asp?CID=107428
_______________________________________________________________
LICENSE TO KILL

Mainstream companies are starting to reap benefits from
harnessing unused computing power. By lashing together
sometimes hundreds of servers to create a powerful grid,
businesses are using their technology better. But software
licensing, organizational and cultural issues, and data
management can be barriers to grid adoption. Find out how to
overcome these barriers - click here:
http://adserver.fattail.com/redir/redirect.asp?CID=107382
_______________________________________________________________

Today's focus: Federal market for VoIP heats up

By Carolyn Duffy Marsan

One of the hottest applications in the U.S. federal government
IT market is VoIP, and it shows no signs of cooling down anytime
soon.

Among the federal agencies that have migrated to VoIP are the
Census Bureau, the Departments of Commerce and Education, the
Securities and Exchange Commission and the Food and Drug
Administration. Many other federal agencies are considering
major VoIP implementations, vendors say.

"We have several agencies looking at pure VoIP, with 10,000
users or more," says Wendy Bahr, operations director for
civilian agencies at Cisco's Federal Division. "We have many of
these proposals on the table."

On the horizon, the U.S. federal government's massive
telecommunications services buy called Networx is offering
products and services designed to help agencies migrate to VoIP
and other emerging IP applications. Networx is a 10-year, $20
billion contract that will provide voice, data and video
services to all federal agencies. Networx bids are due in early
August, with an award scheduled for April 2006.

"From Cisco's perspective, we've reached the tipping point,"
Bahr says. "We're now seeing growth [in VoIP sales] at a very
fast pace. When the Census Bureau first came out with VoIP in
1998, they were an industry forerunner. They've now led the way
for other agencies to come along."

Bahr says Cisco is selling twice the amount of VoIP gear in the
federal market that it sold a year ago. "If you look at all
federal telecom systems - TDM, Centrex, key systems - I would
say that within the civilian agencies, we probably have a 20%
penetration rate with VoIP," she says.

Agencies are migrating to VoIP when it comes time to replace
aging equipment or when they are moving to a new office
location.

"Where we see rapid growth in VoIP is anytime there's movement
from one location to another or when current technology is
aging," Bahr says. "We're not seeing any of our customers with
TDM replace it with TDM. There are lots of key systems that have
aged to the point where agencies can't get parts and
maintenance. Those are predominantly the two activities that
cause customers to look at VoIP."

The number of federal VoIP implementations may rise further due
to the Pentagon's recently announced plans to move thousands of
office workers from locations inside the Washington D.C. area's
Beltway to new locations either on military bases or in outlying
suburbs. This massive relocation, which aims to address the new
security requirements instituted in response to the Sept. 11
terrorist attacks, will affect as many as 50,000 employees in
Northern Virginia alone.

"Any time we see a greenfield approach, where people move from
one location to another, people look for a cost-effective
solution. That's where I see VoIP really shines," says Kevin
Orr, Cisco's director for armed services. "VoIP is
cost-effective, highly scalable and secure. But the biggest
thing is flexibility. It really helps when you have a transient
workforce."

Orr says VoIP fits well with the military's relocation plans in
the Washington D.C. area as well as its overall push towards IP
communications on the battlefield. Orr points out that Cisco has
already shipped more than 18,000 IP phones - both wired and
satellite - to the military's tactical operations in Iraq and
Afghanistan.

"We're seeing a very big demand in getting IP communications as
far out as we can to the soldiers in the field," Orr says. "In
the past, they had to take out a data system and a PBX system.
Now we're enabling them to use one rack of equipment that can be
quickly set up, quickly torn down and remobilized."

Orr says the Army and Marine Corps are particularly active in
rolling out VoIP on the battlefield. Overall, he says military
sales of VoIP are up more than twice what they were last year.

"The transformation is occurring right now across the
[Department of Defense] with IP communications, [and] VoIP is
one of the significant enablers," Orr says. "What's really
driving this in the [Defense Department] is not so much the
return on investment, but the ability of VoIP to support the
mission in a timely, secure and flexible way. The opportunity to
run voice, video and data over a converged network allows for
easy of deployment and scalability."

RELATED EDITORIAL LINKS

U.S. Census makes big VoIP splash
Network World, 06/20/05
http://www.networkworld.com/news/2005/062005-voip.html?rl

MCI broadens its access services
Network World, 06/27/05
http://www.networkworld.com/news/2005/062705-mci.html?rl

SBC unveils managed IDS service
Network World, 06/27/05
http://www.networkworld.com/news/2005/062705-sbc-ids.html?rl
_______________________________________________________________
To contact: Carolyn Duffy Marsan

Carolyn Duffy Marsan is a senior editor with Network World and
covers emerging Internet technologies and standards. Reach her
at <mailto:cmarsan@nww.com>
_______________________________________________________________
This newsletter is sponsored by Oracle
Boost the quantity and quality of customer interactions!

How can companies get a fuller, sharper picture of their
customers to boost the quantity and quality of customer
interactions? By creating a standardized customer-data model
via an "information grid." IDC analyst Stephen Hendrick
explains how to achieve a "360-degree view" of customers for
better selling and marketing.
http://adserver.fattail.com/redir/redirect.asp?CID=107427
_______________________________________________________________
ARCHIVE LINKS

Archive of the ISP News Report newsletter:
http://www.networkworld.com/newsletters/isp/index.html

Wide Area Network Research Center:
http://www.networkworld.com/topics/wan.html
_______________________________________________________________
The Adaptive WAN for Business-Critical Applications

Discover how enterprises are moving beyond overlapping,
dedicated, single-application networks to a more flexible WAN
architecture that more intelligently uses bandwidth and supports
multiple and time-sensitive applications. Watch the webcast now
for more information.
http://adserver.fattail.com/redir/redirect.asp?CID=107316
_______________________________________________________________
FEATURED READER RESOURCE
CALL FOR ENTRIES: 2005 ENTERPRISE ALL-STAR AWARDS

Network World is looking for entries for its inaugural
Enterprise All-Star Awards program. The Enterprise All-Star
Awards will honor user organizations that demonstrate
exceptional use of network technology to further business
objectives. Network World will honor dozens of user
organizations from a wide variety of industries, based on a
technology category. Deadline: July 8. Enter today:
<http://www.networkworld.com/survey/easform.html?net>
_______________________________________________________________
May We Send You a Free Print Subscription?
You've got the technology snapshot of your choice delivered
at your fingertips each day. Now, extend your knowledge by
receiving 51 FREE issues to our print publication. Apply
today at http://www.subscribenw.com/nl2

International subscribers click here:
http://nww1.com/go/circ_promo.html
_______________________________________________________________
SUBSCRIPTION SERVICES

To subscribe or unsubscribe to any Network World e-mail
newsletters, go to:
<http://www.nwwsubscribe.com/Changes.aspx>

To change your e-mail address, go to:
<http://www.nwwsubscribe.com/ChangeMail.aspx>

Subscription questions? Contact Customer Service by replying to
this message.

This message was sent to: networking.world@gmail.com
Please use this address when modifying your subscription.
_______________________________________________________________

Have editorial comments? Write Jeff Caruso, Newsletter Editor,
at: <mailto:jcaruso@nww.com>

Inquiries to: NL Customer Service, Network World, Inc., 118
Turnpike Road, Southborough, MA 01772

For advertising information, write Kevin Normandeau, V.P. of
Online Development, at: <mailto:sponsorships@nwfusion.com>

Copyright Network World, Inc., 2005