Some points to consider about VoIP

NETWORK WORLD NEWSLETTER: JEFFREY NUDLER ON NETWORK/SYSTEMS
MANAGEMENT
06/06/05
Today's focus: Some points to consider about VoIP

Dear networking.world@gmail.com,

In this issue:

* What are the real reasons for adopting VoIP?
* Links related to Network/Systems Management
* Featured reader resource
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Today's focus: Some points to consider about VoIP

By Jeffrey Nudler

IP telephony, and its most conspicuous application VoIP, is
finally reaching a level of quality acceptable enough to make
its way out of the proverbial "laboratory" and into the business
and consumer mainstream. Some other IPT applications - those
focusing on Layer 8 of the OSI stack using protocols such as
H323 and SIP - include video-on-demand, long distance learning,
corporate virtual meetings, MP3 music downloads, PC cams and
instant pictures. But VoIP remains dominant, and most research,
EMA and otherwise, indicate that the most IT executives view
converged networks and IPT as a strategic necessity; for them
it's not an issue if "if" but "when."

At the same time, businesses and consumers are "bombarded" with
VoIP related media coverage and ads for services by VoIP pioneer
Vonage and other less known competitors such as Lingo and
BroadVoice. Not to be outdone, the established service providers
are rolling out a variety of business/consumer VoIP services,
while new players such as CommPartners and Broadwing are
entering the market.

There are almost 400 VoIP providers listed for the U.S. on
VoipProviderList.com ( <http://www.voipproviderslist.com/> )
making it a veritable shopping mall for businesses and consumers
seeking VoIP services.

Nonetheless, it's interesting to note that while the trend
toward VoIP is visible and obvious, the reasons for its adoption
remain a lot more obscure. Is it just a nifty technology or is
akin to the move from vinyl to CDs - like it or not it's time to
make the move? Let's look at a few reasons/benefits and put them
in perspective:

* Capital cost savings from capital investments: This has turned
  out to be largely a misnomer as capital costs for VoIP and IPT
  implementations may add as much as 30% in infrastructure
  equipment replacement or additions.

* Service costs savings: Indeed, from a home consumer
  perspective, there are service cost benefits but those can be
  Faustian pacts with dangerous tradeoffs, as we shall see.

* Operational savings: As IT evolves from a fragmented
  organization to telephony and data integration the benefits are
  real. IPT users are able to develop integrated service desks
  with common processes across telephony, data, media and other
  services. However, it's sad to say that the industry is probably
  two or three years away from waking up to this benefit.

* Quality of experience: Customers benefit from an integrated
  portfolio of services, with greater fluidity in service choice.
  This is also real and related to the operational cost savings as
  well as enhanced revenue due to more user services. An
  integrated portfolio could also offer unique applications where,
  for instance, a GPS (Global Positioning System) could trigger a
  phone call to a parent when the school bus is delayed arriving
  at a specific stop, or an application could automate information
  about customer care and contractual commitments when a truck
  shipment is delayed.

So, what's the Faustian pact for home consumers sold on $15 or
$20 per month fees for unlimited domestic calls and low per
minute rates for international calls? The tradeoff, as
highlighted in recent regulatory debates about 911 support, is
that some of the onus for fail-safe telephony gets shifted to
the home owner.

The consumer (home, small business, et al.) virtually "owns"
components such as a VoIP box attachment, a modem connection,
often a router or some networking device, and a UPS
(uninterruptible power supply) for emergency situations when the
power goes out. The result is a mini, on-premises
telephony-support infrastructure whose health and administration
fall on, guess who? Given this, and other issues, it will be
awhile before it's really credible to give up traditional
circuit-based telephony completely.

Some of the other issues come from core requirements for
management. These issues, such as security, capacity planning,
and hierarchical SLA (service level agreement) processing, have
stimulated a whole host of new IPT management solutions from
different types of providers. These include network suppliers
such as Cisco, Nortel and Lucent, established IT management
vendors including NetIQ, NetScout, Concord/Aprisma and Visual
Networks, as well as relative newcomers such as Brixnet,
Converged Access, Corvil, Integrated Research and Viola, to name
just a few.

Given these requirements, it's hard to believe that VoIP is
ready for the final "big surge" to all-pervasive deployments in
2005. Considering the management issues, such as security,
readiness assessment, which involves the evaluation of whether a
data network is able to handle VoIP, and QoE - one of the more
important gating factors, it's likely that we will continue to
have "years of VoIP". The market will continue to evolve beyond
domain-centric and network focused toward a more integrated
service focus in which VoIP is understood as one of many
business/customer applications.

RELATED EDITORIAL LINKS

HP to release mgmt. barrage
Network World, 06/06/05
http://www.networkworld.com/nlnsm2386

Companies rush to plug 'data leaks'
Network World, 06/06/05
http://www.networkworld.com/news/2005/060605-data-leaks.html?rl
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To contact: Jeffrey Nudler

Jeffrey Nudler is a senior analyst with Enterprise Management
Associates, whose major focus is performance management and
related issues. Jeffrey has over 25 years of communications and
computer industry experience, including extensive experience
with the design and development of network management solutions.
His areas of expertise include networks (both voice and data)
fault, performance and configuration. Jeffrey is also active in
EMA's research in the area of configuration management database.
He can be reached at: <mailto:jnudler@enterprisemanagement.com>
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