Thursday, February 9, 2012

VoIP Business Solutions Adoption and the Importance of TCO

Home???? Blog???? VoIP Business Solutions Adoption and the Importance of TCO

As organizations strive to account for every dollar due to tightening budgets, achieving consensus on technology buying decisions from IT and financial stakeholders has become increasingly time consuming and difficult. Organizations that can respond quickly to changing marketplaces and rapidly adopt technologies that improve business operations and processes have a distinct competitive advantage. Those organizations that get bogged down in this process, well? they lose their advantage.

While there are many criteria for evaluating business decisions, a solid TCO (total cost of ownership) analysis can help decision makers weigh their options and make informed decisions. There are three industry factors driving the adoption of TCO as an evaluation criterion for VoIP business solutions:

The shift from ?technology? to ?economic? buyers as the VoIP business solutions market matures. There?s also that ?economy? thing hanging over many businesses today, and thus many make their purchasing decisions based on the impact to their business and operational economics (process efficiencies, staff efficiencies, profit contribution etc.), rather than the elegance or power of the underlying architecture and technology.

Larger companies are beginning to adopt VoIP business solutions as the technology matures. Our UC partner ? ShoreTel ? has seen rapid recent growth in the number of large enterprises (>500 phones) adopting VoIP business solutions for the first time.

Macro-economic uncertainty. Existing legacy time-division multiplexing (TDM) solutions have come under increased scrutiny in recent years as their maintenance costs increase, and as they increasingly fail to deliver the productivity benefits that are now offered by modern IP-based UC solutions. Periods of economic uncertainty often force a greater level of focus on these existing costs, and lead to a renewed urgency and attention on technology to drive out these inefficiencies.

To make TCO analysis less painful ShoreTel has an online TCO tool, or we can do it for you! In a recent TCO analysis for a large enterprise, our partner ShoreTel discovered the following results:

As organizations strive to account for every dollar due to tightening budgets, achieving consensus on technology buying decisions from IT and financial stakeholders has become increasingly time consuming and difficult. Organizations that can respond quickly to changing marketplaces and rapidly adopt technologies that improve business operations and processes have a distinct competitive advantage. Those organizations that get bogged down in this process, well? they lose their advantage.

While there are many criteria for evaluating business decisions, a solid TCO (total cost of ownership) analysis can help decision makers weigh their options and make informed decisions. There are three industry factors driving the adoption of TCO as an evaluation criterion for VoIP business solutions:

  1. The shift from ?technology? to ?economic? buyers as the VoIP business solutions market matures. There?s also that ?economy? thing hanging over many businesses today, and thus many make their purchasing decisions based on the impact to their business and operational economics (process efficiencies, staff efficiencies, profit contribution etc.), rather than the elegance or power of the underlying architecture and technology.
  2. Larger companies are beginning to adopt VoIP business solutions as the technology matures. Our UC partner ? ShoreTel ? has seen rapid recent growth in the number of large enterprises (>500 phones) adopting VoIP business solutions for the first time.
  3. Macro-economic uncertainty. Existing legacy time-division multiplexing (TDM) solutions have come under increased scrutiny in recent years as their maintenance costs increase, and as they increasingly fail to deliver the productivity benefits that are now offered by modern IP-based UC solutions. Periods of economic uncertainty often force a greater level of focus on these existing costs, and lead to a renewed urgency and attention on technology to drive out these inefficiencies.

To make TCO analysis less painful ShoreTel has an online TCO tool, or we can do it for you! In a recent TCO analysis for a large enterprise, our partner ShoreTel discovered the following results:

! In a recent TCO analysis for a large enterprise, our partner ShoreTel discovered these results

The above TCO is based on 1,500 users across three sites ? 1,250 users at a headquarters location, 200 users at a remote office, and 50 users at a satellite office, and uses pretax dollars. If you have any questions about this analysis please leave a comment.

Source: http://www.sterling.net/blog/voip-business-solutions-adoption-and-the-importance-of-tco/

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