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Published on: October 2005
Type of content: WHITE PAPER
Format: Adobe Acrobat (.pdf) (298 kb)
Length: 9 pages
Price: FREE

Overview:
The economic drivers for voice and data integration using voice over IP (VoIP) are catching the attention of CFOs, CIOs and others involved on the cost side of any business. This white paper will show the cost justification for voice and data network integration and how much increase in bandwidth will be necessary once voice
traffic is added to the traditional data traffic being carried across a wide area network (WAN).

Before VoIP, a network for an institution had two distinct infrastructures- one for voice and one for data:

At first glance, it seems that without the PSTN infrastructure the cost justifications for VoIP are simple. While PSTN usage can be reduced considerably, it cannot be eliminated totally since the PSTN must handle call overflow and any calls not destined to the remote sites. Also, the extra voice over IP traffic may cause an increase
in WAN bandwidth. The cost for this extra capacity will have to be subtracted from the savings achieved from reduced PSTN usage.

The cost justifications for a VoIP integrated network are simple to calculate and usually large enough to warrant an upgrade in equipment costs if needed. Depending on design, the extra impact on WAN bandwidth capacity may also be minimal.