PBX : A New Wave

The conventional PBX market is on a decline as businesses/organizations of
all sizes enter into a new phase in the adoption of IP communications-a category
that includes IP telephony, unified messaging, voice mail, customer contact,
audio, Web, and videoconferencing solutions.

Until recently, the IP communication debate focused on whether it was a
viable, “ready-for-prime-time” technology. But in the recent past, this new
technology is making inroads in the mainstream market.

As a result, the traditional PBX, which had evolved from the TDM
architecture, is now moving to the IP architecture. The new IP-based PBX systems
are referred to as “IP PBXes”.

IP PBXes utilize the Voice over Internet Protocol (VoIP) technology to switch
voice via an IP network. Since this is the same IP network on which data
applications and IP-based videos are carried, organizations see an increased RoI.
Thus, there is a shift from deploying multiple networks for voice, video and
data to a converged IP network, which transports IP-based data, voice, and video
traffic.

Although voice traffic from IP cannot be legitimately terminated on a PBX,
which is connected to a PSTN network, the market anticipates that these
distinctions will soon disappear. Even the consumer preference is shifting
toward the switches compatible for VoIP interface.

India is embracing IP telephony rapidly due to the inherent benefits of this
technology-powerful new applications, simplified management, lower costs, etc.
Almost all organizations are moving toward IP-based intelligent communications,
especially large multi-location organizations, including large enterprises,
government, retail, manufacturing, and BFSI. Mid-sized organizations are also
seriously evaluating this technology.

Today, enterprises are looking for 'real time communication' that is
integrated with their IT infrastructure and business support systems. The trend
is also shifting toward adding mobility features like GSM gateways and
information mobility on the basic PBX platform.

Apart from technologies such as CTI support and ADSL capabilities, most PBX
systems in the future will have integrated soft switching capabilities, which
will become a standard feature so that extension users could sit at remote
locations and remain connected to office PBX over the IP cloud, and SIP phones
connected to DSL connections will behave as office intercoms.

In the future, IP-based solutions are likely to enable companies to deploy
key services such as real presence solutions, unified communication, video
collaboration solutions, and other value-added options such as the directory and
XML integration application. It will also help in running various business
productivity IP applications like directory assistance, live updates on
inventory, orders, sales figures, stock markets, and general information on
market, weather alerts, etc.

Communication-enabled Business Process (CeBP), which connects the customer's
business process to IP telephony communication and helps accelerate the
customer's business process, will also be in demand.

However, IP telephony and voice solutions face certain challenges that can
impede their growth and reflect on the growth of IP PBX. In India, the biggest
challenges faced by IP telephony were regulatory restrictions imposed by the
Indian government and interoperability issues that result from a lack of
standardization.

Till recently, a single infrastructure was not allowed in India. However,
with TRAI notifying approval for “logical partitioning” of public switched
telephone networks (PSTN) and closed user group (CUG) networks, enterprises,
service providers, application software developers as well as Internet telephony
vendors have many reasons to rejoice.

Corporate users can now slash down the investment that goes into setting up
networks, as they would not have to manage the expenses of two separate PSTN and
CUG networks.

Due to the lack of standardization, interoperability is a major concern.
However, with the adoption of standard protocols such as SIP in the call control
engine, organizations can integrate their legacy or hybrid systems, thereby
preserving their investment. However, full convergence can further reduce cost
and improve RoI for the customers implementing IP telephony. But it would take
some more time.

Another challenge, though small, is the availability of the centrex
functionality from leading operators. Although this is affecting pure play PBX
players, it is contributing toward growing and further evolving the PBX market.

The PBX industry is witnessing an evolutionary process with radical changes
on the technology front. The maturing of IP-based voice transport has seen the
world of telecommunication undergoing a major shift. Today, IP-based voice is
universally regarded as the future of telecommunications.

Previously, data was a small constituent of the overall telecommunications
traffic, so it went over voice networks. However, the existing circuit-switched
networks are not optimized for data and are not really that efficient.

With technologies such as IP telephony being introduced, the definition of
enterprise communications has changed. Hence, continuous enhancement of product
mix is an absolute necessity to not only meet technical challenges head on but
also to lead the market.

Cost Effective Systems

Though the initial costs of acquisition of a hybrid or IP-PBX system may be
higher than that of a conventional TDM box, the recurring costs on many aspects
are lower, thus, lowering the total cost of acquisition.

Savings are in terms of better inter-office and intra-company communication,
lower support costs (travel and training costs are reduced significantly), and
lower staffing costs (less or no need for deployment of technically skilled
manpower).

IP telephony and unified messaging, including voicemail, conferencing-audio,
Web and video, and business applications, can be integrated on a single
platform. What's more, there are costs involved in changing seats or adding
seats that get circumvented as well with advanced PBX systems in place.

The Right Vendor

While choosing a vendor, one must ensure that the vendor is reliable and has
a good reputation in the market. It is important to not get carried away by
cheap solutions that claim they are IP-PBX systems, but turn out to be TDM
systems with only IP phones connected to them. Backward and forward
compatibility should also be taken into account. There should be a clear process
and path for upgrades and migration and, the installation, which accounts for
major costs and troubles, if done improperly, should be done by a certified
installer/integrator who has a lot of experience. Also, one should not forget to
do reference checks and testimonials should be demanded, which prove the vendor
and the installer's experience in the domain.

It is not necessary to deploy a hybrid or IP-PBX system just for the heck of
having the latest technology unless you have a need. Otherwise, it may burn a
hole in your pocket. One must utilize the benefits offered in full for only then
they can make a wise investment decision.

• One must ensure that the vendor is reliable and has a good reputation in
  the market.
• It is important to not get carried away by cheap solutions that claim they
  are IP-PBX systems, but turn out to be TDM systems with only IP phones
  connected to them.
• Backward and forward compatibility is a must.
• There should be a clear process and path for upgrades and migration.
• The installation, which accounts for major costs and troubles, if done
  improperly, should be done by a certified installer/integrator who has a lot
  of experience.
• Reference checks should be done and testimonials should be demanded which
  prove the vendor and the installer's experience in the domain.
• Do not deploy a hybrid or IP-PBX system just for the heck of having the
  latest technology unless you have a need, otherwise it may burn a hole in your
  pocket.
• One must utilize the benefits offered in full for only then they make a
  wise investment decision.

Depending on the industry and their customer demands, an organization may
evaluate vendors on the following parameters to improve productivity and
effectiveness:

• Real time applications such as voice and video calls quality
• Messaging in terms of voice mail/email/unified messaging
• Softphones and SIP phones usage on the PBX
• Rich presence engine and communication-enabled business process
• Conferencing (audio, video, and Web)
• Mobility and collaborative solutions

Sandeep Budki

sandeepb@cybermedia.co.in