Warning on IP cost savings

The main reason for implementing IP telephony (IPT) systems is to save money on the cost of calls, according to research by the SAS Group.

According to the survey, 39% of respondents listed this as their main motivation, ahead of upgrading an existing network which was the top choice in 2006.

Over half (57%) of respondents indicated that reducing expenditure in some form was their main reason for implementing IPT, with 11% expecting to save money on video conferencing between offices and a further 7% hoping to minimise network carrier charges.

But the SAS Group is warning that reducing the cost of calls is not on its own does not make a business case for an IP telephony installation.

“While many organisations do see some financial advantage from their IPT systems, this is usually in the form of a reduction in IT support costs or improved staff productivity,” said the company’s chief executive Charles Davis. “These installations are expensive and achieving an ROI is unlikely to happen overnight.”