Phone Switch

Michael,
All of the vendors you mention can certainly handle a single site 50 user configuration. The issue of whether or not you want to go hosted is another issue that comes into play here, but given the fact that you are asking the question, and you are the Controller, I would steer you in a different direction. My advise is that since you have what appears to be a fairly straight forward situation, it comes down to confidence and support. I would bring in several vendors to pitch both equipment based (Avaya, Shoretel, Cisco, etc) as well as hosted solutions.

I get the feeling that ultimately, you don't care what the solution is as long as you get a dial tone when you pick up the phone and possibly have voicemail and a couple of other features. The bottom line is that you pick someone who will be there after the solution has been put in place. You will also need to make sure that your vendor has engineered a suitable back up infrastructure with POTS lines in the event that your main circuit goes down. Being a finance guy, you will also be interested in the Total Cost of Ownership. Once you go through this process, you will find something that feels right for your organization. The key is feeling that you are not alone once you cut the check for your solution.

Regards, and Happy Thanksgiving.

George Ruzzier

I hope you're managing all this information, Michael. The range of responses here shows the value of Focus.com. There's a lot to consider here - esp the hosted option, and hopefully you are looking at more options now.

As an independent analyst, Derek's response is great if you want to stick within that comfort zone of vendors. His type of first-hand experience selling all these systems is invaluable for your decision-making.

Most of what I would tell you has been covered in these comments, but will also steer you to the Focus Buyers Guides, where you'll get a broader assessment of vendors beyond the 3 in your list. There is no shortage of qualified resellers/integrators here who can give you great technical advice, and you're going to need that for sure.

If you want to move beyond this, though, and consider hosted, then I would suggest you get input from a few sources, esp those that offer hosted. Again, Focus has a Buyer's Guide for this too, so that's a good starting point.

Hi Michael,

I work for Cisco, but I will try and be unbiased!

Many organizations are realizing that this is more than about a phone system, this is now about a communications and collaboration platform that can transform your company, business and customer relationships. If you want to transform your business I would recommend looking at the full communications and collaboration capabilities of each to compare.

I would also recommend documenting your existing environment and identifying areas where you want to improve, as this will help you select the right solution.

The more detailed you are on what your current systems capabilities are, and how you would like to improve things the better you will be able to assess each offering.

Here is a Cisco video that may help explain what I mean.

http://www.cisco.com/cisco/web/solutions/small_business/solutions/communicate...

Best Regards,
Colin

Michael,

At the risk of offending those that are promoting a particular product, I will give you some independent advice. It appears to me from the way you asked the question that you have already decided to review the 3 companies listed. So, I'm not going to speak to hosted as a solution since it doesn't look like you are considering it. Besides, it would not be my recommendation based on what you've told us. And, to clarify, I often recommend hosted in the right environment.

I have designed and sold both Avaya and Cisco in the past and I know the ShoreTel system quite well since I have sold against it many times. So, here is my opinion on them based on my knowledge and experience with them.

Cisco is a fine solution for your business telephony. At your size you can expect to pay about $1000 per user (maybe $800 at best) on the Cisco Unified Communications Manager Business Edition. It packs a lot of UC and mobility features into it. However, if you look to upgrade your network environment such as Cisco will try to do, you will find it much cheaper to implement HP or Juniper. HP and Juniper also have user friendly OS's. I'm sure you will find Cisco to be the most expensive solution and will have the lowest TCO. My biggest concern with Cisco is the complexity of the operating system. Most companies your size are not going to want to have a CCIE on staff just to manage their telephony.

ShoreTel will be the easiest to implement and manage. You can probably expect to pay about $750 per user. I like the ShoreTel system a lot, but you may find it difficult to find a solid vendor in your area that will be around for the long haul. They're weakest link has been they're go to market strategy. At least, that has been their achillies heal in the past. ShoreTel will integrate just fine with networks based on HP, Juniper, Extreme, etc. This is a straight IP, SIP 2.0 system that comes with plenty of features for a business your size.

The most suitable Avaya platform for your size would be the IP 500. You can expect to pay between $500 - $750 per user for this system. The advantage that the Avaya system has is the hybrid technology capable of utilizing analog, digital, IP or a mix of endpoints. This can be a huge advantage if you are in an older facility that still has Cat 3 wiring. The IP 500 also has the most out of the box features compared to Cisco or ShoreTel. I think you will also find Avaya to give you the most bang for your buck and the highest TCO.

All 3 systems can accept straight SIP, PRI or analog line hand-off. So, you won't have to worry about carrier compatibility.

Overall, if it were me, I would go with the Avaya IP500 based on the price, wide availability of support and built-in features. ShoreTel would also be a good solution if you have the support from a good vendor in your area.

I hope this helps.

Mike,

I work for a reseller and have experience with all the platforms that have been discussed.

The three manufacturers you mentioned are at the top of the pack with Avaya and Cisco well ahead of everybody else according to Gartner. Both of them have solutions that will meet your needs in terms of scalability and price.

Shoretel also has a pretty good technology for your size company. The thing that worries me about them in the long-term is their financial outlook. This is from their CEO in one of the recent 10K's "If we are not able to grow our revenues or maintain our operating expenses at appropriate levels based on those revenues, we may not succeed in achieving or maintaining profitability in future periods. We also incur significant operating expenses and have recently announced that we plan to increase operating expenses in order to fund our growth. If our gross profit does not increase to offset these expected increases in operating expenses, our operating results will be negatively affected. You should not consider our historic annual revenue growth rates as indicative of our future growth particularly in light of the current economic environment. Accordingly we cannot assure you that we will be able to return to significant revenue growth or profitability in the future."

You do have two other options:
1. Hosted: This is a great solution but I view this as more of a short-term solution. If you're looking at exponential, game-changing growth from your company, it may be a good temporary system until you figure out exactly what you want in your system. The reason I say it's temporary is because if you do a long-term ROI analysis, hosted normally is steady with premise-based system for 2-4 years, but then they're much more expensive.
2. Open Source: The beauty of the open-source community is nobody owns the code, so it's dirt cheap (or free). The Achilles Heel is that nobody owns the code, so support is an issue. You can't just call the manufacturer if your vendor doesn't know what they're doing. I know there are lots of companies out there that will flame me for saying there's no support, but the vast majority of them have massaged the code to work for their needs and their support. If they get out of the business or go under, who picks up the support? Given that scenario, other companies can't just walk right in and pick up where the previous vendor left off. If you choose Avaya or Cisco, you can at least be guaranteed there are enough other partners out there that if it does go wrong or the vendor goes under, people are there to pick up the pieces.

All that being said, I would ask these questions:
1. What is my in-house technology expertise? If you go pure IP or go with non-standard gear, there may be additional overhead from IT staff.
2. Is my data network ready for voice traffic? Get a 3rd party analysis to put actual voice traffic on the network to determine the readiness. This should run about $1500-$2000, but could save you tens of thousands in change orders and rework.
3. How important is my phone system to my business? Is it simply dial tone? Do I take customer orders? If it's important to your business, spending a few thousand extra is well worth it.
4. How much experience does the vendor have? Don't ask for 3 references... anybody can come up with 3 customers. Ask for 20 and then pick a few out of that list to talk to.
5. How comfortable are you with the salesperson and the company? We've had people running the same system for 10-15 years and we may only hear from them about every 5 years... but they know we're here.

Good luck,
Bil Moore

Based on what you are asking for, an on site PBX, there are many to chose from that will give you years of reliable service at costs that are probably lower than you have specified.

Many have advised you on hosted plans, and have even pointed out the weekness of an onsite PBX, that you lose service when you lose connectivity.

Yes, your hosted service will work when you lose connectivity to your office. Good luck using it that way, you can't even call extension to extension when you lose your internet service, you can't reach voicemail, etc. without that lifeline. and, what will you do for redundancy in that scenario

With an on-site PBX, you will have redundant connectivity via VOIP servicer, as well as analog or PRI services to ensure connectivity. That is the type of reliability you are going to need to have a serious telephone network.

And, we haven't even touched on voice quality yet, which you will not get from a hosted service unless they can provide you with QOS from end to end.

Look at the many systems on the market. You have named three common one, and there are many many more to chose from as well.

FInd several reputable dealers, have them do a cook off of their products with demonstrations, reference accounts, and build your own comparison based on your companies requirements, you will find a method of saving money, improving communications with new features, and a reliable service to last you for many years to come.

Hi Michael,

I am a big fan of your products, absolutely wonderful!

There is alot here about Cisco, Avaya and ShoreTel, all excellent systems. For in installation your size you might also want to consider Allworx. It offers the same benefits about nearly half the cost, is an excellent key system replacement and offers a thinner hardware profile that will connect to POTs, PRI or SIP with little or no change.

Hello Michael,

Excellent question. The companies you mention (Cisco, Shortel, Avaya) are all great companies and their products are solid.

However, I would encourage you to look at one other scenario for your phone services, and that's hosted. With traditional hardware PBX, you would get your numbers from a carrier (typically supplied via SIP trunk), then the hardware PBX from a vendor with a local interconnect (telecom reseller) to install it. Some of it can be self-installed, however.

But with hosted, the phone numbers, DIDs, and the phone system are all hsoted and not on your site at all. The only thing on-site would be the phones on your desks and/or softphones on your computers.

Hosted is becoming extremely cost effective today as there are no up front costs for PBX hardware except the phones, which range from $100 - $500, depending on the functionality that you're looking for. Softphones are mostly free in this market as well, as they are purely a download.

Typically there is some type of monthly fee for each person -- or seat -- ranging from $25-$50/seat/month, in the low- to mid-range markets. You can upwards of $100-200/seat in the call center markets. These prices would typically include "unlimited" inbound and outbound calls. Toll-free would typically be an extra cost, ranging from 3-6 cents/minute.

Also remember that with this type of solution, there would be no need for a local carrier to terminate lines to your office, unless you specifically need something connected to a landline like an alarm, credit card processing, etc.

I hope this gives you another perspective as you look at replacing your old phone system. If you have any questions, please don't hesitate to let me know.

Regards,

John Coyle

Hello Michael,

I agree with John. With a hosted PBX, you don't have to buy an expensive system that will either become obsolete or you will outgrow before it's life cycle is over.

It makes much more since to go with a reputable hosted VoIP vendor. Customer service is a big part of the picture so you want a campany that is responsive to your needs and also works with open standards like SIP.

I offer a free telecom assesment for SMB's and can recommend some reliable vendors who are first class in service and reliability. Just let me know and I would be glad to help.

My best regards,
Paul Harned
Divergent.Biz

Hi Michael,

George brings up a very good point in regards to telecom disaster recovery, which unfortunately gets left off of a lot of disaster recovery and business continuity plans.

With premise-based equipment, there is more work that needs to go into a telecom DR strategy because equipment exists on site. As George mentions above, a failover needs to be put in place like POTS lines. This unfortunately does increase the spend with a telephony carrier.

However, one thing to keep in mind about the hosted phone systems is that they are NOT on site. That is a plus when it comes to telecom DR planning and strategy. The only item that is on site is the actual phone instrument. If, for some reason, your site becomes a smoking hole, the worst that would happen is the caller would get voicemail.

In fact, to take it a step further, most hosted phone services have the ability to do "follow me" calling where an employee's extension would ring the IP phone on their desk and/or their softphone on their computer. If they don't answer, it could rollover and try their cell phone or some other contact phone number. Also, your employees can run softphones on their laptops while out of the office, giving them the same experience as being in the office. As a result, your entire employee base could work at home between the year-end holidays and your callers would have no idea.

Finally, as your phone system is one of the most important customer communication methods, look for a hosted phone service that has a reputation for high reliability and provides five nines (99.999%) uptime.

Thanks much,

John Coyle

To Jon's point, I also recommend looking at the white papers that can be found here at Focus. Also, take a look at Current Analysis and Gartner as trusted resources.

John...Good call. I agree, Allworx is a very good fit for this size. PAETEC does a very attractive bundle with their SIP product and the Allworx system for a low monthly payment.

Hi

Have you considered looking in to Mitel systems - we offer both hosted and premise based solutions. Depending on your customers requirements for business continuity and functionality Mitel offers both IP and IP/Digital platforms tailored for the SMB market.

Also as an fyi - the T3i Group has just published a great SMB UC Buyers Guide that you may want to take a look at:http://lnkd.in/pXSARh