The rise of the enterprise IP telephone: alternative to PBX systems provides new functionality - Telephony/CTI: next-generation phones

The benefits of high-quality voice, superior security, reliable operation and cost-efficiency are spurring a global corporate shift from traditional PBX systems to LAN telephony solutions using voice-over-Internet protocol (VoIP). By combining the functionality of conventional telephony with the latest developments in Internet-based communications, next-generation IP phones offer a host of features and functionality that increases user productivity, lowers costs, provides immediate access to key company information and supports graphical call functionality.

The future of IP telephone technology will revolve around the quality of features offered to the end-user. As VoIP products continue to emerge and influence the telephone marketplace, they will be driven by their ability to deliver enhanced functionality directly to the phone, as well as to reduce costs. With the cost to implement and operate IP telephony systems already significantly lower than traditional PBX and legacy systems, price will no longer serve as a determining factor in the purchasing equation.

Armed with VGA touch screens and HTML technologies, enterprise IP telephones now allow users to easily customize information delivered to the desktop. Visual content can be delivered with every voice communication, with no degradation in voice quality.

In addition, Web data associated with inbound and outbound calls can be retrieved immediately from Internet or intranet sites and displayed on HTML-enabled screen IP phones. This directed communications approach gives businesses the ability to use visual impact to alert customers to product promotions and special offers, and to strategically present "must-know" information to employees.

In today's fast-moving, global business environment, the ability to provide employees with seamless extensions of the enterprises' IP communication methods has become increasingly important. Next-generation IP phones already offer a high level of portability.

Using an enterprise IP telephone, an in-office employee can move from his primary office location to another office or conference room by unplugging his handset, bringing it to the new location, plugging it back into the network and logging on. The IP phone retains all of the user's personal settings, including address book and speed dial. Perhaps most noteworthy, the transfer takes place in a matter of minutes, without the assistance of a system administrator.

Another feature for in-office communications is the ability to extend call transfer and group messaging functionality to telecommuters and field employees.

IP telephone systems also help remote branches present a unified appearance to customers, through the use of extension-to-extension calling. This functionality gives customers the reassuring sense of communicating with the "main office," even when calls are directed and responded to elsewhere.

One of the most tangible factors that will drive companies to trade their legacy phone system for a voice-over-LAN solution is price advantage. LAN telephony systems are currently 30% less expensive, on average, to install than comparable PBX systems. They also come with a network-hosting option that significantly reduces capital equipment expense.

LAN systems offer administrative support savings, as well. A direct connection to tee enterprise LAN avoids the need for businesses to use traditional, proprietary phone systems. In addition, the system's data-centric voice network simplifies the time-consuming process of changing, moving or adding employee telephone extensions.

Graphical call functionality available on the phone will allow businesses to better manage call-center traffic and increase employee productivity. A call center using VoIP technology, for example, will have the ability to combine voice and data. The IP phone will provide the service representative with the customer's name and account number on screen as the calls come in.

For leading-edge companies, the future of IP phone technology is here, offering new and innovative ways to communicate throughout the enterprise. Industry analysts predict next-generation enterprise LAN telephony solutions using VoIP will penetrate the telephony marketplace at a rapid pace in the upcoming years--increasing from $654 million in sales this year to $3 billion by 2005. Feature-rich innovations will propel the ability of the end-user to employ the phone as a single device, conversing with customers, while simultaneously tapping into the power of the Internet.

Carman is IP phone product manager for Texas Instruments, Broadband Communications Group, Dallas, TX.

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