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  F E A T U R E

RFP: VoIP Invasion: Are You Ready for It?

November 13, 2000
By Peter Morrissey

The telecom team at eGen tried to keep open minds as the members sat around the conference table sorting out the claims of another vendor hyping its version of VoIP (voice over IP)-enabled phones. The IT staffers were there too, wondering if their data network could be as reliable as the legacy PBX has been. Vendors kept talking about how much money the company would save by having just one infrastructure to support, and how easily moves and changes could be done, not to mention all the cool new applications that could be enabled by this great new technology.


If your company is intrigued by the idea of VoIP and your job is to make it happen or prove that it still doesn't make sense, at this point you could reasonably take either path. Although real solutions are finally available, it's hard to get straight answers from vendors. Can an IP phone system possibly support the features of a PBX? Is it scalable? And just how can we be sure the system won't crash under the strain of too many calls at a time?

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Check out our e-poll on IP-based Ethernet telephones

We designed this RFP to answer these questions. Our fictional company, eGen, makes electrical generators and has been growing rapidly as a result of the high-availability requirements of e-commerce. EGen is renovating a building on its new campus and wants to run voice telephone services on its LAN to save on the cost of cabling for voice as well as to make performing adds, moves and changes easier. EGen requires an initial installation of 2,000 phones (Phase 1), scaling to 10,000 phones (Phase 2) within one year.

RFP Participants

To participate in our RFP, the vendor had to have phones that could connect directly to an Ethernet network and scale to our requirements. This narrowed the list of participants to four: Alcatel, Avaya (formerly Lucent Technologies' Enterprise Networks Group), Cisco Systems and Nortel Networks. We eliminated products such as 3Com Corp.'s NBX solution, which is designed for smaller installations. Our analyses of the responses to eGen's RFP follow, but we recommend you look at the full RFP and the vendors' detailed responses and draw your own conclusions about what will work for your situation.

The RFP responses prove VoIP has matured to the point that four vendors are willing to put in writing the details about their products that offer full PBX functionality and will scale to 10,000 phones within the year. But despite this progress, none of the responses convinced us to recommend a big commitment right now. We would rather you commit to a pilot with one of the vendors, to get some hands-on experience with the technology while letting it cook a little longer.

Given the dominance that the other vendors have traditionally held in this market, Cisco would not have been the obvious choice, but it actually has the most proven technology. Cisco's solution has been out the longest, and the fact that the vendor has installed more than 10,000 VoIP phones in its own organization says a lot for the solution's scalability and Cisco's commitment to this market. It's also by far the best-priced solution. In addition, in response to our request for customer references, Cisco was the only vendor to volunteer a long list of reference accounts, along with phone numbers. For these reasons, we gave Cisco the bid.

Although Cisco is ahead of the other vendors, we aren't very comfortable with the fact that its AVVID (Architecture for Voice, Video and Integrated Data) solution runs on Microsoft Windows 2000. The solution might be more stable than Nortel's offering, which runs on Windows NT 4.0, but it will require testing.

In contrast, Avaya's solution is adapted to its own proprietary PBX. One could argue that Avaya's solution, therefore, has the most potential for stability, but its system won't scale to 10,000 phones until June 2001, after going through a number of software iterations. Alcatel's system runs on a Unix OS, which could make it more stable than the Windows 2000- and NT 4.0-based solutions. Alcatel says it was designed with IP capabilities in mind, yet provides the same migration advantages Avaya offers because the Alcatel system was initially released as a legacy PBX solution.

The lack of choices in phones should also concern anyone considering VoIP. Even though the vendors tout the new open paradigm on which IP telephony has been built, VoIP systems are still even more proprietary than legacy PBXes. With a legacy PBX, eGen or any company can give most of its employees inexpensive analog phones for less than $50 each, from any vendor. By comparison, the only IP phones available are equivalent to expensive digital phones, ranging from $300 to $600, and are not interchangeable from vendor to vendor. Such incompatibility will lock you in to one vendor for every single phone until standards, such as SIP (Session Initiation Protocol), Megaco or some version of H.323, provide more choices. (See "Making Sense of VoIP Standards".)

New Applications

Converged networking enables new applications, such as integrated messaging, which provides a way to view and listen to voicemail messages from an e-mail application. Receiving your e-mail and voicemail messages together, you can select which messages to listen to first. This feature can help a traveling employee who doesn't have to make two calls from his or her hotel to check voicemail and e-mail.

Nortel's CallPilot voicemail solution is compatible with the widest range of e-mail systems. Cisco's voicemail application supports only Microsoft Exchange. Therefore, to take advantage of integrated messaging, the IT manager must use both products. To avoid this problem, we suggest you test a best-of-breed approach, by combining Nortel's CallPilot with Cisco's VoIP phone system. You'll know how well this will work out, however, only if you try it for yourself.

In theory, once your phone runs on IP, it can follow you to any network that talks IP, along with all the features programmed into your phone. As such, VoIP could be a boon for telecommuters. But such transmissions must be done carefully, without opening your phone system to the Internet. To assure security, you'd need private circuits or a VPN; the cost of the latter would be extra latency, degrading the quality of the voice connection.

Our fictional company, eGen, does not have to worry about the power problems that involve most IP telephony solutions, as it uses its own products to back up the whole campus. Unless you also make your own generators, this will be an issue for you. A legacy PBX usually can provide power from a centralized location across the twisted-pair connections, but it's more difficult to do so on an Ethernet LAN. The phones will be on their own in a power outage. Fortunately, each of the vendors provided an option to distribute power to the phones--directly from the switching equipment or via an unused pair that could be tied into a panel providing power. And there's always the option of plugging the phones into outlets in the office. Meantime, the IEEE 802.3af committee is arguing about the best way to standardize power distribution.

Although our RFP asked for a pure-IP phone solution, Avaya and Alcatel made the valid point that their platforms would have the built-in capability to offer legacy phones as well. For some, this might be an attractive way to start before migrating to IP phones. Nortel did not mention its migration plans, but Cisco is clearly the only vendor that would not be able to offer anyone such a path.

EGen also is in pretty good shape from the data networking side, as it has a high-speed LAN already in place. If your company has a WAN with slower links, such a solution will be much more troublesome. All the vendors use the G.711 standard for the transport of the voice packets. G.711 essentially takes the standard 64 Kbps used in PCM (pulse-code modulation) and adds IP headers, bringing the bandwidth usage to about 80 Kbps of data. This would not add a significant amount of traffic on a switched gigabit or Fast Ethernet backbone.

What is more worrisome is that another application might stomp on a network's voice traffic. To prevent this problem, most of the vendors support 802.1p at Layer 2, as well as DiffServ (Differentiated Services) prioritizing schemes of IP packets, from the phone to the server. To save bandwidth, each vendor provides a silence-suppression feature, which means that no data is transmitted during pauses; that's hard for many users to get used to.

The vendors also provide the option of turning on compression using the G.729 standard, which cuts the bandwidth requirements down to about 8 Kbps. This feature is especially helpful for running voice-over-WAN connections, but we recommend testing the quality first.




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