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Fast Forward

December 2004, Issue 22
VOIP Skeptics No More

Voice over IP can save enterprises $525 to $1,512 per user, according to a Nemertes Research study. PlumChoice Computer Help, an online computer-support company with a distributed staff nationwide, started testing VOIP services in September with 15 employees. Company CEO and founder Ted Werth estimates that telecom costs have come down 20% to 30%, and he plans to incrementally transition staff to the service.

While other small and midsized businesses will likely follow Werth's lead, large companies also can see significant savings. By converging their networks, large companies can cut local-loop costs by $9,600 to $28,000 per site annually, while midsize companies can cut $4,800 to $9,600 annually, the survey says. ShoreTel and Nortel offer the least-expensive startup costs, while Avaya and Cisco's prices were highest, Nemertes says. Startup costs—including hardware such as IP PBXs and handsets, and planning and implementation services—were $525 per user in deployments of 1,000 users or more, and $763 for 100 users or fewer.—Patricia Brown