SIP Trunking:Latest Miracle of the Internet?

Are you ready to take a sip of SIP? SIP trunking for voice calls,though still in its infancy (in practice commercially for about 5 years), is fast becoming the darling of enterprise voice protocols and high on the tech toy wish list of many of my CEO clients. I predict that SIP will become a major player in voice standards of most business enterprises within 5 years. Why am I making such a bold prediction? The more I study and learn about the virtues of SIP trunking and talk to my clients about their actual experiences, I am convinced that SIP trunking offers a reliable and flexible voice technology option that can deliver huge telecom cost savings with clear advantages over traditional TDM and VOIP technologies.

One of the great things about SIP trunking is that businesses don’t necessarily have to make an immediate choice between fully migrating SIP trunking right away; they can continue to use all or parts of their traditional PBX, VOIP and traditional voice services and current and previous hardware investments in concert with the new SIP voice technology. I.T. managers can simply complement their current business services with SIP and TDM technology and continue to apply those practices in a way that takes better advantage of their unique voice facilities and requirements in concert with SIP trunking. Also, one can continue to use current bandwidth from their current internet service provider without having to change that. All that is needed for this versatility in services and reliable QOS with a SIP trunking gateway (often provided to customers for free by the SIP trunking carrier in exchange for their service).

When we talk about reliability of SIP trunking, SIP trunking is equal to or better than traditional voice calls over the internet. Customers report that calls are crystal clear and often of higher quality than most VOIP systems. SIP trunking also provides greater functionality for versatile applications like unified messaging and disaster recovery. Why? Because SIP trunking is IP intensive, therefore, disaster recovery with SIP trunking most often involves quickly and easily changing to different IP POP destination within the SIP network when a disaster occurs. And, that ability to quickly change voice termination protocols is also very helpful in reducing costs.

There is something for CFO’s to like about SIP to help with their balance sheets. There can be huge telecom cost savings associated with SIP. SIP trunking allows one to have as many concurrent voice pathways as needed at any time, and those pathways can be readily increased or decreased in number. On the other hand, with a traditional PRI arrangement, your enterprise is confined to 23 analog trunks (outbound or inbound or both) and only one single assigned digital pathway. If you use only half of those PRI trunks, you are wasting half the cost of the PRI. With SIP trunking, you simply change or order the highest number of pathways you need for a specific amount of time, and those numbers of pathways can be tweaked daily or hourly if you wish, depending on your voice traffic needs and how often they change. With SIP, you don’t need to order and install or turn up a PRI if you need additional voice traffic; you simply turn up the SIP bandwidth faucet or number of pathways with your service provider. The same goes with lower voice traffic. Again, you tweak the number of virtual pathways you need to comply with your call traffic. If your organization is large enough, you can also pre-order wholesale SIP minutes, which are essentially pay-as-you go SIP cost arrangements. How does less than a penny per minute for reliable long distance sound? How about the same cost for calls across the ocean to Europe and Asia? These kinds of pre-paid arrangements work well for very large enterprise customers and smart wholesale telecommunications providers, who buy huge blocks of wholesale SIP minutes, then resell them to smaller customers at a markup. The calls are clear and the cost is cheap. So we’re seeing a lot of small operators become telecommunications carriers using SIP.Another cost advantage of SIP in this scenario is that companies can easily utilize least cost routing or route calls to their on-net carrier of choice by way of the cheapest telecommunications point of presence or POP.

Although SIP is not effective or recommended for businesses with predominately large volumes of local calls, SIP can be extremely advantageous for any business routing calls across the country or to Europe.

In summary, unlike in the past, rather than having to gulp down the new technology, why not take your time and take a gradual sip of SIP technology?

Is your enterprise interested in learning more about the advantages of SIP trunking technology for telecom cost savings? Contact a SIP trunking consultant today for a free consultation regarding how SIP technology help your enterprise realize lower telecom costs.

A Telecom Audit By Any Other Name

April 26th, 2010 by Mark Evans at BottaBoom.com, A Business Telecom Analysis Company

I’ll Take One Telecom Audit by Any Other Name Please

As a former mid-level manager for a large financial institution and a corporation, I was never comfortable with the word “audit.” Like many people, I was extremely apprehensive about my telecom department being subject to a telecommunications audit! In fact, I even lost a few nights’ sleep over it, even though I had been in charge of the telecommunication department for less than a year and I had full management support for what I was trying to accomplish.

Managing worldwide telecommunications is stressful enough without having a full-blown audit thrown at you, too. However, after I saw the astounding results of telecom cost savings, the audit became more acceptable to me, and I was able to see the process as being positive for my company, my staff and myself. I was able to buy more high-tech toys for my I.T. department, increase staff and gain more control over my telecommunications billing network as a result of the telecom audit. In fact, I ended up enjoying the telecom audit project so much that I eventually became a telecom auditor myself!

Nevertheless, now that I am a professional telecommunications auditor serving many other companies, I still don’t really feel comfortable with the word “audit!” My clients, peers and most I.T. employees I talk to don’t, either. Others have even opined that the word “audit” produces a feeling of anxiety and they foresee visions of a witch hunt or a method that might be used to embarrass someone or exploit a management or system weakness. Will the audit itself be used as a way to get someone fired? In the modern telecom audit world, those fears with some telecom audit projects are not totally out of line.

Face it, nobody really wants an outside consultant (stranger) coming in to their company and telling them they can do a job a lot better and more efficiently, and find telecom cost savings of up to millions of dollars. There is the danger that any kind of an audit can produce the feeling that one is under close scrutiny, or that someone is looking for negative information with an audit. Folks who have some pride in their work (most of us) know that having one’s department or work being thoroughly analyzed can be unsettling.

Upon presenting huge cost savings to upper management, “whose fault is that? Or who should have known about these problems?” are questions I have been asked many times. My truthful response has most often been, “only a professional telecommunications auditor could have found these particular issues; they are beyond the scope and expertise of most I.T. employees and managers.”

As I think more about the word “audit” and its often negative perception in the corporate world, I wonder if that is why a great number of companies do not choose a telecom audit in order to reduce the billions of dollars of telecommunications overcharges stolen by the phone companies every year. Think about it: if you save a million dollars for client CFO’s, does that put them in the hot seat or make them a company hero? I’ve seen upper management and directors perceive huge telecom audit cost savings in both ways.

So there is some risk in the telecom audit outcome. However, overwhelmingly, smart managers know that cost-cutting is great business and the right thing to do, and proprietary telecom staffs are simply not equipped to outsmart the telecommunications companies. Nevertheless, I’ve seen CEOs and board members get testy when shown huge telecom audit savings results. After all, its human to be upset at discovering a wasteful financial drain.

As telecom auditors, we must be aware of the real perceptions of corporate employees and managers as they view our profession and our huge cost savings and financial impact on their companies. Again, achieving significant cost savings can create a controversy within an organization.

That is why during the telecom audit process, it is so important to build bridges and display and genuinely stress positive teamwork with the client. The client must understand that they are a vital part of the telecom audit project’s cost saving success and they should share in that success. Moreover, that they should embrace getting a telecom audit, not fear it. However, people will still have their own perceptions about what an audit does, but it depends on their situation within the organization and how we as professional telecom auditors mold the business community’s perception of what we do in a positive way.

In this environment of huge cost-cutting and cutbacks by American businesses, we telecommunications auditors and others related to the industry know that a telecom audit is a great way to gain telecom costs savings and cut expense items on one of the main three largest expense items in a large company’s capital budget. Every business should have a contingency-fee based telecom audit. There is nothing to lose and everything to gain, but many still don’t choose to have one. Why is that?

I have a couple of theories why the floodgates aren’t open and the hundreds of expert telecommunications auditors are not given the opportunity to attack the billions of dollars in potential telecommunications savings often enough at this particular time in our country’s history. First, let’s go back to the “A” word. Line employees fear losing their jobs; subjecting them to a telecom audit might push them over the edge or make them feel they may be next out the door. Second, upper management is also in fear of losing their jobs, and exposing a huge amount of telecom cost savings under their watch might push them out the door. Put simply, it’s called CYA. Getting corporate wide acceptance of a comprehensive telecommunications audit is rare.

Merriam Webster’s definition of the word “audit” is actually pretty tame: “A formal examination of an organization’s or individual’s accounts or financial situation or the final report of an audit-a methodical examination and review.” Most of us could live with this definition. However, as we look at other audit definitions on the world wide web, particularly as they relate to the term “financial audit,” I found some negative word descriptions such as “scrutinize”, “inspect,” “examine,” “verifying reliability” and “integrity of information.” If these terms are what some people expect from a telecom audit, then we need a softer title and description for what we do that is more in line with Merriam Webster’s definition of “audit.”

A prospective telecommunications audit client should look at it this way: you are a CFO and in charge of lowering telecom costs. You’ve been in charge of telecom finance for many years. You are responsible for expense and checks and balances. As a good manager who wants to ensure you’re getting what you pay for and cost controls, you hire a telecom auditor to perform a telecom audit. The audit finds you’ve been overpaying by millions of dollars over the years, and your favorite employee, the I.T. manager, has cost the company a huge amount of money because his staff has not properly reviewed the telephone invoices. Although he is short staffed and ill-equipped. How is your CEO going to perceive the telecom cost savings situation?

Telecom audit companies must do a better job of getting the majority of companies out there engaged in a telecom audit. My peers and I are anxious to recover the billions of dollars out there being wasted by potential clients and so should U.S. businesses.

My recommendation is to rename the telecom audit project to be reflected as “telecom analysis project.” We are no longer telecommunication auditors, we are telecommunication analysts.

Please share your thoughts and comments with us below.

Does your company need a contingency-fee based telecom cost savings audit? Call the telecommunications audit professionals at 1-888-487-5326 or contact us at Telecom Audit.

Rent a Temporary Telecom Manager

Business Cost Control Strategies

I cannot tell you how many times I’ve started a new relationship with a client whose telecommunications invoices totaled several thousand dollars a month across a wide network of locations, and the company employed only one (unqualified) person to manage all their telecom billing and ordering. Unfortunately, the result is always the same: these companies had been unknowingly hemorrhaging money for years by overpaying outrageous sums and erroneous charges for their telecom services.

Bringing in a professional telecommunications consultant (AKA, a temporary telecom manager) with appropriate resources and experience makes sense. This can effectively fix ineffective cost management and show quick, dramatic results. In today’s economy, you could easily bring in an outside expert on a temporary basis, because many great former telecom managers are out of work and working as consultants. Why not take advantage of this win-win opportunity?

Why do so many company executives still insist on using an in-house employee to manage their telecom billing? I have come to realize that they just don’t understand why this doesn’t usually work to their best advantage. They are stuck in old ways of thinking – not like the competent businesspeople they usually are.

Not only is it unfair to dump telecom management duties on some unfortunate, ill-prepared employee, but these poor souls are also destined for ultimate failure and blame. Having a person inexperienced in the intricacies of managing complex telephone bills is not conducive to running a solid, more profitable business.

A great many employees who manage the telecommunications function in-house have been assigned the task because it’s been delegated from management, often because no one else wants to do it – not because they are qualified to take on the role. These employees often fail, and not because they don’t want to do a good job. It’s because they have not had the necessary cost-cutting education that consultants get by routinely working with hundreds of different telecom vendors, a wide variety of complicated billing technologies, constantly changing promotions and special offers, and executing proven cost-saving processes.

What’s more, in the recent past throughout corporate America, many valuable in-house telecom managers were phased out as VOIP and IT-intensive services and technologies took over, making some of their formerly valuable services expendable. Nevertheless, those same telecom managers are still available to lend their telecommunications audit expertise as valuable business consultants who can still help companies save money. They have the background and experience to help.

Another reason small companies lack competent employees to oversee telecom activities is that many medium-sized companies believe that they cannot afford to hire someone with experience. This is a huge mistake. Employees who manage telecommunications costs that total over $50,000 each month usually justify their salaries with the cost-saving techniques they bring to their job. Your investment pays off with their expert industry knowledge, negotiation skills, and ability to get your company the best price for telecommunications services. This type of employee – as well as cost consultants – should be able to justify their existence through the actual cost savings they produce.

For smaller companies, finding an in-house qualified person to manage telecommunications vendors and telephone spending is not realistic. For companies spending less than $50,000 each month, the expense of a full-time employee to manage the phone bills is not usually a good financial investment. Instead, these businesses should rent a telecommunications manager-consultant, even if it’s for a only a few months. This person can cut spending and get control of your telecommunications billing network. It makes great financial sense, and it works because great savings are always produced.

Smart business people bring highly qualified, objective and impartial outside professionals (AKA, a temporary telecom manager) on board to manage and audit their company’s telecom spending. Contingency-fee-based project management consultants are a great way to do this. Since there is no out-of-pocket cost, there is no risk. If the consultant doesn’t generate savings, there is no cost.

Proven management consultants can save many more times their actual fees by doing the specialized telecommunications work for companies. These consultants understand that when entering into a consulting relationship that the work is not permanent. They are expected to evaluate the current situation, clean things up, produce dramatic cost savings and depart.

The byproduct of a consultant’s participation is a more profitable bottom line to the clients and companies served. Some would argue that companies should just hire a telecom expense management company to take away the task. However, the main difference between a telecom auditor and a telecom expense management company is that telecom expense management companies are there for the long run, and you might find yourself somewhat stuck with them. With a temporary telecom manager, a short-term expert fixes problems and leaves you with a smooth-running operation.

For most executives, it makes more sense to rent a telecommunications manager to manage their expenses. All CEOs, CIOs and CFOs should consider outsourcing telecom billing expertise for just a few months and see what I’m talking about. You can measure the actual value to your company’s bottom line.

As a telecommunications management consultant myself, I have found that telecommunications departments that are in most disarray either have employees lacking telecom expertise or cannot afford a full-time telecom manager. These are my best kind of client. I am able to help them with substantial savings that accomplish a satisfying financial goal of improving the bottom line. I am able to find many economies for these clients.

The temporary telecom manager is able to create a positive impact on an organization by swooping in and saving many thousands of dollars in real bottom-line company savings. What’s more, as telecom consultants, we can bring control and simplicity to a chaotic situation: untangling the confusing corporate telecom billing process, investigating and securing refunds, and showing companies how to perform telecom service ordering competently and wisely.

Need advice or help with your telecom cost savngs? Please contact the telecom audit pros at 1-888-487-5326 for a free telephone bill audit review. If we find no telecom refunds or recurring savings, you owe us nothing!

About the author: Mark Evans is a professional telecommunications auditor with over 20 years’ experience untangling companies’ phone bills and negotiating with vendors to secure savings and refunds for his clients.