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Can SIP Really Deliver Cost Savings?

By Mohamad Ali | May 13, 2010

Most CIO’s are looking for cost savings from new technologies much earlier in the adoption process than they used to. And so the question arises, can SIP really drive operating costs out of the enterprise? The answer is unequivocally yes. Here’s why.
Early IP telephony was accomplished using some flavor of H.323, which made it possible to transmit ISDN type traffic over a packet network, and had the advantage of being very similar to technology already used by PBX, conferencing and voice messaging vendors. However, there was a missing link. Most vendors had their own proprietary methodology for extending functionality and this did not fully go away in the move to H.323. In fact, interoperability between nominally H.323-compliant systems was always an iffy proposition at best.
And so SIP was born, intended to mirror that other great protocol ; Hyper Text Transfer Protocol (HTTP). There was an intrinsic understanding that Web content was not and should not be limited to one type of media and HTTP allowed the transfer of different types of content ,allowing them to be easily formatted and understood in a standard fashion. SIP does the same for communications. It defines a range of elements that can be exchanged between applications/users (voice, text, video, etc.). And it provides a simplified addressing system that enables the exchange of media between users based on what their chosen device can handle.. But where are the cost savings?
CIO’s are finding that the main cost savings in three areas:
? The openness of the SIP protocol allows enterprises to more easily link disparate systems from multiple sites enabling an integrated communications ecosystem. Near term results come from the resulting toll-cost reduction, least cost routing and even hardware reduction.
? The ability of SIP to move “information” with the call can reduce call resolution time, lowering customer service costs. It allows for more intelligent CTI applications.
? And finally, SIP is the great translator, it lowers the barrier to application developers making it quicker and less expensive to develop and launch integrated applications across the business.

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