When organizations choose to deploy
a new technology, there is always an investment that must be made. This
investment is commonly referred to as a capital investment or capital
expense.
Return on Investment is the
performance measurement of how an organization will see a benefit on
the investment made. When a UC solution is deployed, there are various
types of cost savings, and these savings make up the ROI. This next
section outlines what investments an organization must make when
deploying a full UC solution, and the factors for realizing ROI.
1. UC Investments
Some organizations will have
invested in UC prior to making the decision to move to a UC solution;
however, it is still important to understand what these investments
are, and ultimately how they can be paid for (ROI).
2. Consider the Capital Investments
The term capital investment in terms
of UC is described as the cost to deploy the solution. When UC is being
deployed, there are many components that can contribute to a capital
investment. Some organizations will categorize certain purchases. For
example, some organizations will spread purchases out over five or more
years, resulting in a distributed capital investment, or amortization.
Regardless of how an organization chooses to categorize its purchases,
the following expenses are most commonly referred to as “capital
expense” or “capex”:
• Licensing
• Data center hardware (servers, storage, etc.)
• Media gateways (PSTN gateways, SBCS, etc.)
• End-user hardware (headsets, IP phones, cameras)
• Implementation costs (staff and professional consulting services)
• Network upgrade investments (hardware and other “setup” fees for network upgrades)
The capital investments will vary
depending on the organization. Regardless of the size of the company,
these investments will be significant.
3. Consider the Operating Expenses
In addition to capital expenses,
organizations also have to consider an increase in certain operational
expenses. Although UC solutions reduce operating expenses overall, it
is common for organizations deploying UC to increase IT operating
expenses.
When organizations consider capital and
operating expenses for UC, there will be a common theme: an increase in
network costs. Network investments tend to make up the most
significant capital and operating investment for organizations that are
deploying UC. In a worst-case scenario, existing enterprise telephony
is not IP based, and because of this, organizations will not have any
real-time voice running over their IP network. This results in a major
investment in network expansion.
In an optimal scenario, the organization is
already using an IP-based telephony system, and the new network
investment must now account for increased usage like conferencing and
video.
The first scenario often requires a
complete network overhaul. MPLS circuits and Internet connections must
be increased, and that often comes with upgraded hardware. The second
scenario involves network optimization. This is a combination of
increasing bandwidth and optimizing connections to provide priority to
UC traffic (Quality of Service).
4. Consider the Committed or “Dual-Run” Costs
One factor in UC ROI that is often overlooked
is committed costs. These costs can also be referred to as dual-running
costs. In most scenarios, an organization cannot simply turn off a
legacy system and immediately stop paying for it. Not only is there a
transition period between systems, but there are often committed costs
that are associated with a contract or lease. These committed costs can
be attributed to hardware leases, as well as support and service
contracts. Many organizations will also choose to amortize capital
investments over any number of years.
• Investment Depreciation—Many organizations depreciate hardware over five years in order to spread out that capital investment.
• Hardware Lease Costs—Some organizations lease PBX hardware and PBX endpoints instead of purchasing them. These can have committed lease periods.
• Dual-Running Solutions—Costs to run legacy equipment, for example, if migrating off one UC solution to another.
• Support Contracts—Support contracts typically include a multiyear agreement between the organization and the support provider.
Before realizing return on investment, these costs must be accounted for.
In summary, a UC solution is not
purely cost savings. There will always be a significant investment to
successfully deploy UC. However, the benefits of a true UC solution
lead to a rapid ROI, which ultimately makes UC worth the investment.
