April 24, 2017
Digital transformation initiatives are alive and well at nearly 70% of companies. Though business and IT leaders are forward-thinking when it come to digital transformation, too many are backwards-thinking when it comes to the communications infrastructure to support their projects. Only 28% of companies have a full IP infrastructure, meaning most still operate islands (large or small) of TDM infrastructure.
That’s problematic for a few reasons.
First, operating hybrid TDM/IP communications infrastructure—or full TDM infrastructure, as some still are—is more costly than full IP. Nemertes has conducted research for 11 years documenting IP telephony, and more recently, Unified Communications, costs. Total first-year costs per endpoint drop by 8% from a mixed environment to all IP. More importantly, ongoing operational cost for companies with more than 1,000 endpoints drops by 26% per year.
Second, kludge communications infrastructure does not serve as a catalyst for swift digital transformation projects. In fact, companies who are successful at digital transformation (according to Nemertes’ recent study) are planning to increase their spending on UC 72% more than those who are not successful. In other words, digital transformation success is reliant on solid foundational technologies and infrastructure. When disparate teams cannot quickly and effectively collaborate using the most feature-rich apps, or when aging PBXs cause regular outages, digital transformation initiatives suffer.
Fortunately, IT budgets are increasing in 2017, but it’s crucial for IT leaders to identify the costs—and benefits—of an IP communications upgrade. Then, they must budget accordingly and make sure the project is high on the priority list for those additional budget dollars.