VoIP builds a better bridge - Company Operations

Communications News, Dec, 2000

What happens when the telecomunications system between a commercial general contractor's offices in Seattle, WA, and Santa Ana, CA, is on its last legs and the Y2K crisis is pressing down? In the fall of 1999, Bayley Construction IS manager Lynnette Goodman was faced with the dilemma of replacing the firm's aging, non-Y2K compliant system, which included pre-1990 equipment.

According to Goodman, the company had been nursing its Saturn 2E for about two months and was not sure if replacement parts could even be found for it. In addition, employees were experiencing problems with the voice mail systems at each location. Although the system automatically dialed up and exchanged voice mail messages between the locations, this transaction was only occurring about every 15 minutes. The voice mail system was also not user friendly.

"If you hung up in the middle of a voice mail and raced to resolve that voice mail," says Goodman, "your message light wouldn't come back on, and you'd forget you had any messages."

With approximately 200 employees in Seattle, Santa Ana and its numerous construction sites, this midsized company could no longer efficiently operate with its antiquated system. Owned by some technologically savvy people, Bayley Construction decided to "take a flyer" on converging its voice and data lines. Suddenly, the hot project became building an efficient, cost-effective telecommunications bridge between the two locations.

"Since we already had an Internet virtual private network using tunneling protocol for our job sites' data connections, along with the data connections between our two offices, we wanted to make use of that and also do voice," says Goodman.

Although Bayley Construction knew there might be problems with voice over Internet protocol (VoIP), it was convinced that, cost-wise, it was the way to go, rather than setting up a frame relay connection or more expensive point-to-point lines. Goodman solicited quotes from several companies, but everyone was pushing frame relay systems. The only company offering a VoIP solution was Terra Communications.

An authorized Inter-Tel distributor in Redmond, WA, Terra Communications, suggested that a VoIP solution would leverage the cost of Bayley's T-1 lines for the Internet and also save money in long-distance calls. Bayley was spending between $3,500 and $4,000 a month in long distance between the two offices, as well as calls to Seattle and Santa Ana's local areas. The VoIP solution, using Inter-Tel's AXXESS PBX, would allow the two systems to operate as one.

By networking the product over InterPrise voice and data routers, Bayley would be able to cost-effectively route its voice and data communications across the company's virtual private network. Inter-Tel's routers, using IP telephony, would convert voice calls into data packets that would travel over the same network as Bayley's Internet traffic--allowing the company to bypass traditional telephone lines and reduce long-distance costs.

In addition to long-distance savings, the new system would allow Bayley Construction to keep a centralized voice mail system in Seattle and a single attendant for both offices. Plus, the company could use a single 800 number for customers that would tie seamlessly to extensions in both offices.

According to Goodman, the installation of Inter-Tel's voice and data router, PBX and an NT voice mail system at the Seattle location, and another router and PBX in Santa Ana went quickly and smoothly.

Goodman says she originally thought a VoIP call would be like a cell phone calling another cell phone, but "it is much better than that." The system has provided transparent networking between their two locations. "I can't tell a difference," she says.

By networking the two locations together, Bayley Construction has achieved significant cost savings. The accounting, billing, estimating and IS departments, along with five key members, are located in Seattle, while most of the job sites are controlled from the Santa Ana office. So, interoffice calls were a major expense. By eliminating long-distance charges, Bayley Construction is saving from $2,000 to $3,000 a month.

Nicholson estimates the system will pay for itself within two years or less. Bayley Construction's total solution, including equipment, call accounting and cordless phones for both locations, cost $147,619.

Goodman says the company has also realized equipment and maintenance savings. Instead of purchasing two voice mail systems, it only had to buy one. In addition, system maintenance is easier. For simple tasks like changing extension numbers, Goodman is able to administer any system changes from her location in Seattle, instead of placing a service call that costs money.

Another benefit Bayley Construction has received is the ease and convenience of communicating between its two offices. Now, employees in both locations are just an intercom call away. They are able to see if the person they are calling is on the phone or away from his desk simply by glancing at their phone's LCD. They can leave voice mail messages immediately, or transfer messages to staff members at either location. Group messages can be sent easily, too.