Legacy Phone Systems: Why Remodel a Dinosaur When You Can Upgrade to UC?

Guest Blogger – Randy Kremlacek, Digium Authorized Select Partner and President/Owner – TeleDynamic Communications, Inc.

The other day I got a call from the IT manager of a local manufacturing company who was looking to upgrade their telephone system.  He has two locations, one in Northern California with 150 users and the other in Southern California with 50 users.

Northern California Office Situation: The guy was looking to re-use his old Intertel phones and upgrade his IP PBX so he could convert to a PRI circuit.  He was presently using AT&T analog lines and  paying $1,200 per month. His research showed him that he could lower his monthly phone bill to approximately $800.   He knew that he could re-use the Intertel telephones if he bought a new Mitel PBX and his budget, based upon quotes he had received, was $50,000.

Southern California Office Situation: The 50 person office in Southern California was using an old Nortel system and he had engaged with his local vendor who had pretty much convinced him to re-use his Nortel telephones and put them on a new Avaya IP Office system.  He was also going to convert to a PRI at that location, as well as install a new 20MB data circuit.

Customer’s Plan: His grand plan was that he could save money by re-using the telephones at both locations, buying a new Mitel in Northern California and Avaya in SoCal and installing PRI circuits to serve both locations.   He was convinced that he could only afford a band-aid  solution of four different manufacturers (Intertel, Mitel, Nortel and Avaya).  The result would be a mix of new and old equipment utilizing  new IP technology alongside old digital technology.

Teledynamic’s Proposed Solution: I had a hunch that we could do much better than this by doing a total technology refresh.  We went to work, crunched some numbers and sure enough, the Switchvox solution was superior.  The price to do a total replacement of  his Northern California Intertel system was $45,000, $5,000 under his Mitel upgrade budget.  We blew away the PRI savings he was expecting by offering SIP trunk service at $575 per month, versus his estimated $800 per month.

Plus, we would deliver all of this extra value:

  • Replace all of the old equipment including phones
  • Provide free inter-office calling
  • Do seamless call handling between locations
  • Eliminate the need for costly PRI hardware
  • Leverage his under-utilized 20MB data circuits for SIP trunking
  • Provide dozens of new productivity-enhancing features
  • Standardized solution at both locations, making for easy administration

In summary, we were able to use the affordability of the Switchvox along with its native SIP trunking support to provide a true updated solution.  Compare that to his alternative solution of an agglomeration of technologies and manufacturers which would have enabled him to use PRI circuits.   The gentleman was shocked to see that he could leapfrog digital technology and go from analog to SIP trunking and save a big chunk of money along the way.

We are finding these same situations with many of our customers, where they are unaware of the savings and functionality available by moving to today’s telecommunications technologies.  As more than one customer has told us after we presented our solution, “Why wouldn’t I do this?”  It’s all we can do to hold back a big smirky smile.

Ready to calculate your savings? Try out Digium’s ROI calculator.

About the author

Randy Kremlacek is president of TeleDynamic Communications, and is a Digium Select Partner and 2013 Pinnacle Award winner. TeleDynamic Communications provides turnkey premises-based PBX and hosted PBX, SIP trunking and Unified Communications, and is proudly celebrating 33 years in delivering business communications solutions.

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