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SIP Program Proves Itself The Lowest Total Cost Offering (TCO)

Feb 22, 2013, by Ryan Bass
Tags: Executive Insights, imported, Internet2 NET+, Mitel/Level 3 SIP Services, Products & Services, Workshops & Webinars

As we prepare to share updates to the Internet2 NET+ SIP Program in two upcoming webinars, I am eager to hear what members of the community think are the key benefits of moving campus communications to the cloud.  In my mind, they include reducing complexity, freeing up IT resources to focus on more strategic projects, and assuring business continuity.

But many people are asking an important question: “How does the cost compare to that of premise-based solutions?”   While a hosted service is obviously more cost effective in the short run, CIOs and CFOs want to know how cloud-based service compares over time.

We did some research, talked to people in the community, and have confirmed that the SIP Services offered to the Internet2 community by Aastra and Level 3 Communications compare favorably with both premise-based and competing hosted services.

Internet2 and Aastra worked with Constellation Research to develop a case study on the offering that shows the total cost of ownership (TCO) over a five-year period for the SIP Program services as well as comparable costs for premise systems from 8 providers, and hosted solutions from 7 others.

The methodology was rigorous. Providers in the study submitted their pricing by responding to a mock RFP for a 2000-user system. The results were originally presented at the Enterprise Connect conference last year. The analysts involved in the original research then normalized the data to create an “apples to apples” comparison. The analysis includes costs for all equipment, including hard and soft endpoints, licenses, annual maintenance and long-distances charges.

Service pricing of the Internet2 SIP Program was then submitted to Constellation Research earlier this year in the same format, and Constellation applied the same rigorous analysis to see how it compared. The SIP Program services were identified as the lowest TCO over all the premise-based and hosted solutions in the study.

The comparisons are now available in a case study written by analyst Brent Kelly of Constellation Research, accompanied by a comprehensive white paper on the drivers and myths of cloud communications, for which we have obtained the reprint rights for your benefit. Both can be downloaded here.

I hope you will take the opportunity to review these resources and take part in one of the upcoming webinars. For questions about the service, and to learn how easy it can be to move your research and education voices to the cloud, please email us at sip@internet2.edu.