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Aberdeen IP Telephony Study Shows ShoreTel Offers Lowest Average TCO

By: Jack McCarthy, Content Manager Google+ icon for profile link

As IP-based systems and networks get cheaper, faster and more conducive to innovation, they continue to gain ground as businesses choose them in favor of legacy TDM systems, according to a new study by the Aberdeen Group. And although IP-based systems have been available for about eight years, businesses, in particular SMEs, continue to move to using such systems in accordance with their refresh cycles.

The Aberdeen Group surveyed 485 business users of IP Telephony and legacy TDM (Time Division Multiplexing) telephony and looked at the TCO they experienced, finding that ShoreTel had a lower average TCO than users of all other systems. The study covered systems used by Avaya, Cisco, Microsoft, Mitel, ShoreTel, as well as users of legacy TDM telephony.

The study, “Aberdeen IP Telephony TCO Comparison,“ looked at aggregate costs of IP Telephony systems, including initial costs, comprising implementation labor, network upgrades, capital equipment, administration training and end-user training, along with recurring costs comprising equipment maintenance and upgrades, software assurance, software upgrades, ongoing training and third party management.

The full implementation costs per IP extension for ShoreTel users were lower ($944) than the average cost of all other users ($1,485), Aberdeen said.
In addition, ShoreTel had 46 percent less annual recurring costs ($113) than all others ($211).

Aberdeen also asked how IP-based telephony systems performed under real world conditions. Again, ShoreTel was among the lowest. ShoreTel had an average unplanned downtime of 24 minutes per year, compared to 1.7 hours on average for the users of other systems.

Aberdeen’s conclusion was unambiguous. “From more efficient use of a network resources and requiring less staff for implementation, operation and maintenance – to lower hardware upgrade and software assurance costs – ShoreTel IPT is proving itself to be a good fit for the needs of the SME sector.”

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