Text Box: FEATURE: New Dimensions In TCO, Part One By HENRY BAIRD Text Box: Page 2 ò Return to Page 1 Text Box: STC LINES—April 2005 Text Box: Text Box: Text Box: verged network environments and otherwise projecting the total cost of ownership (TCO) into the future, grading RFP responses has become more complex a process than ever. Evaluating IP Telephony RFPs IP telephony RFPs that address TCO properly should, at a minimum, have separate sections that address specific requirements and state pricing for: 1) hardware and software system elements, 2) implementation, and 3) maintenance and support options over a multi-year period. Therefore, for a system of any size, such RFPs will be time-consuming for consultants to develop and challenging for vendors to complete. Judging the responses fairly, never an easy process, is becoming even more tricky for consultants, especially if circumstances require that a consultant formally justify a recommendation. In looking around for guidance on how best to shape this topic for the PMM, I contacted Ken Dolsky, Director, Professional Services at InfoTech, a Division of Access Intelligence, LLC (InfoTech), who has recently conducted a research study on this issue. The study findings were Text Box: In this two-part feature on Total Cost of Ownership (TCO), LINES discusses the results of a recent InfoTech research study on TCO in relation to vendor pricing practices. As Part One, this article focuses on describing the study and noting its principal conclusions. Part Two, in the July issue of LINES, will discuss the complexities involved in evalu-ating the responses to an RFP used in the study, based on the compli-ance issues and variations in vendor charging practices that emerged in the bid evaluation process. In the last chapter of the STC’s Practice Management Manual (PMM), STC consultant members Dorothy Lockard and Richard Hannon describe the work processes involved in procuring telecommuni-cations equipment and services on behalf of clients. Their discussion begins with basic needs analysis and requirements gathering, then des-cribes the development of requests for proposal (RFPs) and the evalua-tion of vendor responses. (The cur-rent version of the entire manual is available for download without charge to STC members on the member portal of the STC’s web site, at www.stcconsultants.org.) As one of the editors of the PMM who is now involved in de- termining how to improve it in terms of its value to the STC community, I have been thinking that it needs at least one more chapter that picks up where Dorothy and Dick left off. After all, RFP responses are only a prelude to an extended com-mitment by our clients to purchase, implement, manage and maintain a complex communications network investment. Given the difficulty of weighing competitively bid main-tenance and support options in con-verged network environments and otherwise projecting the total cost of

STC LINES

A Quarterly Publication of The Society of Telecommunications Consultants

                                                                                                                                                                     HENRY BAIRD, Telecom Directions, LLC  - EDITOR

ROBERT HARRIS, Communications Advantage - ASSOCIATE EDITOR

MELISSA SWARTZ, Swartz Consulting, LLC - ASSOCIATE EDITOR

CATHY CIMAGLIA, STC Administrator - DISTRIBUTION

 

About the STC

The Society of Telecommunications Consultants is an international organization of voice and data communications professionals who serve clients in business, industry, service organizations and government. For over 25 years STC consultants have         delivered independent and ethical telecommunications expertise. This objective       guidance and support enables clients of STC consultants to benefit from the efficient  and effective use of voice and data communications technologies.

  © 2005  The Society of Telecommunications Consultants, Inc.    

presented in some detail at VoiceCon 2005. Ken has also made his findings available for publication in LINES and has agreed to discuss specific points with STC members who contact him individually, at kdolsky@accessintel.com.

       Many STC consultants have been familiar with InfoTech over the years as a multifaceted provider of custom consulting, primary market research, and marketing and competitive analysis for manufacturers and providers, as well as end users.          At various times, several InfoTech consultants have been STC members.

Continued on Page 5  ò

InfoTech looked closely at the maintenance and lifecycle cost-of-ownership associated with    IP telephony systems, especially to evaluate TCO issues with respect to quotes for equipment pricing, implementation and extended maintenance options.