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Tuesday, September 21, 2004
Ford in Major Shift to VoIP
Ford Motor Co. (Quote, Chart) will move 50,000 employees at 110 facilities to Voice over IP (define) calling, a ringing endorsement for the emerging technology’s performance and reliability.
SBC Communications (Quote, Chart) will design, install and manage the project using IP phones and network equipment from Cisco Systems.
The Ford VoIP deployment will occur over three years and impact the headquarters and other facilities in southeast Michigan.
Profits aside, the Ford contract could serve as a case study for SBC and Cisco to present to other large corporations that may have misgivings about VoIP.
Ford is expected to save money over its Centrex (define) phone system in several areas, including the decrease in its long-distance bills. The company also expects system maintenance to decline by shifting voice and data onto a single IP network. Also, IP telephony service makes handling employee moves more efficient, because businesses can scale up or down without calling vendors or ordering new cards.