I know the news about the California report recommending VoIP is a couple of weeks old, but it is worth blogging nevertheless. Johanne Torres wrote an excellent article about this here: http://www.tmcnet.com/tmcnet/articles/2004/081604jt.htm

I decided to read the rather lengthy report myself. The California Performance Review was orderd by California Gov. Arnold Schwarzenegger to perform "a focused examination and assessment of California state government." The review report lists many suggested ways to improve government, cut costs, and become more efficient. One of the best suggestions for cost savings in California is to deploy VoIP.

According to the California Performance Review report, California State agencies spend more than $120 million annually conducting business activities via the telephone. It states in the report: Replacing the various systems now used with “voice over internet protocol” (VoIP) technology under a statewide network infrastructure would be cost efficient, simplify use and provide a uniform telecommunication service to transact day-to-day state business.

A limited survey of state departments found that the monthly cost for each telephone line averages about $80. Using VoIP, they estimate a one-time audit savings—15 to 20 percent is recovered from billing errors; and also optimization savings—15 to 20 percent of additional savings generated by maximizing the use of discount rate plans, network optimization and more efficient use of technologies.

According to the report, a California Environmental Protection Agency pilot project realized a savings of 45 percent by using voice over internet protocol rather than traditional telephones. Their cost was $41 per line; but with a larger statewide contract, this cost can be expected to be reduced to about $20 per line or roughly a 50% savings.

An entire state government with all its various branches (DMV, tax collector, legislative/executive/judicial) ALL POTENTIALLY switching to VoIP is BIG NEWS!

Now I should point out that this report is merely a recommendation and not actually deployed yet. But if I know Arnold, he'll read this report, see the millions of dollars of savings with VoIP, and tell whoever he needs to tell that this needs to get done ASAP. And if it doesn't get done, they'll be "terminated".