Tag Archives: Hamon Corp.

Technology: Good Call

Technology When Jim Violette, chief financial officer of Hamon Corp., needs to phone a coworker down the hall, he dials four digits. To call somebody in company offices across the street, he dials four digits. To reach employees in the Kansas City unit, he dials — you guessed it — four digits. He pays the same price for each call: nothing. At Hamon, most intracompany calls — and even some long-distance calls outside the company — are free. Hamon isn’t ripping off the phone company, just bypassing it. The manufacturer of air-pollution-control devices in Somerville, N.J., has switched to a system that uses voice-over Internet protocol, or VoIP. It digitizes voice signals, shoots them over the Net, and switches them back to voice signals on the other end. The process takes milliseconds. When it works correctly, there’s no distinguishable time lag in conversations. Online callers pay only for equipment and connections, with no toll charges for dialing anybody who’s using a similar VoIP system. The reductions can be significant. “I’m saving $12,000 a month easily, if not more,” says Violette. Audio quality — which only a few years ago sounded as if you were talking into a tin can — now often rivals that of traditional telephone systems. So do options like speed dialing, computer access to voice mail, and call forwarding. VoIP caught Violette’s attention in the late 1990s, as Hamon mushroomed from about 130 to nearly 500 employees. That caused all kinds of telecom headaches — particularly its cost. Hamon’s standard telecom system required expensive new hardware for each expansion but accommodated only a limited number of new users. At one point Hamon spent $50,000 just to equip 12 employees in a temporary facility. Violette asked himself, “Why are we dumping money into this when it can’t grow with us?” At a hockey rink where his son played, he found a solution. Another player’s father, a sales rep for AltiGen Communications, a maker of Internet phone systems in Fremont, Calif., told him that AltiGen could outfit those 12 workers for less than $20,000, including installation, training, and service. How can VoIP providers sell service so cheaply compared with what telecom giants charge? The system requires virtually no equipment, except for a few servers and the phones themselves. Hamon adds extensions by updating the software. When employees move, they simply use cable plugs to hook up their IP phones at their new locations. Such flexibility was key when Hamon moved a large contingent of workers to a new building. With standard phone service, they would have all needed new phone numbers. But since the VoIP system forwards calls, employees kept their existing numbers, and Hamon saved not just on hardware but also on reprinting stationery, business cards, and other documents. CHEAP TALKER: Jim Violette slashed toll charges and equipment expenses by switching to VoIP.

Making the Switch to VoIP

In the March 2003 Inc article, “Good Call,” Hamon Corp.’s move to voice-over Internet protocol (VoIP) helped the company more effectively — and affordably — handle intracompany calls. Though the Somerville, N.J., manufacturer’s switch went off with nary a hitch, it’s not always that seamless. Craft Diston Industries, a shower-door manufacturer in Wichita, Kan., first tried a VoIP system in 1999, hoping to cut the cost of calls between headquarters and 10 factories and distribution centers scattered throughout the United States. That initial system, which happened to be from AltiGen, ( http://www.altigen.com), a maker of Internet phone systems in Fremont, Calif., “was pretty rough,” CFO Michael Gayeski recalls. Calls echoed or faded or cut out; sometimes transmission was so slow that callers’ sentences overlapped. Craft Diston quickly switched to another vendor’s system, which also ultimately failed. Still desperate to control telecom costs, Craft Diston decided to give AltiGen one more chance, after the phone-system business assured its former customer that it had corrected all the quality problems. The result? “It’s 10 times improved,” says Gayeski of the new system, which was installed in mid-2002. “No problems whatsoever.” The 240-employee company, which had about $30 million in sales last year, now saves more than $9,000 a month on its phone bills. IT director Jesse Santana calls the system simple to use because it works on the familiar Windows NT network and doesn’t require any special training or equipment.

A Telecom Alternative

When Hamon Corp. mushroomed from 130 employees to nearly 500, Jim Violette, CFO of the air-pollutant control devices manufacturer, knew it was time to reign in telecom costs. His solution, as Anne Stuart writes in the March 2003 Inc article, “Good Call,” was VoIP, or telephoning on the Web. With a VoIP system, Hamon Corp. shaved at least $12,000 a month off of its telecom costs. In this trio of articles, Stuart continues the VoIP discussion with resources for researching VoIP solutions, recent research on the technology, and a short profile of a company that made a somewhat difficult switch to VoIP. The Present, and Future, of VoIP Voice-over Internet protocol (VoIP) is here to stay, and many businesses already have begun using it to help drastically cut their telecom costs. Making the Switch to VoIP It’s not always easy to make the switch to an Internet phone system, but the savings are well worth the pain, as Craft Diston Industries discovered. Security Issues with VoIP Are voice-over Internet protocol phone systems vulnerable to hackers? Can calls be intercepted? Unfortunately, yes. Here’s a list VoIP Web sites you can dial into for more information on VoIP and its related security issues.