In addition to data savings, it's also possible to find quicklycuttable costs in telecom space. Kesner, for example, deployed a Ciscosoftware-based VPN application for 700 employees for $30,000. "It'sbeen a huge hit for us," Kesner says, "well out of proportion to thecost."

Before installing the always-on, secure virtual network, the firm hadrelied on dial-up connections and nonsecure browser-based applicationsfor its on-the-go lawyers, with unsatisfying results. "We're aprofessional services firm," Kesner says. "With the new VPN system,we're getting a lot more productivity, more billed hours, and peopleare able to work at home."

Voice-over-IP (VoIP) systems are also showing promise as a way to cutrecurring telecom costs with relatively low up-front investment.Anthony Jabbour, CIO of Amicus Holdings in Falls Church, Va., abanking subsidiary of CIBC in Toronto, says his company saved $1.5million a year in long-distance charges by switching its 350 bankingpavilions and offices over to VoIP. Total infrastructure cost,including servers and software licenses, was less than $100,000 (plusthe phones at $400 each).

"Now we can call all of these locations for free," Jabbour says. Thequality is high enough that the bank is looking at rolling VoIP out toits call centers as well.

Quick Performance Fix