For the better part of 20 years, companies the world over have relied on the fax machine for simple and discrete delivery of information and important documents. These days, entire industries would seemingly come to a halt without the ability to send and receive faxes. Although e-mail has put a dent into the number of faxes distributed today, almost every company - small and large - still relies on traditional dedicated fax machines to conduct daily business.

Many firms, however, have become woefully inefficient in how they approach and manage the area of fax communication in their overall telecom cost-reduction strategy. Too many phone lines servicing too many and little used fax machines is a surefire recipe for unnecessary telecom spending.

Fax Servers to the Rescue

The convenience of traditional fax technology has its price. For large organizations, this means dozens, maybe hundreds of machines, each requiring dedicated phone lines to send and receive faxes.

Most corporate faxes go out during peak daytime hours when long distance rates are highest, further adding to the cost of each transmission. In addition, traditional faxing requires an individual to copy a document, walk to the fax machine, dial the number, then wait for confirmation on the other end.

A fax server can solve all of these problems by integrating hardware, software and LAN networks into a cost-effective and seamless faxing solution for entire organizations - large or small. Fax servers allow transmissions to be consolidated at the server itself, eliminating the need for multiple machines and dedicated lines for each machine.

What is a Fax Server?

Fax servers basically have 3 separate components: a PC connected to a LAN and a phone line, fax server application software, and an intelligent fax board.

A fax server is a system installed within a local area network (LAN) server allowing users to send and receive fax messages directly from their desktop PC. These messages can be stored as word processing files, database files, or graphic and spreadsheet files. Scanned documents can also be sent as fax messages directly from the desktop to effectively emulate a dedicated fax machine.

The Advantages of Using a Fax Server

Fax servers can be very cost-effective over the traditional dedicated fax machine. Numerous studies have documented and compared the costs associated with manual fax transmission as compared to a fax server solution. The time saved by employees alone will pay for itself in a short time. Throw in the savings rendered by eliminating the machines, paper, toner and maintenance costs and the fax server becomes even more compelling.

The most obvious benefit is the fact that a fax server can emulate multiple fax machines - one for each network user. For example, an office that may have previously utilized 25 dedicated fax machines (as well as 25 phone lines) for its 150 employees, can function just fine with one only fax server and possibly only 6-10 phone lines connected to the server, depending on the volume incoming and outgoing fax activity.

Fax servers also make it easy to send faxes to groups of people and can be set to send faxes out automatically at specific times of the day or night. Like e-mail servers, fax servers can route incoming faxes to the intended recipient's PC keeping prying eyes from confidential and private fax correspondence. Fax servers will also automatically retry fax numbers if and when they are busy.

How Many Phone Lines Do You Need for One Fax Server?

Some industry guidelines suggest one phone line per 7-25 network users although this estimate should be considered only a "ballpark" figure. The number of phone lines needed for each fax server is ultimately dependent on the specifics of each fax server installation and the number of users who will be using the server. The number of lines should be assessed according to the needs of the business, or the department or group that each fax server is intended to support.

Before implementing a fax server solution, consider how much existing and future fax traffic will the server need to support. Make a list of the types of faxing the server will be called upon to handle.

Vendors and/or telecom consultants can analyze the many factors that go into specific installations, but buyers are still advised to understand their own specific needs to ultimately make an informed and wise buying decision.

The Bottom Line: Fax Server Costs

As with most equipment purchases, the cost is dependent on the needs and specifics of the organization. Plan on spending a few thousand dollars or more for a state-of-the-art fax server solution however. The left column of this newsletter lists current fax servers on Amazon.com and below you will see current Ebay listings for "fax servers". An industry leader in fax server hardware is Brooktrout Technology, Inc.

Faxing is here to stay. There is no question that the advantages and benefits of a fax server will save your company money in the long and short term. Consider the fax server solution as an integral part of your overall telecom cost-reduction strategy.

About the Author:

Karen Thatcher is President and CEO of TelCon Associates, Inc. a 32 year old telecom audit and bill management company. For more information and free materials to help reduce your corporate telecom costs, visit http://www.telconassociates.com