Is a business VoIP platform the answer?

VoIP can be a great tool for the right business.  But VoIP is not the answer for all businesses; a relevant business driver is required.  Careful consideration of the need, benefits and drawbacks should be made before moving to a VoIP platform. 

What is VoIP? 

The two types of business VoIP communications discussed here are hosted-based (with network QoS) and premise-based.

• Voice over Internet Protocol (VoIP) communications converts a telephone call (an analog signal) to a digital signal made up of IP data packets.  Using packets of data allows for robust calling applications and has the ability to avoid inefficient and expensive legacy telephone networks.

• One of the goals of VoIP is to have the voice signal on the PSTN (Public Switched Telephone Network) as little as possible because the cost of using physical legacy wires is high.  If the call’s final destination is on the PSTN, then the call is converted to an analog signal and travels the last mile like any other call.

• Hosted VoIP services with network-based Quality of Service (QoS) use no traditional telephone lines and typically utilize a single internet connection for both voice and data traffic.  The “brains” of the phone system reside at the provider’s location and not the customer premise.  The provider typically houses the VoIP softwitch in an environmentally controlled secure data center with multiple power and internet feeds.  The customer’s location must have VoIP enabled telephone handsets, adaptors and routers with QoS and typically switches that are VLAN capable.  Essentially, the telephone system is “outsourced” to a professional 3^rd party vendor. 

• Premise-based VoIP communications require some special telephone equipment on-premises.  Although existing traditional TDM telephones may be used with adapters or software upgrades,      many features simply will not work well with this type of hybrid.  Typically SIP trunking (Session Initiation Protocol) is used to transport calls.  SIP trunking makes a logical connection from one point to another through the internet or private voice IP backbone, making it possible to treat voice communications as just another data application. 

 Why consider VoIP for business?

• Is the existing phone system near end-of-life?  As a phone system approaches obsolescence it requires more maintenance, software patches, and investment.  It might not make economic sense to continue pouring money and resources into a system that ultimately can not be supported.   Additional costs will also be incurred if the business plans to change locations.  While additional costs are the main consideration in supporting an obsolete phone system perhaps the greatest hidden cost is the risk of a phone system failure.  How much does it cost a business if its customers, suppliers and employees can not communicate effectively for days or weeks?

• Does the business operate multiple locations or have remote workers?  Traditional telephone systems simply do not provide advanced calling features for effectively manage these conditions.  This results in having to manage and maintain multiple phones systems, decentralized “main” operators and slower communications between key people.

• Does the business lack the technical resources to manage, upgrade and maintain a traditional phone system?  While larger businesses usually have in-house technical expertise to manage traditional phones systems is that the best use of their time?  Smaller businesses typically do not have this technical expertise, thus they rely on expensive maintenance agreements from 3^rd party vendors.  These businesses will experience interruptions with time delays in repairs, upgrades and “move-adds-and-changes”.

• Does the business have a remote or mobile workforce?  Traditional phone systems simply do not offer a noncomplex solution for integrating these types of off-premise workers.  Hosted VoIP solutions are highly accessible by remote workers.  Workers will enjoys all the benefits of sitting on premise such as 4-digit dialing, shared reception and auto-attendant even out-pulsing the on-premise DID phone number. 

Benefits of VoIP for business

• One provider – By integrating voice/data lines as well as multiple locations makes billing simpler.

• Business continuity – VoIP can provide excellent business continuity compared to traditional phones systems.
• Premise based have analog ports that allow POTs lines to failover in the event of a data outage.
• Hosted VoIP is outsourced off-premise

• Lower TCO (Total Cost of Ownership)
• Maintenance and upgrades – no technical staff is required and software upgrades are automatic
• Remote monitoring
• Collapse voice and data networks/services results in more efficient use, and lower cost of these services.
• Lower CapX with a hosted solution.

• Increase productivity
• Many advanced calling features.           
• Remote workers and offices can all use the same system.
• Outlook and CRM integration.

• Flexible, Scalable
• Move, adds and changes are simpler, faster and require little technical expertise.
• Call routing easily changed for a changing workforce.
• Add new users with little or no technical expertise.

Drawback of VoIP

·        There are some problems that occur with internet based systems that just don’t happen with traditional telephone services.  If a simple internet connection is used, inevitably packet loss, latency, jitter dropped calls and generally poor voice quality can interrupt telephone calls.  Some providers overcome this technical challenge by routing call around the internet with private voice IP backbones.  Premise based VoIP systems overcome this by providing additional analog ports for back-up POTs lines.

·        Since VoIP services typically consolidate voice and data networks, a greater need for bandwidth exists.  More bandwidth is needed in order to have high quality voice services.  This will take away bandwidth from other data applications.  Greater attention needs to be given to properly sizing bandwidth requirements for both voice and data applications.

·        Training will be required for users and operators of advanced calling features.

As can be seen, many considerations need to be made when making a decision to move to a business VoIP platform.  While “VoIP” might be considered the next great “killer” application, a business driver is really required to make such a move.