We have all seen the advertisements: "Why haven't you switched to VoIP yet?" or "You're literally throwing money away if you aren't using VoIP!!" Yet, despite all you have heard or read, you still are sitting in your office reading this wondering "what the heck is the difference and why should I care?"
As a professional or a business owner, whether installing a new phone system or choosing to switch your existing service, the decision comes down to the basics: Costs, both initial setup and monthly recurring; Reliability; and, Functionality / Scalability. Because it is like any other important business decision, approach it as such.
So, start with the basics: You've heard about VoIP, Voice over Internet Protocol – and are wondering if this might be right for your business. If you lack dedicated IT resources, you may be concerned about not being able to implement and support VoIP. You should also consider it against the traditional solutions available.
PBX or Private Branch Exchange systems are traditionally found in larger size businesses. A PBX system works like a completely self-encased phone network in your business. One extension can call another with the touch of a few buttons whether that extension is next door or in London. The features of the system (voicemail, call forwarding, etc…) are managed by the hardware (which is expensive to install and maintain). It provides service which is sometimes referred to as "enterprise level" service for its quality and ability to complete so many functions (and the fact you need a large enterprise to justify the costs).
VoIP stands for "Voice over Internet Protocol", which is a technology that allows you to make phone calls using your Broadband Internet connection instead of your regular phone service. You still simply pick up your regular phone, dial a number and talk. VoIP is simply a different way to communicate via telephone. It does not matter if the person you are calling has VoIP or not, this is all taken care of by your VoIP service provider. The only requirement for this technology is a high speed Internet connection, such as DSL, cable, T1, etc.
What are most interesting about VoIP are the concepts of a "Hosted PBX" or "IP PBX". It is possible to get all of the functionality of a traditional PBX phone system in a much smaller scale to fit your business. Here is a look at each of these solutions:
With Hosted PBX, the telephone system equipment is located with the VoIP service provider and not at the business location. As such, installation is typically very easy. As long as a reliable high speed Internet connection exists, the VoIP quality and reliability will be as good as or better than a regular telephone line. You will need to purchase IP ready phones and there can be some expense there. However, you do not need to purchase the entire PBX phone system to get a similar level of functionality. This can save you several thousand dollars.
With an IP PBX solution, the business owns and operates the equipment so an upfront capital investment is required to purchase the equipment and then there are on-going maintenance costs (though not on scale with a traditional PBX system). This is often better for businesses with more than 20 employees as the call control remains internal to the corporate network and a single wire can be routed to an office to provide both data and voice communications. It also is an option for a smaller business which has already paid for and installed a phone system that would like to achieve some of the cost savings by having its phones (long distance, local calling, fax) serviced by a VoIP provider at what is generally a much lower cost than traditional phone company service charges. A business does not need to disrupt its communication system to install an IP PBX. It is able to connect to traditional phone lines via a VoIP switch or gateway – so a business can keep its regular telephone system.
"So, how much time should I spend deciding what is best for my business?" VoIP can be a very good solution for almost any new or established business out there. The initial investment costs are greatly less than a traditional PBX system. The monthly service fees are, generally, less than traditional phone service costs, and it is a highly scalable and functional technology. So, evaluate how your communication systems are working (or not working) within your business and look at VoIP as a viable alternative to how you are using your phone systems today. Most important, if you do not have a communication systems background and that's out of your IT professional's "core competency", consult with a professional who can explain the benefits and services of each of your options.
As a professional or a business owner, whether installing a new phone system or choosing to switch your existing service, the decision comes down to the basics: Costs, both initial setup and monthly recurring; Reliability; and, Functionality / Scalability. Because it is like any other important business decision, approach it as such.
So, start with the basics: You've heard about VoIP, Voice over Internet Protocol – and are wondering if this might be right for your business. If you lack dedicated IT resources, you may be concerned about not being able to implement and support VoIP. You should also consider it against the traditional solutions available.
PBX or Private Branch Exchange systems are traditionally found in larger size businesses. A PBX system works like a completely self-encased phone network in your business. One extension can call another with the touch of a few buttons whether that extension is next door or in London. The features of the system (voicemail, call forwarding, etc…) are managed by the hardware (which is expensive to install and maintain). It provides service which is sometimes referred to as "enterprise level" service for its quality and ability to complete so many functions (and the fact you need a large enterprise to justify the costs).
VoIP stands for "Voice over Internet Protocol", which is a technology that allows you to make phone calls using your Broadband Internet connection instead of your regular phone service. You still simply pick up your regular phone, dial a number and talk. VoIP is simply a different way to communicate via telephone. It does not matter if the person you are calling has VoIP or not, this is all taken care of by your VoIP service provider. The only requirement for this technology is a high speed Internet connection, such as DSL, cable, T1, etc.
What are most interesting about VoIP are the concepts of a "Hosted PBX" or "IP PBX". It is possible to get all of the functionality of a traditional PBX phone system in a much smaller scale to fit your business. Here is a look at each of these solutions:
With Hosted PBX, the telephone system equipment is located with the VoIP service provider and not at the business location. As such, installation is typically very easy. As long as a reliable high speed Internet connection exists, the VoIP quality and reliability will be as good as or better than a regular telephone line. You will need to purchase IP ready phones and there can be some expense there. However, you do not need to purchase the entire PBX phone system to get a similar level of functionality. This can save you several thousand dollars.
With an IP PBX solution, the business owns and operates the equipment so an upfront capital investment is required to purchase the equipment and then there are on-going maintenance costs (though not on scale with a traditional PBX system). This is often better for businesses with more than 20 employees as the call control remains internal to the corporate network and a single wire can be routed to an office to provide both data and voice communications. It also is an option for a smaller business which has already paid for and installed a phone system that would like to achieve some of the cost savings by having its phones (long distance, local calling, fax) serviced by a VoIP provider at what is generally a much lower cost than traditional phone company service charges. A business does not need to disrupt its communication system to install an IP PBX. It is able to connect to traditional phone lines via a VoIP switch or gateway – so a business can keep its regular telephone system.
"So, how much time should I spend deciding what is best for my business?" VoIP can be a very good solution for almost any new or established business out there. The initial investment costs are greatly less than a traditional PBX system. The monthly service fees are, generally, less than traditional phone service costs, and it is a highly scalable and functional technology. So, evaluate how your communication systems are working (or not working) within your business and look at VoIP as a viable alternative to how you are using your phone systems today. Most important, if you do not have a communication systems background and that's out of your IT professional's "core competency", consult with a professional who can explain the benefits and services of each of your options.