Voice over Internet Protocol is all the rage in telecom circles.
A survey by In-Stat shows that 30 percent of businesses are interested in adopting some form of Internet protocol-based telephony this year.
But VoIP isn’t for everybody. This technology, which uses an IP network to route internal, and in some cases, external calls, offers advantages for some companies. The danger is in rushing to embrace a new technology simply because it lies on the cutting edge of communications development.
As with any technology, a business needs to first assess what it has and what it needs before upgrading its phone system.
“The thing we see when we are looking at telecom costs is that a business is expecting to save money,” says Brad Clark, president and COO of SpyGlass Technology Advisors, a Westlake-based telecom consulting firm. “They are using costs as a justification to buy, but it’s hard to cost-justify it.”
One reason is because traditional long distance costs are so low that the volumes required to justify the expenditure to upgrade to a VoIP system are huge. It will take a long time for a company with $400 a month in long distance charges to recoup an investment in VoIP that might run $50,000 or more depending on what infrastructure is already in place.
“If you are using cost as the primary or only reason for VoIP, then that’s one area you can get fooled,” says Clark.
If you have an antiquated phone system and are looking to upgrade, then going with a VoIP system is usually the best choice.
“The VoIP systems are not a tremendous amount more than a traditional system, and that’s the direction everything is going,” says Clark. “Whether you actually use the (VoIP) functionality or not right now doesn’t matter.”
Other strong candidates to upgrade to VoIP systems include companies that have multiple locations that are looking to consolidate maintenance or operations functions into one central office.
For example, voicemail and an automated attendant can be located in one facility that would then route calls to the appropriate office via the company’s data network. This might eliminate the need for separate voicemail systems, attendants, receptionists or phone lines at all the remote offices.
VoIP systems also give users greater control over their phone system. A computer interface allows changes to be made on site without the need for a technician to come in and physically move wires around.
“You can set up and delete voicemail boxes or change how calls are handled,” says Clark. “You have a lot more control, and you can really cut down on your service calls and maintenance.”
Another issue to consider is reliability. With VoIP functions running through a server, if the server is down, your phone service will be down as well. Any remote offices running off of your system would also lose service. Adding a redundant system is a solution, but also will add to the expense.
Power failure is another issue to plan for when considering VoIP. With no power to run the server, your phones will be inoperable. Because traditional phones typically still have power if you lose power locally, a generator or a regular landline phone may be required as a backup. Or you can have special hubs and switches installed that will keep the phones powered up during an outage.
“The main thing in any size office is to do a thorough assessment of what your needs are and what the costs will be before you make any investment,” says Clark. “There are a lot of issues to look at — network capacity, infrastructure, power and power backups. The power issue often gets overlooked, but it’s critical.
“Cost savings alone probably won’t justify a system, but if you are upgrading anyway, then there is really no reason not to consider a VoIP system.”
How to reach: SpyGlass Technology Advisors, (440) 250-9804
