In 2003, sales of traditional phone equipment amounted to $2.8 billion. They
have dropped precipitously since. In fact, experts predict only $750 million in
sales for traditional phone equipment in
2008. One reason for the dramatic drop is
that more and more businesses are changing over to VoIP (Voice over Internet
Protocol). VoIP technology has improved,
costs of VoIP solutions have dropped, and
some of the myths and misperceptions
about VoIP have been debunked.
The evolution of VoIP technology is leading to increased productivity and cost savings for businesses of all sizes, especially
smaller ones, and improving their competitive positions.
Smart Business spoke with Jeff Beller of
Skoda, Minotti & Co. to learn more about
the trend toward VoIP among businesses.
How do businesses benefit from VoIP systems?
The benefits are both tangible and intangible. Some businesses make the switch
for the tangible cost savings. This benefit is
dependent largely on call volume, and it
can be a major motivating factor for a business that makes many phone calls between
multiple office locations. Cost savings also
come from what is known as Moves, Adds
and Changes (MAC). With a traditional system, unless the business has an in-house
telecom staff, there is often a cost associated with moving an extension, adding a new
employee to the system or making a programming change. A company could see a
cost in the $200 range to have a vendor perform a MAC function. With a VoIP system,
clients can perform these tasks themselves, eliminating these MAC charges.
There are intangible benefits as well.
With VoIP, an organization can be much
more flexible. Phones can be moved
around in a plug-and-play fashion. No matter where they are, staff members can be
present on the system and can work from
home or another location just as if they
were in the office. In addition, with presence information, VoIP handles calls intelligently, which enhances your ability to
serve your customers. For example, when
a customer calls in, a VoIP system can ring
to the office phone, directly to a cell phone or to the employee’s remote office location.
Finally, VoIP enhances employee productivity with features such as Outlook and
CRM integration, easy-to-use conference
calling, four digit dialing among multiple
office locations and other innovative features like the ability to attach a voicemail
to an email or a document.
Has the quality of VoIP improved recently?
It has. There have been many misperceptions about VoIP and its viability as a business product, mostly concerning call quality and network reliability. In the past, poor
sound quality and dropped calls were real
issues, but because manufacturers and carriers have invested so heavily in VoIP
research and development, quality and reliability have improved significantly. Another misperception is that all VoIP calls go
over the Internet, when in fact they can go
over any data network.
Why is VoIP so well suited for smaller businesses?
Traditionally, small businesses are often
early adopters of such technological
advances and VoIP is no exception.
Manufacturers have addressed this by
including product features that make VoIP particularly attractive for smaller enterprises. This includes designing new turnkey
packages specifically for small businesses.
Because these systems use the Session
Initiation Protocol (SIP), installation is simplified and the installation timeframe is
shortened. Most importantly, the costs of
VoIP have dropped, which makes it more
affordable for small business owners. It is
important to note, however, that VoIP can
be viable for businesses of all sizes.
What factors should influence a business
owner’s decision to go with VoIP?
Business owners should consider timing,
cost and technology. Timing comes into
play as traditional telephone systems need
to be replaced as they become outdated or
difficult to maintain. Business owners
should consider switching to VoIP when
their traditional phone systems need to be
replaced. From a technology standpoint,
companies in the telephone industry are
dedicating their R and D almost exclusively to VoIP. This means that if you are to purchase a traditional phone system, it will
most likely remain technologically stagnant as your business continues to evolve.
The cost factor, which was once a major
concern, no longer makes the switch to
VoIP unrealistic for a small business.
There are three basic VoIP system types
to choose from: hosted, IP-PBX and hybrid.
Finding the right one for you depends on
several factors. A hybrid system can cost
less and be easier to drop into an existing
network with no need for re-cabling. For
these reasons, hybrid systems are out-selling pure IP-PBX systems three to one.
The change to VoIP does not have to take
place all at once. Instead of a complete
replacement, a business with multiple locations can introduce VoIP in parallel with
existing traditional services on a site-by-site basis. This can minimize any business
disruptions and spread out the costs. It can
also test the viability of VoIP for a business.
JEFF BELLER is an IT/Telecom Consultant with Skoda, Minotti
& Co., a CPA, business and financial advisory firm based in
Mayfield Village. Reach him at [email protected] or
(440) 449-6800.