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What can a Voice over IP phone system do for my small business?

by Nick Pegley

Voice over Internet Protocol, or VoIP, is a term used to describe the transmission of telephone calls using a data network, rather than over traditional phone lines. It is a simple concept, but one that is having a very significant impact on the world of business communications. VoIP is itself enabled by a much broader technological evolution, namely the convergence of multiple forms of communication, including voice, video and data, into a single network. This transformation is creating a revolution in the way communications works, and it has the potential to offer major benefits to your business. It can help your company grow by broadening your communications capabilities, it can save you money on your telecommunications costs, and it can enable more productivity, mobility and flexibility in your workforce. Many small and medium sized businesses (SMBs) around the world are already benefiting from the advantages of VoIP systems, many of which are well suited to these kinds of organizations. Here are some examples of why VoIP is making a major impact on business communications for SMBs: • It provides the ability to use an integrated voice and data network at a lower cost than the separate parts. • It offers the SMBs communications capabilities on a par with the largest of companies. • It can open the door to new services and applications that can drive additional revenue and help cope with expansions in customer demand. • It can lead to increased employee productivity by giving employees a more flexible means of communicating and allowing more mobility, while increasing the flow of information. There are different ways for SMBs to take advantage of the benefits from VoIP. An upgrade to an existing phone system, when available, can allow VoIP communications between different locations, without any major disruption to the infrastructure in each office. Alternatively, a new VoIP system can be purchased to replace an old phone switch and open up new capabilities. Yet another option is to pay monthly for a Service Provider to provide a hosted VoIP system, without buying any capital equipment at all. Small and medium sized businesses are often good candidates for VoIP systems, and have represented a majority of the early adopters of technology. While large companies have complex networks, with a multitude of different phone systems that can be difficult to integrate into a single converged network, small companies' networks are more straightforward, allowing an easier transition to VoIP. However, some companies have found that there are complexities or difficulties that get in the way of them maximizing the impact of the new technology. Lack of good advice, a misconceived plan or a deployment by inexperienced personnel can all led to problems. The keys to a successful transition to a VoIP based network start with a clear understanding of the business case behind it and an implementation plan that best fits the company’s overall objectives. There are certain circumstances, however, where the technology is likely to have a more significant impact than others. If your company is in one or more of the following situations you will tend to get a faster payback: • expanding and need or likely to need larger offices • have a significant percentage of employees that travel on business or work full-time or part-time from home, using laptops • making acquisitions and need to integrate with other business • have international offices • have a growing volume of incoming calls • have not replaced or upgraded their phone infrastructure in the last 5 years • have a good penetration of Ethernet cabling and have communications equipment that is less than 3 years old • operate in an industry with dynamic competition where strong customer service levels are essential Overall, VoIP based phone systems offer great potential for small companies and can help to keep costs under control while growing a successful business. About the Author Nick Pegley is President of smbINFO Inc a technology information services company specializing in the needs of small businesses. With more than 20 years of experience in the networking, telecommunications and small business markets, Nick has seen first-hand how small companies can use technology to become more competitive, more responsive and more profitable when they know how to use it correctly. For more information visit www.smbinfo.com

The Lowdown on VoIP

by Mike Schuda

It seems like technology is headed for a massive telephone change over. The traditional Public Switched Telephone Network (PSTN) is looking to be replaced by VoIP. VoIP is short for Voice over IP. VoIP is the routing of conversations over an IP network or the Internet. VoIP uses a packet-switched network instead of the circuit-switched voice transmission lines used by traditional telephone networks. VoIP does not need an Internet connection to work. A company that has a LAN connection with all of its computers can utilize VoIP technology. VoIP is a great technology, but has a variety of issues with implementation. VoIP may face problems with latency because IPs do not provide Quality of Service guarantees, nor do they provide their packets of information in sequential order. High-speed Internet connections are required for VoIP and firewalls often prove tricky for VoIP technology. To combat this, many people use Session Border Controllers (SBC). VoIP technology has many advantages. There are more new features with VoIP because of the lack of an International Telecommunications Union. VoIP is still very much an open market for developers, so the technology is constantly being improved. VoIP also has a lower cost than traditional sources because of the monopolies that exist or traditional phone companies being controlled by the government. Some users even see VoIP phone calls as free because they do not have to pay extra for the service. The user only pays the Internet service provider, and therefore the usage of VoIP seems to be free. You can also take your VoIP phone wherever you go because all you need is a network connection to make it work. VoIP technology will also benefit network agents who work for call centers. Agents can help callers from anywhere in the country with an Internet connection. Finally, because VoIP is on the computer, there is increased functionality. Conference calls can be held, information can be sent, and things like address books can be updated and shared over VoIP. While VoIP has many advantages, there are a few drawbacks to the service. One of the biggest drawbacks is reliability. Telephone lines have back up generators in case of power outages, so phones can keep working. Because VoIP is connected to the Internet, a power outage will end a VoIP call when the computer shuts down. To combat this, users must buy an expensive uninterruptible power supply or a generator that must then be installed on the premises. Internet connections are also subject to disconnection, depending on crowded networks, and the quality of the ISP. If the Internet connection drops, then the VoIP call will be dropped. VoIP is also a problem for emergency calls. Because of the nature of the Internet and VoIP systems, emergency workers cannot trace calls. In the event that someone with an emergency has a problem but is unable to give an address, the emergency worker will not be able to trace the call and find the person. VoIP carriers are already attempting to fix this problem by implementing a technical work-around. Finally, it will be very difficult to integrate VoIP on a massive scale, because while the standard Plain Old Telephone System (POTS) has a common standard, VoIP does not. VoIP has many advantages as well as some large drawbacks. The main roadblock in the way of global VoIP adoption is reliability. When VoIP proves that it can be just as reliable as traditional telephone services have been over many years, then it will start to be adopted. VoIP technology is always improving, so the problems with VoIP today are likely to be solved sooner than many people expect. VoIP can truly revolutionize both the business world and home life. About the Author Mike Schuda writes about a variety of new technologies, but focuses primarily on VoIP technology.