Why a VOIP Telephone System Is Vital For Small Business

Communication is an imperative part of many businesses from newly-established and small business to multinational companies. Nowadays, there are lots of ways for businesses to efficiently communicate, but what has emerged as the most preferred method of communication is undeniably the VoIP phone system. VoIP or otherwise the voice over internet protocol is a vital term utilized to describe the transmission of phone calls with the aid of the data network, despite of over traditional telephone lines.

This type of advanced technology lets for more efficient and faster business communications, which are very essential in today’s fast-paced business setting. While VoIP technology has certainly proven its worth to multinational firms and large businesses, VoIP for Small Business solutions also have started to gain greater prominence these days.

Advantages of using VoIP phone service

The significance of VoIP Telephone System lies in its multiple features, functionality, and several other benefits including cost-savings. Apart from the basic features such as call forwarding and caller ID, VoIP technology has some distinct and exclusive features such as option for conference calls, web mobility, managing of voice mail and more. This technology is creating a vast revolution to provide major advantages to your business. It can facilitate your firm to develop by augmenting your communications capabilities, can save money on your great telecommunication expenses, and even can enable improved mobility, flexibility and productivity in your workforce.

Many small businesses across the globe are already benefitting from the lucrative profits of VoIP systems. Here are a few reasons why VoIP is making a huge impact on business communications, particularly for small businesses;

• VoIP offers the ability to use data network and an integrated voice at a lower price than that of separate parts.

• VoIP can open the key door to new applications and services for the small business, which can drive additional profits and revenue.

• A VoIP Business Phone System offers companies and business houses a great technological infrastructure eminently needed in today’s global marketplace.

VoIP is enabling small business houses to capitalize on its various advantages – enhanced customer relationship management, drastically reduced overhead costs, strong rapport with clients, instant exchange of information, and extremely effective collaboration amid business associates, workers and customers.

There are various ways for small businesses in order to take benefit of the VoIP service. An upgrade to an existing telephone system, when available can certainly allow VoIP communications amid different locations, without any key disruption to the infrastructure in every office. Alternatively, the new VoIP system can also be procured to replace the existing or old phone switch and efficiently open up new abilities. Yet another vital option is to simply pay for a service provider on a monthly basis to have a hosted VoIP system, without purchasing any capital equipment at all.

With the increasing demand for VoIP, the VoIP service providers undeniably having a field day. Nevertheless, for your small business to avail all the vital benefits that VoIP offers, it is crucially imperative that you have a reliable internet connection and more significantly, you tie up with the reliable VoIP telephone service provider!

Pros and Cons of VoIP For Small Business – Is it Right For You Or Not?

VoIP in a business environment can work very well. A lot depends upon your existing network though. If you have an overly secure network with a lot of traffic then expect the quality to fall. Try and keep your voice traffic on a different network to your data and remember that VoIP/SIP is not as secure as traditional telecoms.

First some of the benefits…. VoIP systems often cost less for recurring maintenance than traditional PBX equipment and are easier to configure when applying moves, adds, and changes. Incidentally, there is normally no configuration change required to move an extension in a VoIP network. Many VoIP systems also let you use the Internet for your outbound calling, which can reduce your long distance bill and displace the cost of a PRI or analog trunk circuits for access to the public telephone network. VoIP also enables Unified Messaging, which integrates email, voice mail, IM, and calendaring.

However there are some drawbacks….. IP phones are more expensive than traditional analog phones and have more stringent requirements for the network to support them than standard email and web surfing. While VoIP systems do generally have a more intuitive interface than traditional PBX equipment, in a company of 20 you’re not likely to see much turnover I would expect.

Additional drawbacks are:

– Voice quality (not all your calls will be as clear as a traditional analog line).

– Reliability. If your Internet or System Network goes down you are left without computers and a phone system.

– Basic Features are sometimes billed a la cart and can end up costing you more per user then a traditional phone system.

– Hosted VoIP solutions require you to buy the phones (and associated routers) and then bill you every month for the service. Where as a phone system (with all its equipment) can be financed over 3 – 5yrs and then you own the equipment and system features & service.

The best approach for determining the viability of such a move would be to have a cost analysis performed for each option and look at the total costs and system benefits, up front, at year five, and beyond.

For a small company, these are conditions that generally would indicate a possible business case for VoIP:

– Your company has multiple sites and pays for Wide Area Network circuits to connect those sites together as well as PRI circuits or Centrex lines for PSTN access.

– You have a number of “remote workers” who work out of remote/home offices, and the company pays for their home phone and long distance as well as their Internet access.

– Your company spends a significant portion of its technology budget on long distance or international calling.

– Your company has high turnover and/or personnel are constantly changing offices.

– Integration of unified messaging and/or advanced calling functions such as on-the-fly conference calls would allow your company to conduct business much more effectively, so much so that it would positively impact your bottom line.

– Your company is getting ready to move to a new facility and would have to pay to run cable.

Outside of those, I would say VoIP may not be your best choice. One option worth considering is a gateway that services traditional analog phones, but converts the call to VoIP when calling external numbers.

Don’t get me wrong I love working with VoIP, but if your current system isn’t broken or costing you an arm and a leg to maintain it, you may not need to upgrade.