Switching to VoIP Phone Service - Does it Add Value to Your Business?

VoIP phone systems are flexible, feature rich systems that reduce telecommunication budgets without compromising on voice quality or features. In fact, VoIP has uses way beyond the capabilities of conventional phone systems such as virtual phone numbers, voice mail and fax forwarding, switching from Wi-Fi to cellular network, and more.

In spite of the strides in VoIP technology, many businesses have reservations about adopting VoIP. Their concerns are - substandard voice quality, insecure network, dependence on internet connectivity, cost and complexity of implementation. In this article, we discuss how the benefits of VoIP overshadow the drawbacks, and how to maximize your VoIP system.

Why should you select VoIP phone systems?

VoIP will undoubtedly add value to your business. Here's how:

Improving VoIP technology

Early VoIP restricted users to computer systems and average voice quality. Today's standard phones (with VoIP adapters) and IP phones promise high voice quality, mobility, and various useful features. Existing data networks are utilized by businesses to manage phone calls within the office, leading to huge savings and increased productivity.

VoIP reduces telecommunication costs

Traditional phone systems involve the administration and maintenance of costly infrastructure as per industry regulations. With VoIP, businesses reduce implementation and maintenance overheads by maintaining a single network for voice and data. Movement of employees that typically costs $100 per head is now as simple as plugging an IP phone into another broadband network jack. VoIP providers too fall cheaper than traditional phone system vendors.

Mobility and accessibility with VoIP

An IP phone can be used wherever there is broadband. You can take calls from clients and associates from office, home, a hotel or even a friend's place without their trying your cell phone. Many VoIP systems include software that allows you to make and receive calls on your laptop with a headphone and microphone unit.

Easy VoIP configuration

VoIP phone systems can be configured to forward voice mails and faxes to your email inbox and read emails into voice mail. You can easily manage your messages and mails from one place.

Virtual phone number

You may want your business to have an area code of another region if you are targeting customers there. With VoIP, you can have a virtual phone number with the desired area code.

VoIP improves productivity

Studies show that VoIP systems improve productivity by almost 4 hours per employee per week. VoIP phone system features cut down on the time wasted in managing calls. You can even set your VoIP phone number to ring simultaneously on your cell phone and landline before reaching voice mail, making sure you never miss an urgent call.

Making the most of VoIP phone systems

As you can see, VoIP has much to offer. If you still have concerns about potential hurdles, these tips will help you stay on top of them.

1. Hire VoIP service vendors

Though a standard VoIP phone system is fairly simple to install, hire a VoIP service provider for larger projects. Your network provider may also have a VoIP solution for small businesses and can install and configure it for you.

2. Run a pilot project

Have a small group of people use the VoIP system and verify its usefulness to your business. Once you're satisfied, roll it out across the office. Retain your traditional phone system as a backup during this phase.

3. No missed calls with call forwarding

Configure VoIP phone systems to forward unanswered calls to a cell phone or landline. If there's ever an electricity outage, you won't miss any calls till your backup (generator, etc.) gets going.

4. Secure your network

The only way to circumvent call hacking is to protect your network from denial-of-service attacks and digital hackers. Network security should always be updated and meticulous.

VoIP phone systems are an economical option with all the advantages of a technologically evolved telecommunications system. Small businesses can reduce travel costs with high quality videoconferencing in real time, call center applications, and other compelling benefits of VoIP. With latest wireless phones offering seamless switching between mobile and Wi-Fi networks, VoIP users can look forward to more cost savings and attractive offerings.

Daljeet Sidhu is at TradeSeam. Read our VoIP Service Providers blog article, Small Business VoIP blog article.

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VoIP - Accelerating ROI on Business Phone Systems is Important to Win Customers

VoIP providers have been playing on cheap international calling rates and low service fees to win contracts from businesses that are becoming increasingly cost conscious. However, C-level financial executives base their decisions on more than per minute cost savings. VoIP service providers have their job cut out - convincing corporate leaders about the quick payback potential of investing in VoIP systems.

Shorter breakeven period for technology spending

Trends show that corporate are looking at technologies that promise breakeven points within 6 months - a sharp contrast to prevailing industry standards of 18 months. In spite of advances in VoIP technology and products, this stipulation puts a lot of pressure on its service vendors. Vendors need to produce financial breakeven data to win contracts from buyers as corporate budgets are restricted to purchases of projects that show significant returns preferably within the same financial year.

Modular implementation of projects

Restrictions on technology spending have made CIOs, CFOs, and managers rethink their project plans. Technology needs are now met in a modular manner. Earlier, implementing a VoIP system meant a lot of changes in data lines, servers and desk equipment. Today, interoperable equipment gives managers the flexibility to implement parts of a long-term project as and when funds are available and business downtime is minimized.

Quantifying results of VoIP systems

To measure the gains of installing or upgrading a VoIP system, CIOs have to consider both tangible and intangible results. Voice clarity and usable features are intangible results that contribute significantly to employee productivity. However, CIOs need quantifiable results that have to be measured differently to make for a short cycle time. Some strategies employed by CIOs to gauge the performance and cost savings from a VoIP system include:

• Measuring the impact of the time spent reconnecting dropped calls on an employee's productivity (loss of salaried hours).
• Surveying customers and analyzing the impact of a clearer phone connection on sales lost or gained.
• Comparing the expense of running a tele-presence suite over VoIP services with an executive's travel costs.
• Distributing the net cost of a new VoIP system over the operations and maintenance budget of an existing system for a period of 6 months.

Return on investment (ROI) cannot be determined without accounting the cost of ownership. If a VoIP system successfully breaks even in 6 months, the business can look forward to removing a line item from its budget. Few CEOs would argue with this cost benefit.

VoIP system service providers - Proving claims

VoIP service providers have to come up with sound financial data to back up their claims. They are using case studies and numbers to prove the actual cost of ownership over the life of a VoIP's implementation. For example, a system that breaks even in 6 months and does not need billed maintenance for the next three years is a sure winner with CIOs. The budget allocated for the organization's business VoIP system can be amortized over 36 months.

As VoIP phone systems move into offices and homes, service providers will be faced with tougher expectations from customers. Enterprise VoIP phone system resellers must prepare themselves with necessary financial information to convince prospective buyers of the viability of a six-month ROI. All value-added VoIP service providers must learn this skill to win contracts.

Daljeet Sidhu is at TradeSeam. Read Small Business VoIP advice. Compare VoIP Service quotes.

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Secure Your VoIP and Avoid Huge Telephone Bills

There have been a slew of reports lately about VoIP being misused by criminal elements. This is hardly surprising given that even with the low cost of VoIP, talk time is still a valuable resource and is therefore a target for criminals. The modus operandi is to compromise businesses VoIP servers in such a way that hackers can use it to make free VoIP calls all over the world. At the end of the month, the business is usually hit with a massive bill that can run into hundreds of thousands of dollars!

The reason why these attacks succeed is because many firms are yet to take VoIP security seriously. Most businesses think it won't happen to them and so they don't take even basic precautions. One of the easiest ways for hackers to gain access to the servers is by using brute force attacks that focus on simplified or even non existent passwords. One is always surprised by the number of businesses who don't have a password management policy in place.

Most VoIP systems use the UDP port 5060 for their traffic and this provides attackers with an easy target. They use a procedure known as SIP scanning which searches publicly accessible spaces for weak and vulnerable servers.

One of the problems is that they typically conduct their activities from countries outside the United States and are therefore beyond the jurisdiction of law enforcement officials. There's not much that can be done to catch the culprits and this makes the entire situation even more dangerous. There have been instances however, when VoIP providers have reduced the bill when it's apparent that accounts have been hacked.

Other security measures can include enforcing limits as to how many calls can be made from a certain account within a specific time period as well as perhaps not allowing calls to or from areas and countries where the company doesn't do business with. Each firm will have to devise its own techniques to deal with the security situation depending on their specific needs.

As more and more businesses adopt VoIP, these security practices will become standard and will in fact be recommended by the VoIP providers themselves both for their own security as well as to ensure that customers don't suffer. But even now, all it requires is an understanding that VoIP systems require as much protection and security as regular computer systems.

Bhagwad is an expert consultant on Small Business VoIP. He also specializes in HD Voice Systems.

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