Ryan Writing

VoIP 101

At this point, most businesses and business owners have had at least some exposure to Voice over Internet Protocol (VoIP) telephone systems. Known primarily for making business telephony more effective, these systems also contain a wide array of features that enable businesses to better serve their customers. For those looking to research a VoIP system for their business, there are a few basic factors to look into.

Why VoIP is Different Than “Traditional” Phone Systems

Traditionally, telephone calls are placed using physical equipment each step of the way. A pair of dedicated channels is needed to complete each call and must be maintained for the duration of the call. This type of call is impacted by factors such as distance, traffic, and availability, which can add to the cost of the call.

VoIP calls are placed via the Internet, rather than over telephone lines, sending the audio (your conversation) in digital “packets”. Using a process called “packet-switching”, voice data is transmitted and assembled at each end of the conversation with enough speed to ensure continuity throughout the call. By removing many of the limitations faced by “traditional” telephone calling, VoIP tends to be a much more cost-effective method of communication.

Because of its use of the Internet, rather than physical hardware, VoIP also allows businesses more agility when it comes to scaling their telephone systems, adding/removing features or restructuring their networks. This agility, coupled with a host of available features, gives businesses the power to operate in a more streamlined manner and to serve their customers much more effectively without the need for added personnel and equipment.

What to Look For in a VoIP System

• Features – VoIP systems typically allow for many more features and add-ons to your basic phone service at a much lower price point. Tools such as call forwarding, integrated messaging, call queuing, and virtual reception are often included in a basic VoIP system or can easily be added at minimal expense. Depending on variables such as the call traffic of your business, the location(s) of your offices, and the out-of-office time of your employees, you will need to research different packages and solutions to find the best one to fit your needs.
• Cost – One of the main driving factors in the early adoption of VoIP was its cost effectiveness. From establishing phone numbers in remote area codes, to low-cost or free long distance, to minimizing or eradicating the charges from your toll-free numbers, there are many cost-effective solutions available with VoIP. Many businesses are able to utilize service packages that carry no charges other than the basic service and hardware charges.
• Manageability – There are two main options for the management of your VoIP network, each with its own benefits and drawbacks. Some businesses opt to maintain an on-premise network and equipment in order to eliminate service and maintenance charges from a provider. Others have decided that using a hosted service better serves their needs and allows them the ability to change and expand their systems without the need for an in-house technician to maintain the network. Deciding whether to contract with a hosted service vs. an on-premise service usually depends largely upon a company’s existing network infrastructure.

The challenges that your business faces are unique, and the best solution is one that is tailored to fit your individual situation. VoIP systems are generally a much lower-cost and more adaptable solution for business telephone needs than their traditional counterparts, giving you the ability to function more smoothly and productively without affecting the bottom line.