VoIP: The New Business Cost Saver?

Most people in Business are well aware that VoIP Technology is capable of delivering significant Communications' cost reductions for both inbound and outbound calls, with zero cost possible for internal calls. Business has been quick to see the benefits and many large corporations have switched all of their voice, data and video communications to VoIP with an increasing number of SMEs also finding there are solutions available that not only cut costs but also include professional networking and call centre facilities without any in-house hardware. But before you start looking for somewhere to plug in your Ethernet cable it's worth having a bit of a poke around what's on offer and where the savings are to be found.

Voice over Internet Protocol (VoIP) is essentially the ability to use the Internet to make phone calls via a broadband connection. Plug in to a VoIP Provider via ADSL or cable and using either a PC Softphone or a dedicated hardware unit, start making cheaper calls. The most pertinent area of cost savings for business is a substantial reduction in long distance and local call charges. Some VoIP Providers charge a flat monthly rate for their local and long distance calls, while others charge a timed rate that is substantially lower than that of the traditional telephone services.

Another saving for Business is the simplification of internal communications. Within a company site VoIP internal calls are made via the Ethernet network rather than the usual myriad of routers and dedicated cabling. Between sites a VoIP Provider usually includes calls for free. Given the number of internal calls made within any reasonably sized enterprise, the savings in this area alone justify the switch to VoIP.

To make VoIP calls you need a VoIP phone. There are many possibilities for VoIP connection, but the most common are Ethernet Phones or PC Softphones. Ethernet Phones, such as the Grandstream Budgetone, are generally the best solution for IP telephony. They have the advantage of not requiring connection via a PC, all that is required is a local area network connection with Internet access. Also they look and feel like an ordinary phone, making them the simplest, though not necessarily cheapest, way of moving up to VoIP.

A Softphone runs on your PC, using the in-built sound system for phone calls. It's advisable to use a headset as it can be odd conversing via microphone and speakers. An alternative is a USB phone which plugs into your PC, dialling via the Softphone. Another possibility is to use an ATA adaptor to turn your 'analogue' phone into a VOIP phone, but these can be quite expensive. Your Provider should have a good quality Softphone free of charge and discounted Ethernet Phones on offer, or at least have good advice on either.

Along with lower cost phone calls, the other major reason often proposed for VoIP use is increased functionality and flexibility. The ability of staff or agents to be connected to the company office, provided they have access to an internet connection, is of significant benefit for businesses that need their staff to be on the road, or in different locations, and want to take advantage of free internal communications. Conferencing between staff in multiple locations is no longer a problem and the associated savings in staff time and travel costs need to be credited to the VoIP balance sheet. Going well for VoIP so far!

Call quality is sometimes cited as an issue, but business class VoIP Providers will have sophisticated monitoring equipment in place allowing for switching between alternate routes, thereby ensuring that clarity is maintained. As a result, most users report excellent results when making calls via VoIP. Monitoring should also ensure that a business level VoIP Network remains stable during busy periods and can simultaneously handle high levels of incoming and outgoing traffic.

Further resilience is also offered by some Providers via backup to PSTN or Mobile Phone. In the rare event of a failure somewhere in the VoIP Network, or problems with the Internet itself, which will result in calls via VoIP being temporarily unavailable, the monitoring system can then switch calls through to pre-designated Landlines and/or Mobiles. This is an important consideration when choosing a VoIP Provider as failures in the VoIP Network can be outside the control of the Provider, and if they have no alternative route for your calls, business will be affected.

The result of course is that by having a range of possible call connections every possible outage scenario is covered and the risk of damage to your Business due to communications downtime is significantly lessened. Along with those lower call costs, the benefits of VoIP are mounting, but the savings don't stop there!

An area closely allied to VoIP for Business, though not exclusive to it, is outsourcing of the Company Phone System - the option to have your calls handled and routed through to your staff by an external service who may also be your VoIP Provider.

Not that long ago, once a Business reached a certain level it became imperative that some kind of large box with big switches was installed to handle the incoming calls and to ensure the caller was subsequently connected to the right staff member or department. Also an attractive receptionist was employed to direct the calls along with making live visitors feel they've come to the right place. With the advent of IVR (Interactive Voice Response... Press 1 for Sales... Press 2 for Excuses), the in-house equipment (PBX) became more sophisticated and of course more costly, but the receptionist could now focus on visiting customers, and larger concerns could employ fewer front-of-house staff, the IVR being the initial customer point of contact for callers.

Switching these systems over to VoIP can be difficult and expensive, so whether you have an existing PBX, or are looking to purchase, it is also worth considering a 'virtual' alternative, in other words, outsourcing your Phone System. Business VoIP Providers usually offer a full Virtual Phone System with all the features, and often many more, of even the most comprehensive Call Centre Solutions. The expensive set up costs of hardware are then avoided, along with the expenditure associated with physical maintenance - the Cost of Ownership of an Outsourced Business VoIP Solution tends rapidly toward zero. With the levels of sophistication and resilience now available, Business VoIP is now a realistic, sensible and cost effective alternative to buying an in-house Phone System.

Such features as Non Geographic or Freephone numbers are available with an Outsourced Phone System and allow a central unified point of contact for your customers, even providing the SME with a National image not related to any particular company location. A variety of options are usually available including 0871, 0870, 0845, 0800 and London 0207 numbers. Caller charge rates vary and you should discuss with your Provider the best options for your Business. Gold and Silver 'easy to remember' numbers are also usually offered for an additional fee. Of course if you have an existing number you wish to continue to use, as it has become firmly associated with your Company through advertising and promotional campaigns, then your VoIP Business Provider can also accommodate.

When it comes to hardware systems, additional call routing and recording features are charged as bolt-ons due to an additional box or two being required along with an expensive engineer, who needed payment just to get into his car, to connect all the dangling multi-coloured wires. On the other hand, comprehensive outsourced Phone Systems can include, or easily append, professional caller greetings and prompts with departmental and personnel menus being offered to the caller - call queuing and transfer to another staff member when the intended recipient is busy - optional recording of phone conversations - call distribution to the landlines or mobiles of relevant staff - sms alerted voicemail for departments and individuals, which can be later retrieved by phone or emailed wave file - call statistics and reports - music-on-hold to help keep the caller on the line if there is a delay.

All aspects of an Outsourced Phone System are usually accessible via a password controlled web administration area giving your staff full control of how they receive and handle phone calls. All this for a fraction of the cost of a hardware system, and when coupled with the additional and potentially huge savings offered by VoIP, the benefits and cost savings are clear. So for the question 'VoIP - The New Business Cost Saver?'... well that's a resounding YES.