Is VoIP Right For Your Business?

 

 

 

Key Factors Driving Business VoIP Market

Voice-over-Internet-protocol (VoIP) is now beginning to impact businesses and the enterprise market in a positive way. The declining costs of communications equipment and adoption of high-speed networks, especially by small businesses, has set the stage for delivery of low-cost, feature-rich VoIP services without the need for high levels of communications infrastructure investments. Furthermore, VoIP phone systems allow businesses, aside from  affordable phone calls, advanced functionalities such as video conferences for pennies on the dollar, or in some cases, even free.

Business VoIP Has Moved Beyond Early Adoption Stage

According to a report by market research firm In-Stat, although VoIP usage may not yet be considered mainstream among business users, this technology has certainly moved beyond the early adoption stage. Business VoIP systems are, in fact, gaining more traction and emerging as a viable tool to add functionality, efficiency, and savings to the voice service needs of US businesses. One of the major drivers for the growing acceptance of VoIP is the significant cost savings on long distance and overseas calls. End-users, particularly owners of small businesses, feel less constrained from the costs associated with using VoIP for their business calls. In addition, small businesses are also realizing additional management and equipment costs savings from using VoIP services and installing VoIP phone systems.

In another report released by communications equipment maker Lucent Technologies, businesses and consumers were found to be willing to pay a premium for next-generation mobile high speed data services such as VoIP. As part of this enterprise research, the company gauged interest in five applications―VoIP, video conferencing, communicate and collaborate, multicasting, and business continuity. VoIP, which consisted of basic VoIP and IP PBX features, generated the greatest willingness to buy among enterprise communications technology decision makers and was the top driver for switching service providers. 

VoIP Service Providers Developing More Solutions to Benefit Businesses

Business VoIP adoption is expected to gain more momentum and win over the small business and enterprise markets over the next couple of years. VoIP service providers are well aware of the opportunities in business VoIP and are continuing to differentiate their products and offer VoIP solutions to gain business in an increasingly competitive market. VoIP service providers are currently developing more advanced technologies and benefits to offer businesses in order to establish a foothold in the market. Easy calling capabilities and collaborative video conferencing are now commonly available to businesses and more types of differentiated VoIP services are expected to come.

VoIP phone systems also allow people to communicate with just the use of one inward dial number and a choice of devices such as a laptop soft phone, a desktop microphone and headset system, a VoIP desk phone, or a PDA. This therefore creates more opportunities for a flexible working environment, especially for companies which have many remote or regularly traveling employees. VoIP phone systems provide you with the flexibility of how you want to be reached and at a fraction of the price of mobile or landline-based calls. 

Business VoIP Offers Compelling Business Benefits

In summary, some of the major reasons why companies will continue to adopt and switch over to business VoIP phone systems and VoIP services are: significant savings on long distance and overseas charges; the capability to provide strategic voice and video applications; relative lower cost of ownership compared to traditional PBX hardware; lower operational costs compared to traditional PBX systems; and simpler administration and maintenance.

Although there may be issues from time to time with connections and voice quality or in instances of power disruptions, VoIP may not work, a growing number of businesses appear to be planning their switch to VoIP phone systems and VoIP services since the business and economic benefits are becoming more compelling. Some of the major communications and technology companies such as AT&T, Cisco Systems, Avaya, and Nortel Networks are now offering VoIP solutions that are based on best of breed and open standards technology. VoIP solutions and VoIP PBX systems offered by these companies provide small businesses and the enterprise market the benefits of flexibility, scalability, and cost effectiveness.   

Sources: “In-Sights: Business VoIP End-User Behavior Coming Into Focus,” MarketResearch.com, 10 November 2006, “Lucent Shares Results of Market Research―Mobile Business VoIP and Consumer Video Services are Potentially the Most Attractive Next-Gen Wireless Services,” Wireless News, 8 November 2006; “The Outlook for Business VoIP,” Total Telecom, 9 October 2006.

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