Buying into the VoIP revolution

Buying into the VoIP revolution
03 August 2007

No-one can now deny that internet based phone services – known as Voice over Internet Protocol (VoIP) – are making businesses of all sizes sit up and take notice.

Since 2005, VoIP has gained significant momentum thanks to the cost and productivity benefits for business, moving into the mainstream what was until fairly recently a little known technology. Firmly now a valuable communications tool, it is the continued desire to reduce costs and ease management processes that are helping to drive the growth of VoIP.

As part of a secure and converged network, VoIP allows people to work remotely wherever they are, with calls to their 'office' number following the worker. This ability to work flexibly has many advantages for business. Remote working can help overcome difficulties in attracting staff who do not wish to relocate, retaining key people who may not want to work full time and to physically accommodate new people when office space is unavailable. Due to the varied factors surrounding VoIP it has become a “hot technology”, consequently many companies are keen to upgrade to routing voice calls over the internet in order to avoid being left behind and losing out to competitors.

But upgrading to a converged voice data network is potentially – and more than likely to be - just the first step with VoIP. Future innovation and development of VoIP is potentially unlimited when the processing power of desktop computers and data networks is applied to voice telephony. We will then see a quantum leap in quality and functionality.

By devoting more bandwidth to VoIP, sound quality will rise to CD standard. Further along the line – but not too distant – is desktop video conferencing with 3G mobiles. More intelligent call handling will also see separate ring tones and voice mail messages for different groups of callers, as well as simplifying conference calling.

VoIP-supporting mobiles will improve to provide seamless switching between private networks and cellular public networks. There will, literally, be no escape from the office.

In the meantime, some small companies are taking a close interest in VoIP because their Private Branch Exchanges (PBX) are nearing the end of their design life. With an average life cycle of five to seven years, many firms are seeing the need to replace hardware as a good time to upgrade to an IP-based system. Indeed, there may be little choice in any case as much of the impetus to upgrade to VoIP has come from manufacturers who are keen to phase out traditional PBX systems in order to focus on internet-based products.

But going with the flow isn’t necessarily the best course of action for some companies. Where profit margins are thin and competition fierce, technology updates must be justified and clearly demonstrate their worth. Swimming against the tide though can be difficult. Using technology to transform your business has to satisfy a number of benchmarks – not just bottom line Return on Investment (RoI). While good, RoI is not the whole picture; technology should also be grounded in protecting investment, reducing costs and improving communications.

Often vendors will advise that VoIP is crucial to gain the benefits of unified communications and remote working etc. As a statement of fact this is broad brush, a one size fits all approach. For some small to micro-sized companies, what is offered is overkill when a simpler – and cheaper – alternative exists.

Businesses should be made to feel special and have vendors propose solutions that are tailor-made to their individual requirements. They should not be pressurised into moving straight to IP telephony by application requirements. The correct approach is a migration to IP telephony at a time that is in line with the company’s business strategy and anchored in the infrastructure providing unequivocal Return on Investment. A phasing in also ensures businesses do not have to sign away their precious IT budgets in one fell swoop.

Unfortunately, many companies investing in hardware can lose sight of the real purpose of the technology by getting drawn into a maelstrom of techno-babble. In these circumstances, there is a real danger of the tail wagging the dog. To overcome this dilemma, companies must avoid becoming a hostage to the technology which is, ultimately, being purchased to help them go about their everyday business.

Related HIE Business link - Assess your telecoms needs