VoIP is a business phone system which allows you to make phone calls using your Broadband Internet connection. VoIP stands for “Voice over Internet Protocol”. The system is also referred to as Voice over IP, Broadband phone, Internet phone service and Digital Voice, amongst others. The only thing you need to use VoIP is a Broadband, high-speed internet connection. In general, business VoIP is a cheaper alternative to a traditional phone system, as well as offering additional features.
How does VoIP work?
VoIP sends voice information in digital data packets over the internet. Traditional phone systems use the circuit transmissions provided by the public switched telephone network (PSTN). By using the internet, VoIP avoids the fees charged by the ordinary telephone service. Any business with an established computer system already using high-speed Internet access, such as Broadband, can install VoIP right away.
What are the key advantages of VoIP?
VoIP technology significantly reduces telephony costs. There are two ways in which any VoIP business phone system can save significant amounts of money:
1. Traditional phone lines are eliminated: Broadband Internet is used for telephony needs.
2. Long distance calls become significantly less expensive, regardless of the distance: because they travel over the internet rather than the PSTN (Public Switched Telephone Network).
VoIP also enables your business to integrate all of its communications, including telephone, email, fax, instant messaging and video, even across different locations, for improved efficiency and image. Additional advantages of VoIP depend on the type of service chosen but include many features not available with a traditional phone system.
Typical VoIP Features
There are several VoIP vendors in today’s market, with VoIP offerings that vary from one provider to another. However, most VoIP systems offer the following:
- Unlimited calls: you can make unlimited local and long-distance in the continental United States calls from any phone extension, for a fixed fee
- Toll free numbers: VoIP providers offer toll free numbers that allow customers to contact a business at no extra charge
- Emergency numbers: VoIP providers will direct emergency calls to the local Public Safety Answering Point, in the same way as a traditional phone system routes them.
- Call directory assistance
- Block calls
Accompanying features usually include:
- Conference calls
- Caller ID
- Call forwarding
- Call logs
- Call hold
- Call transfer
- Call waiting
- Last number redial
Voicemail Features
- Greeting options
- Voicemail to e-mail service
Dial-by-name directory
- Dial-by extension
- Checking your voicemail remotely through the web.
Advanced VoIP systems also offer more sophisticated features, such as:
- Cell phone integration – cell phones can be integrated into the system
- Portability of phone features – features such as conference calling, caller ID and call forwarding can be taken with the employee if they are out of the office
- Follow me – if someone is not available on their designated number, the VoIP system can automatically try a second designated number and a third if necessary.
- Branch office support – branch offices can become extensions of the main branch and calls between branches are as simple as dialing the extension. The cost is free.
- Call center support – typical call center features such as call queues and automatic call distribution can be added to a VoIP system
- Call bridging – conference calls can be setup using a pre-assigned call-in number
- Call barging/monitoring
- Tracking, metric and other reporting tools
Types of VoIP Services – Cloud Based and Locally Hosted Systems
Cloud Based Systems
A Cloud based VoIP system offers a contract term typically of one, two or three years. The provider manages the system off-site at their facility. This solution offers the following advantages:
- There is no need for a physical box at the business location. All calls go through the provider and the only equipment at the business are the phones themselves. The provider is responsible for the service, maintaining the equipment and usually provides a service level agreement (SLA). Any changes that need to be made are done by the provider.
- Keep pace with fast evolving technology without having to purchase new equipment.
- Hosted VoIP can be quickly installed and any changes can be done easily and quickly either through a web portal or by calling the provider directly.
- A viable solution for small businesses.
Locally Hosted Systems
These systems are typically used by large businesses that have both the physical infrastructure to handle the system and either an in-house or external IT staff. Locally hosted systems require the PBX hardware to be on premises along with other network devices such as switches and routers. The business will need to insure that it has a proper internet connection to accommodate the telephony needs. This solution offers the additional advantage of allowing a business to be able to customize and keep full control over its communications system. For larger companies, this solution is also more cost effective than a hosted solution.
Cost of a VoIP System
Cloud Based VoIP – ITCS works with several Cloud based VoIP solutions providers and can provide the right vendor to match the needs of your business. In general, costs have been decreasing because of increased competition in this arena. Our business telephony consultants can work with your business in designing and implementing a Cloud based VoIP solution.
Locally Hosted Systems – This cost can vary widely depending on the provider, number of people in the business, and features of the system. Typically businesses with more than 20 users will find this option to be less expensive. The cost variables are as follows:
- Upfront cost of the hardware
- Annual maintenance costs
- Ease of adding additional users to the system
- Ease of expansion into other locations
Once again, ITCS has partners with several vendors and can provide the right solution that meets the needs of your business and fits your budget. Whether it is an Asterisk, Trixbox, CudaTel or other solution, we find the RIGHT solution for your business.
We analyze your business and your needs and determine if a Cloud based or locally hosted system is the best solution. We do not pick from a pre-designated menu of providers and offer a solution tailored by them. Rather, we analyze your business and your needs and tailor a solution that meets your needs today and in the future and works with you telephony budget.
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