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What can a Voice over IP phone system do for my small business?
Author: Nick Pegley
Topic: Technology
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Voice over Internet Protocol, or VoIP, is a term used to
describe the transmission of telephone calls using a data
network, rather than over traditional phone lines. It is a
simple concept, but one that is having a very significant impact
on the world of business communications.

VoIP is itself enabled by a much broader technological
evolution, namely the convergence of multiple forms of
communication, including voice, video and data, into a single
network. This transformation is creating a revolution in the way
communications works, and it has the potential to offer major
benefits to your business. It can help your company grow by
broadening your communications capabilities, it can save you
money on your telecommunications costs, and it can enable more
productivity, mobility and flexibility in your workforce.

Many small and medium sized businesses (SMBs) around the world
are already benefiting from the advantages of VoIP systems, many
of which are well suited to these kinds of organizations. Here
are some examples of why VoIP is making a major impact on
business communications for SMBs:

? It provides the ability to use an integrated voice and data
network at a lower cost than the separate parts. ? It offers the
SMBs communications capabilities on a par with the largest of
companies. ? It can open the door to new services and
applications that can drive additional revenue and help cope
with expansions in customer demand. ? It can lead to increased
employee productivity by giving employees a more flexible means
of communicating and allowing more mobility, while increasing
the flow of information.

There are different ways for SMBs to take advantage of the
benefits from VoIP. An upgrade to an existing phone system, when
available, can allow VoIP communications between different
locations, without any major disruption to the infrastructure in
each office. Alternatively, a new VoIP system can be purchased
to replace an old phone switch and open up new capabilities. Yet
another option is to pay monthly for a Service Provider to
provide a hosted VoIP system, without buying any capital
equipment at all.

Small and medium sized businesses are often good candidates for
VoIP systems, and have represented a majority of the early
adopters of technology. While large companies have complex
networks, with a multitude of different phone systems that can
be difficult to integrate into a single converged network, small
companies' networks are more straightforward, allowing an easier
transition to VoIP.

However, some companies have found that there are complexities
or difficulties that get in the way of them maximizing the
impact of the new technology. Lack of good advice, a
misconceived plan or a deployment by inexperienced personnel can
all led to problems.

The keys to a successful transition to a VoIP based network
start with a clear understanding of the business case behind it
and an implementation plan that best fits the company?s overall
objectives.

There are certain circumstances, however, where the technology
is likely to have a more significant impact than others. If your
company is in one or more of the following situations you will
tend to get a faster payback:

? expanding and need or likely to need larger offices ? have a
significant percentage of employees that travel on business or
work full-time or part-time from home, using laptops ? making
acquisitions and need to integrate with other business ? have
international offices ? have a growing volume of incoming calls
? have not replaced or upgraded their phone infrastructure in
the last 5 years ? have a good penetration of Ethernet cabling
and have communications equipment that is less than 3 years old
? operate in an industry with dynamic competition where strong
customer service levels are essential

Overall, VoIP based phone systems offer great potential for
small companies and can help to keep costs under control while
growing a successful business.

About the author:
Nick Pegley is President of smbINFO Inc a technology information
services company specializing in the needs of small businesses.
With more than 20 years of experience in the networking,
telecommunications and small business markets, Nick has seen
first-hand how small companies can use technology to become more
competitive, more responsive and more profitable when they know
how to use it correctly.

For more information visit www.smbinfo.com



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