VoIP in a business environment can work very well. However, a lot depends on your existing network. If you have an overly secure network with a lot of traffic, expect the quality to drop. Try to keep your voice traffic on a different network than your data and remember that VoIP/SIP is not as secure as traditional telecommunications.

First, some of the benefits… VoIP systems often cost less for recurring maintenance than traditional PBX equipment and are easier to configure when making moves, adds and changes. By the way, no configuration changes are normally required to move an extension on a VoIP network. Many VoIP systems also allow you to use the Internet for your outgoing calls, which can lower your long-distance bill and offset the cost of PRI or analog trunks to access the public telephone network. VoIP also enables unified messaging, which integrates email, voicemail, instant messaging, and calendaring.

However, there are some drawbacks… IP phones are more expensive than traditional analog phones and have more stringent requirements for network support than standard email and web browsing. While VoIP systems generally have a more intuitive interface than traditional PBX equipment, in a 20-person company you’re not likely to see as much turnover as you’d expect.

Additional drawbacks are:

– Voice quality (not all your calls will be as clear as a traditional analog line).

– Reliability. If your Internet or system network goes down, you are left without computers or a phone system.

– Basic features are sometimes billed à la carte and can end up costing you more per user than a traditional phone system.

– Hosted VoIP solutions require you to purchase the phones (and associated routers) and then bill each month for the service. Where a phone system (with all its equipment) can be financed for 3-5 years and then you own the equipment and system features and service.

The best approach to determining the feasibility of such a move would be to perform a cost analysis for each option and look at the total costs and benefits of the system, up front, in year five and beyond.

For a small business, these are conditions that would generally indicate a possible business case for VoIP:

– Your company has multiple sites and countries for wide area network circuits to connect those sites, as well as PRI circuits or Centrex lines for PSTN access.

– You have a number of “remote workers” who work in remote/home offices, and the company pays for their home phone and long distance, as well as their Internet access.

– Your company spends a significant portion of its technology budget on long distance or international calls.

– Your company has a high turnover and/or the staff constantly changes offices.

– The integration of unified messaging and/or advanced calling features, such as conference calls on the go, would allow your company to conduct business much more effectively, so much so that it would have a positive impact on your bottom line.

– Your company is preparing to move to a new facility and would have to pay to install the cable.

Other than that, I’d say that VoIP may not be your best option. One option worth considering is a gateway that services traditional analog phones, but converts the call to VoIP when calling external numbers.

Don’t get me wrong, I love working with VoIP, but if your current system isn’t broken or you’re not having a hard time maintaining it, you may not need to upgrade.

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