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How To: Buy a VoIP System
What to consider in gear, costs, service options, and readiness before you ditch your telco for an Internet line.

Kathryn Vercillo
PC World
Thursday, August 30, 2007; 11:19 AM

Does your business make long-distance phone calls on a regular basis? Do you have employees at multi-site offices or in remote locations? If so, you might want to consider getting Voice over Internet Protocol (VoIP) for your business calls. With VoIP, your calls are routed through your computer, allowing them to be conducted without long distance charges no matter where in the world you are calling. This is particularly beneficial to businesses working with international employees and contacts but it can also be useful for businesses that operate multiple locations in a more condensed area.

VoIP can be an excellent tool for communication and a great way of reducing phone costs for your business. But it's not something that is right for every business, so you'll want to look carefully at whether or not it's something that you want to invest in now. Things you'll want to consider include the amount of money currently being spent on calls, the cost of setting up and maintaining your VoIP system, and the possible drawbacks of using VoIP. A closer look at these topics can assist you in making your decisions.

Here are some things to think about before you get invested in VoIP:

Your business might benefit from VoIP services if:

It should be noted that there are two different types of VoIP service. The first is often used by individual consumers. Also known as Internet Telephony, this type of VoIP uses a standard landline and broadband service with an adapter and a VoIP subscription to connect all calls. While there are some businesses small enough to consider use of this kind of VoIP system, most businesses will be looking at the second kind of VoIP system. This type of system, designed to link multi-site locations to a single line, uses equipment installed at the location to route phone calls through the Internet.

Additionally, you should know that there are two VoIP phone options: hosted and premise-based. Hosted VoIP uses no phone lines and has a single broadband connection for both data and voice. Calls are generally charged per use. In contrast, premise-based VoIP uses standard phone lines connected through the Internet and requires a second broadband connection (one for data and one for voice). Calls are generally charged per line. This is the route many businesses take.

Equipment

VoIP is relatively easy to set up, particularly for businesses that are already connected to a single network. However, some new equipment will be necessary. This equipment includes:

Before determining that VoIP is right for your small business, you should take into consideration two major VoIP drawbacks. First, there are problems with maintaining an Internet-based system that don't occur with a standard landline. Inevitably, you'll have software difficulties and Internet outages that will prevent VoIP calls. Because cell phone communication is so prevalent today, this may not be a large problem for most businesses but it should be considered.

The bigger issue is that VoIP increases your network demands. Your broadband connection needs to have enough bandwidth to maintain call quality. If this is a concern, your business should look into Ethernet networks and frame relay networks to improve quality of service. Your company may also require an additional Quality of Service (QoS) application which upgrades the VoIP system to improve communication.

Cost

The bottom line is that the bottom line matters. Costs to consider include:

Additional Considerations

After weighing the pros and cons, you have to make the final decision about whether VoIP is right for your business at this time. If you decide that a VoIP purchase is a good idea, consider these final tips for the purchasing process:

VoIP is increasingly popular among businesses, especially as the potential for remote collaboration is being employed by more businesses. However, it comes with initial and ongoing costs. If the costs outweigh the benefits, don't be afraid to wait until VoIP is a little less of a newcomer technology before making the call for your business.

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