According to Entrepreneur.com and a Radicate Group Survey, ¾ of businesses are predicted to use VoIP technology by the end of 2009. If your business is contemplating a jump onto the VoIP bandwagon, you’re not alone- many business owners make the switch from traditional phone systems to VoIP after evaluating the cost effectiveness, time savings, and productivity benefits that come with using a business VoIP service.

What is Business VoIP?
VoIP, or Voice over Internet Protocol technology, is a method of routing telephone calls over the internet. In every other respect except the connection mechanism, VoIP calls are the same as traditional or “landline” calls: VoIP systems incorporate features like voicemail, 3-way calling, and more that can enhance business communications and employee productivity. Some businesses choose a hosted VoIP service, where routing equipment is housed at the service provider’s location. Others choose to house routing equipment on-site and use an internet connection to route calls. Whichever method you choose, you’ll need a VoIP service provider.

How to Choose a VoIP Service Plan
There’s a VoIP service plan for almost every type of business. Smaller businesses, or those that only need one phone line and less than ten extensions, may be able to get away with using a free VoIP service that can be downloaded to office computers. Businesses with more advanced feature needs or those with multiple office locations and high call traffic will probably want to consider enterprise-based VoIP solutions. Here are a few tips for choosing a VoIP service plan:

Assess your needs. Is your office small, large, or in between? Do you plan on expanding, hiring more employees, or opening multiple office locations? Choose a phone system that can grow with your business if you plan on expanding, or consider a more portable option (such as a hosted phone system) if you plan to move offices in the near future.

Compare service options. Contact different vendors and compare price quotes for the business VoIP services you need. Most basic calling plans will charge either on a monthly basis or per-user for some enterprise grade phone systems. Make sure you know which features you’re getting and how much your monthly bill will be.

Compare hardware or connection costs. In addition to the service charges, you should also anticipate any costs dealing with your internet connection or with phone hardware. Some providers only work with T-1 connections and cannot route calls over the “open” internet- if you’re comparing companies with this requirement, you may need to switch internet service providers or upgrade your connection. Also consider hardware costs- some vendors require the purchase of VoIP phones or adaptors as part of the system.

Ask for local references. Since calls are routed over the internet, geography matters- a lot. It’s important to ask for local references from any provider you’re considering. These references can fill you in with accurate information on system uptime, interruptions, and other concerns.