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Business VoIP

Updated on June 22, 2010
Business VoIP
Business VoIP

What are the advantages of Business VoIP?

VoIP is the new communications technology that is displacing traditional end to end PSTN connections. Lots of customers are actually already using VoIP without knowing it as telephone companies embrace the flexibility of this new technology.

However, businesses are really interested in VoIP for one primary reason - cost savings. VoIP is much cheaper for all three types of businesses - small, medium, and large. The larger the business however, the greater the potential savings. This is because only one network instead of two needs to be maintained - the Internet.

However, there are many different ways in which firms can make use of Business VoIP. It's a bit like having your own website and deciding what sort of hosting you can have. Like server hosting, there are three options - Managed VoIP, Premise Based VoIP and Hosted VoIP.

Hosted VoIP vs Managed and Premise based VoIP

The fundamental difference between hosted VoIP and the other two types is that there is no hardware to be managed at the customer's end. This means that there is no equipment set up and no point of failure at your end. The entire service is provided offshore and is completely transparent to you.

Since the actual service is provided by a professional along with hundreds (or thousands) of other customers, extensive precautions are taken regarding security and backup. Most businesses will be hard pressed to manage all this on their own and this is one of the reasons that hosted VoIP is so popular.

Premise based VoIP means that all the hardware and infrastructure needed to implement VoIP is located at the customer's end. While this isn't suitable for most businesses, extremely large corporations have both the resources as well as the need to have their in house VoIP implementation - just like they host their own servers as well.

Managed VoIP is a sort of middle ground where the equipment is still located at the customer's premise, but is taken care of by a third party. This of course requires careful integration between a client's firm and the firm to whom the management is outsourced.

The Future of VoIP

Though VoIP is sometimes associated with low call quality, those are outdated perceptions. With broadband speeds being what they are today, there is no perceptible difference between a regular PSTN connection and a VoIP connection. As this realization continues to sink in, more and more businesses will be turning to VoIP for their daily communication needs.


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