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Is My Business Ready for VoIP?
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By Dan Hoffman


My Business Has Decided to Switch to VoIP. What Choices Should I Consider? Business-class VoIP comes in two main flavors: premises-based and outsourced. Like a traditional PBX or key system, a premises-based IP phone system resides in an office. Companies are responsible for all purchases, installation, monitoring and maintenance of the telephony equipment. In addition, in-house staff must negotiate their own contracts with multiple vendors, including the local and long distance providers, conferencing services and Internet service providers.

By contrast, outsourcing ensures that the client has no physical hardware on-site other than the handsets found on each desk, as well as a managed router. A single vendor provides hosted PBX service over private IP connections, usually T-1 lines. This approach confers the reliability, redundancy and quality that consumer-grade VoIP lacks. Outsourced providers typically offer all-inclusive services for a flat monthly fee, providing the dial-tone, local, long-distance and international service, conferencing, maintenance and support and Internet access.

Because the provider is responsible for installing, maintaining and supporting the phone system, outsourced IP phone systems are gaining popularity among SMBs. AMI-Partners forecasts the SMB market for hosted VoIP to grow at a 55 percent CAGR over the next three years. Besides taking away the headaches associated with installing and supporting an IP phone system, outsourcing can free up valuable internal staff to focus on other strategic IT projects.

SMBs should work in tandem with those IT consultants or system integrators who already understand their network and data needs when considering VoIP. In these cases, it is important that the consultant or integrator work closely with the VoIP service provider so any issues that arise during the system rollout are handled promptly.

Above all, make sure you work with a competent, reliable service provider you trust. Meet all the key players in the organization and speak to existing clients with needs that match yours. And if you don’t have the in-house resources, consult a qualified third party to evaluate the technology prior to making your selection.

Dan Hoffman is the President and CEO of M5 Networks.
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