Categorized | VoIP Q&A

3 Comments For This Post

1. Mr. VoIP Says:
   December 21st, 2009 at 10:32 am

   Sure, we could write a book on all the pro’s, con’s, and all the technical details about VoIP. But, because your question is short and only asks about the hard benefits of VoIP, then I will give you the short and sweet direct answer:
   There is only one reason to use VoIP:
   1. To Save Money.
   If what ever path you choose isn’t going to save you money…. then don’t do it.

2. Mark T Says:
   December 21st, 2009 at 2:18 pm

   The benefit of evaluation only comes when the evaluation results in an increase in performance, profit or the reduction of margins. The use of VOIP would decrease overheads as the phone costs would reduce. BUT if you overspend on hardware and you haven’t recovered your purchase cost then you lose, hence the reason for evaluation….
   Here is a little on VOIPhttp://www.voip-revolution-info-site.com…

3. GTB Says:
   December 21st, 2009 at 3:55 pm

   I presume this is for a business environment.
   First – forget all that stuff about free long distance. Any carrier that uses the Internet for transport is unable to assure voice quality contrary to all the hype that is promoted. It just is not true.
   Second – VoIP uses the data network and retires a separate voice network. This mandates more work load on the data network and the data network must have sufficient capacity to handle the load. Further, the network switches and routers must process data packets based upon priority. Often this means replacement of switches and routers and upgrading the network. Consider these costs. While you retire the conventional system in this process, sometimes it is not less costly than replacing the conventional system.
   Third – for multilocation offices, you will need point to point lines to link them together, not VPN over the Internet. You can route all Internet traffic to one central location and have one Internet gateway, which reduces Intenet access costs but point to point T1 or bonded T1 or fractional T3 or full T3 costs need to be considered. An alternative to this is a Multi Protocol Layered Switch (MPLS) configuration from a phone company. These costs need to be considered in the plan.
   Fourth – Service and maintenance is an issue. VoIP is technically more sophisticated than is conventional business phone systems.
   Now for the cost savings
   1. If you have a “greenfield” situation where neither a voice or data network exists, it is less labor to set up one VoIP network at the location. If a phone system is on its last legs and needs to be replaced, and if the data network upgrade cost is small – you will see install savings. Remember VoIP phones are more costly than conventional phones – but they are built to a standard and are usually vendor interoperable.
   2. Switching extensions when people move from office to office is achieved by unplugging the phone and reconnecting it at the new office. The extension # remains the same.
   3. Location to Location links require the leased lines as stated above. However, since voice gets priority over data it also means the line capacity is “backfilled” with data and the line is used more closely to capacity more of the time. This can save over conventional separate voice and data leased lines where voice is unused when there are no calls. Further, with MPLS you have a lot of redundancy and are less vulnerable to an outage. Of course, MPLS should be considered and installed only if it meets the needs of the organization and it is not suitable for everyone.
   4. If you have locations (buildings) in a campus environment or similar arrangement where you use wired and wireless point to point links you will find efficiency much like you find with point to point leased lines – it is used to capacity more frequently and is underused less often – which is a savings.
   Now no one can state VoIP is ideal and a major cash saver for you without a detailed study. Not always is it the goldmine of savings that is hyped up usually by those who really have never done a cost / benefit analysis in their life. Ignore those “free long distance” claims – they are just not true because the Internet produces calls with a quality that is just not dependable. Carriers that boast this should be silenced for gross dishonesty and perhaps some day they will.
   If you are considering it for your business, I recommend that you establish a team consisting of an accountant, an IT engineer, and a few who represent the phone use needs to define what you want to achieve, what it will cost via VoIP and what it will cost via conventional phone with cost being install costs and operating costs. It may be a winner; then again it may not. Circumstances will tell here. You team must be comprised of people who are interested in laying out the facts not in seeking the latest hype.

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