When considering Voice over IP (VoIP), most people focus on the technological improvements it provides; but VoIP also offers a significant increase in cost savings. For businesses considering making the switch to Internet-based communications, VoIP offers the following benefits:
- Elimination of long-distance charges
- Inexpensive toll-free number services
- Reduction of charges for common features
- Lower international charges
- Fewer monthly phone expenses
Reduction in Charges
Because VoIP uses the Internet to place calls, long-distance call charges are effectively eliminated. The majority of providers offer free calling within the country for regular business calls, and many will even offer free calls to select other countries (such as between the United States and Canada).
Other call charges are often greatly reduced by using VoIP, including international charges and toll-free numbers. VoIP also offers a wider selection of common phone features like voicemail and conference calling at a reduced cost.
Reduction in Infrastructure Expenses
Using a traditional telephony system can cost between $500 and $2,000 per user —a cost that quickly adds up for large businesses with a high number of employees. Using VoIP eliminates the need for an on-premise private branch exchange (PBX); instead, providers offer a cloud PBX as part of the package. There is also no longer a need to install phone lines or constantly upgrade infrastructure to stay competitive.
Hosted VoIP providers can offer reduced costs because of the way they're set up; costs are divided between multiple customers, all hosted on the cloud. Businesses don't have to worry about their equipment in the event of a disaster. With hosted VoIP, the equipment is usually in a different geographical area and calls can be quickly routed.
Businesses should be aware that there may be an initial cost when upgrading an existing communications network, but doing so isn't required. Upgraded phones can take advantage of the more unique features of VoIP, but for businesses that don't wish to upgrade, Session Initiation Protocol (SIP) phones are offered with the majority of plans, or the business can use switches on their existing phones.
Choosing the Correct Provider
As with all important business decisions, research is the key to success. VoIP can offer great savings, but businesses will have to know which provider will best suit their needs and goals in order to get the best deal. When looking into service providers, there are a few things to keep in mind:
- Fair-use policy: Will regular business traffic incur overage fees?
- Contract: Are there any other fees beyond what there should be?
- Quotes: One quote should cover the regular monthly fees and the other should cover any one-time costs associated with setup and upgrades.
There are many advantages to adopting VoIP, both in terms of technology and cost efficiency. Businesses can easily reduce their fees and ensure that their communications system stays uninterrupted, no matter what's happening around the home office.