Is VOIP Right For Your Business? | Eric Ryan Corporation

Voice Over Internet Protocol (VOIP) is phone service over the Internet instead of a traditional phone company. It has the potential to save you money, but is it right for your business?

How Does VOIP Work?

VOIP takes analog audio signals and turns them into digital data transmitted over the Internet. VOIP uses an Internet connection to make phone calls.

According to howstuffworks.com, there are three different types of VOIP service in common use today:

• ATA? The simplest and most common way is through the use of a device called an ATA (analog telephone adaptor). The ATA allows you to connect a standard phone to your computer or your Internet connection for use with VoIP. The ATA is an analog-to-digital converter. It takes the analog signal from your traditional phone and converts it into digital data for transmission over the Internet. Providers like Vonage and AT&T CallVantage are bundling ATAs free with their service. You simply crack the ATA out of the box, plug the cable from your phone that would normally go in the wall socket into the ATA, and you?re ready to make VoIP calls. Some ATAs may ship with additional software that is loaded onto the host computer to configure it; but in any case, it?s a very straightforward setup.
• IP Phones? These specialized phones look just like normal phones with a handset, cradle and buttons. But instead of having the standard RJ-11 phone connectors, IP phones have an RJ-45 Ethernet connector. IP phones connect directly to your router and have all the hardware and software necessary right onboard to handle the IP call. Wi-Fi phones allow subscribing callers to make VoIP calls from any Wi-Fi hot spot.
• Computer-to-computer? This is certainly the easiest way to use VoIP. You don?t even have to pay for long-distance calls. There are several companies offering free or very low-cost software that you can use for this type of VoIP. All you need is the software, a microphone, speakers, a sound card and an Internet connection, preferably a fast one like you would get through a cable or DSL modem. Except for your normal monthly ISP fee, there is usually no charge for computer-to-computer calls, no matter the distance.

Advantages of VOIP

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Companies may choose VOIP for two major reasons: lower cost and increased functionality. Phone service via VOIP costs less than traditional phone services. Some VOIP users see phone calls (even international calls) as free because they are only paying for Internet service and usually can avoid any extra charges. Using Skype is an example of this. Taxes are also low on VOIP services. Since the calls are carried over the Internet, government has not heavily taxed VOIP services. To see the difference, compare a local telephone bill with taxes incurred through VOIP services.

VOIP makes communication mobile. You can receive your incoming calls from wherever you are as long as you can connect to the Internet. This allows company employees to work from anywhere with a good Internet connection.

VOIP comes with a number of extra, advanced communication features. The free, extra features offered through VOIP services, usually come with added cost in a traditional phone service plan. Some of these features include:

• call forwarding
• call waiting
• voicemail
• caller ID
• three-way calling

VOIP allows you to send data such as photos while you are talking. It can also utilize other Internet services like video conversation, audio conferencing, and address book management.

Disadvantages of VOIP

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Although VOIP has plenty of advantages, there are also a few disadvantages:

Some disadvantages of using VOIP include a lack of emergency service connection. Some VOIP service providers do not offer 911 services, phone directory listings, or 411 services. Some do, but industry-wide methods of offering these services are still in development.

During blackouts, VOIP phone service is completely unavailable unless you have an uninterruptible power supply or a generator installed on the premises.

VOIP service relies on an Internet connection. If your Internet connection is lackluster, you?re VOIP service will be too. Poor Internet connections can lead to distorted voice quality.

Last but certainly not least, security is a concern. The most prominent issues include identity and service theft, viruses and malware, denial of service, spamming, call tampering, and phishing attacks.

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Are You Ready For VOIP?

While cost savings and functionality are impressive with VOIP, not every network is ready for it. VOIP can come with increased costs for your network. With VOIP your network must be able to carry an increase in traffic. This traffic demands high quality and performance. VOIP does not do well with delays and interruptions that cause problems with communications. Even slight disruptions will upset customers, annoy employees, and will look unprofessional to business partners.

Before diving headfirst into VOIP, there are some things you must consider. The most important element to consider is the ability of your network infrastructure to handle the extra traffic and the traffic?s sensitivity to voice quality. Companies that don?t evaluate their network infrastructure before implementing VOIP usually end up canceling services because of costs and an inability to meet the quality requirements imposed by VOIP.

Successful VOIP implementation depends on four steps:

1. An analysis of the current network and its capabilities. Elements to analyze: bandwidth, utilization, jitter, throughput, and latency.
2. An analysis of VOIP quality prior to turning it on. This step determines the level of success and helps to prevent issues with call quality.
3. Regular maintenance of the network. A network is a constantly evolving part of your business. New devices are added or removed, so it is important to reevaluate and maintain your system as it changes and grows.
4. Health and wellness strategy. This strategy should include a network assessment tool that will allow employees to diagnose and resolve a problem quickly while keeping impact to the system at a minimum.

VOIP is a useful technology that can save businesses money, but be sure that you know all the necessary requirements, all the ins and outs, and all the pros and cons before taking the plunge.

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Source: http://www.ericryan.com/telecommunication/voip-business/

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