News and Events
May 2008 vol 1 Newsletter:
Hosted VoIP vs. an on premise IP-PBX, a primer...
More and more companies are discovering that there are attractive
alternatives to traditional PBXs, with VoIP being an often conjured
acronym accompanying information about these "next generation" phone
systems which are most worthy of investigation. Articles about
this new technology often appear with references to "Hosted VoIP" or a
VoIP business phone system, an IP-PBX, or SIP trunking, each of which
have numerous benefits beyond just the obvious pricing advantages and rich
feature sets. And while it's true that everyone from a
stay-at-home mom business entrepreneur all the way to the enterprise
level multi-location corporation are turning to IP technology for their
next phone system,
there are distinct differences between a hosted business VoIP
solution, an in-house IP-PBX and VoIP, and the residential VoIP services
that you see advertised on the TV which are capturing many home
residential users. So let's take a moment to clarify some of the
differences and similarities of each.
First, what exactly is VoIP? A definition found on the FCC website for VoIP (Voice over Internet Protocol) states it is a technology that allows you to make voice calls using a broadband Internet connection instead of a regular (or analog) phone line.
Understanding that VoIP allows your voice to be sent over the Internet through your ISP's (Internet Service Provider) network connecting to other phones, helps to grasp what a "hosted VoIP" solution is. Hosted VoIP is a business phone service where the PBX hardware and equipment which handles both the calls and the features that make your phone system work, reside at the hosted VoIP provider's location. All the signaling is transmitted over the Internet, back and forth between you and your hosted VoIP provider. Depending on the provider you choose, a service should include many features, like call forwarding, music on hold, an attendant, caller ID, and extension dialing, which is the feature that separates a "hosted VoIP" company from a residential VoIP service provider. Both residential and business "hosted PBX" providers may offer unlimited long distance calling plans. The provider also becomes your telecom company, holding your numbers and billing you monthly for both your service and your calls. The advantages for a hosted VoIP business service include lower upfront costs for equipment, (although you still need to buy the IP-Phones), having a company that is responsible for maintaining the PBX equipment (the provider), and calling plans that can significantly reduce the cost of long distance or International calls. The downside is that your phone system's operation, along with the quality of your calls are affected by the Internet connection between you and your provider. In addition the size of your system (number of concurrent calls) will be limited by the size of your ISP's connection, with both the upload and download bandwidths being equally important.
An IP-PBX is a business PBX which uses IP (Internet Protocol) technology and the hardware or PBX server usually resides with user. The signaling that makes the features work occurs over the user's network (LAN). An IP-PBX also requires IP-Phones, comes with lots of features, like an attendant, music on hold, voicemail to email, fax to email, a call queue, etc., but unlike a typical hosted VoIP solution connects directly to your current phone carrier. It can link through any type of connection, regardless if you have a T1, AT&T lines or VoIP and believe it or not, you do not even have to have a broadband connection to have an IP-PBX. So what are an IP-PBXs advantages? First, your cost could be lower when averaged over a period of years and as your system grows your cost for expansion will decrease significantly. You can stay with your current telephone company. And you can still use VoIP, making calls out over the Internet, using what is referred to as SIP trunks.
So let's define what criteria comes to play for which service.
Hosted VoIP services would be ideal for the following situations:
- Small companies with less than 8 extensions, (including new businesses that are getting a new service for the first time.)
- Companies with several small branch locations, where there might be 2 employees at one location, 2 at another and 1 at yet another. Hosted VoIP can tie these locations together through their Internet connection.
- Small businesses where there are lots of long distance calling or International calling.
An IP-PBX is ideal for the following:
- Companies with greater than 10 employees or extensions.
- Any organization with a current PBX or older business phone system looking to upgrade or purchase a newer system.
- Businesses that may have or plan to open a branch office or who have employees who need to work remotely.
- Companies looking for advanced features such as an ACD, conferences, etc.
- Cost conscious organizations who are looking to lower future expansion cost, while upgrading their technology today.
VoIP lines, either residential or business, for savings
So which service or services should you consider?
First
consider the alternatives of an IP system, whether it is an IP-PBX, a hosted
VoIP plan or just adding one VoIP account to an existing business phone service
just for the long distance or International calling savings.
IP technology will save you money now and into the
future. An IP-PBX, like our Zerabox, will deliver robust features and
allow you to take full advantage of the technology that is driving
communications today. Look into the savings that can come
from either a residential VoIP service or adding an outgoing trunk to your
current phone system for long distance or International calls. In the case
of certain companies that call Internationally on a regular basis the savings
can be more that you expect. And if you are a small company or a totally
new business, explore the potential of hosted VoIP. Regardless of your
circumstance, Zeracom will gladly point you in the right direction.
It never has been easier, it never has been better.
A business phone system you truly need to experience to believe.
voice | data | networking | video
