Is Moving to VoIP a Smart Thing to Do in a Recession?
Sifting through LinkedIn Answers the other day (our company profile is here, if you”d like to look), I came across several Questions about IT in the economic downturn. No surprise; everyone’’s thinking about it.
A lot of people are thinking about VoIP too, it turns out. I found questions about not only its technical aspects, but its business value too. Two examples:
What Does A Business VoIP Solution Mean To You?
What are the business drivers behind VoIP buying decisions today?
(Must be a LinkedIn member to view.)
It makes sense. Everyone wants to (or must) get 105% from every dollar spent.
We”ve actually received more inquiries for new OCS 2007 installs (with VoIP) in the past 6 months than we had the whole year prior. So I”m wondering. Companies are switching to VoIP more. Why? Do they perceive it as a cost-saver? Is it a good move to make?
After reviewing more Answers and talking with our engineers, I think I can give some reasons why moving to VoIP is a smart thing right now. Not a perfect solution for everyone, but it could work depending on your business needs.
The Reasons People are Looking to VoIP
First, the positives. If these appeal to your business, then VoIP will make a good investment.
- Cost over PBX — Yes, a VoIP system can save a lot of money over PBX. That saving is NOT guaranteed, however. Large-scale, multi-office setups can cost almost as much as installing a PBX. In smaller networks, VoIP will usually save you more (see “What About Hidden Costs?” below for more).
- Integration with Software — OCS 2007 integrates with Outlook, SharePoint, & Office. Integration means fewer steps to talk with someone, so there’’s a time savings here.
- Unification of Communication Systems — This is the top benefit a complete VoIP system can provide. Unified Communications, as I”ve blogged about before, builds more communication options around regular old voice. Instant Messaging, working with smartphones, Presence indicators…you know the drill by now.
- Mobility (People, Offices) — Let’’s face it, you can”t pick up a PBX with your hands. But you can move a VoIP phone from one office to another with them. And it”ll work there too.
- Consolidation of Services — In the past you”d need a third-party solution for things like conferencing (e.g. WebEx), IM, even long distance. Switching to a VoIP system with Unified Communications nowadays, you get those built-in.
VoIP Concerns Everyone Has
Even aside from cost (by far the #1 worry these days!), VoIP has stirred up its own concerns. I don”t think these are enough to discourage a VoIP switch, but just in case:
- Will the Phone Ring? — Switching to VoIP means you”re using Internet lines instead of standard phone lines. A disruption of service means the phones go down too. It’’s a small risk; uptime is close to 98% by standard. But people like to magnify this into an arms-flailing horror story too often.
- Does Voice Mail Work? — In OCS, voicemail is not turned on by default. It must be enabled, and set to funnel voicemails to Outlook. I”m mentioning it here because people just forget to do this much of the time!
- Can You Hear Me (Now)? — Call quality can fluctuate, depending on network conditions. Sometimes people complain of an echo on the line, or brief silences (caused by packet drops) lasting a second or two.
- What About Hidden Costs? — Generally speaking, VoIP cost comes from 3 places: High-speed connection to manage the VoIP in/out (monthly); Setup cost for hardware/software (one-time); and Account fees to run the VoIP system, internally or through a hosted provider (monthly). That’’s it.
Any VoIP system must do one of two things: It must provide a direct business benefit, or it must reduce operations costs. If you find that VoIP brings you one (or both!) of these, then it’’s a good investment. If not, hold off for now. Write it in for a revisit when the economy gets some steam behind it again.
Are there other VoIP factors you think make a difference in today’’s economic climate? Leave them in the Comments!
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