VoIP: big benefits for small budgets
In simplest terms, VoIP routes your telephone service through the Internet via your data network. The implementation of VoIP telephony can result in better communications, more features for your dollar and significant savings to companies that have high long-distance call volumes or mobile employees. Formerly a technology designed primarily for big businesses with big budgets, VoIP has come down in price and scale to where it is a viable option for
smaller businesses.
How VoIP works
First let's look at how a regular phone works. When you place a call on the traditional phone network, you're using what's called "circuit-switched telephony," in which a dedicated connection is formed between two sources for the duration of the call and analog sound is transmitted between receivers.
With VoIP, audio is first converted to digital signals. These signals are then split up into individual data packets and routed through your data network across the Internet. Unlike a conventional phone connection, there are no dedicated connections between VoIP phones because data packets don't always travel along the same path. Yet these data packets must arrive at nearly the same time and in the proper order. To do this, VoIP uses various compression technologies and encoding practices. Generally, higher data compression results in faster routing. But the more that voice data is compressed, the lower the sound quality.
Advantages of VoIP
The biggest return on investment (ROI) driver for VoIP is the elimination of domestic long-distance costs. While this alone can provide significant annual savings, you also need to remember that there are other financial gains to VoIP.
VoIP offers numerous features that you would normally pay additional fees for or aren't available with standard phone service. You can forward calls from your desk phone to your mobile phone so you're easily reachable. VoIP also lets you route voicemails to your e-mail account so you can check voice messages and e-mail all at once. And you can route calls to employees who are working remotely with access to the Internet.
VoIP makes teleconferencing simple — and free. You can eliminate any conference service-provider contracts and the costs associated with them. Another huge benefit of VoIP is scalability: its ability to handle increased demands as your company grows. And when you combine your telephone and data networks, you have just one network to manage. You also reduce the number of external vendors you have to manage.
Data network bandwidth requirements
Because VoIP is a bandwidth-intensive application, you need to be sure that your data network is able to provide the quality of service (QoS) that's necessary to support it. A good place to start is with a network switch that supports 802.1p standards, which gives voice and video traffic priority over data traffic. To boost performance and security, you may also want to use Layer-3 switches, which use virtual LANs (VLANs) to separate voice and video from normal data traffic on your data network.
Also consider the capability of your Ethernet connections. While Fast Ethernet (100Mbps) may work, upgrading to Gigabit Ethernet (1000Mbps) will enhance performance.
Generally, voice traffic needs about 100K/sec of bandwidth for every active conversation. So estimate your peak concurrent phone usage to determine if you have enough bandwidth to handle this call load, with some bandwidth left over for simultaneous data traffic. Contact your account manager, who can guide you through the process of setting up a VoIP network in your office.
VoIP without the start-up costs
If you want the benefits of VoIP but none of the initial investment costs or management responsibility, you may find that a hosted VoIP service provider is a good solution. There are numerous providers across the country, so be sure to research and compare them thoroughly. In addition to costs, evaluate their on-site availability and their equipment upgrade and replacement intervals.
On the other hand, if you want to save on long-distance charges but don't need all the connectivity offered by a full-blown VoIP network, there are numerous routers and adapters on the market that allow you to use a standard analog phone on your broadband connection. These adaptors are limited in the number of phones they can support. But if you've only got a few employees with high call volumes, this might be a good option for you.
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Tips for making the switch to VoIP:
• Make sure your data network is robust enough to support the additional traffic and meet performance requirements. If it's not, factor a network switch and router upgrade into your cost calculations.
• If upfront costs are a concern, consider leasing your VoIP equipment or paying for a hosted service.
• If you currently lease an analog phone system, begin shopping and evaluating your options at least six months before your lease expires.
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CDW Leasing
CDW offers four different leasing terms with three end-of-lease options. Leasing specialists are available to assist you with quotes, account information or any questions that you have. To learn more, contact your CDW account manager today.
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