For home PC users phoning friends and relatives, the decision to invest in Voice over IP (VoIP) is pretty much a no-brainer. Simply download Skype or subscribe to one of the many surf-and-talk packages on offer and you could make big savings. But for business users it is not so straightforward, as there are many different ways to deploy VoIP technology. The telephone system is a key business tool and any changes need to be considered carefully. Get it right and you could save money; get it wrong and you could lose out – big time.
So, what does VoIP offer the small business? What are the options, and are there any limitations?
More than just a phone?
Despite what some vendors might say, you won’t lose out if you don’t deploy VoIP. It certainly has its advantages and can help you save money, but there is little VoIP can offer that can’t be done using a conventional telephone system. Most IP solutions try hard to match what those conventional systems provide, in terms of call management and voicemail, for example – not the other way around.
Equally, it is important to understand that IP technology will not improve call quality – far from it. Quality can be a major issue with VoIP calls, which, unlike dedicated lines between caller and receiver, are broken down into packets that are then transmitted, along with data, over a shared network.
Worse still, where the Internet is used for long-distance connections, as well as intervening gateways to link VoIP users to traditional PSTN (Public Switched Telephone Network), subscribers packets are easily delayed or lost – often degrading what you hear.
This is not a problem when calling relatives abroad, perhaps, but can become a real issue if you use the phone as a business tool. Fortunately, there are ways around this. For example, by making sure there is enough bandwidth for both types of traffic, and through the use of Quality of Service (QoS) technologies to effectively prioritise VoIP. However, the best you can hope for from taking these measures is call quality on a par with that of a traditional analogue or digital phone.
So if call quality is not improved, what benefits are there for business users? The answer, of course, is cheaper calls, followed (possibly) by an easier-to-manage telephone system and integrated voice and data. But the advantages of adopting VoIP are mostly about money, and savings can be made in a number of ways.
Least-cost routing
One common and relatively painless way of making savings is to use VoIP to link traditional PBX (Private Branch Exchange) telephone systems at different offices. This means any calls between those offices can be carried for free over the Internet rather than having to pay standard dial-up rates.
Working in a similar way as having a private tie-line, this approach also enables users in one office to “break out” and make calls to the PSTN via the PBX in another. Such calls will be charged at local rather than national or even international rates – a facility referred to as “least-cost routing”.
Virtually all PBX vendors now offer this kind of VoIP add-on under a number of names, such as VoIP gateways or long-line extensions. It is also possible to buy third-party products from companies such as Avaya, Multi-Tech, Nortel, Quintum and others, that simply plug into a free extension to provide the same facilities.
The savings can be substantial, but only if you need to link two or more offices together or want to link teleworkers into an existing PBX. For companies operating from a single location this kind of VoIP add-on is of little value.
Going for it
The alternative to VoIP when operating from a single office is to install a PBX with native IP support as standard. However, this does not necessarily mean ripping out your existing PBX, wiring and handsets, as there are plenty of hybrid products that support both traditional analogue/digital phones and IP users. These include the Nortel BCM 50, for example, and some of the software-based solutions discussed in the accompanying panel. It is also possible to get adapters that allow existing handsets to be plugged into the LAN and used with an IP-based exchange.
Deploying a new exchange is far from trivial and, unless you’re completely sold on the benefits of VoIP, is probably best considered only when moving office or when you need to upgrade or replace an existing PBX.
In such cases the benefits are relatively easy to quantify, starting with network convergence – the use of a single network to carry both voice and data traffic. You won’t save a huge amount of money on the cabling, but life does become easier when installing new phones or moving users from office to office. You can also use wireless networks and, rather than separate handsets, equip users with software phones (softphones) to run on their desktop PCs or handheld computers.
Management in general also becomes a lot simpler and cheaper with VoIP. Changes to most traditional PBX systems require a visit from an engineer and, often, new interface cards which have to be professionally installed and configured. By comparison, most IP-based systems allow you to make these so-called “adds, moves and changes” in software with, typically, some kind of graphical interface to enable anyone with a modicum of knowledge to make them.
Many IP systems also support hot desking, where users log in to their phones in the same way as they log in to their PCs. Their extension number and profile information can then be applied to the phone they are using and calls routed to them-whether in the office or working from home or on the road.
Least-cost routing is also supported by native VoIP systems, which is where most of the call savings come from. It also makes it even easier to support teleworkers who don’t need any special equipment to connect to the PBX-just a VPN (virtual private network) tunnel to the office network configured over their broadband connection.
CTI (Computer Telephony Integration) makes it possible to closely link voice calls to PC applications. For example, it can initiate calls from an Outlook contacts folder, distribute voicemails via email or open up a customer record in a contact management system whenever a call is received. Integration is possible using traditional systems but becomes a lot easier and slicker when VoIP is used.
One last, less obvious, bonus for the small business is the ability to choose from a range of geographical exchange numbers-even international numbers if you want them. For example, you can have a central London number even though you’re located miles away in the countryside, or virtual offices in Paris, Milan and New York. An option that not only makes the small business look larger and more professional, but also allows customers, suppliers and partners to share in the cost savings that VoIP makes possible.
A virtual PBX without the management overheads
Take VoIP to the extreme and you eliminate the need for a local PBX altogether. In fact, all you require is a broadband connection to the Internet through which you can connect IP phones in your office to PBX hardware hosted remotely. A number of service providers now offer this kind of “virtual PBX” product with all the features of a local exchange, minus the hardware and management overheads.
What you get and how much it costs will depend on the service provider, but VoIPOffice from Teleappliant is a good example of what to expect.
Starting at EUR*146.99 ex VAT a month for five users, VoIPOffice is hosted using open-source Asterisk software and can support companies with 50 or more users, if required. Users can be equipped with IP handsets or PC softphones and get a full set of business calling options, such as call hold and forwarding, conference calling, call recording and music on hold. Calls between extensions and to other VoIP users are free, with calls to PSTN subscribers charged at a reduced rate. Incoming calls can be received using local exchange or non-geographic numbers (0845 or 0870, for example) with voicemail also included in the package, along with automated call routing (“press one for sales, two for marketing”), a global phone directory and Outlook integration.
Similar packages are available from other providers and, on the face of it, would appear to be low-risk solutions for small companies, particularly those with a large teleworker population. There is, however, one major drawback to the hosted approach: total reliance on broadband connectivity for telephony services.
If the broadband connection fails, you won’t be able to call between extensions, let alone make or receive outside calls – not even emergency 999 calls. There are ways around this, such as subscribing to more than one broadband link and installing emergency backup phones locally. However, these add to the cost and complexity of the solution and should be borne in mind when contemplating any such service.
Finally, the hosted PBX market is far from mature and vendors tend to come and go, possibly taking your telephone system with them. Similarly, it can be difficult to extricate yourself from a hosted service, and transfer the associated phone numbers, once you’ve been using it for a while
The DIY alternatives to installing a small-business PBX
The easiest and quickest way of deploying a small-business PBX is to contact a dealer and get them to install suitable hardware for you. However, there are a number of DIY alternatives, including software-based solutions designed to run on industry-standard PC hardware.
One of the best known is Asterisk (www.asterisk.org), an open-source PBX application that can be run on Linux, BSD Unix and Apple Macs running OSX. It supports a full set of PBX functions, including voicemail and automated call routing, and can be used with both traditional TDM and IP handsets, with full support for all the principal standards, such as H.323 and Sip (Session Initiation Protocol).
Stick with VoIP and the only hardware required to build an Asterisk PBX is a Linux PC. However, to use standard phones and to route calls over the PSTN, you need custom adapters to provide analogue, ISDN and leased-line interfaces. These are widely available, with drivers for most of the popular cards included in the Asterisk package.
Asterisk is available as a free download, but be prepared to spend some time getting it to work. Some familiarity with Linux and telephony in general is also required, although a recent development is the release by Digium (www.digium.com), the original developer of Asterisk, of a range of fully supported Asterisk for Business packages.
Based on the popular open-source software, these are fully tested, commercially licensed, supplied with documentation plus installation and support services. Starting at about EUR*730 ex VAT, Asterisk for Business is available from a number of European resellers.
Another developer with a software-based PBX solution is Swyx (www.swyx.com), which specialises in the small-business market and sells its own range of Siemens-based IP handsets.
Unlike Asterisk, Swyxware is a Windows application. A recent addition to the family is Swyxware Compact, a complete VoIP PBX for up to 10 users. Swyxware Compact can be used with both Sip-compatible IP phones and softphones and comes with voicemail and email integration as standard. Automated call routing is another core feature with an integrated gateway and PSTN connectivity using either ISDN or via Sip trunks to external gateway providers. Other software-based PBX products are also available.
The small-business choices
Do nothing
Your business won’t suffer if you don’t implement VoIP and, although there are advantages, about 60 to 80 per cent of the PBX systems bought by small businesses are still traditional products. VoIP and growing market choice mean these can be picked up at bargain prices.
Add VoIP to your current PBX
If you need to link two or more offices or support teleworkers, VoIP technology can be used to extend the reach of a traditional PBX and save you money on long-distance calls. Talk to your PBX supplier or look at third-party add-ons.
Go all out for VoIP
Where you can see a clear benefit, or where you’re looking to install a new PBX or upgrade existing equipment, it’s worth considering solutions that support native IP telephony or a mix of TDM and VoIP technologies. There are lots of hardware- and software-based solutions that can both cut phone bills and allow for more flexible working, with many small-business-oriented products on the market.
Subscribe to a hosted solution
You don’t need to deploy your own PBX to take advantage of what VoIP has to offer. There are plenty of virtual PBX services available as hosted services. However, you are then totally reliant on the availability of that service for your telephony needs.
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