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Published June 01st, 2016 by

To Use or Not To Use VoIP in Business: Perks and Downside

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The market these days have become more vibrant because of a wide variety of services offered to consumers, and with so many vendors offering the same type of products. The business market, for example, is brimming with technology based business tools that have been developed to fulfill different kinds of needs in the workplace. There are a lot of areas of a business that technology has already made an impact to like in product development, marketing, operations and customer service. Maybe, it is safe to say that technology has touched everything in the business, it is just a matter of timing and preference before a business adopts them. More efficient communications is one of the earlier products of technology, and one of it is the VoIP, or Voice over Internet Protocol, or Internet Telephony.

The implementation of VoIP systems in a business is still subject to many questions even though its features are prevalent to be beneficial in most aspects. Among them is the cost, as well as the risks, and compatibility issues. Such decisions do need careful weighing of the pros and cons and should not be taken lightly, or under a trial and error method.

When employing a business VoIP software for the first time, it is a good thing to make a plan B. Though in most ways it can replace the existing legacy communication system in your office, it is better to leave it there for a while, while making observations and adjustments prior to full implementation of the business VoIP system. Also, cruising down the historical development of the VoIP technology will give you your own perspective and analysis of how valuable it can be for your business today, as well as in the future.

Uses of VoIP

VoIP is primarily used in establishing a communications system that is more efficient, but low in implementation cost, which is in fact, very favorable for business use. The technology behind the VoIP is the use of the internet as its backbone, which makes voice transmission faster, and with better quality. VoIP is widely used in homes and businesses. In homes, the primary reason of availing one is to cut down on costs in making long distance calls, while in businesses, the same applies and also the other useful features that come with it. There are many VoIP software vendors that are offering a variety of solutions for all types of needs in the market today, and you can always take your time in choosing the best VoIP tool that suits your needs well.

What are the benefits?

A business VoIP software poses a lot of advantages over the conventional legacy communication system in many aspects. It also as well delivers a number of benefits that will give leverage to your business in a competitive economy. There is increased productivity among employees because of the benefits that technology drives through it. In business, time is money, and productivity equates to more efficient use of the company’s resources, which can be beneficial in both personal and work aspects. Here are the key benefits of using a business VoIP tool:

  1. Cost Savings

There is an overall cost saving advantage in using a business VoIP software either in small or enterprise scale businesses. The most basic of which is that it enables you to call long distance in a much cheaper rate than using a conventional phone. In a survey, businesses revealed that they had saved as much as 90% of the usual cost in making long distance calls, and a 40% cost reduction in local calls. A major advantage for business startups, because the survey included a report that the initial cost for new businesses can be cut down by up to 90%. These numbers show the significant value a business can get in shifting to a VoIP based communication system.

In an enterprise setting, cost savings can be expanded to not having to purchase of new equipment, hardware and networking installations. Adopting and managing a single, unified platform for communications can give a significant reduction in cost for setting up, and in its maintenance.

  1. Flexibility, Scalability and Mobility

Since VoIP is a web based communication system, it is flexible to access across multiple devices that have internet access. It makes the system suitable for on-demand use, which gives convenience in executing important calls within the business; whether to your boss, or to your clients. There is also enhanced mobility among employees who most of the time travel when using a business VoIP software due to its accessibility in handheld devices like smartphones and tablets. Another advantage of being an internet and software based is the system is scalable to fit the number of users, easily, because all configurations are made within the system itself.

  1. Phone Portability

The legacy communication system uses the traditional telephone as its handset and is physically wired into the system. This is a huge hassle for employees who utilize landline numbers as the primary ways to contact them. A business VoIP tool can have its own dedicated handset, which can work as a wireless device as well that is portable and mobile at the same time. With VoIP, it is also possible to have a single contact number to make calls at, which can be accessed through multiple devices. A feature called softphone, can utilize your own mobile device as a way to call or to reach you as long as the software is installed in it, and you have internet access.

  1. Multi-functional

Through the merging of another technology to IP, or Internet Protocol, which is the TCP, or Transmission Control Protocol, VoIP isn’t just being used for voice transmissions only. With today’s technology, a business VoIP software can also enable the sending of files, text, images and videos with voice, or within the same software. This also enables video conferencing for employees without leaving their offices, or even their countries (for businesses with international relations or branches). It can also make immediate sending of files within a voice or video conversation, which can be made simultaneously.

  1. Increased Productivity

The multi-tasking capabilities of a business VoIP software can effectively enhance the employees’ productivity in the workplace so they can focus their time and energy over the more important tasks they have. This applies to IT employees as well, which can find that a business VoIP software system is easier to manage and troubleshoot. Its unified communications capability can also make communications more effective so employees can understand instructions and execute them better, and faster.

  1. Integration Capability

A business VoIP software is a dynamic business tool capable of being integrated with other business softwares within the business network system. This is possible because it runs the Applications Layer of the TCP/IP network, which allows it to integrate and collaborate with other web based business applications and tools such as email, social networking applications, instant messaging, etc. This allows “synching” of all communication related applications for more efficient access, management and control.

  1. Value Added Features

There is also this feature called voice to email transcription, which translates a voicemail into text format and be automatically sent to the intended recipient’s email, so he/she can take glance at it right away. A business VoIP can also enable the user to keep track of the data bandwidth usage, and can also automatically finds a way to better utilize what is available. A VoIP phone also has an intuitive and visual user interface that comes with an LCD screen for better input and manipulation of desired settings, as well as to access its functions more fluidly.

What are the downsides and limitations of the VoIP?

Adopting a new technology, especially in business, will require a lot of risk taking in order to achieve that competence and sustainability that you are looking for. As with technology, not everybody benefits from it, and it still dependent upon the recognition of the need, proper use, appropriate application, and careful evaluation. In deciding as to whether or not your business will benefit from VoIP, there should be pondering on all the pros and cons of its implementation. As there are always two sides of a coin, here are the downsides and limitations that even the top business VoIP tools have:

  1. Power Dependence

One major downside of a business VoIP system is that it is dependent on a power source to be able to function. Since its nature is located in the computer system, all access and privileges are lost in the absence of power. This is where the legacy communication system has an advantage over, because its full operation is not affected by power outages.

  1. Reliability

As in the case of being power dependence of the VoIP system, this could cause significant unreliability to places that have common occurrences of power outages. Also, the strength and quality of voice is largely dependent on the status of the internet service and its provider. So, even connectivity and downtime issues are important to consider. Like what happened to worldwide users of Skype which faced a lengthy downtime in 2010, there is a bigger percentage that it will occur in a VoIP system than it is in a legacy based communication system.

  1. Inability to Make Emergency Calls

Until today, 911 is still cannot be accessed through the VoIP system. Although an SMS based emergency access is viable, the lack of ability to provide the geographical location of the VoIP user is the stumbling block for this to be implemented.

  1. Data Scrambling and Loss (Latency)

A business VoIP software uses packet switching technology, that breaks down the voice signal into small blocks or “packets” prior to transmission. Sometimes, this introduces errors whenever some of the packets got lost during transmission, and data becomes scrambled upon reception and assembling on the other end. This results in voice distortion, poor voice quality, and delay.

  1. Bandwidth Dependence

Its effective handling of large volumes of data being used by the unified communication elements that a VoIP utilizes is dependent upon the amount of bandwidth that it uses. This is a crucial consideration when choosing the best business VoIP software for your business. Overall performance is also dependent on the bandwidth as well.

  1. Security Issues

Issues of hacking, identity theft, eavesdropping, malware, viruses, call tampering, spamming and phishing are reported to be prevalent in most VoIP systems. The security level must be mentioned by your business VoIP software vendor to help you feel more at ease before incorporating the system into your business.

There are many factors and considerations that come with big purchase decisions in a business. But this shouldn’t withhold you from exploring me options to increase the competence and leverage of your business against its competitors. A successful business entails strategic and logical decision making in all aspects, which can only be achieved by setting aside time and effort for it.

Do not be left behind! See the world of business VoIP tools and services by visiting CrowdReviews.com, and read user feedbacks and reviews of business VoIP tools from clients and credible professionals.

Trevor Price

Trevor Price helps small businesses leverage mobile technology to reach their audience and extend their capabilities in delivery, information, and tracking.

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