We clear up some of the confusion surrounding VoIP (Voice over Internet Protocol).

In simple terms, VoIP (Voice over Internet Protocol) allows the user to make telephone calls using a computer network on a data line (such as an internet connection).VoIP works by converting the voice signal from the telephone into a digital signal which is transmitted over the data network and is then converted back into voice at the other end.

But VoIP certainly isn’t new.It first appeared in the Small to Medium Enterprise (SME) market back in the late 1990’s and since that time there has been an implicit assumption that VoIP will automatically lead to a cost reduction for an enterprise’s voice systems.The truth is however that it’s not the best option for everyone.In many cases the payback period is in excess of 5 years, if payback is achieved at all.

For a typical business where the telephone infrastructure is continuing to provide an adequate service with little upkeep, then the cost of upgrading to VoIP is difficult to justify both technically and economically.You’re simply better off sticking with your existing system.

It could even be argued that unless your call traffic between sites is massive and the locations are geographically diverse, then VoIP could actually lead to increased costs due to the infrastructure cost and the associated upgrades in data networks.

The time when VoIP should be considered is in a new installation, or where the telephone systems are outdated and costing more to maintain and manage.In these instances the business case for changing to VoIP is much clearer and it could definitely deliver a competitive advantage to your business.

There are 3 buzzwords that express the main benefits of VoIP:

• Presence - The VoIP solution will use intelligent call routing to deliver communications based on different criteria, so you’ll deliver the right call to the right person
• Mobility – VoIP enables the workforce to access their company’s voice and messaging systems on any device from anywhere in the world, so you’re always connected
• Collaboration – You have the ability to reach any worker or partner regardless of location and to share information in the form of voice or data

These are all benefits any company would appreciate, and if the circumstances are right but as I’ve explained, there are many circumstances when the benefits of VoIP would not be financially justifiable.Remember there’s no such thing as a free lunch.

Matthew Lidbetter is the Founder and Managing Directory of QDOS Networks, one of the region's leading providers of voice and data solutions.

If you want to know more about VoIP or need advice on how to save money and enhance productivity using voice and data solutions then contact Matthew or any member of his team.