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Introduction
Internet, email, call centers, mobile phones, voicemail, CRM… business telecommunications is growing more sophisticated day by day. It’s no wonder so many businesses are choosing to streamline their communications by switching to Voice over Internet Protocol (VoIP). Infonetics Research expects the time division multiplexing (TDM) private branch exchange (PBX) share of the overall telephony market to drop down to the single digits by 2009.
What’s so good about VoIP? Its technology allows businesses to integrate voice and data into a single network. It eliminates the need for a public switched telephone network (PSTN) or a clunky PBX switchboard. As such, VoIP is typically more cost-effective than traditional phone service. But more importantly, VoIP is efficient. The integration of voice, data, and video opens up a world of opportunity for enhanced communication.
This opportunity has not gone neglected by VoIP developers. Today’s VoIP applications feature customized call routing, customer relationship management (CRM) data integration, Web-based interfaces for managing the system, and sophisticated videoconferencing capabilities. For many businesses in today’s dynamic, global economy, these features are not optional. Frank Dzubeck, president of Communications Network Architects, predicts that “VoIP will soon become an unequivocal necessity for companies.” The strategic necessities of Web-based applications and globalization “will ultimately drive the move to VoIP for most companies.”
Is VoIP right for your company? This paper examines some of the factors that drive the adoption of VoIP technology.
Top Reasons Businesses Switch to VoIP
Small, medium, and enterprise--businesses of all sizes are finding improved performance and savings with VoIP. Here’s a closer look at the advantages that are driving this trend.
1. Cut Costs. A lower long-distance bill is just the tip of the iceberg. Companies see the most dramatic savings by integrating their communications infrastructure. “The simple return on investment (ROI) from merging voice with data” justified the U.S. Department of Defense’s switch to VoIP. In addition to the soft savings of productivity gains, companies eliminate the hard costs of maintaining and managing a distinct network for voice communications.
Other factors that make VoIP the most cost-effective solution for most businesses:
Reduced cell phone costs. VoIP calls can be routed anywhere, to laptops or mobile IP phones.
Lower entry costs. Hosted IP PBX providers such as Packet8 and Vocalocity offer affordable monthly, per-user rates that put enterprise-level functionality within reach of small and medium businesses.
2. Integration. In addition to saving money, voice-data integration increases productivity. VoIP integrates phone, email, fax, video, Web conferencing, and data applications into a single network. Nortel CTO, Phil Edholm, sums up the central benefit of an integrated network: “By integrating mobile and wire line phone communications with presence-based applications, individuals can communicate in many ways and with more versatility.”
Versatile communication extends beyond phone calls to include information sharing. Integrated click-to-call service allows potential customers to input contact information into a company Web site and be connected instantly with a sales agent. VoIP works with CRM applications to display details relevant to a specific caller. And VoIP helps companies synchronize operations with suppliers by integrating with their supply channels.
3. Advanced Call Handling. Advanced call center capability is no longer exclusively an enterprise-level privilege. Businesses of any size can boost sales and service with advanced call routing and data integration services.
Hosted IP provider Packet8, for example, offers its Complete Contact Center service for small to medium-sized businesses. For a monthly per user fee, the service offers enterprise-grade call center features such as advanced call routing and CRM data integration.
VoIP call center features allow users to control how calls are handled using a simple Web interface. In the front office, VoIP ensures that all incoming calls are routed efficiently. If a particular line is busy, for example, the system can automatically route the call to a group of extensions (for example, the sales team), or to another available representative in a preset order. The result: no missed calls, no potential customers sent straight to voicemail.
Beyond the sales and support team, versatile call routing means multiple lines can remain open for conference calls, calls can be ranked and routed by importance, and unwanted calls effectively avoided.
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