Between cost savings and the efficiency of a converged voice-data network, VoIP presents an attractive case for shoring up business communications expenses in a down economy.The VoIP value proposition is so strong that industry analysts are anticipating continued growth in IP telephony through 2009.
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TMVendor Guru
Making the Case for VoIP in a RecessionBy Clare KaufmanContents
Introduction..................................................................................................................................................2
A Recession Calls for VoIP Phone Service..................................................................................................2
The Bottom Line..........................................................................................................................................2
Lean Times Call for a Lean Business Model...............................................................................................3
Benefits Specific to Hosted VoIP..................................................................................................................4
Case Study....................................................................................................................................................5
Conclusion....................................................................................................................................................5
Sources.........................................................................................................................................................5
About the Author..........................................................................................................................................6
Page: 1Introduction
A major upgrade to the business phone system can be a hard sell in the current economic climate-unless the investment produces immediate hard savings. Business voice over internet protocol (VoIP) service promises to do just that. Hosted IP service eliminates much of the upfront capital expense, allowing businesses to realize a return on their investment from day one.
Between cost savings and the efficiency of a converged voice-data network, VoIP presents an attractive case for shoring up business communications expenses in a down economy. VoIP-News speculates: "A recession could turn out to be VoIP's golden moment, as more enterprises dump costly, aging telephone systems in order to take advantage of VoIP's cost-saving potential and technological flexibility." Telecommunications program manager David Cannon explains why: "Network consolidation offers increased efficiency and cost savings which fits in very well in times of economic crisis." The VoIP value proposition is so strong that industry analysts are anticipating continued growth in IP telephony through 2009. A March 2008 Frost & Sullivan report forecasts an increase in hosted VoIP users from 860,000 in 2007 to nearly 4 million in 2013.
A Recession Calls for VoIP Phone Service
The Bottom LineThe foundation of any business case for VoIP will be the bottom line--particularly in a recession. VoIP has a reputation for slashing phone bills to a fraction of the expense of public switched telephone network (PSTN) business phone service. Some of the immediate hard savings a company can expect include:
. Lower Monthly Rates. Many companies achieve substantial savings on their monthly bill by switching to business VoIP. These savings derive primarily from the inherent efficiency of using the same network to transmit voice signals and data. But VoIP providers also typically offer better value. Basic services such as caller ID and voicemail come standard with VoIP, but are charged as extra options on PSTN plans. IP telephony users also avoid the taxes, fees, and charges that drive up the monthly cost of a land line.. Unlimited Long Distance. Companies with multiple locations around the world-i.e., most businesses in today's economy-benefit from VoIP's unlimited long distance service. IP telephony signals travel over the internet, and thus don't incur the per-minute charges characteristic of PSTN calls.. Reduced Travel Costs. A recession-era benefit: companies can cut back on travel expenses by investing in web conferencing features instead. VoIP-News explains: "VoIP's ability to provide cheap, easy and high-quality communication services, including video conferencing, makes it an attractive choice for businesses looking to rein in travel costs." Communication between offices, business partners, and customers can reduce the need for trips to customer sites or industry events..Reduced O... [download for more]
