VoIP telephony solutions for business The technology is currently used by more than 40% of UK businesses to reduce telephony costs and improve business efficiencies. Although a further 25% of UK businesses have plans to review and implement VoIP within the next 12 months, independent research indicates there are still several perceived barriers to switching from a landline to VoIP services. This white paper explores the perceived barriers and reviews the benefits of VoIP telephony for business. Voice over Internet Protocol (VoIP) enables voice calls to be made and received over the Internet.
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VoIP telephony solutions for business
The technology is currently used by more than 40% of UK businesses to reduce telephony costs and improve business efficiencies. Although a further 25% of UK businesses have plans to review and implement VoIP within the next 12 months,independent research indicates there are still several perceived barriers to switching from a landline to VoIP services.
This white paper explores the perceived barriers and reviews the benefits of VoIP telephony for business.
Voice over Internet Protocol (VoIP) enables voice calls to be made and received over the Internet.
VoIP overviewRather than using a traditional telephone line, VoIP is a technology that allows voice calls to be made and received via a VoIP telephony provider and a high-speed Internet connection. It enables users to call any phone number in the world for a fraction of the usual cost (typically at least 50% cheaper) and any other VoIP user for free. This can create substantial cost savings for businesses.
As with many technologies, VoIP has dramatically improved in recent years and is now at a standard where the voice clarity is on a par with, and often superior to that of a landline Users can keep their existing phone number, and/or purchase additional geographic and non-geographic numbers. Because numbers are not tied to the local telephone exchange, it is possible to purchase numbers with any area code in more than 40 countries. This enables businesses to have a truly global presence, with local phone numbers in every country they wish to operate in.
Businesses that stand to maximise the benefits of VoIP include those:• where phone bills are a significant overhead• making a large number of calls to mobile or international numbers• that would benefit from advanced phone system features, such as automatic call distribution• seeking to facilitate flexible/remote/home working, anywhere in the world• wishing to publish local telephone numbers in various national or international locations.
VoIP telephony systems can be physically installed and maintained on-site, or vendor-operated via the Internet on a hosted ‘cloud’ platform. Hosted solutions are generally preferred because they eliminate the need to buy PBX hardware, can expand with business growth and are maintenance-free.
1 Source: Vanson Bourne. 2012. Independent survey commissioned by Telappliant.
Current VoIP take-up in the UK
Businesses with a headcount of 100-500 people are currently embracing VoIP faster than smaller businesses1. This is not surprising given that it creates substantial cost savings and offers advanced phone system features to improve call management. However, with the advent of hosted VoIP solutions, smaller businesses are now in a good position to consider switching to VoIP in order to compete more effectively with their larger competitors.
41% of UK businesses are already using VoIP telephony to reduce costs and improve efficiencies. A further 25% have plans to review and implement VoIP within the next 12 months.
Despite the clear benefits of VoIP, independent research commissioned by Telappliant1 reveals several barriers still exist to switching from landlines to VoIP services. Crucially, these barriers are based on perceptions rather than facts, as outlined below:
Barrier 1: VoIP delivers a poor quality, unreliable service 42% of businesses that do not use VoIP believe it delivers a poor quality, unreliable service. However, the technology has come a long way since it was launched commercially in 1995.
Today, VoIP has evolved to a point where it is able to provide crystal clear voice clarity.
Nevertheless, the audio quality of a VoIP call can vary dramatically between service providers, so it is important to select a reliable vendor and to trial any VoIP service before committing. Audio quality can also be affected by your choice of Internet Service Provider (ISP), so it is vital to ensure the broadband service is optimised for VoIP. This is covered in more detail later.
With the right VoIP vendor and ISP, the reliability of the VoIP service will be similar to a landline. Unlike a landline, however, a power failure can cause the VoIP connection to go down, which will prevent calls from being made. For this reason, it is recommended users are equipped with a backup uninterruptable power supply (UPS) for their internet router. This will ensure the connection is maintained during short local power outages.
Barrier 2: There are no clear business benefits to using VoIPDespite the many benefits of implementing a VoIP telephony system, almost a third (32%) of businesses that do not use VoIP say the benefits are not fully understood by their management team. The most likely reason for this is that technical jargon, which is frequently used to explain VoIP products and services, is obscuring understanding.
Dispelling the perceived barriers to switching
In the simplest terms, VoIP is a system that delivers voice calls over the Internet, rather than a phone line.
The benefits of doing so include significantly reduced telephony costs (at least 50% cheaper) and access to advanced phone system features, which can improve flexibility, customer satisfaction and productivity. Detailed information about these benefits is provided later.
Barrier 3: VoIP takes too much effort to deploy or maintain A quarter of businesses that do not use VoIP believe the technology takes too much effort to deploy or maintain. But contrary to common perceptions, VoIP telephony systems are easy to install and virtually maintenance-free. For small businesses, a hosted VoIP telephony system can be ready for use within 24 hours of placing an order. For larger organisations, the system can usually be ready to use in a few days.
Many VoIP systems are cloud-based, so no on-site installation is required and there are no complicated settings to configure.
Moreover, a hosted VoIP solution eliminates the need to purchase and maintain expensive telephony hardware. However, there are a number of steps you can take to ensure that your IT infrastructure is VoIP-ready. These steps are outlined later.
Barrier 4: VoIP creates a security risk15% of businesses that do not use VoIP think the technology creates a security risk.But, as highlighted by the recent high-profile phone hacking scandal, no telephone accountis completely secure. Whether telephony is provided through a standard copper phone line, mobile network or VoIP, there will always be a small security risk.
Despite this, instances of VoIP security breaches have been few and far between. Most attacks are by opportunists who bombard the Internet to find any weak spots. To minimise risk, a combination of a secure VoIP provider and sensible user policies is extremely effective.
With hosted VoIP systems, the weakest links tend to be at the user-level. Following a few simple rules can significantly reduce the risks:
• ensure all passwords are sufficiently strong (using a mix of uppercase and lowercase characters, numbers and punctuation)• ensure all users keep their passwords secure and change them at least once every six months• ensure former employees’ accounts are disabled as soon as they leave the company.
Using a hosted VoIP service, rather than your own VoIP hardware, generally offers a more secure option. However, this depends on how secure the VoIP provider’s network is. For this reason, businesses should request to see the vendor’s security statement to determine whether their network has a suitable level of security and fraud protection. Credible VoIP providers will have a range of physical, network, data and user security measures in place, as well as enforcement procedures and a business continuity plan.
Barrier 5: You have to wear a headset10% of businesses that do not use VoIP still assume that users have to wear headsetsattached to a computer. However, this is no longer the case.
A wide range of Internet Protocol (IP) phones are now available from manufacturers such as Aastra, Cisco, Grandstream and Snom. IP phones look exactly the same as traditional telephone handsets (although many offer additional functionality) and work in the sameway. They are usually connected to an Internet router via a powered Ethernet cable, so they do not need to be plugged into mains electricity or attached to a computer. Many employees never even realise they are using VoIP through an IP phone.
Headsets, however, are still a popular option. Combined with softphones (computer applications that provide an on-screen virtual telephone), they are commonly used by employees that need to make VoIP calls from home or when on the move.
The benefits of VoIP for businessIndependent research commissioned by Telappliant indicates that switching to a VoIP telephony system offers several important benefits for business2:
VoIP reduces telephony costs Cost reduction is the main reason businesses switch to VoIP, with 68% of VoIP business users doing so to reduce telephony costs. An employee that spends 10 hours per week on the phone (seven hours to UK landlines, two hours to UK mobiles and one hour to WesternEurope) would spend approximately £46 per week on BT’s Daytime Call Tariff, but just £16 using VoIP – a 65% cost saving.
The table below demonstrates how VoIP calls can be as much as 27 pence per minute cheaper than BT’s Daytime Call Tariff. Moreover, monthly VoIP call plans, which combine free inclusive minutes for calls to UK landline, mobile and international destinations, offer businesses tailored call packages which deliver maximum cost savings. With calls to other VoIP users also free and often no hardware to buy, install or maintain, VoIP offers an easy to implement, sustainable and effective way to reduce telephony costs and improve profit margins.
2 Source: Independent survey commissioned by Telappliant and conducted by technology market research specialists Vanson Bourne into 100 UK businesses, March 2012.
Calls to UK landlines 1p per minute 7.6p per minute
Calls to UK mobiles 9.5p per minute 11.3p per minute
Calls to UK western Europe 1p per minute 22p per minute
Calls to UK USA 1p per minute 12p per minute
Calls to UK Australia 2p per minute 29p per minute
VoIP enables flexibilityAlmost a quarter (22%) of VoIP business users deployed the technology to offer staff greater flexibility to work from home (or from any other location in the world). VoIP allows businesses operating from multiple locations to unify their voice communications under one easy to manage platform.
Employees can access their office phone line by either plugging an IP phone directly into their router or by downloading a simple softphone application to their computer.
For even greater flexibility, some VoIP providers also offer a fixed mobile convergence service – a SIM card that enables users to access their office phone line from any 3G mobile phone. Fixed mobile convergence gives mobile staff access to their office phone line from anywhere, and can provide businesses
with significant savings on their mobile phone bills. VoIP additionally offers businesses a telephony solution that will easily support ambitious growth. Phone numbers, lines and extensions can all be added as required with minimal effort.
VoIP increases productivityVoIP telephony systems create significant productivity improvements by simplifying and improving communications. Calls can be automatically routed to the most appropriate team member, callers can be seamlessly transferred to any employee in the world, and voicemail messages can be received as email attachments to improve accessibility. VoIP additionally supports audio conferencing to reduce the need to travel to meetings, and enables managers to monitor who is on the phone, away from their desk or busy. These benefits facilitate productive resource allocation.
VoIP improves customer service and satisfactionWith its advanced phone system features, VoIP enables businesses to provide professional and efficient customer service. Features such as interactive virtual receptionists (IVRs), call forwarding and music on hold enable calls to be professionally managed while ring groups and automatic call distribution can reduce or even eliminate queuing and ensure callers reach the correct department. VoIP facilitates call recording, monitoring and whispering to allow managers to monitor conversations and further improve customer service levels. What’s more, detailed call records can be maintained. VoIP also enables businesses with a national or
international market to maximise the strategic benefits provided by local and non-geographic telephone numbers. Both geographic and non-geographic numbers for over 40 countries can be routed to the VoIP telephony system, making it possible to publish local customer service numbers for every location the business supports.
VoIP provides business continuityIf for any reason users are unable to physically access their office, they can still access their office phone line from anywhere with an Internet connection. In the case of hosted VoIP services, no hardware is located on-site. This means the phone system will always be up and running, even if the office burns down.
A VoIP-ready infrastructureAs outlined above, achieving high audio quality from a VoIP telephony system is largely dependent on ensuring the broadband service is optimised for VoIP. Before signing with an ISP, the service level agreements and quality of service (QoS) documentation should be examined. Crucially, the ISP should recognise that voice QoS is more demanding than data QoS. It is important to choose an ISP that offers minimal jitter and latency in order to avoid issues such as dropped calls and echo.
Businesses will ideally need a broadband connection with a speed of at least 128 kbps (such as an Asymmetric Digital Subscriber Line or ADSL) and unlimited data usage. This will ensure the ability to make and receive calls with minimum interruption, with enough bandwidth for typical Internet traffic, such as emails, web browsing and file downloads. Businesses with a large number of employees should consider a Symmetric Digital Subscriber Line (SDSL) service, which provides equal bandwidth for both uploads (what you say) and downloads (what you hear). It is also worth considering using a separate broadband connection purely for VoIP, to ensure that voice data is not compromised by large data transfers.
Aside from having a suitable broadband package, it is important to ensure all IT equipment, such as routers, switches and hubs are business class.
Finally, corporate local area networks (LANs) should be designed to limit latency to under 200 milliseconds. They should also use a protocol that recognises and prioritises voice packets. Security and virus protection firewalls can disrupt VoIP calls, so it is important to speak to the ISP and VoIP provider to balance these competing needs.
SummaryThere are currently several perceived barriers to switching from a landline to VoIP services. However, these barriers hold little substance and are based on perception rather than fact. VoIP technology has come a long way since it was first introduced. Today, it has evolved to a point where it is able to provide reliable and crystal clear voice clarity, along with many advanced telephony features.
Contrary to common perceptions, VoIP telephony systems are quick and easy to install and virtually maintenance-free. Many VoIP systems are cloud-based, so no on-site installation is required and there are no complicated settings to configure. While a small minority of businesses believe VoIP creates a security risk, instances of VoIP security breaches have been few and far between. To minimise risk, a combination of a secure VoIP provider and sensible user policies is extremely effective.
Similarly, some businesses still assume that VoIP users have to wear headsets attached to a computer. However, this is no longer the case.
Switching to a VoIP telephony system offers many benefits for business, including increased flexibility, productivity, customer service and satisfaction, as well as significantly lower call costs. Hosted VoIP telephony systems are simple and inexpensive to deploy, secure and offer clear and reliable call quality while providing unrivalled business continuity.
Crucially, audio quality is largely dependent on the ISP, so it is vital to ensure the broadband service is optimised for VoIP and that the right configurations are in place.
About TelappliantTelappliant has been delivering Internet telephony solutions since 2003. It is a founding member of the Internet Telephony Service Providers Association (ITSPA) and was one of the first companies to launch VoIP services into the UK SME market.
Telappliant owns one of the largest VoIP networks in the country and through its flagship VoIP phone system, VoIPOffice Hosted, provides a reliable telephony service to more than 20,000 businesses.
VoIPOffice Hosted Professional is an IP PBX solution hosted by Telappliant ‘in the cloud’. It provides low cost calls at less than 1p per minute and enables users to enjoy the features and benefits of an advanced business telephone system but without the hardware and maintenance costs.
Telappliant also offers a range of complementary VoIP services. These include SIP trunking (VoIP ‘telephone lines’), VoIP-optimised broadband, global telephone numbers and unified communications solutions.
The company is fully ISO 9001 certified and uniquely positioned to deliver state-of-the-art, integrated end-to-end solutions, with high quality business support and dedicated account management.
