5 Ways to Save Money With VoIP

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shutterstock_242227783Old-fashioned private branch exchange (PBX) systems are being replaced by Voice over Internet Protocol (VoIP) services in many businesses. VoIP has a number of benefits, not the least of which is that it can save a company money. The top five ways VoIP saves money are:

  • low-cost installation and replacement,
  • lack of replacement parts,
  • free premium features,
  • affordable company phone numbers, and
  • reduction in IT costs.

Installation and Replacement

Legacy phone systems can become quite expensive to install or replace due to the hardware they require. In contrast, there are some VoIP systems that require nothing more than a headset and software. For businesses that already have a legacy system but are looking to switch, some VoIP providers can even adapt and use the existing infrastructure.

Replacement Parts

VoIP’s lack of reliance on hardware also means that it doesn’t need as many replacement parts as a legacy phone system, which can break down due to age. With technology constantly evolving and traditional PBX losing popularity, businesses may find that replacement parts for a legacy system become harder to find and more expensive to purchase as the years pass. An IP system, on the other hand, has few components that may break in the first place, and anything that does need to be replaced can easily be found.

Premium Features

Legacy systems often add extra charges for necessary features like long distance calls, call forwarding, and voicemail. With VoIP, many of these features are already included in the base software. Because the internet connects in the same way both locally and internationally, this can be especially beneficial for businesses that often make long distance calls.

Company Numbers

Being able to contact core employees quickly can help a business succeed, but many employees prefer to keep their personal numbers private. Because VoIP numbers can connect directly to an employee’s phone, a business can reach employees without requiring their personal numbers. With the recent FCC ruling that gives VoIP providers the same access to numbers as telecom providers, businesses will no longer have to deal with third parties in order to contact essential employees quickly.

IT Cost Reduction

An increase in technology often means growth of the IT department, but a major benefit of VoIP is that it doesn’t require multiple professionals to function. With VoIP, the professional who fixes the phones also fixes any network issues because they’re both internet-based.

While switching over to VoIP may require an adjustment period, these five benefits make it cost-efficient for most companies. Businesses will reduce IT costs, keep in contact with core employees, have free access to necessary features, and save money on both installation and replacement costs.

Phone Technology can Level the Playing Field for SMBs

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shutterstock_243312694Advances in technology offer a variety of benefits to businesses looking for ways to service their customers as efficiently and effectively as possible. New technologies are introduced every day that improve phone communications and make businesses processes simpler and more meaningful.

The amount of choices and the pace of change are enough to make even the most tech savvy companies dizzy. Large companies with staff dedicated to evaluating and deploying technology have an advantage over small companies in that they have not only the personnel resources to keep up with changing phone technologies, but also the money to invest in them.

Small and medium-sized businesses should be careful not to let these challenges stop them from deploying phone technologies that fit their budget and make sense for their operational needs. Doggedly hanging on to systems and technologies that slow the company down can ultimately cost more in the long run in terms of customers lost. Phone technology is one area where it pays to let go of yesterday’s technology.

Out with the old

New phone technologies and systems gain traction for a reason; they make things easier, better, more efficient or more effective. Most companies have transitioned away from paper filing systems and typed memos to electronic filing and email. Some companies hang on to these systems out of familiarity and reluctance to tamper with a system that has always worked. If they made the transition to new technologies, however, they might realize significant time savings and efficiencies.

Storage and manipulation of data is another area where companies get stuck in technologies they are reluctant to change. Not that long ago, many companies maintained customer phone numbers and other contact information in spreadsheets that allowed them to share and manipulate the data in ways that served them well. But times have changed and better options exist.

Right-sized solutions

SMBs shouldn’t be disheartened about the phone system buying task, nor should they assume that there won’t be solutions available within their budget. When it comes to phone solutions, older is almost never better.

A good phone system is a worthwhile investment and can reap benefits that can bolster the company’s bottom line. For SMBs, business phone systems exist that can provide big business benefit on a small business budget.

VoIP systems are a great example of a robust phone technology that is scalable to the budget and requirements of companies of all sizes. The systems support the growing need for mobile services and provide advanced applications via their Internet architecture.

It’s easy to opt for the familiar and stay the course when it comes to making technology choices, but sometimes this option can actually be detrimental. SMBs have valid reasons to be cautious but also might have more at stake if they don’t embrace new phone technologies.

Taking advantage of technology advances, particularly with communications technologies, not only can make business processes more efficient but can also put an SMB on a level playing field with large companies in a way that wasn’t possible in the past. The question is not can SMBs afford new phone technology; it’s can they afford not to have it.

Improving Communications in the Hospitality Industry with Hosted VoIP

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shutterstock_289575950In a hotel, phone service is just as important as a comfortable bed and a hot shower. Like an old bed or a defective shower, analog telephony is becoming a liability. Hotels and other establishments in the hospitality industry that want to attract more customers, stand out from the competition, and streamline their internal communications need to consider the value that hosted VoIP (voice-over Internet protocol) phone systems offer.

Searching to satisfy the technology-driven needs of their guests and staff, leaders in the hospitality industry are choosing ramping up their communication systems with VoIP technology.

Benefits of VoIP

Hotels are beginning to see the benefits that hosted VoIP phone systems have over on-premise PBX systems. Cost is a major consideration. Hosted VoIP offers few upfront costs, easy maintenance, and low repair costs. In addition, the VoIP provider monitors the system’s operations, reducing manpower costs.

Flexibility, ease of use, scalability, automatic updates and upgrades, and access to advanced features are other advantages that improve productivity for hotel employees while delivering the ultimate hotel experience for guests.

Security has long been a concern in hosted models. Thus, hosting companies and cloud providers have concentrated on improving the security of their products and have succeeded in the challenge. Encryption, firewalls, strong passwords, separation of voice and data, anti-virus protection, and other tools are now par for the course with hosted solutions.

VoIP Analytics Improve Service

Hotel guests want reliable, excellent phone service and evaluate the quality of the establishment based partly on the quality of the phone service. When competing for guests, hotel administrators need to be aware of how their communication systems are performing, asking questions like these:

  • Is the Internet connection fluctuating?
  • Are the routers performing adequately?
  • Is voice quality choppy or clear?

Hosted VoIP systems typically are paired with a VoIP analytics tool that provides administrators with answers to the above questions—and more.

VoIP analytics includes the recording, capturing, tracking, scoring, managing, and reporting of calls and other data that pass through the system. These reports provide real-time visibility into network, operational, and customer issues as well as other actionable information to help hotel administrators find ways to improve the system.

Responding to Mobility

Fixed lines and desk phones are losing relevance in an increasingly mobile work environment. Hotel guests deserve personalized service and real-time response to any request. Hosted VoIP accommodates the integration of mobile devices to allow employees to always remain connected.

Mobile devices are especially useful for hotel employees, who need to have immediate access to one another from anywhere within the hotel–from the front desk to room service to an external affiliate restaurant. Staff can better handle unplanned events such as the arrival of walk-in clients or VIPs if they are able to immediately connect with one another. Hotel managers can use hosted VoIP to more effectively manage their teams while ensuring guest satisfaction regardless of location.

Developers continue to look for ways to reinvent the guest room phone. It may soon be integrated with the guest’s mobile device to perform other functions.

Hosted VoIP is a communications staple that streamlines calls for hotel employees and offers an array of communications options to hotel guests.

Skype for Web Expected to Shake Up VoIP Market

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Video chatA new product that is expected to make waves in WebRTC (real-time communications) evolves from the VoIP (voice-over Internet protocol) pioneer Skype–the low-cost, global videoconferencing platform.  Reportedly, more than 33 million hours of Skype time are used every day.

Skype always had been limited to app-based communications, but that will not hold true for much longer.  According to a recent blog post, Skype is beginning to beta-test a Web-based option.  Currently, this option would require a small plug-in, but Skype has confirmed that it is looking to move toward full WebRTC compatibility.

This new Web-based Skype allows for standardized video and sound transmission directly from browser-to-browser.  Despite big-name backing from groups, however, it has struggled to find much real-world adoption.

Will Skype for the Web bring WebRTC into prominence? Let’s take a look.

1 – WebRTC is coming–sometime soon.

Skype is not commenting on when full WebRTC implementation is coming; leaders say only that they are working on it (alongside the Internet Explorer development team).  Whether this is weeks, months, or years in the future is entirely up in the air.

While this likely won’t prevent millions of Skype users from embracing the new plug-in Web service, it still will limit Skype’s availability.

2 – Only certain browsers are supported.

Currently, Skype for the Web is compatible with these browsers:

  • Internet Explorer (Mac/Windows)
  • Firefox  (Mac/Windows)
  • Safari (Mac-only)
  • Chrome (Windows-only)

Theoretically, a move to full WebRTC compatibility would necessitate full Chrome-for-anything compatibility as part of the deal.  Whether this happens–and how long it takes to happen–is sure to inspire plenty of discussion.

Linux users are also frozen out at present.

3 – Lack of WebRTC standardization is slowing development.

Skype Chief Software Architect Bernard Aboba acknowledged the issues facing Skype and full cross-browser WebRTC compatibility.

In short, he said, the compatibility issues are not solely a decision on the part of Skype or Microsoft.  The WebRTC standards still have not been fully-agreed on, and no browser currently supports all the features that Skype believes to be necessary.

This will undoubtedly influence the development time necessary for the plug-in-free version of Skype for Web.

Big Changes on the Horizon

Despite the questions raised, few see this as anything but good for consumer and small-business level VoIP and videoconferencing.  Web-based Skype is expected to increase the system’s usage.

Once WebRTC technologies are finalized and standard among browsers, it will be well-positioned as a market contender.

Adopting VoIP Doesn’t Prevent Toll Fraud

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SecurityWhile there are several security concerns when implementing voice-over Internet protocol (VoIP) services at a business, one that rarely receives attention is the potential for toll fraud. Some businesses even mistakenly believe that a switch to VoIP will prevent fraud. If anything, VoIP makes the business more susceptible to toll fraud.

If businesses host their own PBX system, converting VoIP to copper and back, it creates a tempting honeypot for hackers.  If the hackers gain access to the system, they have nearly unlimited ability to place phone calls at will.

These are not cheap intrusions.  The average cost of a toll-fraud VoIP attack is about $36,000.  Given that some PBX units are cheap enough that even SMBs can afford them, that’s a potentially ruinous (and entirely avoidable) cost.

How VoIP Toll Fraud Works

The basic premise is relatively simple.  VoIP fraud occurs almost exclusively in third-world countries whose local telephone grids charge huge rates for access.  Hackers collaborate with unscrupulous phone grid operators to hook first-world VoIP systems into the grid, so that the business can be charged astronomical prices for phone calls to nowhere.  Then, they split the profits.

Since these fees are charged directly to the victims’ phone company and numerous laws/treaties require their prompt payment, the victim is virtually always left on the hook for the charges.

In some cases, particularly enterprising hackers may even establish their own “dark” phone company, selling services to local users at low rates while running the calls through hijacked first-world computers.  However, this aspect of the practice is becoming less common as cell phones and consumer VoIP lower the costs of voice communication.

Law enforcement is rarely an option in these cases.  The local police or government entity might be part of the deal, and U.S. law enforcement won’t touch such cases.  An active defense truly is the only option for preventing VoIP fraud.

The Deeper Dangers Of VoIP Fraud for SMBs

In most larger business networks, VoIP is kept separate from the overall data network.  This means that if an intruder gains access to their PBX or other phone-switching hardware, that intruder can’t get access to anything else.

However, many smaller businesses don’t segregate their networks in this fashion.  For them, a PBX attack could be the first hole poked in their security by a phalanx aimed at taking over the network.  Poorly defended VoIP systems make excellent staging grounds for larger attacks.

Besides keeping these networks entirely separated, the solution here is an active, always-on security system.  VoIP and cloud systems security cannot be left to chance.  A network needs an active security system that’s consistently monitoring for intrusions and reporting any irregularities as soon as they occur.

Without this, a business is leaving itself open to attack, fraud, or potential systems disruption.