As a small or mid-sized organization, you have too much on your plate to worry about your phone system. And, who can make sense of the alphabet soup that is telecom these days? UCaaS, VoIP, PBX, SIP. It’s enough to make you run back to your good old landline and trusted handset.
One term that’s important to understand is VoIP, which is a “new” way of communicating by phone . . . And, by “new”, we mean it has been around for nearly 30 years, which makes it a youngster compared to POTS (plain old telephone service) which had its first lines installed in 1877.
So, here it goes, in less than 500 words:
What is VoIP
VoIP stands for Voice Over Internet Protocol. And, like its name, VoIP systems rely on the internet, rather than traditional copper landlines, to make and receive calls. Essentially, the phone system utilizes the same internet connection that your organization uses to go online.
What is the Process
The existing landline connection to your current service provider will be terminated and replaced with an internet connection. This may be dedicated or routed through an existing network connection to the Internet.
Note that some other business devices, such as fax machines, dial-up modems, and alarm systems may not be digitally capable, therefore their existing connection to the old PBX must be transferred as a non-digital connection to the new VoIP PBX. Your VoIP provider will inspect the old equipment and determine what the appropriate migration path is.
What Equipment is Needed
There are two types of new equipment that will be needed to support your VoIP phone system:
PBX: Our apologies for the alphabet soup, again! The PBX (Private Branch Exchange) is the “brain” of the phone system. A PBX phone system lets users communicate with one another over the phone via internal lines, and make and receive external calls. It also delivers various telephony features such as call forwarding, call transfer, call queue, auto-attendant, voicemail, etc. Your VoIP provider will configure the PBX with the features, call routing, call answering, and so forth that you need.
Handsets. Existing landline handsets will be replaced with VoIP handsets. The new handsets will be able to support the expanded features of the new VoIP system. Your VoIP provider will set up the handsets for each user and will provide user guides/training manuals.
What Are the Costs
The cost for the VoIP system is determined first by the type of VoIP system you choose. There are two types of VoIP systems: cloud-hosted and on-premise.
- Cloud-hosted VoIP systems rely on the cloud for your business phone system configuration and maintenance. Your organization pays a monthly per-user subscription fee to a VoIP provider who provides connectivity, maintenance, and support. Typically, these systems have lower upfront costs but higher monthly costs because the support and upgrades are rolled into the monthly fee.
- On-premise VoIP systems are similar to landline systems in that the PBX equipment is located on your facility’s premises, although the calls are handled via an internet connection rather than a landline. Typically, these systems have a larger initial investment but lower ongoing expenses, as there is an upfront equipment investment but with smaller monthly fees to cover the required connections for making and receiving calls.
Some VoIP providers, such as CM3, offer both cloud-hosted and on-premise solutions, therefore you can have visibility as to both short and long term costs for each option.
How do I Get Started
Call a reliable VoIP provider (like CM3!). We recommend using someone who has “boots on the ground,” as they will be available to come physically to your premises if/when needed.