Just a few years ago, VoIP (Voice over Internet Protocol) was only considered by large companies. But today, more and more small and medium businesses are adopting VoIP technology. In fact, in 2006, VoIP adoption in North America is expected to more than double by 2010 and will triple among small organizations. Yet, time after time when I talk to business executives considering VoIP, most don't understand its advantages and disadvantages.

Over the past 5 years, I've seen VoIP evolve from a technology that businesses found exciting but didn't trust, to the highly-reliable, productivity-enhancing tool that it is today. VoIP shouldn't be intimidating so let's start with the basics.

What is VoIP?

VoIP takes voice, and converts it into IP (Internet Protocol) data packets. These packets are then sent over broadband data connections rather than phone lines, and the signals are then re-converted back into voice at the destination. When VOIP is done correctly, it's a seamless transmission that sounds just like a regular phone call.

What are the Benefits of VoIP?

The main benefits of VoIP are: 1. Connecting multiple offices together seamlessly as if all of the employees are in the same building. 2. Connecting Telecommuters or "Road Warriors" together as if they were in the same building. As a result, traveling workers can make phone calls and check voicemail wherever there is an internet connection. 3. Having all of the telephone system users be able to share the vast applications that are available on telephone systems today. Examples of those applications are telecommuting, auto attendant, four-digit dialing between offices, remote office support, dial-by-name directories and more. 4. Avoiding the long distance charges between cities or workers connected via VoIP because not those call go over the existing internet connection.

What are the Challenges of VoIP?

The main challenges of VoIP are: 1. Telephone calls that went over the telephone wires before are now going over the businesses internal data network. This adds additional traffic on your data network and the voice packets must also be given priority over other data packets for the best voice quality. These changes may require additional hardware and programming at additional costs. 2. Calls that leave the business internal network must now travel over a broadband connection (inter-net) and the quality of the voice call will depend greatly on the quality of the broadband connection. Business class connections that guarantee Quality of Service (QoS) can be costly to set up if they are not already in place.

So is VOIP Right for Me?

1. If you are a medium or large sized business with multiple locations and or telecommuting employees this technology can streamline your business and improve communications with your customers and vendors.
2. However, if you are a small or medium sized company with all of your employees in 1 location and no real need to connect with traveling employees or telecommuters...there is really no need to spend the extra money or add the additional complications that VoIP requires.

Whatever you decide, just be aware of the facts and make the decision with you eyes wide open.

San Diego Telephone Systems Mitel , InterTel , VOIP