Experts claim that VoIP phone systems are an effective way for small companies to reduce expenses. They even say you can cut your phone bill by 50%. These systems are supposedly praised by business owners worldwide as being more scalable and flexible than traditional telephone systems (for a lot less money). But is that true or just false advertising? How do these phone systems offered by the likes of TelcoDepot, Nuvia Cloud, Windstream and POP VoIP can help your business? Let’s take a look:

A businessman is making VoIP call

Added Value and Reduced Expenses

VoIP (Voice over Internet Protocol) reduces expenses by using the Internet to receive and send voice calls, instead of using traditional phone lines. Additionally, IP business phone systems are packed with a wide array of features, including on-the-fly conference bridging. Oh! And keep in mind that these features do come at an extra cost with traditional telephony, but not with VoIP.

The reduced operating and capital costs of VoIP phone systems are impressive. A VoIP PBX replacement is a moderate expense. Also, VoIP high-end software is usually open sourced, so the extra cost for bandwidth is much lower than its TDM counterpart. If your business has a commercial-grade Internet connection, the price for VoIP bandwidth can be 75% lower than the TDM bandwidth.

A VoIP phone system doesn’t just reduce expenses; users can also rely on added value in many ways for mobile communications. Thanks to VoIP, routing calls from staff members’ desk extensions to their cellphones, when they are away from the office, is possible. Unified communications features, such as tie-ins with customer relationship management tools and integrated boxes, dramatically boost employee productivity, supporting business growth.

VoIP for small business

Hosted vs. On-Premise

Now, you have to ask yourself, do you want a hosted system or an on-premise system? In brief, hosted phones are plugged into the local area network via Ethernet cables, a router connects the local area network to the Internet and a service provider does the rest with cloud PBX. If you go for an on-premise system, a local PBX server plugs the local area network to the Internet or the PSTN (public switched telephone network).

An on-premise VoIP telephone system has a smaller TCO (total cost of ownership) for most businesses. On the other hand, a hosted provider gives users access to innovative technology and makes upgrades available in no time, allowing them to get the new phone system up and running faster.

If you have a hosted VoIP provider, the money spent on the VoIP phone system is an operating expense. This means you can easily rent telephones and pay for this service with no up-front investment. Make sure not to eliminate CAPEX (capital expenditure) because of upgrades such as new cable drops or Power-over-Ethernet switches. Going with the hosted system might be the best choice.

Final Thoughts

According to PCWorld, VoIP can be an excellent tool for communication and a great way of reducing phone costs for your business. VoIP phone systems for businesses provide a lower TCO and at least the same voice capacity as the traditional landlines do. In addition, you can rely on enhanced mobility and a wide array of powerful features that help staff members better serve customers.

Have you made the switch to VoIP yet? If not, what are you waiting for? We would love to hear your thoughts. Please don’t forget to leave a comment below.