What Are the Advantages and Disadvantages of VoIP?

Most businesses have installed a VoIp for Business system. The digital revolution has enabled most to replace their existing PSTN based systems with VoIP because of the benefits in cost management and customer service.

They might have justifiable concerns over call quality, and that they will need disaster planning measures so they don’t lose their phone service if they lose power. Recent advances in technology and the use of standby power can dispel these concerns. Bottom line, the advantages of VoIP for Business to the business far outweigh any potential drawbacks.

Integrating VoIP for Business in an integrated communications environment including video conferencing, instant messaging and Social Media integration brings the business firmly into the 21st century and at the leading edge of communications.

Here are some advantages and disadvantages:

  • Reduced Call Costs

    Reduced Call Costs

    This is often the first benefit that brings VoIP into consideration

    Calls are routed over the Internet rather than over the local PTT. That means that the call charges levied by the PTT fall away, and the call becomes essentially free, any infrastructure costs absorbed in the overall cost of providing the Internet connection.  The cost saving can be significant if there are frequent long-distance and international calls.

  • Cost Control

    Cost Control

    Some organisations manage call costs by using a budgetary cost recovery model. Being able to use call logs to see who made a call, to whom, when, for how long and the actual cost allows users and departments to manage phone call budgets easily.

  • Security

    Security

    In the past security was based on the physical handset. If someone wanted to make an unauthorised long-distance call, they would need to sneak into the manager’s office and use their handset. In the VoIP world, security is based on the user.  A user has a log-on id and pin code that defines their authorisation level.  With their credentials, they can use any handset and have the same security profile.

  • Mobility

    Mobility

    Implementation of SIP interfaces in the VoIP for Business configuration allows a user to replace their desktop VoIP phone extension with a smart device. The user has full access to the corporate VoIP phone system from anywhere in range of the corporate network, usually over WiFi, both centrally and at remote offices. A facility via a secure network for users to connect to the corporate phone system over the Internet allows them to use the corporate phone system from anywhere.

  • Productivity

    Productivity

    A business VoIP system provides new features and communications applications. As examples:

    • Employees become productive immediately they arrive at a remote office and connect to the corporate network. No waiting to be allocated a phone, they use their main office credentials and any handset to continue with their main office phone extension number.
    • Hunting and call-forward groups. Employees can see if a colleague is present and if not, pick up their calls. Call-forward groups forward a call automatically after a preset number of rings.
    • Help Desk consultants can operate the phone system using a softphone application on the desktop giving a point and click interface.

As we are too well aware, nothing is for free. VoIP systems do have disadvantages:

  • Connection Quality

    Connection Quality

    The quality and speed of the connection between here and there is out of the businesses control. It is dependent on other parties and will always have the quality and speed of the poorest intermediate link.

  • Setup

    Setup

    Setting up a VoIP environment can be a time-consuming and labour-intensive affair: 

    • A network audit is needed to make sure that all the network equipment supports VoIP and  that everywhere a handset is located has network and power connections;
    • All network switches are correctly configured;
    • The data centre is capable of hosting the VoIP servers and other equipment
  • Legacy Equipment

    Legacy Equipment

    Not all devices are capable of operating in a VoIP environment. These are usually fax machines, modems and alarm systems. Sometimes a driver or firmware update will make them digitally capable.

    Overall, replacing a PSTN system with VoIP for Business is a no-brainer. The cost, operational and reputational advantages far outweigh any downsides.