Voice over Internet Protocol (VoIP) is a quick and easy way to upgrade your company’s communications stack to the cloud. As an Internet-based solution, a VoIP phone system is more cost-effective than traditional systems that connect to the public switched telephone network.
But no two VoIP phone systems are the same. There are multiple deployment models, varying levels of complexity, and different pricing structures.
What is the best way to future-proof your investment while keeping costs low? Let's find out.
Get the least complicated VoIP phone system that works
Overall, a VoIP phone system is a lightweight, internet-based solution that can simplify your infrastructure while offering more flexibility in how you operate. With so many features to choose from, putting together the right system can be overwhelming no matter how you approach it.
My best advice? Find the simplest solution that suits your needs.
To do this, you first need to be very clear about your requirements. You may find it helpful to ask yourself the following questions:
- What features are essential to your operation right now?
- What's not working with your current phone system?
- How many users will you have today and in a year?
- What business tools do you need to integrate?
- What industrial regulations must you comply with?
- How important is personalization?
- Are you looking for something for regular business use or for a high-volume contact center environment?
Don't overcomplicate your requirements, as you may end up spending more money than necessary.
If you find a solution that offers most of the features you need, but requires an upgrade to incorporate a couple of extra features, keep looking. There's likely a different solution out there that offers a slightly different package.
While it's important to consider what you'll need later, it's easy to get stuck thinking about all the possibilities.
Your needs a year from now should be taken into account, but don't let that stop you from moving forward.
Tips for purchasing any type of VoIP phone system
There are different types of systems and unique deployment types. The best advice for you depends on the type of VoIP system you are considering.
Simple plug-and-play voice-only systems
Your company probably already has the main component for this cloud-based solution: an Internet connection.
Setting up your new system can be as simple as setting up a few additional routers to allow for wider coverage. You may also need adapters if your current phones aren't IP-enabled. But that's about it.
One of the biggest advantages of plug-and-play technology is that you don’t have to deal with the cost and hassle of replacing hardware. It’s designed to complement your current setup and allow you to switch from landline to internet in a simple and streamlined way, which is ideal for new businesses or small operations with very little existing infrastructure.
If you need to buy phones, the easiest way is to get them through your VoIP provider. They will come preconfigured and all you have to do is plug them in.
However, you can save money by opting for refurbished phones. If you do, make sure to consider compatibility, brand, and manufacturer.
However, the most cost-effective option is to do without phones altogether. Your team can use their mobile devices and computers for everything.
One of the biggest issues with these types of systems is long-term scalability. While you can easily add or remove users as needed, you may eventually find yourself needing more powerful analytics, call routing options, and automation capabilities. But it's hard to beat the ease and simplicity of a no-frills VoIP system.
SEE: Learn about the best VoIP phone systems for small businesses.
Infinitely scalable cloud-based communication platforms
Cloud-based communications platforms are also fairly simple to use. Your provider manages all the software and hardware in the background on your behalf. And your team can manage calls using existing phones, mobile devices, or a desktop computer.
But unlike a simple VoIP system, these offer a wealth of features, additional communication channels, plans to choose from, and unlimited scalability.
You can start with a basic level plan and upgrade to higher levels as your needs change – this is the best way to save money with this type of system.
Many also offer highly customizable contact center solutions to handle inbound and outbound calls at scale. In other words, there is plenty of room for growth.
They also often offer text messaging, video conferencing, team chat, file sharing, and online faxing (this is called UCaaS). You can get virtually all the channels you need for internal collaboration and external communication.
The most important disadvantages are complexity, cost and flexibility.
These systems do a lot more, so they tend to be harder to set up, harder to learn, and more expensive. Plus, you'll lose all of your communication channels if you ever decide to switch to a different phone system.
Highly customizable on-premise VoIP phone systems
An on-premise VoIP system is a solution that involves a local server that you manage instead of your provider handling the back-end for you.
Some business owners prefer this approach because it gives them complete control over the structure, security, and configuration of their system.
SEE: Learn the most important VoIP security best practices.
Things like configuring SIP trunks, adding or removing users, and updating system security features are all in your hands. The VoIP provider simply extends the capabilities of the Internet-based telephone network to your existing infrastructure.
However, this solution is likely to require a significant initial investment: you'll need to purchase servers, hire staff to manage them, and pay for software licenses.
You may also have higher electricity bills and need to purchase additional software to maintain your servers.
However, the ongoing costs of the VoIP software itself can be much cheaper than the types of systems we've covered so far.
You can take steps to support the longevity of your on-premises system by investing in high-quality hardware and a strong support team. You'll need a dedicated IT staff available to manage the system, coordinate additional features, and stay on top of the most up-to-date security practices.
Hybrid telephone systems
If you have a landline system and long-term contracts with multiple providers that you can't get out of, a hybrid approach means some of your team use that and others use VoIP.
You'll maintain the stability and reliability of your existing system while enjoying lower costs for your VoIP users, better scalability, and additional VoIP features you wouldn't otherwise have.
It's also a great way to make a gradual transition to Internet-based communications. You can spread the migration costs over time, rather than upgrading your entire system to VoIP all at once.
Plus, you'll have full control to decide which devices use VoIP and which use traditional lines.
Devices that make a lot of long distance or international calls are probably the best candidates for switching to VoIP. Most VoIP plans include unlimited domestic calling, and some offer upgrades to unlimited international calling. That alone will likely save you money right away.
These savings will multiply for large companies with hundreds or thousands of users.
Virtual Call Center Solutions
If you only have one or two sales or customer service reps, you'll probably find that a typical phone system is sufficient.
But large teams that handle a high volume of calls often need more advanced features. Fortunately, they can take advantage of VoIP functionality through call center and contact center software.
Just like a regular system, virtual call center software can be fully managed by your provider, deployed on a cloud server you own, or on a physical server in your office.
These are the most complex systems, which include a range of features for:
- Direct callers to the right place.
- Assist supervisors in monitoring performance.
- Synchronize critical customer data.
- Monitor compliance and adherence to the process.
- Communicate through messaging apps and social media.
- Delivering exceptional customer experiences.
- Automate repetitive tasks.
- Keep agents engaged.
- Maintain consistency.
The best way to save money is to choose a system that integrates with your CRM software, includes all the basic functionality you need, and gives you plenty of room to grow.
It's easy to get distracted by advanced call center capabilities, but it's important to consider what you really need and what would be nice to have.
VoIP Phone Systems vs SIP Trunking
SIP trunking is only an option if you currently use a landline system or have a private branch exchange available.
Similar to a hybrid VoIP system, it is a cost-effective way to transition to Internet-based communications without disposing of your existing infrastructure.
However, SIP trunking works on top of your system rather than replacing it.
Landlines require copper wires that run all the way to the phone provider. They are expensive to maintain. Also, the farther the recipient is from your physical location, the more work is required to connect them. Therefore, you have to pay more for long distance calls.
With SIP trunking, you replace those copper wires with virtual lines over the Internet. In no time, long distance calls are a thing of the past.
You'll also see significant cost savings because SIP trunking services are priced per channel (also called trunk). Each channel can handle one call at a time, so you'll need 15 channels to support 15 simultaneous calls.
VoIP systems, on the other hand, charge per user. Far fewer channels are needed than users, allowing for immediate cost reduction.
Since most SIP trunk providers configure everything remotely, deployment only takes a few hours or a day.
