Some companies may hesitate to switch to voice over internet protocol (VoIP) because they believe the rumor that it is too expensive for most companies to implement. The premise of moving to VoIP seems especially daunting for mid-sized businesses that operate on small budgets. Newer technologies can be more expensive, but VoIP isn’t new – it has been around since the 1990s. Since then, call quality has improved greatly and the emergence of cloud-based VoIP makes the service more accessible and affordable than ever before.
Due to its wide range of features and lack of reliance on hardware, VoIP has a lower total cost of ownership (TCO) and shows a higher return on investment (ROI) than traditional telephony systems.
Here are 3 ways VoIP reduces costs and boosts your ROI:
1. No Upfront Infrastructure Investment
Unlike on-site private branch exchange (PBX) systems that require extensive upfront costs for equipment, VoIP converts capital expenses to operating expenses. VoIP works by translating analog voice signals into data that is transmitted over the internet. This enables your company to use your existing resources to make calls. Instead of using phone lines, calls are made through broadband internet connections already in place for transmitting data. The VoIP network is part of either your local area network (LAN) or wide area network (WAN).
Implementing a VoIP system doesn’t require provisioning phone lines or buying telephone sets. Existing phones can be converted using an adapter. According to Tech.Co news, eliminating these hardware costs can save your business 90% of the upfront costs required by a traditional landline system.
2. Lower Monthly Communication Bills
VoIP doesn’t require a separate phone system network, so it allows you to bypass the phone company. By sidestepping the phone company, you eliminate long-distance charges. Calls are made using data transmission, so they don’t use up minutes on a mobile phone plan. Text messages can also be sent for free.
With VoIP, you pay for what you need with low monthly fees. Costs are predictable so you can easily budget for voice services. Cloud-hosted VoIP includes maintenance, upgrades, and changes in the service for more economical administration.
3. Increased Efficiency and Productivity
VoIP makes it easier for employees to work where and when they want, using the tools they prefer. A PGi Global Telework Survey found that 79% of respondents work remotely. Today, companies have geographically dispersed workforces at remote or branch offices. Many employees also enjoy working from home or while in transit. A VoIP system enables remote workers to access all the features that in-office workers have so they can work efficiently wherever they are.
Companies that use VoIP can provide their employees with a comprehensive portfolio of communication tools through unified communications. Employees can send instant messages, share files, and participate in video conferences. With these tools at their disposal, workers easily collaborate on projects, reducing time to completion. Features like voice to email also enhance customer service. Employees can receive and respond to customer requests and inquiries punctually throughout the day and even after business hours.
Making the Move to VoIP
Switching your phone services may seem like an overwhelming task, but the potential cost savings of transitioning to VoIP make it worthwhile. If your company is due for a refresh or upgrade of your traditional telephony service, now may be the ideal time to make the move to VoIP.
With its long and successful track record of providing VoIP services, FirstLight is the optimal service provider. FirstLight will help your business choose a VoIP service option that saves you money while offering all the features and functionality you need. Options for VoIP include bundled and usage-based primary rate interfaces, SIP trunks, and cloud-based VoIP.
Do you have questions about how VoIP fits into your budget? Get them answered by the experts at FirstLight.