VoIP is one of the most confusing acronyms in the IT marketplace today. If you ask 5 different people you are likely to get 5 different answers. VoIP simply means any analog voice signal that is converted and sent over a data link. It begins with simple VoIP desk phone to desk phone communication, then extends to standard applications such as voice sent over the internet via a shared resource such as DSL or a Cable connection, or through a private link such as T1. Another application for VoIP is “Voice to Text”, such as voicemail from your phone converted to text and sent to a PC or PDA device.

There are many reasons and ways to implement a VoIP network. The best solution for a particular company depends on several important factors. For example, are you seeking to lower your monthly or annual telecom costs, or are you looking for some of the newest capabilities and feature sets that a VoIP network can offer?

For many, the easiest and lowest cost solution would be moving their current POTS lines onto a broadband connection such as DSL, T1 or a Cable company. This solution can dramatically lower the monthly recurring costs while allowing the user to keep their current PBX and phones. A few of the drawbacks of this application are that those particular connection types (DSL, T1, Cable) are not always secure, and link reliability may not be guaranteed as they are all using a shared network. But this does not mean that they are not a good solution for many companies, or as back-up plans.

The next potential application is to use those same link types to connect to an IP PBX at the company’s location. There are many IP PBX’s on the market today such as; Talkswitch, Dl-Link, and Microsoft’s Response Point solution. These allow you to add new features to your phone network such as Outlook Integration, Voice dialing, Voice to Text message conversion, or allowing your tele-workers to appear to your customers as though they are in the local office; when in actuality they are home, or on the road. For this application you would need to buy the PBX and compatible phones to allow you to access these features. Some of these solutions can get pricey; however financing is available from most vendors to allow you to spread the cost over several years with minimal monthly payments.

A third solution is using a Hosted IP or Virtual service. This gives companies the benefit of having those new capabilities and feature sets of VoIP without having to worry about the initial hardware costs and on-going maintenance of the PBX. This has become increasing popular with SMBs. Many small businesses do not have the time, technical expertise, or financial resources necessary to configure and maintain a feature rich PBX. Since the Hosted / Virtual IP company is responsible for the entire configuration and monitoring of the network, it becomes and excellent solution. The connection types/choices still include the same shared services such as DSL or Cable, but many Hosted / Virtual IP providers will suggest or even insist on a Point-to point dedicated T1 line directly to them to ensure security and Quality of Service (QoS).