Monday, April 4, 2011

Taking it to the Cloud: SMB's look to remote VoIP services, but Quality of Service issues remain

For a cost-conscious small business, hosted VoIP telephony makes sense: Rather than pay for both a business line and a high-speed Internet connection, purchase just the latter and then set up a VoIP service for a fraction of the cost. But moving the VoIP connection out of the office won't immediately solve some of the common issues and pitfalls of today's IP-based voice network.


Ease of setup and inexpensive subscription rates are among the key factors driving the growth of VoIP services worldwide. This is most strongly reflected among residential consumers, who make up 69 percent of the worldwide market.

But businesses looking to expand are also looking for an IP-based voice solution that will grow with them yet remain cost-effective. That's driving growth in areas like SIP trunking--to the tune of a 143 percent increase in revenues in 2010, says Infonetics Research--but also creating a niche market of affordable business-grade options for SMBs.

That's where managed IP PBX services come in. Hosted services grew 20 percent last year as more businesses looked for ways to get expanded voice options at a lower cost.

But hidden among all the rosy news on hosted business VoIP are more than a few thorns.
Hosted PBX solves many of the problems involved in managing a VoIP connection locally, taking some of the burden off the IT department. In theory, IT guys no longer have to spend time tracking down problems with voice latency or network shutdowns, and they don't have to be as mindful of any processes eating up bandwidth needed by the local IP-based voice network. This should free up the IT department to concentrate on numerous other issues they face daily in keeping an organization's computer network up and running.

Once the IP-based phone system's management moves off-premise, however, the IT director isn't completely unburdened. Tom Adkins of Tele-Source Ind. Inc. recently pointed out weaknesses that both hosted and on-premise VoIP can experience:
  • Security: Maintaining the integrity of the voice system during and after migration to a managed service.
  • Equipment: VoIP phones installed on-premise can and do break; power surges can take out the phones, etc.
  • Outside network issues: Distortions of signal or dropped signals due to a carrier on the public Internet or along the WAN, or a broadband or SIP trunk signal outage at the carrier CO (central office).
  • Colocated networks: With many businesses opting for hosted services for both their IT and voice, often colocated, there's the risk that a change made on the IT side of the network will profoundly affect quality on the voice side of the network.
  • Sharing bandwidth: When voice and data share a single feed into a business office, IT has to stay on top of the network setup so that one technology does not hog all the bandwidth.
So, how can an SMB maintain a remotely hosted VoIP service that's truly cost-effective without sacrificing quality? There are a few things to ask a prospective managed services provider before signing a contract:
  • Will the company have a designated contact with VoIP expertise to maintain quality of service and help the SMB solve problems that crop up on its side?
  • Is an element management service in place that will notify either the SMB's IT department or the host that an equipment problem is occurring on premise?
  • What contingency is in place should the VoIP system fail--such as a failover to a designated POTS line on premise?
A final, but important factor is the SMB's own IT staff. Even if it's just one person managing the company's entire local area network, that person needs to also be trained in VoIP management procedures in order to optimize the incoming broadband line--and for many small businesses, it's just a single line--for both data and voice requirements.
- FierceVoIP

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