Over the past few years a strange acronym has emerged prompting many questions from small to medium sized and start-up companies about the future of telecommunications for business. Promising an ideal solution and revolutionary transformation to any business, VoIP sounds like the dream-come-true answer to many companies' problems. But with guarantees like worker mobility, cheaper call rates, extensive feature bundles and user-friendly hardware and software -- it is hard not to wonder - what's the story with Voice over IP phone systems? Are businesses really benefiting from them? What are the true savings? And perhaps most importantly - should a start-up company look to VoIP as a dependable communications tool when launching?

Newbusiness.co.uk has set out to answer these queries in hopes of unveiling the real benefits of IP phone systems for businesses. By analysing the relevant statistics, and interviewing a number of companies who have already adopted a VoIP solution - we have determined four areas in which IP telephony can offer advantageous to companies seeking real success.

What is VoIP, and what are the claims?
Voice over IP (VoIP) is a way of using internet protocol to transmit telephone calls rather than traditional phone lines. This, in theory, makes calls cheaper and facilitates the implementation of features (such as voicemail, conference calling, call forwarding etc.). For companies looking to employ a phone system, it is claimed; IP telephony can cut costs, and drive productivity among staff by integrating phones with computers and email services - which are already deeply embedded in daily operations.

The Numbers
A recent survey conducted by technology market research analysts Vanson Bourne, found that 25 per cent of new businesses in the UK are at present making use of some kind of VoIP solution. This is not to say that all these companies - numbering in the tens of thousands - have adopted a full-on IP phone system, but it is indicative of the growing popularity of IP telephony. Estimates from the same study predict that this number will grow to 48 per cent in the next year. If taken to heart, these numbers speak leagues for the argument that VoIP technology will slowly but surely preclude the use of traditional telephone systems all together. But statistics are one thing and real-life testimonials are another. Let's look towards the benefits that real companies have encountered when using IP telephony.

Financial Benefits
According to the pundits - adopting a VoIP phone system can save your business thousands in capital investment costs and operational expenses. By using
25 per cent of new businesses in the UK are at present making use of some kind of VoIP solution

a provider's hosted equipment, the story goes, you won't have to shell out your own hard-earned capital to buy telecom infrastructure whether this be a collection of telephones, or a full out PBX switch for your office.
Manish Tiwari of Here&Now365 Ltd, a media marketing agency based in East London, recently took up a hosted IP telephony phone system in his office of ten employees. "I was a bit sceptical at first," he admits "But the savings offered in service costs alone were too good to turn down. Integrating the cost of voice and data with a single provider is frankly much cheaper - and we needed a phone system anyway. With Primus' program - we didn't have to invest in any equipment aside from a couple of phones and some simple software."
And what of the call costs? One of the bigger claims is that calls transmitted via IP offer extremely reduced rates... "Well - yes call costs are reduced definitely - but what's more is that calls within our company are free - which is probably what saves the most. We have many staff who work at home and some abroad - with this programme we pay nothing at all to talk to them."

Lowering risks?
Another claim made about VoIP - and more specifically - hosted phone systems is that they offer a very low risk commitment which is meant to be ideal for a new or small business. A hosted phone system, the story goes, allows lines or users can be added and removed at will - which differs from the previous practice. Tiwari adds, "Well I think what that refers to is this ‘Pay as You Grow' model - meaning that when I need a new line, I can simply add one. I guess with the traditional systems - you'd have to buy in bulk which is quite risky without being able to predict how large and at what pace your business was going to grow. This way I can scale up and down in tune with my company's natural growth."

Future Proof?
Providers have also promised that a VoIP solution will ‘future-proof' phone systems - which at first sounds like a load of marketing jargon. However we spoke to IT consultant John Hardstaff and discovered that there is validity to these claims. Hardstaff works for Entrust IT, a company that not only specialises in remote computing but also puts to use the products that promise these benefits. "Future proof simply translates to obsolescence protection - meaning that your service provider is responsible for software upgrades and enhancements - so you don't have to worry about or pay for them."

A real mobilised workforce
On a final note - the question of whether a VoIP phone system can truly ease the lives of employees on the go is one that resonates with inquisitive businesses.
The way people work today has changed as a result of the internet, and perhaps more recently with technology such as Blackberry products. It is clear that businesses today see a benefit in having staff who are working, although not necessarily based in a central office. Hardstaff sings praises of VoIP heavily in this respect, "When I'm mobile; working from a hotel room or an internet café, the hosted phone system allows me to designate my mobile phone as my VoIP extension; therefore all calls to my extension, whether they're from within the company or external calls, are routed directly to my mobile." He adds, "Our staff is no longer tied to the office, yet are still be part of the internal network wherever they are."

The Reality
It seems then, that there is certainly some truth in the claims surrounding IP telephony. Whether you're a small company on the hunt for a phone system, or a new one trying to make the right decision when first starting out - it appears that Voice over IP might be just what you're looking for. Shop around - find the option that's best for your business' size and needs and above all - good luck!

www.PrimusVirtualPhone.co.uk