IT Management articles: tips, advice, ideas, strategies & solutions

Subscribe to our IT Management Articles Feeds


Feeds

What's this?

Home > IT Management

Hosted PBX - Good Business Choice?

Tweet This
thumb it up Michael Lemm
A hosted PBX solution may not be right for every business application. But if you do your due diligence you may find it's a good business choice for you.

One key is that when you talk about hosted PBX (VoIP) .... it can mean different things to different people.

The intent of hosted PBX / VOIP is to provide the service at a fixed monthly cost rather than taking in the capital cost of a purchased solution. It can also be used to invest in a more feature rich solution than would otherwise be affordable (renting a piece of a very expensive system vs buying a lesser system)

There are two types of hosted providers out there - on premise and off premise. On premise providers bring in the equipment to YOUR site and install it - you just pay for it monthly (think fully managed lease).

Off site providers use private WAN or Internet connections to provide phone services for your organization.

One of the biggest problems you will face with the number of users and simultaneous phone calls will be in the connection between you and the hosted datacenter. With say 200 - 300 phones .... and an average use of 10% for normal businesses .... that's 20-30 phone calls. Depending on the codec in use that's between 900 Kb/s and 2Mb/s. That would only cover 1-2 T1s of usage. Depending on the platform interoffice calls may also be routed via the hosted platform - so that should be a consideration as well. If cost savings is your primary concern - then this could be an issue (depending on the price of bandwidth in your area and whether its on premise or not).

Many organizations can see benefits from hosted including reduced capex, organizational efficiencies, productivity enhancement and much lower maintenance and management costs. However I would caution you to avoid platforms that do not provide QoS throughout the network. There's a big difference between the soho / smb product lines and an enterprise grade service; and QoS over the network (not just the LAN or at the edge) is one of the biggest. Additionally, you should have a consultant perform a LAN assessment to determine the ability of your LAN to handle the VoIP traffic without degradation. It may require upgrades, adding to the expense.

I'll be the first to say that this solution is NOT right for every customer application.

VoIP in all forms is viable depending on the needs of the customer and how it is engineered. There's a difference between enterprise grade and consumer/smb/soho offerings. I suggest you spend some time with a qualified and objective consultant. For a relatively small investment of time they can educate you and help guide you to a decision. For this I suggest you take advantage of the no cost assistance offered through Business-VoIP-Solution.com.
About the Author:
Michael is the owner of FreedomFire Communications....including Business VoIP Solution. Michael also authors Broadband Nation where you're always welcome to drop in and catch up on the latest BroadBand news, tips, insights, and ramblings for the masses.
 

 

No. of Times this article has been viewed : 173
Date Published : Oct 21 2009

Most Recently Published IT Management Articles as of

Nov 20 2009    Relax, Here Comes the USB Floppy Drive for You

by Tiel Holdstock

Who says you cannot use a floppy drive if you have a computer without a built in floppy disk drive? An external floppy disk drive has been devised especially for those with a computers like this, where in you can connect this device to the USB port and then go ahead with what you want with it.

Nov 17 2009    Smart Storage in a Smart World: USB Floppy Drive

by Tiel Holdstock

A USB Floppy Drive is a small self-powered drive that connects to a computer directly through a USB port.

Nov 16 2009    Make Your Communications Easier With Teleconference VoIP Software

by BMA Editorial Team

One of the most talked about communications tools of today, VoIP (Voice Over Internet Protocol) makes it possible for you to make a call from anyplace so long as you have a broadband connection, making it well-suited for traveling.

Nov 7 2009    Business VoIP Solution .... What Does It Really Mean?

by Michael Lemm

No matter which direction your business goes with a business VoIP solution .... the key is understanding how you communicate and what you want to achieve. Simply put, a business Voip solution is an alternative to a traditional switched-voice service.

Nov 6 2009    Web Application Advantages in Today's World

by karel zeman

Web application development services have introduced ways to make the use of applications easier and safer for the consumer. The many advantages of going online to use your applications as opposed to using desktop applications are increasing steadily.

Oct 30 2009    How to Connect Your PC to Your TV

by Charles Taylor

There are many people who do not know that they can connect their PC to a TV. This may look remedial to a lot of people, but it is simple. There are many reasons to connect a PC to TV.

Oct 21 2009    The Real Facts About MPLS Networks (Multi-Protocol Label Switching)

by Michael Lemm

MPLS... or Multi-Protocol Label Switching has fast become the solution of choice for connecting multiple network locations for businesses today. In order to make sure you're designing the right network solution you need to at least understand the basics.

Oct 21 2009    What is Expected of a Green-Minded CIO?

by Michael Lemm

"Going Green" is the phrase Dejour in business today...and the IT world is not immune to this movement. With that in mind CIO of every business should set the tone for what and how "going green" is accomplished from an IT perspective. Here's a tongue in cheek guide on just how that might look.

Oct 21 2009    EWaste - How Are CIO's Protecting the Environment?

by Michael Lemm

Going green .... or protecting the environment .... has become even more of focus in companies today then ever before. It's just plain the smart and responsible way to do business. One major segment of the overall effort is reducing and/or controlling E-waste.

Oct 21 2009    Hosted PBX - Good Business Choice?

by Michael Lemm

A hosted PBX solution may not be right for every business application. But if you do your due diligence you may find it's a good business choice for you. One key is that when you talk about hosted PBX (VoIP) .... it can mean different things to different people.

Oct 21 2009    Primer For Businesses Evaluating DS3 Bandwidth Costs

by Michael Lemm

Before deciding on a bandwidth solution for your business there's basic fundamental questions you must be aware of. Not just what they are but also how the answers will impact your network application(s)... and most importantly the impact on potential cost of implementing that network.

Oct 21 2009    VoIP PBX Solutions For Businesses - What to Look For

by Michael Lemm

The emergence of VoIP technology.... and specifically application to PBX systems via IP based protocols... has provided an enormous opportunity for companies to reap many benefits.

Oct 21 2009    Smart Business - How to Manage Bandwidth Requirements For Multi-Media Applications

by Michael Lemm

Take control of your Internet and WAN resources to optimize the performance of your business-critical applications, VoIP and video traffic. Ensure sufficient bandwidth in your network for near term and expansion needs....

Oct 21 2009    Should You Use Ethernet For Your Voice & Data Network?

by Michael Lemm

It seems that whenever you talk about an upgrade or new installation of a company's voice/data network these days you hear the buzz word "ethernet" sometime in the conversation. With all the buzz... should you seriously consider ethernet in the mix for your network solution?

Oct 21 2009    Describing DS3 Bandwidth in "Non-Technical" Terms

by Michael Lemm

Hhere's a non-technical description of DS3 Bandwidth and the different types of DS3 lines a business needing a voice and/or data network solution could opt for:

123456789
Search for ebooks on Management & Business