The VoIP movement
Voice over Internet Protocol (VoIP) is gaining momentum as an effective means of digital telephony in small to medium-size businesses (SMBs). Although it is only a decade old, many enterprises now employ VoIP to a greater or lesser extent as its benefits become increasingly apparent. In this white paper you will examine what VoIP is, some of the advantages and disadvantages of switching to VoIP and how outsourced Managed Service Providers can assist you in enabling VoIP technologies in your business.
How VoIP works
Skype is probably the best-known VoIP system but by no means the only one. Using this technology, you can call anybody who has a Skype username or you can make calls to any number, anywhere in the world that uses an ordinary telephone network.
VoIP relies very much on an internet technology called packet switching. Packet switching works by breaking down a data file into many small packets which are individually transmitted through the internet. When you send an email, for example, it is broken into packets before leaving your computer and then reassembled when it arrives at its destination.
VoIP works the same way. Your analogue voice is digitised and then converted into IP packets, each of which travels independently and follows different routes through the internet. If you are having a video call, the same happens to the image data. Media streams use special delivery protocol software called audio and video codecs to optimise transmission and communication.
Once a person’s voice or face image has been converted into numbers and then into packets, the data is then reassembled at the recipient end into a sound and an image. Both computers involved in sending and receiving data must work according to the protocols. VoIP uses a data-sending protocol called RTP (real-time protocol) which is also the protocol used for streaming video in real-time over the internet.
How is VoIP different from conventional telephony?
We are all familiar with conventional telephony systems where nothing has really changed in the way they operate for 100 years or so. In these systems, calls are made using telephones or handsets that are connected to phone cables. All calls are routed using the Public Switched Telephone Network (PSTN). The PSTN enables analogue signals to be transmitted from one phone to another.
The principles behind VoIP are not dissimilar but with VoIP, everything is digitised. Instead of connecting telephones to cables plugged into wall jacks, VoIP uses the internet where phones are interconnected via broadband devices, adapters or PCs using high-bandwidth broadband. As we already discussed, this facilitates the transmission of digital signals in packets over the internet as opposed to analogue communication.
Advantages of VoIP
If you are interested in saving your SMB money, then VoIP is for you. When debating the advantages of VoIP, you’ll get a broad spectrum of responses, depending on who you speak with. However, the fundamental pros for switching to VoIP are cost, accessibility, flexibility, improved voice quality and a wider range of useful features.
Communication is cheaper
Setting up a VoIP system is usually less than a conventional telephone network. Also, you’ll benefit by significantly reducing ongoing costs. As VoIP operates via an internet connection you don’t really need to have a traditional phone line. So the bottom line is that you need only one account for your broadband and telephone line.
Another obvious advantage is the reduction in the cost of calls. Calls from PC to PC through the internet are free. Calls from a computer to a landline or mobile number do have costs attached although markedly less than with a fixed phone line.
Communication is more accessible
With VoIP distance and location do not come into the equation. Whether you are making a local or international call, all you need is for both the caller and the receiver to have an internet connection, preferably with high bandwidth. If you are frequently out of the office or working from home, you can stay connected to a VoIP system at a minimal cost. VoIP promotes accessibility and ease of communication.
Communication is more flexible
VoIP has far greater flexibility than a PBX (Private Box Exchange) system. Using a PBX, you are limited to the number of phones and lines that can be added to the system. With a VoIP network, your only real limitation is bandwidth so hundreds of connections are conceivably possible.
Good sound quality
Providing you have a stable internet connection with high bandwidth, you will experience a voice quality that, at the very least, is as good as a PBX connection. If you are in a rural area or positioned where internet connectivity is weak, your voice quality will suffer. This is expanded later in the section on ‘Latency’.
VoIP has more features
Traditional phone contracts have a selection of additional services for which there is a higher tab. Because VoIP is internet-based, all its extra features are free. These include call forwarding, call waiting, voicemail, caller ID, three-way communication and much more. Another bonus is that you can send data files such as documents, images and audio during a conversation. Your employees also benefit from being able to conduct video calls. In a nutshell, VoIP facilitates greater inclusion and collaboration since staff are able to have flexible meetings from multiple locations, both nationally and internationally.
Disadvantages of VoIP
VoIP has many upsides but there are a few disadvantages worth examining. These include power failures, making emergency calls and latency. Of course, you cannot operate a VoIP system without a reliable internet connection with sufficient bandwidth.
Power failure
This is simple; if there is a power failure you will no longer have an internet connection so your VoIP system won’t work. This is not a major concern since power outages are rare and usually short. However, when your power supply is down for a prolonged period, it can be quite a headache.
Emergency calls
Dialling 999 or 112 doesn’t work on a VoIP phone. When you dial an emergency number using a conventional phone, your provider uses either your phone number (for a landline) or the cell tower (for mobile) that you are communicating with to put you in contact with the nearest 999 services. Calling locations cannot be easily identified with VoIP systems so emergencies calls cannot be traced to them. For this reason, many businesses maintain one PBX phone to keep lines of communication open in the event of a power failure or emergency.
Latency
Due to bandwidth limitations, some calls may appear to lag. Worse still, the call may disappear altogether. Data in packets must be able to travel to the recipient and be reassembled quickly enough so that noticeable delays are not apparent. New-generation VoIP systems counter the problem of lag by having decreased bandwidth requirements. Put simply, the less bandwidth required, the less likely there will be a lag in communication. Bandwidth requirements are shrinking because of the development of sophisticated data compression algorithms.
VoIP and security
Many of the issues and concerns associated with other internet-connected devices apply to VoIP technologies. Cybercriminals with knowledge and understanding of VoIP vulnerabilities can execute DoS (Denial-of-Service) attacks, steal client and company data, record conversations and access voicemail messages.
The technical complexities of VoIP protocols to route traffic through firewalls. Moreover, many consumer VoIP solutions do not support encryption of the signalling path or the media. Thus it is relatively easy to eavesdrop on VoIP calls when hackers gain access to a network.
While there is a host of measures that SMBs can implement to keep VoIP systems secure, here are a few that are definitely worth considering:
- whenever you buy a new VoIP device use a strong password, not the pre-set passwords that are available online
- change passwords regularly, at least every six months
- enable Network Address Translation (NAT); NAT is a router function that provides all internet connected devices with a private IP that can only be seen on your Local Area Network (LAN)
- close Port 80 on your routers with a firewall; your IT guys will know how to do this
- trying to limit international VoIP calls
- most importantly, secure your network and data with the latest firewalls and anti-virus software
Switching to VoIP checklist
You can use this checklist of criteria to help you decide if your SMB is now ready for VoIP.
Do you want to save money?
If using a familiar PBX system is more important than saving money then VoIP isn’t for you.
Do you want greater scalability?
VoIP means that you can grow into a phone network system; this is not possible when using PBX.
Does your hardware provide for running off SIP?
SIP (Session Initial Protocol) is used to signal and control internet communication sessions including voice, video and messaging. SIP-enabled devices mean that your internet telephony service provider can deliver the required VoIP products.
Do you have access to high bandwidth?
VoIP needs high bandwidth and data transfer speeds to function well. Check with your ISP provider to find out if you need a bandwidth upgrade.
IT Managed Services and VoIP
If you are now convinced that it is VoIP time for your SMB but aren’t quite sure where to begin, don’t fret. Your local IT Managed Service Provider (MSP) will help with the procurement of hardware, software and hardware installation, and enable VoIP technology that works. The MSP will also organise your communication networks by integrating them into your existing IT infrastructure. By outsourcing part of your IT to a trusted MSP, you can eliminate the worry of the management of your communication systems.
VoIP is the future
VoIP has grown exponentially since its invention in the mid-1990s. In 2016 Skype claimed that downloads of its mobile app were in excess of one billion. In Europe, a quarter of all fixed-line subscribers now use VoIP. In Japan, which has an abundance of fast cell phone networks, a third of all calls are made using VoIP. In the United States, telephone manufacturers confirm that around half of new business phones sold are VoIP models. The New York Times reports that 42 million Americans use VoIP phones. With statistics like these, it’s clear that VoIP is here to stay and will lead the communication technology of the future.
