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Do Your Customers Need a Hosted VoIP Phone System?

July 02, 2017

Adoption rates of hosted VoIP are rising as more businesses seek to reduce the costs and complexities of deploying VoIP on premise. Enterprises are looking at revenue growth, enhanced productivity, and communication services, and then using ROI calculations to make a business case for a hosted VoIP phone system. Hosted IP telephony will reach 18.2 percent penetration of total business telephony users by the year 2020. Although some customers may have objections, there are many good reasons for companies to implement hosted VoIP.

Potential Objections 

Many businesses have had premise-based telephony equipment for their entire history and may resist changing over to a hosted model. Some of the objections and answers to those concerns include:
  • We have had this equipment installed for years and it still works fine – This may be true on the surface, but with remote workforces on the rise, accommodating these users with traditional equipment may become more and more expensive. Traditional companies are rapidly shifting their organizational structures to encompass the needs of a highly mobile and remote workforce.

  • Our company does not trust this technology – Worries about security are giving way to continued technological improvement along with growing consumer confidence about VoIP and cloud technologies. This attitude will create a boost in adoption at a steady rate.

  • There are so many vendors in the market; how do we choose? – Confusion about which options make sense for a company will begin to dissipate as the market matures and providers focus on the services and features that matter most to their customers.

Advantages to Hosted VoIP

Advantages for adoption range from flexibility to cost. Some include:
  • Reduced CAPEX – Whoever is providing the hosting actually owns the equipment, and this can significantly reduce the amount of CAPEX for the enterprise. Enterprises should choose the optimized hosted solution based upon their own network needs, core technical competencies and capabilities, and desired services.

  • New Technology Implementation Is Simplified – When new technologies are introduced, they are easier and typically less expensive to implement because the hosted provider can do this on a larger scale, more quickly. Security and quality of service (QoS) of new technologies can be addressed in the hosted provider’s network, thus relieving an IT organization that may be already overwhelmed with a regular network. In addition, the need to invest in network infrastructure is reduced when VoIP is hosted.

  • Easy Scalability – The ability to add or remove users and features is much simpler with hosted solutions. This is a benefit to companies that must reduce or increase staff on a seasonal basis. Companies can also easily try new features and capabilities without having to commit to them. For instance, if a company wants to trial softphones for its remote employees, it can do so without having to buy softphone clients that may no longer be viable if it decides it doesn’t want them.

  • Remote Office Connectivity – Companies using traditional PBX systems typically must add more equipment as they add remote offices. Costs can be reduced using hosted VoIP for remote locations because voice systems don’t need to be installed at each office. This allows companies to open new locations quickly and inexpensively.

  • Ease of Management – Because VoIP hardware is not located on the customer’s premises, the onus of system management is on the hosted provider instead of the IT department. This saves time and money and reduces the need for an administrative learning curve.

Voice over IP has become an attractive communication option for enterprises, now that VoIP products and services have improved. VARs should be able to discuss the advantages of hosted VoIP phone systems and be able to overcome objections. Success at this will result in long-term customers that will result in a strong business model.

Are there hosted VoIP topics you would like to see discussed in this forum? Please comment below.