Small Business Resources, Business Advice and Forms from AllBusiness.com

Is VoIP Right for Your Business?

The percentage of IT organizations that have either implemented a functioning voice over-IP (VoIP) network across the enterprise, or are in the process of doing so, jumped from 44 percent in 2005 to 62 percent this year, according to a study by BT INS, a provider of IT consulting and software solutions.

That number is somewhat misleading, however.

"VoIP has become ubiquitous in midsize and large enterprises--though not necessarily in production networks," says Rick Blum of BT INS. "Its slow integration into these networks is, at this point, due as much to the entrenched public switched telephone network (PSTN) as it is to cost or functionality issues. IT organizations generally take a conservative approach to implementing VoIP, with a lengthy transition the most frequent path taken."

The most frequent strategy that IT organizations pursue when implementing VoIP, according to the study of 157 IT professionals, is to replace PBXs as they reach end of life--especially in large organizations. Gradually replacing the telephony infrastructure with VoIP networks is the next most common strategy.

"VoIP, for all its benefits, still is not a 'no-brainer' decision," Blum says. "Consequently, there are a number of hurdles that must be overcome by IT organizations in order to convince upper management, not to mention the telephony department, that VoIP is the way to go."

The biggest hurdle for 32 percent of respondents, up from 29 percent in a similar 2005 survey, is being able to demonstrate that a VoIP solution will provide a positive return on investment. The second most-frequently mentioned hurdle (up 3 percent from two years ago) is the lower voice quality and availability of VoIP solutions. Third (16 percent) is identifying business opportunities requiring converged voice and data applications; and fourth is security concerns (12 percent).

Small IT organizations in the study were twice as likely to have implemented VoIP products in new facilities only, while large IT organizations were more likely (28 percent versus 18 percent) to have replaced PBXs as they reach end of life with VoIP products. "This may reflect the fact that small satellite offices are ideal for VoIP products," Blum says, "whereas larger facilities would still require considerable effort to build out strictly with VoIP products."

In addition, make sure to read these articles: