Imagine phones (that look like regular phones as we-know-it-today) connecting to the Internet via an Ethernet jack (similar to a PC) instead of the phone plug on the wall. These are called IP-based phones. These phones do not use analog phone lines - instead they get connected to the Internet. One would pick up the receiver and make a phone call just as it is done today and VoIP converts the human voice into IP packets (data similar to email data) and pushes it out through the Internet to the phone switch where it is terminated. In a nut shell, VoIP digitalizes voice into data packets, sending them and reconverting them back into voice at destination.

What are the benefits of VoIP and why you should consider it? To compete effectively in the eWorld, a decent businesses infrastructure MUST HAVE two essential components: A High-speed Internet connection and a sophisticated phone system.

Up until now, to build a solid infrastructure, small businesses had to spend lots of money for having multiple phone lines, perhaps an 800 line, fax line, credit card machine, to name a few. These days the ONLY essential component to worry about is having a reliable high-speed Internet connection. Connectivity can be addressed with either cable or DSL service (typically $250 per month) through cable providers such as Comcast, RCN, etc. and DSL can be provided through the Verizons of the world. The good news is that with the arrival of VoIP, there is no need to pay a dime for multiple phone lines, any phone system (PBX), any local/long distance calls, phone maintenance, etc. At 30% to 50% less than the cost of a typical phone system, a VoIP system will provide a more sophisticated system with increased functionality than any analog phone system. It offers an enterprise-level system that was affordable ONLY by fortune 500 companies. Now small businesses can compete like big corporations at a fraction of the cost!

Small businesses are beginning to realize that IP-based phone system streamlines their communications needs and their call flow in ways that was not possible a year ago. As a result they can improve the customer experience and combined with wireless IP communications, employees can become completely mobile. The beauty of it is that IP enables the phone to be anywhere this is a perfect solution for companies with remote/satellite offices who wish to have one uniform phone system for all employees regardless of their location.

There's a whole list of benefits unlocked by VoIP beyond the obvious. One of the most important advantages of using VoIP is reliable continuity. Imagine having a system that can stay operational through the Sept. 11 attacks in New York, or the August blackout and a whole list of building failures by the central phone system. In a typical VoIP system the main elements of the network are offsite, they're automatically protected from these sort of issues. Another benefit is, unlike a traditional phone system [Time-Division Multiplexed TDM], where the environment is a common point of failure, in a VoIP it is very easy to put in redundancy in which all clients connect to the outside world by more than one path. This guarantees phone connectivity and no call is ever lost.

IP telephony lowers the costs of communications system tremendously while increases productivity in more ways than one. Consider a world where ALL communications, including eMail, voice messages, conference calls, and/or even wireless devices can be integrated through a single system where employees, no matter of the location, can be contacted. For companies with multiple locations, VoIP system can eliminate the need for several receptionists which is growing in popularity.

The benefits of VoIP are endless. It eliminates the need for having an expensive PBX system; it saves time and resources associated with the maintenance & supporting such systems; it removes the hassle of dealing with phone companies; on and on while offering a superior phone system at 30 to 50% of the cost.