Transitioning to VoIP: The Costs, Process, and Options
VoIP communication systems grant an easy transition for any business type. Setup can be completed in minutes and customizing your settings can be done without the help of a tech team.
Switching to new technology can be a stressful journey, but an efficient communication system is worth the challenge. We’ve broken down what to expect during your transition so you can feel prepared for your new VoIP communication system.
How does VoIP work?
A VoIP phone system uses an internet connection instead of a traditional landline or mobile network to make phone calls. Your VoIP system can be used anywhere there is a high-speed internet connection.
Configuring a desk phone and SIP server offers better performance than legacy landline systems, as they do not provide the advanced features that come with a VoIP system.
How much does it cost to switch to a VoIP system?
The costs associated with your VoIP system depend on the number of users and your business needs. VoIP systems are customizable, allowing you to create workflows, integrate with apps, and personalize settings. These capabilities can increase the cost of your service if you decide they’re right for your business.
VoIP systems can be as simple or advanced as you need them to be, which reflects the costs associated with the service. Many users will have existing equipment they can use for their VoIP system, eliminating many costs. However, if you were to start with nothing, there are some costs outside of the VoIP subscription that you must consider. Let’s dive deeper into what this could look like.
Configuration and deployment
Hardware and manpower are the two major cost concerns when it comes to setting up a VoIP system. Phones, headsets, Power over Ethernet (PoE) connections, a switch, and your session border controller are all included in the hardware expenditures (SBC).
You should expect a one-time price of $1,000 to $5,000 per location for the actual labor costs of installing and establishing a VoIP system and the accompanying gear. This number can expand enormously in very large firms with thousands of employees.
- Phones: $50 – $300
- Conference phones: $600 – $1,000
- Headsets: $100 – $300
- PoE: ~$200 per one thousand feet of cable
- Switch: $500 – $3,000
- SBC: $300 – $3,000
Once you have an adequate internet and phone setup, you’re looking at a monthly charge for your users. The cost may vary depending on the plan you choose and the number of employees you have.
If you want to put up your own on-premise VoIP solution, the expenses will be much higher because you’ll need to buy specialist equipment to build your own system (known as a PBX).
Phones
The phone units themselves will be the most expensive part of the VoIP setup. There are three options to choose from:
- Install VoIP-compatible phones in your business
- Use softphones
- Purchase a converter that will allow your current traditional landlines to accept a VoIP signal
Adapters
For a device that can convert the signal for one phone, a VoIP adaptor costs roughly $60. While it may be tempting to keep your old gear and just convert the signal, you may be missing out on some of the VoIP-specific capabilities that a dedicated VoIP phone would provide.
Service charges
Your VoIP system will have monthly recurring expenses, just like any other service. VoIP systems refer to phone lines as seats rather than lines. One unique feature of VoIP systems is that your company can pay for fewer seats than it has phones.
This can be an excellent strategy to save money if your company doesn’t have a high volume of calls at any given moment. Similarly, if your company receives a high amount of calls on a regular basis, it can be a good idea to add more seats than available phones, allowing you to handle numerous calls on a single phone.
VoIP systems are extremely adaptable and flexible, so no matter the size or needs of your company, you can find a solution that works for you.
Staff required
Traditional phone systems require IT personnel to set up and maintain the lines. Your IT personnel will be inspecting your system and handle hardware updates on a regular basis.
In comparison, VoIP requires relatively little maintenance, and your provider’s support team is available to assist you off-site regarding major recurring issues, although having a small team of support engineers might still be a requirement.
Bandwidth required
You’ll need a dependable internet connection from an Internet Service Provider, such as DSL, cable, or fiber (ISP). The minimum required bandwidth for VoIP is 100 Kbps per device. You may require more bandwidth than the standard depending on the type of data and features being utilized at any given time.
Is It Worth It?
The short answer is yes. In addition to the cost savings you receive by switching to VoIP communication systems, you also benefit from advanced features and analytics. These capabilities are not included in legacy systems, which makes it more difficult to optimize communication.
VoIP vs Cloud Communication Systems
The latest advancement in communications technology is the introduction of cloud-based business communication systems. Cloud communication applications are a highly scalable and cost-efficient professional phone system that is designed for small and medium businesses to eliminate phone hardware installation and management costs. There is no requirement for phones, lines, and any other on-premise hardware. All that is required to use a cloud communication application is internet connectivity and any user can start using it with a browser, mobile app, or desktop app. Since there is no hardware required there is no setup cost, installation cost, no requirement of an on-premise maintenance team and can be used very effectively in WFH conditions.
Any business looking to start using a cloud communication system can begin with any device such as a laptop, desktop, tablet, or smartphone. Unlike VoIP, there is no need to buy and set up a physical phone device when using a cloud communication solution. Cloud communication allows users to import their existing business numbers or get a new number instantly with their area code.
Another major advantage of cloud-based communication the pre-built features that are included. These features help businesses manage their operations more effectively. Some of the top features include IVR, auto attendants, extensions dialing, and conference calling, advanced analytics and the ability to integrate other 3rd-party applications to introduce automation between multiple business functions and departments.
For new organizations looking to explore a communication solution that is cost-effective and allows scalability, Banter’s VoIP and Cloud Communication solutions are the best options. Start your free trial today and see what’s possible with Banter’s business communication platform.
