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Voice over Internet Protocol (VoIP) is inching closer to becoming the de facto standard for business telephone communications, but as VoIP technology, which routes voice calls over the Internet, becomes ubiquitous, managers must grapple with what type of IP telephony best suits their needs.

Companies must find a communications system that can boost productivity, is easy to manage and hits the lowest possible cost, all while guaranteeing the same level of quality customers received from their landlines.

The VoIP options are plentiful and range from simple options like Skype that require no more equipment than a computer and Internet connection to managed voice systems that provide customized in-house phone systems with a dedicated connection. Understanding the options can be confusing, but is vital at a time when companies are trying to do more with less.

Consumer-Focused VoIP Options

Consumer-focused VoIP options like Skype have crossed the chasm from consumer use to business use and become mainstream. Skype lets people use their computer (along with an attached microphone) as a phone and talk over the Internet. The software and calls between Skype users are free, with other options available at a cost.

A company may opt for a consumer VoIP platform when faced with tight budget constraints or lack of an in-house IT staff to manage its VoIP system. For smaller companies, a consumer VoIP solution can often be a cheap and viable option for communications.

While options like Skype are inexpensive, they have not yet proven themselves to be reliable and secure, despite Skype offering a business-class solution. But if a company needs a a low-cost VoIP service that can cost just pennies for long distance calls and requires little more equipment than a PC and broadband connection, a consumer-focused VoIP solution like Skype is a good option.

On-Premise IP PBX

On-premise IP PBXs route Internet access, VoIP and traditional telephone communications through a single line. On-premise solutions are often geared toward large enterprises that want complete control over their VoIP systems and have an on-site team to manage the solution. Users can manage on-premise IP PBXs themselves, which is a strong pro, but an on-site IP PBX and voice system can add capital and operations expenditures due to the initial upfront purchase cost and ongoing licensing, maintenance and management. On-site IP PBXs that carry voice traffic over the network can prove both costly and complicated, especially as companies have been forced to do more with fewer resources.

Still, if a company has the resources and an internal IT staff, an on-site voice system offers reliable VoIP.

Hosted Off-Site Solutions

Hosted VoIP solutions, or off-premise, solutions, are inexpensive and usually fall into a pay-per-user model, but only offer best-effort service quality, meaning companies have to sacrifice voice call quality for savings.

A hosted VoIP solution, through which the IP PBX is installed at a host site and managed by that host, offers an affordable pay-per-month option often without the upfront capital expenditures, and could be a solid solution for companies that lack their own IT resources and don't want to manage and maintain an on-premise solution.

Managed Voice Services

Finally, there are managed voice services, which takes the best features of both on-premise and off-premise and blends them into a fully managed solution catering to companies of all sizes. It takes the simplicity of a hosted solution and ties in the quality of a sophisticated in-house phone system.

A managed voice service uses a dedicated Internet connection, meaning it doesn't share the network with traditional data traffic and insures enough bandwidth for all uses.

Another benefit of a managed voice service is that it is available for a flat monthly fee. All of the telephone equipment, system software, network resources and carrier services related to the operation of the phone service are provided and supported by the service provider and its partners. Essentially, it's a company's own telecommunications department.

A managed voice service differs from other business VoIP options in that it is designed from the ground up to deliver high service quality and continuous availability. In the event of a major system outage, voice traffic will be re-routed to an alternate co-location facility to ensure uninterrupted service.

Overall, it comes down to choice. And with VoIP infiltrating more businesses, it's up to managers and business owners to determine what type of telephone system works best for them. n

Karil Reibold is CEO of Portsmouth-based Whaleback Systems, a managed voice provider for businesses. For more information, visit whalebacksystems.com