Hosted PBX VoIP

Till recently, VoIP service vendors have highlighted low-priced international and domestic calling rates and low service fees to sell the VoIP service to customers looking for low cost phone service. However, top financial heads do not make decisions based just on per minute cost savings. Small business VoIP service providers have their job cut out – persuading company leaders on the fast payback potential of investing in VoIP systems.

Earlier break even for technology expenses

Trends indicate that companies are looking at new tools and technologies that break even within 6 months – contrary to existing industry expectations of a year and a half. In spite of advances in VoIP technology and products, this condition puts a lot of pressure on its service providers. They now must substantiate their claims with fiscal break even facts to close deals as financial plans are limited to projects that show noteworthy returns preferably within the same financial year.

Phased implementation of projects

Restrictions on technology spending have made C-level executives rethink their project roadmaps. Executives no longer make purchases in a single shot but in a phased manner. In the past, implementing a VoIP system was a gargantuan task involving upheaval in data lines, hardware and desk equipment. But today, interoperable equipment makes it possible for executives to implement parts of a long running project as and when money is on hand and business disruption is minimized.

Quantifying results of VoIP systems

To measure the gains of installing or upgrading a VoIP system, CIOs have to look at both tangible and intangible results. Voice clarity and other useful features are intangible results that contribute significantly to worker efficiency. However, CTOs need factual results that have to be calculated differently over a cyclic period. Some tactics employed by CTOs to estimate the performance and cost savings from a VoIP system include:

• Assessing the effect of the time expended in reconnecting dropped calls on a worker’s output in terms of unproductive hours.
• Surveying clientele and evaluating the effect of a clearer phone connection on deals that worked out and those that didn’t.
• Comparing the cost of running a tele-presence solution over VoIP services with {an executive’s travel} bills.
• Distributing the total cost of a new VoIP system over the operations and maintenance budget of an existing project over half a year.

Return on investment (ROI) cannot be determined without accounting for the actual cost of ownership. If a VoIP system successfully breaks even in half a year, business heads can remove a line item from the budget. No CEO can turn a blind eye to such an advantageous proposition.

VoIP system service providers – Substantiating claims

VoIP service providers have to produce some realistic financial data to support their claims. They will have to come fully equipped with case studies and statistics to prove the real cost of ownership over the life of a VoIP system. For example, a VoIP project that breaks even in less than half a year and does not need expensive maintenance at least three years is a sure winner with CTOs. The budget allocated to the enterprise’s business VoIP system can be amortized over 36 months.

As VoIP systems move into offices and homes, service providers will be faced with tougher expectations from customers. Enterprise VoIP system distributors must do their homework and gather necessary financial information to convince potential buyers of the feasibility of a six-month ROI. This is the only way VoIP providers can win new deals. Daljeet Sidhu is the author of this article.