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VoIP: 20 Common Questions

What does VoIP stand for?
Voice over Internet Protocol. It's sometimes called IP telephony.

What does Internet Protocol mean?
It's a way of sending information from one computer to another. The information is broken into digital packets, with each packet having extra information that says where it came from, where it's supposed to go, and how the parts should be reassembled on the other end.

Is VoIP the same thing as making a phone call over the Internet?
No, though the Internet can be part of it. With VoIP, the sounds going into the telephone are turned into a digital stream of ones and zeros. They can get to their destination on any combination of the Internet, dedicated digital circuits and regular phone lines until they reach the telephone on the other end.

SOS talks about business VoIP - what is that?
With VoIP, a business can integrate its phones and its computers. Applications such as speech recognition, voice mail, interactive voice response, call center applications and simple Web-based management tools can all run on a single system.

What's so great about it?
When your phones are integrated with your company's computers you are faster and better at helping your customers and getting other work done. For example, incoming phone calls can automatically show information on the computer screen that's associated with the incoming phone number, even for someone working from a remote site. It cuts down on telephone toll charges and telephone management costs by letting an organizations' network administrators handle moves, adds and changes.

How long has VoIP been around?
It was first made available in the mid-1990s.

How common is it today?
Very. Three-quarters of large companies in the U.S. have already made the switch to IP telephony. InfoNetics Research predicts that by 2010, 50 percent of smaller organizations will be using VoIP. InfoNetics also reports that many midsize and small companies are decommissioning their traditional phone systems altogether, which shows confidence in VoIP technology.

Do I need a special kind of telephone?
Yes, you need an IP-based telephone or an IP to analog adapter.

Do I need special equipment?
You need a high-speed internet connection and a power outlet.

Is VoIP expensive?
No. If a company already has an up-to-date data network, there may be little to add on for VoIP. Moreover, VoIP can pay for itself in a matter of months through cost savings alone. After that it contributes to a better bottom line through enhanced customer service and improved employee productivity plus cost savings.

Will the person on the other end be able to tell I'm not using a regular telephone?
No. VoIP calls sound like any other phone call when designed properly.

Is it secure?
It can be very secure. Data security doesn't come automatically with VoIP, but knowledgeable and experienced engineers will implement VoIP securely.

Can I use my cell phone to make a VoIP call?
Certain cell phones are capable of it today and many more are in the works. Some predict this capability will, over time, have cellular phones become the primary device used by many users while in the office (without running up a huge cellular bill; in this case the cellular phone is acting like a phone on the IP Telephony system).

Is VoIP the same as IP telephony?
For every day purposes, yes. You can think of VoIP and IP telephony as two terms for the same technology. Literally speaking, VoIP refers to the way information is moved while IP telephony refers to the enhanced capabilities you get as a result.

What is IP communications?
An IP communications solution can include such features as unified messaging (explained below), contact center applications such as Customer Relationship Management (CRM) that are integrated with other applications, and rich-media conferencing including the ability to communicate with voice and video.

What is Unified Messaging?
Any type of message -- voice, e-mail, fax or text -- can go out over the system and be retrieved from a single in-box.

What if my Internet connection goes out?
VoIP does require an Internet connection and a power supply. A backup generator or batteries can keep the system running during a power failure.

What is hosted VoIP?
In a hosted VoIP system, the equipment is located off site, run by an outside provider (or host) and shared among the host's customers. A hosted solution can be a good way for some organizations to begin moving toward VoIP. However hosted solutions often have unreliable connectivity. When determining if hosting would be a good choice it's important to check the track record of the provider with long-term clients.

I'm an IT Director & we have a strong internal IT staff. Can we implement VoIP using internal staff?
Highly capable internal IT staff and directors have a good head start on understanding VoIP, but it does require some new learning. SOS often co-deploys systems with organizations who wish to self-maintain their system, providing knowledge transfer along the way.

We're a small business. Is VoIP a good investment for us?
It can be. The best way to find out is for someone who understands VoIP to review the company's needs and see what tools can best be brought to bear.

How can I learn more?
Our website offers over a dozen free tools to help decision makers learn which technologies can help them serve customers better, work smarter, and increase profits in 2007. Here are 3 you may find useful:

1. Attend "Supercharge Your Business with Unified Communications" at the Sacramento Hyatt.
2. Stay up to date with the SOS newsletter
3. Download "Secrets of the Pros: the SOS IP Communications Checklist"