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VoIP Toolkit

Can small businesses rely on VoIP?

Marguerite Reardon CNET News

Published: 24 Aug 2007 09:40 BST

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...to invest in upgrading their own wide-area and local-area networks should use a hybrid solution that allows them to fall back on the traditional phone network if their internet connection is interrupted. Fonality sells a software PBX solution that does just that.

"The public internet just can't provide the kind of quality of service that is needed to offer a business-class service," Lyman said. "And small businesses don't typically have the money to upgrade their networks. So they shouldn't rip out their analogue service to go purely to VoIP. They're not ready for it."

Fonality's products are similar to ones offered by Cisco and Avaya. But because Fonality's software is based on open-source technology, Lyman says it costs 40 percent to 80 percent less than competing products from these big companies. Using open-source and standards-based technology means Fonality's software can be deployed on any server and any desktop phone. By contrast, Cisco's IP PBX solution runs on Cisco hardware and companies using it must buy Cisco's IP phones.

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Even Fonality's solution, however, can be too expensive for some businesses. It costs roughly between $300 (£150) and $500 per employee.

At the end of the day, small companies looking to deploy VoIP must weigh the pros and cons of the services or solutions they can afford.

"There is a portion of the market at the low end that simply can't afford these more expensive options," said Forrester's Pierce. "So an internet-based VoIP solution may hit the right price point. Call quality and service reliability may suffer, but it's a tradeoff. And compromises have to be made."

Indeed, Shawna Hampton said that as her company grows, she will likely invest in a more robust phone system. But until then, she will continue to use Skype.

"For right now, Skype is a great service for me," she said. "But I'm glad I have a mobile phone, too."

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