“VoIP vs. Digital”

What is the BEST Solution for Small Business?

Before making a phone system decision, the VoIP system vs. the Digital Key Systems options must be clearly understood, since each platform, offers distinct benefits. At GLOBUS Inc. we sell both types of systems and have included a supporting platform as part of our own phone system.

Even though our reputation has continued to grow in our ability to support all of the leading phone system manufacturers, we have concurrently invested in R&D for a small business enterprise solution; a market segment with limited system options. Hence, our introduction of the 45p (Small Business Communications System. The VoIP capable platform (4 months before release) has all the benefits of a Digital Key System and supportability of emerging technologies; all at a incredible price point.

Let’s start with the benefits of VoIP. The one benefit that definitely has traction is the “sizzle factor of IP”. This certainly correctly conveys that the product is of the latest technology which is an immediate attention getter. However, the other supposedly substantive benefits claimed by VoIP proponents tend to fizzle out considerably. This is especially true for small business applications.

In almost every instance with VoIP systems, the same top feature/benefits are always highlighted. These are as follows:

Remote office: One unique benefit of VoIP systems is the ability to seamlessly mesh other branch offices communications without the need of PSTN lines and/or long distance charges (of course, the long distance expense benefit of VoIP is quickly evaporating as most carriers now offer unlimited LD with their service).

Still, seamlessly connecting remote offices is a real and valuable benefit. The problem is, most small businesses (easily over 90%) are single site applications. This renders this major benefit of VoIP as virtually worthless to the overwhelming majority of potential small business customers. Yet in almost all VoIP system sales literature remote office is consistently drilled as a “unique” system benefit of VoIP. This is a true statement; however, just as true is the reality that it is a “unique” occurrence when a small business actually desires this capability.

Remote Worker: This benefit has more substance for small business than the remote site application. Some small businesses do have remote workers, but again this is still a very small percentage of companies. Another application of this feature is a business owner who wants to stay in touch with his office 24/7. In this case, with VoIP the business owner could have a telephone extension from his office system in his home. However, most small business owners who have the need to always stay in touch find that their cell phone best meets this need. And, most digital key systems offer as a standard feature “remote call forwarding to a cell phone.”

Unified Messaging: This is a big one and has some wallop. At least it used to be, until GLOBUS Inc. launched our email delivery for small business as a standard feature of our 45p system. This has virtually eliminated the unified messaging advantage of VoIP systems as the key benefit of UM is delivering VM messages to your email in-box (which we now do).

Some other VoIP benefits are as follows:

System administration: Combines voice and data network administration/programming. This is a big advantage for large businesses but again not too important to a small business. In a large business the IT manager is usually involved in the buying decision and centralized administration is very beneficial as “moves, add’s and changes” are required on a daily basis. However, in a small business, this is rarely the case. Once programming is set-up and initialized changes are not very frequent. The “install and walk away” scenario for the small business system market is as true today as it ever was.

Calendar: This feature does not appear to provide any real benefit over Microsoft’s Outlook Calendar which is already prominently utilized.

Call Assistant: Most small businesses do not use a dedicated operator position. In fact, auto attendants are most common to distribute calls in a small business.

Call Queuing: Most digital key systems have some version of this feature as well but it is rarely used since most small businesses do not have a call center.

Now for the benefits of digital key systems:

Call processing features: Today’s digital key systems are loaded with call processing features that have been designed, developed and implemented over many years of experience working directly with customers for their voice needs. VoIP systems, understandably, have not yet caught up. These call processing needs are normally only discovered after an examination of each small businesses unique application. A mistake a new VoIP system customer often makes is they assume the new VoIP system will have all of the same features of their previous phone system. This is obviously not always the case as VoIP is primarily and simply a new call transport technology, not necessarily a better call processing solution.

External interface: Like call processing features these applications have evolved over time and much direct interface with customers. These can range from simple interface needs like analog ports for cordless phones, external page, door phones, and physical contacts for external ringing or to open a gate. VoIP systems are beginning to address some of these needs but often some important external interface applications are not yet available.

Line appearances: In the key system market, customers have long preferred to have a direct button access/status for each line. In fact, this benefit is the origin of the name “key system - a key for each line.” Over the years several manufacturers tried to introduce small PBXs (which use line access “pool” keys instead of dedicated line buttons) into the key system space but to little avail. Small business customers like their key telephone with its direct line access and status. Many VoIP systems also “pool” the line keys like a PBX and do not offer a full benefit of direct line access for all lines.

Buttons: Even the manufacturers of key systems have fought this one for years and introduced lower cost phones with fewer buttons but with limited results at best. Customers still want their buttons. A key system mainstay, DSS/BLF station keys, is still prominent as a key benefit of small business telephone systems. Also, having direct access to features via a button is still a big deal; Voice Mail box, Paging, DND, Conference, Redial, Transfer, Headset mode, the list is long and differs in significance by customer. Like the situation with line appearances, most VoIP systems cannot match the digital key systems in this area of importance.

Total Cost of Ownership: There is no avoiding it; despite the claims of VoIP manufacturers the best communications value for a small business is still overwhelmingly a digital key system. The VoIP systems are beginning to get closer, and they will get there someday, but they still have a ways to go.

In summary, at GLOBUS Inc. , we embrace both VoIP and existing digital platforms. We let each customer’s specific requirements dictate would provide the best immediate results. We focus on products that offer vertical and horizontal upgradability to adapt to emerging and unanticipated business requirements. During the next few months we will be releasing our VoIP system, which we believe will be an attractive feature for those with a mobile workforce and/or multiple locations.

Stay tuned for more products to come!