VoIP service providers have been playing on cheap global calling rates and low service fees to sell the VoIP service to cost-conscious customers. However, corporate decision makers base their decisions on more than per minute cost savings. Small business VoIP service providers need to work harder – persuading corporate leaders on the quick payback potential of implementing VoIP systems.

Earlier break even for technology costs

Trends indicate that companies are looking at new tools and technologies that promise breakeven in less than six months – contrary to existing industry expectations of 18 months. Though VoIP has developed significantly in recent years, this requirement is tough on its service vendors. They now need to produce financial break even facts to win contracts as corporate budgets are restricted to projects that show significant returns preferably within the same financial year.

Phased implementation of projects

Limits on technology expenses have made CIOs, CFOs, and IT managers rethink their project roadmaps. Technology requirements are now met in a phased manner. Formerly, moving to a VoIP system meant a lot of changes in data lines, servers and desk equipment. The position today is much different. Interoperable equipment gives managers the flexibility to implement modules of a long running project as and when finances are available and business operations are not disrupted.

Quantifying benefits of VoIP systems

To measure the gains of installing or upgrading a VoIP system, CIOs have to consider both quantifiable and unquantifiable results. Voice clarity and other useful features are intangible benefits that contribute significantly to worker output. Apart from this, CTOs need statistical results that have to be calculated differently over a cyclic period. A number of strategies used by CIOs to measure the performance and cost savings from a VoIP system include:

• Evaluating the effect of the time expended in reconnecting dropped calls on a worker’s efficiency in terms of unproductive hours.
• Surveying clients and evaluating the impact of a clearer phone connection on sales lost or gained.
• Comparing the expenditure of running a tele-presence suite using VoIP services with {an executive’s travel} expenditure.
• Distributing the total price of a new VoIP system over the operations and maintenance budget of an existing system over half a year.

A factual picture of the financial returns cannot emerge without considering the true cost of ownership. If a VoIP system successfully breaks even in 6 months, business managers can look forward to removing a line item from the budget. No CEO can turn a blind eye to such an advantageous proposition.

VoIP system vendors – Substantiating claims

VoIP service providers have to come up with sound financial data to support their claims. They need to arm themselves with case studies and numbers to demonstrate the real cost of ownership over the existence of a VoIP system. For example, a VoIP project that breaks even in 6 months and does not need expensive maintenance for the next three years wins hands down with CTOs. The budget assigned to the enterprise’s business VoIP system can be amortized over 3 years.

As VoIP systems move into offices and homes, service providers must deal with bigger expectations from clientele. Enterprise VoIP system distributors must do their homework and gather necessary financial data to persuade prospective buyers of the feasibility of a six-month ROI. This is the only way VoIP providers can close more deals. Daljeet Sidhu is the author of this article.

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Telephone Systems