Blog RSS



VoIP - Definitions and Cost Comparison

Dave Haggblad - Wednesday, May 18, 2016 |
Post Image - VoIP - Definitions and Cost Comparison

A while back we wrote a post about the difference between a Hosted Business Phone System and a Hybrid Business Phone System, you can read that here.

But soon after the post was released we started to get questions about what some of the terms used in the post meant....and what were the differences cost-wise between the two.

Some Definitions

VOIP - Voice Over the Internet Protocol. This means you can talk thru your phone over the internet to your customers, your suppliers & of course your family or friends.

SIP - Session Initiated Protocol. When you pick up the handset to make a call your telephone system sends a request to a server somewhere in the world to give you dial tone. When you hang the phone up the server releases the dial tone until your next call. Think of SIP as a 'language' the internet uses to set up telephone calls. You don't need to know this language because the systems on each end translate the SIP messaging into something your system understands.

DID - Direct in Dial Number. You can have private/personal number for the key people in your office.  Perhaps your sales or service people.  Incoming calls to these numbers go directly to their desk phone bypassing the receptionist, getting your caller to the right person without having to transfer them around.  

Call Pairing. With this set up, when a call comes in to your desk phone, you can optionally have your cell phone ring at the same time. Don't want to, or can't take the call?  Just let it ring through to your desk phone's voicemail.

Voicemail to Email. A voice mail left on your office telephone set is emailed to you in a wave file. You can then listen to it on your cell phone, your tablet, or anywhere else you view your voicemail. 

Call Record. By pressing a pre-programmed button on your desk phone the system will begin recording the call you are on. This is great for capturing information from detailed calls, or recording calls you need a record of.

IP Phone - Internet Protocol Phone. This phone plugs into a network/internet connection. This gives you a certain amount of mobility. For example, if you needed to work from home for a week while taking care of a sick child your business phone could be plugged into your home internet and you would have dial tone from your office and be able to take/make calls as if you were in your office. 

VOIP ATA. Voice Over Internet Protocol Analog Terminal Adapter. This device changes the digital signal (zeros and ones) to an analog signal. This is used to connect devices like fax machines at the office or perhaps to connect the regular cordless phone that you use at home. 

Cost Comparison Hosted vs Hybrid

Several people have asked about the cost differences between a hosted and a hybrid system. They understand that hosted means the 'brains' of the system are in the 'cloud'. And that a hybrid means that the physical system (and the brains) are located in their office and the system connects to VoIP services via an internet connection (that's the hybrid part). But they wanted to know the cost difference to help them figure out what might be the best choice for them.

From a straight cost perspective, it may appear that a Hybrid system is the better way to go...but we want to caution you that each situation is unique and there are reasons why you may want to consider a Hosted solution even though the long term costs are higher. Please call us at 403-543-6959 to discuss your needs and we can help you make this choice.

Hosted (based on 6 phones)

Cost per phone per month $40 $240/mth
Total Costs
Based on 60 month contract $14,400 at 5 years
Based on 120 month contract,
- the projected life span of a hybrid business phone system for comparison
$28,800 at 10 years

Hybrid (based on a Samsung 7100 system with 6 phones)

Lease Cost based on 5 year term $90.77/mth
Telus Phone Lines $150.00/mth
Total Costs
Purchase on 60 month lease, at the end of the lease you own the system. $14,446 at 5 years
Another 60 months of Telus line charges
- to reach the projected 10 year life span of a hybrid business phone system
$23,446 at 10 years

Same Hybrid system as above but with SIP dial tone instead of Telus lines.

Lease Cost based on 5 year term $90.77/mth
SIP Phone Lines $90.00/mth
Total Costs
Purchase on 60 month lease, at the end of the lease you own the system. $10,846 at 5 years
Another 60 months of SIP line charges
- to reach the projected 10 year life span of a hybrid business phone system
$16,246 at 10 years

It's clear that a Hybrid system is the better way to go. Please call us at 403-543-6959 to get started.

 


You might also like.....

Training Videos Short videos showing you how to use the features of your phone system
Samsung User Guides Download manuals & user guides for your Samsung Officeserv phone system
Norstar User Guides Download manuals & user guides for your Norstar phone system
Phone Bill Analysis/Audit No Charge/No Obligation, we have clients who saved enough to pay for their new phone system
Sample Pricing Get an idea how much the investment for a new for Samsung Business Phone System would be.

Comments

comments powered by Disqus