<p>The true value of any VoIP solution is not just in the cost savings in domestic and international calls that it delivers but more in the improved employee productivity and efficiency that it manages to achieve. Through better integration of business communications, one can set up a virtual office of sorts, ensuring better use of employee time and better return on a company’s resources. VoIP solutions can prove beneficial for medium and even for a small business phone system.</p><p>What is the true cost of a VoIP solution?</p><p>Many small and medium businesses find that the initial costs of a VoIP solution for a small business phone system are often higher than small key-based or PBX solutions. Since capital is normally limited, these businesses have to base decisions on capital allotment for various facilities based on initial costs. However, this may not indicate the true cost of any large asset. Any large system requires proper operating, maintaining and expanding as the business grows. The initial costs are found to be just 20% of the total cost over the lifetime of the asset. If the costs of the VoIP solution over its entire lifetime are compared to that of a traditional telephony system, it is found to have much better value as it costs much less to maintain and expand.</p><p>Also, a VoIP solution makes the idea of a virtual office so very possible. Office calls can be set to be forwarded to mobile phones when the employee is not in the office or if he is traveling; even distant locations can easily be given four-digit extension numbers, speaking to employees in an overseas office does not involve extra cables or extra costs. Further there is also better integration of the VoIP solution with current communication methods – one can set up call forwarding, have caller ID, have voice mails and faxes delivered to inboxes, and much more. Clearly, the idea of virtual office holds more appeal to small and medium businesses because this way, they can maximize the productivity of what is normally a small staff. Obviously, this is no ordinary small business phone system – even these companies now have the ability to offer reliable and easily accessible services globally and they have the kind of growth potential that was only available to large enterprises for long.</p><p>It is therefore imperative that a careful study of costs over longer periods is made before deciding on what will be ideal for a small business phone system.</p><p>Will any VoIP solution do?</p><p>For small and medium businesses, the hosted solution is often the most recommended one. This is perfect for businesses which would like to reduce their telephony costs but do not want to invest in additional equipment and pay for maintaining it, but at the same time would like all the sophisticated features that help in establishing virtual offices and expanding them as the business grows. In such cases, no equipment is installed at the site of the businesses themselves, with the service provider taking care of all the technical aspects including maintenance of network.</p><p>Most small and medium businesses have limited resources and that means limited IT staff. However, the advantages and costs benefits of VoIP are too many to ignore. A hosted VoIP solution is probably the fastest and practical way for these firms to adopt VoIP and start benefiting from it.</p>