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Many larger enterprises have by now moved over to voice over IP (VoIP) and 2007 has already been touted as the year that SMEs embrace this technology.

But some experts are warning that the expected flurry of smaller business take-up of a VoIP solution may be thinner than expected due to a lack of understanding about the technology.

A recent survey by ISPhone Australasia found that the majority of SMEs still find VoIP a difficult concept to understand. And with the current level of understanding, resellers believe that it will take another five years before the majority of SMEs accept the technology as a default communications platform.

It's not just a lack of understanding, but also misunderstanding that's fuelling the hesitation. Many businesses have heard horror stories of other companies that have moved over to a VoIP solution that has been inadequate for their needs.

Voice&Data recently discussed the issue with two industry experts - managing director at MyNetPhone, Andy Fung and national business development manager at ISPhone, Beth Mackenzie - to find out just what VoIP providers need to do to ensure SMEs understand the true benefits of VoIP and whether or not it is right for their business.

What do you think might hold a SME back from implementing a VoIP solution?

BM: The core reason SMEs are reluctant to switch to VoIP is a lack of understanding about the types of VoIP services available. It is important for resellers to explain VoIP from a business benefit rather than a technical perspective; otherwise they will become even more confused about VoIP.

AF: SMEs generally have a number of concerns when considering a VoIP solution. These include:

• Will a VoIP service provide the quality and reliability I am receiving now?
• Once I change to VoIP, I can't go back or my businesses may suffer is something goes wrong.
• The high price of new equipment - do I have to throw away my existing equipment and invest in new gear?
• What about my existing Telstra phone numbers?

What definition of VoIP would you provide for SMEs?

AF: VoIP is basically about the ability to make and receive ordinary telephone calls to and from anywhere in the world over a broadband connection, which could be ADSL, cable or broadband wireless.

A normal telephone service turns voices into electronic signals which are then converted into sound by your telephone. VoIP, on the other hand, treats voice like any other piece of information being sent over the internet, by digitising it into packets of data.

VoIP allows you to make and receive calls using standard phones or feature-rich IP phones. You can also integrate your phone, internet and data networks - this is referred to as 'convergence'.

What differences are there between residential and business VoIP services in terms of quality and the technology involved?

BM: Residential VoIP travels down less secure public internet lines, which means that call quality is affected. Users typically suffer from quality of service issues such as packet loss, latency and jitter.

Business-grade VoIP typically offers 24/7 support to SMEs as well as a variety of extra applications such as free on-net calling, up-to-the-minute call detail record, unified messaging, conference calling and fax over IP.

Business-grade VoIP travels down dedicated, secure private internet lines, which means that the quality is clearer than traditional PSTN.

What are the benefits, for a SME, of moving to a VoIP system?

AF: The single major benefit is savings of up to 60% on phone bills. For example, calls between MyNetPhone users are free and calls anywhere in Australia, at any time of the day or night, are 10 cents untimed.

Other benefits include convenience, flexibility and transportability. A company's VoIP service can be moved to wherever the computer and internet connection reside. The use of VoIP is independent of the physical location.

BM: Cost saving is still the primary motivator for an SME making the switch to VoIP. Other benefits include the applications of VoIP, VoIP mobility, technical support, a unified messaging system and being able to consolidate internet and phone lines.

What is involved in the initial set-up as far as the technology needed and the time it takes?

AF: The time it takes is dependent on the size and spread of the company, the type of VoIP solution, whether a new VoIP system is required, the availability of the broadband connection and the complexity of the existing data and voice networks.

Assuming everything required is in place, the actually physical set-up time should be completed in a very short time. In fact, VoIP technology lends itself to ease of installation. For a small business, it is simply a matter of connecting an ATA (analog telephone adapter) into the network, activating the account and then making calls.

What advice would you give a SME, to make the transition to VoIP easier?

AF: Like buying anything...shop around, check it out and learn as much as you can. Is the VoIP service provider prepared to conduct a trial before you fully commit? How good is the business case in dollars and cents? Are there customer reference sites available?

BM: The most important thing for a business is to sit down with the reseller and discuss in depth the company's business needs and requirements. The reseller should then be able to tailor and recommend a VoIP solution that best suits the SME.

It is critical for SMEs to take the time to get this right the first time around. A relatively low-cost VoIP gateway can transform the existing PABX almost overnight.

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