Small business phone systems offer big business advantages

8/12/2019 Small business phone systems offer big business advantages

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SMALL BUSINESS

PHONE SYSTEMSOFFER BIGBUSINESS

ADVANTAGES


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Investing in a phone system is an important step for any small business. Your decision to sign

up for small business phone service service should be based on careful consideration of the

facts. This guide is designed to answer your questions about traditional and hosted PBX

systems and help you compare vendors so you can make an informed decision when choosing

small business phone service.

What is a PBX?Traditional PBX, or Private Branch Exchange, systems transfer calls from a public switched

phone network to a private one. Incoming calls get routed via a private switching system to

phones within the private system. Callers placing outgoing calls from the private system enter a

number, typically enter a code to access an outside line, and then dial the number they wish to

reach. Modern PBX switches are digital, and have greater capacity than non-digital switches.

Advantages of Small Business Phone SystemsExcept in the case of systems for very large corporations, robust PBX systems for businesses

can now be contained within a relatively small unit that can sit on or under an office desk.

PBX solutions come complete with the features most businesses use. They are also completely

programmable, and can support even very complex functions. A PBX system will be somewhat

higher in cost than some other systems, but many companies consider the flexibility of a PBX

system to be worth the extra expense.

Companies with fewer than 40 employees may find that a key system can effectively fill their

needs. Key systems employ a central control mechanism known as a key system unit (KSU),

which has features that regular phones do not offer, such as the ability to call other extensions

within the same office, and a feature that keeps lines that are in use from being picked up by

another party. Key systems are not as customizable as some other systems, but they do offer

some flexibility.

Both systems require a skilled technician to install and maintain the wiring and equipment.

Existing wiring can be used, although existing phones will likely be incompatible, and new

phones will be required. All inside and outside extensions must be connected to the PBX or

KSU cabinet. Installation and wiring of these systems is complicated and can be very

expensive.

For businesses with fewer than ten employees, a KSU-less system may be ideal. KSU-less

phones are less expensive than PBX and key systems, but still have many features that a small

business needs. The technology that allows these phones to connect and communicate with

each other is built into each phone, so they do not require a central cabinet.


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KSU-less phones can be easily moved when a company relocates, as they are not permanently

connected to the office wiring. KSU systems do have some drawbacks; there can be a problemwith cross-talk, in which conversations overlap, or bleed into one another, and they are not

sold by telecom vendors, so the buyer is responsible for installing, programming, and

maintaining the phones.

Most business phone systems come with the following standard

features:

Auto -attendant - a recorded message answers your calls and informs callers how to

reach the department or person they are attempting to contact. Businesses with high call

volume may rely heavily on this feature; others might prefer to have a live person take

incoming calls.

Conferencing allows three or more people to be on a single call. Conferencing

features vary, so companies will need to consider, for example, how many people they

usually have on a conference call when selecting options for this feature.

Music-on-hold most systems allow for music plug-ins to be played when callers are

on hold.

Dial by name or dial by extension gives callers options to quickly connect with the

party they are seeking.

The phones themselves also have many standard features. Display phones, for example,

feature a small screen that displays such information as the name and extension of an in-house

caller, call duration, and caller ID, when available. Speaker phone capabilities are also standard

on most newer units.

Choosing a Phone System for Your Small BusinessThe first in step in choosing a small business phone system is to assess your companys

specific needs. Find out what additional functions and features are available with the solutions

and vendors you consider. This will help you define a package that effectively addresses your

company's unique goals and priorities. Here are a few key factors you will need to consider:

Should You Choose a Premise-Based or Hosted PBX System?A key decision you will face is whether your business communications system will be hosted by

a provider or installed at your location. Each choice comes with unique advantages. You will

need to consider both your current and your future needs when making this decision.


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Factors such as budget, company size and structure, and the availability of in-house IT

resources should all be considered when selecting the ideal solution for your company.

Hosted Phone System:With a hosted system, your communications services will be managed remotely, from your

phone service providers location. Telephony services can be offered either as PBX or over

traditional PSTN (public switched telephone network). You will need to have a minimal amount

of equipment, such as telephones and routing devices, at your site.

One of the main advantages of choosing a hosted service is that it can be a completely

managed service, reducing the in-house resources you will need to deliver the solution to end

users. Some of the benefits you may find with a premise-based solution include:

Predictable cost of acquisition

More control over the purchase, installation and operation of the system

Convenience of readily available in-house expertise

Ability to incorporate future systems to accommodate your companys growth

A managed solution can be best if you lack sufficient IT support staff. It can free you from the

need to maintain equipment and manage a complex system, allowing you to focus on your core

business processes. If you anticipate rapid growth in your company, however, a hosted solution

could ultimately prove more costly than a premise-based system.

On-Premise Solutions: Premise based phone systems can offer your company greater flexibility and control over your

own applications and feature usage while still providing a carrier-class service with excellent

voice quality and performance. Some of the benefits you may see from this type of PBX

solution include:

Easier growth management

Fewer concerns about equipment obsolescence

May require fewer resources to operate and maintain

Lower, more predictable maintenance and operating costs

Greater ability to customize phone system features


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A disadvantage of on-premise solutions is that they can require a significant initial investment.

They can also involve a greater commitment in the way of support and service contracts.

CostThe most common pricing model is feature-based pricing, in which you are charged according

to the amount of features you need. A different pricing model is used for on-premise and hosted

solutions. To avoid unforeseen costs, be sure you obtain a complete breakdown of the price and

have a clear understanding of all fees. You might ask, for example, if on-site support visits are

included in the contract.

Evaluate the total cost of ownership (TCO) with each provider. Each vendor will attempt to

demonstrate that their service comes with a reduced TCO. This can be confusing, so be sure to

get all your questions answered.

The price you will pay for your phone system depends on such factors as how many employees

will be using the system, the technology of the solution you choose and the delivery model,

whether premise-based or hosted.

In addition to the regular license fee and implementation costs of a small business phone

system, there are other expenses to consider when planning your phone system budget. These

can include supporting software costs and training costs as well as infrastructure and integration

expenses.

Be sure to ask a few different vendors for details regarding their pricing, and compare thesecarefully before making your choice.

Choosing Your VendorDiligently investigate the companies you are considering. Begin by narrowing your list of

provider options with a thorough check of each vendors reputation and performance record in

regard to reliability, quality, customer service and overall feature set. Here are some key factors

to consider when evaluating phone system vendors:

Does the vendor cater to the needs of small businesses?Such a provider may be

more adept at meeting the unique needs of smaller companies.

Ensure that the vendor is financially stableand able to commit to a long term business

relationship. Of the vast number of providers in the communications industry, some

operate with a significant amount of venture capital funding, which could eventually put

these companies in the position of having to sell to repay their debt. Others may be

operating on an extremely limited budget; some of these companies fail each year.

Performing due diligence regarding a vendors financial health may save your company

from having to face such situations in the future.


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Look for a vendor with a clear commitmentto continued improvement in services and

feature offerings. A good provider will adapt with the ever-changing IT environment toprovide the optimal communications system for your business.

Choose a provider who can demonstrate expertisein applications you may eventually

need, such as video conferencing, direct inward dialing (DID) number, toll free numbers

and calling cards. A vendors capacity to handle all types of applications can be a direct

reflection of the maturity of the company and their range of expertise and experience.

Take advantage of any opportunities to tour the companys facilitiesand meet the

people who will be monitoring your network. Most reputable companies will welcome

your visit. This will help give you an overall picture of the investments the company has

made, as well as their level of customer service.

Obtain documentationregarding the companys service resolution procedures to

ensure that you are choosing a provider with adequate disaster recovery capabilities.

This is an area where some providers cut corners, especially those in the start-up or

rapid growth period. They may not have sufficient resources to deploy services at

multiple data centers, and they could have single points of failure in their hardware,

software or network. Establishing a resilient platform entails a significant initial expense

for the vendor, but it is vital if a company is to provide its customers with the golden

standard of 99.99% uptime.

Inquire about the vendors answer seizure ratio(ASR), which is a measure of the

number of calls properly terminated. This number can provide insight into the quality of

the routes the provider utilizes; a good ASR is a good indicator of quality service.

Finally, make sure you read the service level agreement(SLA) carefully. Give full

attention to the details, including those in fine print, to gain a full understanding of the

providers recovery timescales and customer service standards. Choose a provider that

will work with you to create a customized, service-specific SLA for your company.

Selecting the best communications provider for your company can seem daunting but it isimportant to take the time to choose wisely. InsideUp has made the process much simpler. We

invite you to take advantage of our unique platform that allows you to fill out a simple form and

receive up to five custom quotes--based on your companys needs--from top, pre-qualified

vendors.


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GlossaryAutomated call attendant :An automated system designed to answer and route incoming calls; guides a caller through the

options of a voice menu.

Automated call dist ribution:

A specialized device for handling and routing large volumes of incoming calls to designated

stations in a predefined order

Basic three-way conferencing:

Allows a number of users to have a telephonic conference meeting

CAGR (Compound Annual Growth Rate):

The year-over-year growth rate of a figure

Call accounting:

Application that records and captures call data placed to or made from the telephone system

Call fl ip:

Transfers a call from a landline to a mobile phone without any interruption

Call forward:

Redirects incoming calls to a specified number

Call hold:

Enables the user to put a caller on hold while a second call is answered or made

Call park:

Places a call on hold, allowing anyone to dial an extension and pick up the call

Call pick up:

Takes a parked call off hold

Call queuing:

A method of handling calls until they are answered

Call recording:

A feature to record a conversation or a conference call

Call transfer:

Directs a call to an extension without routing to the central switchboard


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Call wait:

Sends the user a tone or a light indicating that another call is waiting

Caller ID:

Displays identification (number, name) of the caller

Communication service providers:

Solution providers such as CSPs (Commerce Service Providers) and ISPs

(Internet Service Providers) that offer e-commerce solutions and Internet access to customers

CTI (Computer Telephony Integration):

This technology helps combine telephony with computer systems.

Computers handling calls in call centers or customer care departments are CTI

implementations. Here, computers take incoming calls and route them appropriately depending

on the call number and caller ID. CTI has replaced traditional PBXes with advanced systems

capable of handling incoming calls, outgoing messages, faxes and online communication.

Digital switching:

Switching facility that establishes and maintains a connection, under stored-program control, to

route binary-encoded information between an input port and an output port

Do not disturb:

Ability to ignore all incoming calls; it can be achieved by keeping the ringer on mute mode orby keeping the phone on busy mode

Direct Inward Dialing (DID):

Customized phone line allowing internal users to directly call within the organization without

seeking help from front-desk personnel. Although callers outside the company can access a

DID line via a central telephone number, enterprise users cannot call from outside, as DID does

not offer a dial tone.

Find me/follow me:An extension of call forward feature; call is forwarded to multiple numbers

in a specified sequence

Hunt Groups:

A group of extensions that are organized in a specific order to process some particular calls


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IP PBX (Internet Protoco l Private Branch eXchange):

Companies in which VoIP is the primary means of exchanging voice conversations use anextended form of PBX known as IP PBX. IP PBX performs all the functions of a traditional PBX

such as handling conference calling, transferring calls, connecting employees to the network

using extension numbers and more. The key difference is that in the case of IP PBX, voice

transmissions are not sent via normal phone lines, but in the form of voice packets over a data

network (Internet). IP PBX systems are available as hardware and software.

ISDN (Integrated Services Digi tal Network):

Developed by the CCITT (Consultative Committee on International

Telephony and Telegraphy), a component of the TSS (Telecommunications Standardization

Sector), ISDN is the standard for integrated multimedia transmission. ISDN offers much higherdata transfer speeds than those achieved with traditional telephone wires. Such high speeds

enable easy transmission of voice, image and data. It requires the subscriber as well as the

service provider to replace their modems with ISDN adapters.

IVR (Interactive Voice Response):

IVR allows callers to interact with an automated computer system without the intervention of

customer care operators. IVR saves customers the time they would have spent waiting for

customer care representatives, particularly when the representatives are extremely busy.

Moreover, companies can successfully use smart IVR systems to perform tasks such as billing,

booking tickets, determining account balance, finding stock prices and more.

KTS (Key Telephone System):

Refers to the private enterprise telephone system consisting of as many as 130 multifeature

lines and/or telephone equipment. Installed within the business premises, a KTS may function in

combination with a central PBX or independently.

Local telcos:

A local exchange telephone carrier

Packet switching:

With this method of data transmission, messages are divided into packets before they are sent.

Each packet is then transmitted individually and can follow different routes to its destination,where all the packets are recompiled into the original message.

PBX (Private Branch eXchange):

A PBX is a telephone switch or switching device that is owned by a business. It connects all

phones owned by a business to the PSTN (Public Switched Telephone Network).


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QoS (Quality of Service):

A method of performance assessment and maintenance of network and telecommunication

services. With QoS, services can be guaranteed to a certain extent. Bandwidth and system

uptime, for instance, are key measures of network quality.

PSTN (Public Switched Telephone Network):

The worldwide interconnected public circuit-switched telephone networks; also referred to as

POTS (plain old telephone service)

ROI (Return on Investment):

Percentage of profit or revenue generated by a specific investment

SIP (Session Initiation Protocol):A standard signaling protocol used for creating, modifying and terminating voice, video and data

conferencing over packet-switched networks. VoIP systems incorporate SIP at the application

layer to successfully integrate IP telephony with other Internet services. Some of the features of

VoIP managed by SIP include call setup, routing, authentication, authorization and

communication with different service providers.

SMB (small and midsize businesses):

Companies with as many as 100 employees are classified as small businesses. Companies

with 101 to 500 employees are considered midsize businesses.

TDM PBX (Time Division Multip lexing Private Branch eXchange):Interconnects analog/digital telephone extensions to one another as well as to the outside PSTN

network

Traditional cable companies:

MSOs (multisystem cable operators) that operate and own local cable TV systems

UC (Unified Communications):

A communications system that includes three or more of the following elements: voice, unified

messaging, video, mobility, Web/data collaboration, conferencing and presence management

UM (Unified Messaging):

Integrates the delivery of diverse data including voice mail, email, fax and video to one inboxthat can be accessed from a variety of devices. Unlike a multimedia email, UM also integrates

voice mail from a telephone with other forms of messaging. Recipients can access messages

from various devices such as computers, cell phones and conventional telephones.

Voice mail box (and vo ice mail features):

A system that receives and manages telephone messages from callers when the call is not

received.

Small business phone systems offer big business advantages

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