It’s time to upgrade your phone system, start saving money, and get better service.

Voice Over Internet Protocol (VOIP) is no longer an emerging technology with the promise of providing better features at lower costs, someday. It is a stable and widely accepted industry with significant hardware, software, and technical service adaptation. And it is much, much, less expensive that Plain Old Telephone Service (POTS). In addition to lower phone bills, you will also enjoy a smorgasbord of features previously found only with very expensive phone systems.

And cost savings on your monthly phone bills are just the beginning. You can also enjoy an efficient virtual receptionist that provides better call routing and more relevant information based upon whether your school is open or closed. You can take a handset home and appear to be in the office, you can answer and make phone calls from an (internet enabled) airplane at 35,000 ft while traveling to a conference or meeting. And your phone messages and faxes can be delivered to your email inbox and be reviewed on any mobile device. And this is just a very partial list of features. Every possible feature, including call forwarding, conference calling, extension transfer, music on hold, intercom, voice mail, etc. are standard features of currently available VOIP systems.

There are two general types of VOIP systems – on premise and hosted. Simply stated the difference is a function of where your call controller hardware is located. With an on-premise system this hardware is located within your building much like a traditional phone system, with a hosted VOIP system all of your call center hardware is located in a datacenter not in your building. Most of the advantages discussed in this article relate to a hosted VOIP system.

Hosted VOIP requires only two things to operate – a handset on your desk (or software on your computer) and an internet connection. Prices start about $25.00/mo per line and the service is managed completely on line. If you are doing new construction, VOIP significantly reduces both the cost and complexity of installing a new phone system. A VOIP handset can be plugged directly into a network cable, so rather than pulling both phone and network lines, all you need are network lines. And with a hosted VOIP system, rather than having a proprietary and expensive call controller mounted in your server room, you can now outsource that function to a provider that maintains all of the hardware you need, for a low flat monthly rate.

There are several scenarios where a hosted VOIP system is particularly beneficial. If you are leasing space in a building while facilities are under construction it is a tremendous idea. If you are expanding to a new building, it is also very practical. And if your staff routinely has remote work assignments or a use a satellite campus, a hosted VOIP system will greatly simplify your phone configuration.

The reason a Hosted VOIP solution is so flexible is because there are no physical space limitations to the system. You can literally install your office phone any place in the world that has a reliable internet connection. I recently relocated to temporary office for a few months. And my only action to transfer phone service was to unplug my handset, transport it to the new location, and then plug it back into the internet. At power-up, the phone was routed onto the internet and into my VOIP server and within minutes, my office phone system was relocated.

If you are managing e-Rate reimbursement properly, a hosted VOIP system is particularly beneficial, because the monthly service fees are always reimbursable as a priority one expense, regardless of your discount rate. The only priority two expenses are handsets, which can be reimbursed two of each five years, conditioned upon your discount rate.

Take a closer look at the cost of your telecommunication service and features, then compare available VOIP services. You will be surprised at potential money savings and service improvements available. Just think, you could have enjoyed time at home with the family this holiday while appearing to be in the office!