Why VoIP

In 1990, I attended a telecommunications trade show and one of the discussions revolved around how traditional phone switches lacked important functionality that would make it a more useful business tool.  Traditionally, phone switch developers only concern was providing dial tone and did not worry about user requirements or value-added features.  Users were left with an antiquated voice system with little ability to evolve and expand as user requirements grew and the functionality of computers and data networks increased.  This specifically affected corporate users who tend to have more advanced requirements.  Because of this limited functionality, phone systems could not evolve like other forms of technology nor integrate with data systems to share information across platforms.

As the Internet evolved into the robust environment it is today and available transmission speeds increased, it was evident that the convergence of the voice (and video) and data environments was inevitable.  However, traditional phone switches did not allow for integration and expansion, which created an opportunity for data networking companies to develop solutions that integrated voice and data systems.  This also allowed new companies to enter the telecommunications space and develop voice systems that integrated with data networks and provided companies the opportunity to combine their IT systems, while reducing communications costs.  What previously required three different physical connections and multiple costly cable runs, could now be accomplished over one high-speed intranet connection, thus significantly reducing cable plant and equipment costs.

This convergence of the voice, data, and video environments has led to the Voice over IP (VoIP) industry and the incorporation of phone systems into the data network.  Now, phones can connect directly to the corporate IP network and share the corporate data network, eliminating the need for a redundant, parallel cable plant.  The integration of the voice and data networks has created opportunities to combine voice and data applications, which creates efficiencies and cost savings for companies implementing a VoIP solution.  These integrated applications were not previously available with a traditional phone switches.

Today VoIP systems are more functional because of the availability of data (and video) integration.  The additional functionality provides added value to many different industries with new features that allow for combining and automating daily business functions.  Over the next few months, I will use this space to provide examples of how a VoIP system provides added functionality and can reduce cost to different industries and business segments.  I hope you will follow me to learn how VoIP can benefit you and your business.

Michael Skorb
Managing Partner