1 eguide Six Ways Your Small Business Can Save with Internet Phone Service The Champion For Business Communications
2 . Traditional phone systems present two main problems for businesses: limited features and high costs. This is why small businesses are migrating to voice over Internet protocol (VoIP) systems that deliver advanced communication features over a broadband Internet connection. In fact, a recent survey showed that small businesses are leading the charge in this shift, with 70% of these purchases coming from businesses with 30 or fewer phones. 1 Why don t more small businesses switch? Communications are the lifeblood of any business, so some small business owners are reluctant to take a chance on new telephone technology no matter how attractive the pricing. But improvements in network technology now enable service providers to offer highly reliable VoIP solutions with outstanding call quality, on par with traditional phone systems. So these days, the most noticeable difference is the lower monthly bill. These business-class VoIP solutions are often much less expensive than traditional phone systems. That all sounds good, but how much can a small business really save by switching? The answer is: a lot! The biggest cost reductions are seen in monthly service bills. Since leaving Verizon, we have cut our phone bill by 80%. The features that our VoIP phone service provides, along with the system clarity and reliability, are a blessing to our business, says Matt Roberts, VP and general manager of C&S Precision Machining, Inc. With 11 offices and over 80 phones, we used to pay a lot in long distance charges when we called between offices in other cities and states. Now we can call just by dialing an extension. During our peak season, business VoIP saves us about $6,000 a month. And even during off-peak months, we still save about $2,500 a month. Cheri Jenkins General Manager, The AHI Group But the savings are not just limited to reducing equipment costs or long distance charges. In fact, there are at least six ways your small business can save when you migrate to a hosted VoIP solution. This guide explained these cost advantages, and what these savings have meant to small businesses who have switched from closet-style PBXs and oldstyle phone service. Much of the cost reduction comes from decreased long distance bills. Some VoIP systems let people within a company reach each other by extension dialing just picking up a phone and dialing the four-digit extension of the other person and this avoids longdistance charges, even if the called party is in another state or even traveling abroad Study by Eastern Management Group stating that small businesses purchased the majority of hosted and cloud PBXs in Almost 70% of all sales worldwide were systems with under 30 phones. 2
3 1 Eliminate PBX maintenance and upgrade costs. 2 Easily make changes. Many older telephone systems are based on PBX equipment installed in the telecom closet at the business location. Businesses that use a dedicated PBX must maintain and operate the system themselves, which can be very expensive. For example, to support 100 users over five years, 75% of your operations and administration costs go to system A traditional PBX phone system is difficult to grow or change. Consequently, you may end up purchasing excess capacity you don t need now just in case you need it later. And when you do need to add employees or change your setup, you often have to pay traditional service providers steep additional fees, dedicate your IT staff to the project, and administration and technical possibly hire outside consultants, just Our previous PBX system was behind the times and took support. The remaining 25% goes to help with the transition. at least an hour a day to maintain, sometimes more for to planning, security management, repairs and upgrades. With our VoIP system, we spend VoIP solutions, on the other hand, are physical space, insurance, and almost no time on phone system maintenance. hosted in the cloud, so you can easily power. Allan Berkovitz make changes to your own phone But when you switch to a hosted VoIP solution, there is no need for a PBX in the telecom closet. You Director of Technical Support, OTI system. Some providers even let you add lines by simply logging into your account and placing the order. When no longer have to pay PBX maintenance and upgrade fees; it s all handled by your service provider. Instead, you pay a predictable you need to move an employee, it s as easy as unplugging the phone and plugging it back in at the new location. and more consistent monthly fee that allows you to manage a long-term fixed cost. And when it s time to upgrade to the latest software, your service provider automatically pushes the updates out to your system as part of your monthly service fee. Web-based system management also makes it easy to set up and modify your ring groups (hunt groups), auto attendant, voic boxes, and many other features all without purchasing a service contract or hiring an IT consultant to help you. In addition, maintaining your own PBX requires either outside consultants or dedicated IT staff. With a VoIP solution hosted by your service provider, you can reduce or eliminate outside consultant fees, and your IT staff can focus on business initiatives instead of your outdated phone system. Many customers love the control VoIP gives them. This is something I love about my VoIP system, says Dr. Angelique Andrews MD, pediatrician and owner of HAPPI pediatrics practice in Huntsville, AL. It s so easy to administer by myself. I can log in, see a complete picture of our setup, and make any tweaks I want That was the experience of Brian Flores, President of Cognetics. without calling my IT consultant for support. We replaced our dying $16K legacy phone system with a VoIP phone system, says Flores. We love how affordable and easy it is to manage and set up. With our VoIP phone system, there are no more $900 a month PRI costs, no more service calls or costs to maintain the legacy PBX system, no more hardware maintenance costs, and no more analog-line monthly costs. 3
4 3 Lower your monthly phone bill. 4 Avoid long distance or international charges on your smartphone. Many small businesses today have a distributed workforce, a distributed customer base, or both. This usually means separate phone systems for each location, and toll, long distance and international calls can quickly add Using your cell phone for business calls can become prohibitively expensive, especially when making or taking long distance and international calls. Hosted VoIP phone service can reduce your cell phone charges by allowing up. And of course, there s also the you to use your smartphone as an After moving to business VoIP, we reduced our monthly complexity of managing multiple extension of your office phone. telephone bill by 80 percent. I also do a lot of international bills and service contracts with Instead of paying expensive cellular travel and using the mobile app on a Wi-Fi network helps various local and long distance rates, you ll pay low-cost VoIP keep my international phone costs down. I would never go providers to consider. back to a traditional land line. rates even when using your mobile phone overseas. By migrating to a business VoIP phone system, you substantially reduce all of those costs and streamline your service contracts Keith Russell President, Euresys, Inc. Typical is the experience of Allen Gluck, director of operations for the ETC Foundation. My VoIP phone as well. Because your service is hosted in the Internet cloud, you can unite all your locations and workers under the same phone system. Another benefit: hosted VoIP service offers local, long app has provided me with a mobile office on my Android phone, and the international rates that I can access using the mobile app save me more than the monthly cost of the line! distance and international call rates that are typically much lower than what you are paying with traditional phone service. Says Curtis Collins, a broker at EFCU, I wish I had used hosted VoIP for my last office, because my phone bills would have been cut drastically to about 10% of what I used to pay. Business VoIP has saved my company thousands of dollars in communication charges over the two years we have been a subscriber. I can also use my iphone to make calls from my business phone number, even when I m out of the office. Shannon Coy Vice President, Business Development Solutions, LLC 4
5 5 Enhance your productivity with advanced phone features. 6 Consolidate all your telephone and conferencing services. In the past, many small businesses with premises-based PBXs had to make do with basic phone features like voic and call forwarding. Only big businesses could afford state-of-the-art features like extension dialing, auto attendants, notification of voic , mobile apps, and corporate directories. Today, the advent of VoIP technology has made these and other advanced features affordable even for very With VoIP, our insurance adjusters can use phone features like four-digit dialing between offices, transfer calls, set up conference bridges and access business directories, says Bob Hughes, CIO, McLarens. They can also conduct video calls, send instant messages, and check the online status of colleagues. Even when they are out in the field, adjusters can use VoIP service to record calls, listen to office voic on small businesses. More than just their smartphones, and use video We no longer need multiple providers for our web a convenience, they can have a to share visual assessments of meetings and conference Bridges, getting all our services dramatic and very positive impact damages with colleagues back at from one provider saves us about $500 $600 a month, on your employees productivity and the office from their ipads. workflow efficiency. That in turn Allan Berkovitz Hosted VoIP has also cut out many offers a double-savings for you; you ll Director of Technical Support, OTI capital expenditures, explains pay less for better phone service with more features, and the rich Hughes. Instead of paying multiple We saved by eliminating web conferencing and hardware and software vendors new features will help you do more conference call services that we no longer needed, and a lot of money upfront for their business. by offloading IT staff who no longer have to run wire and equipment and services, we now I save percent of what I maintain a premises-based PBX, just pay one monthly fee. And paid for lesser phone service from a by reducing our infrastructure John Duke, traditional carrier, says Clay Crafton, footprint, we ve cut our annual IT manager at LSN Owner, Supreme Heating & Air. I telephony costs by more than can be anywhere with high speed 50 percent. Internet access and still be in contact with the office and my customers. Also I can have my desk phone and cell phone ring at the same time, so I can stay in touch with customers even when I m away from my desk. For example, OTI America s director of technical support Allan Berkovitz says that one of the best things about VoIP service was being able to consolidate services and reduce costs. 5
6 What s the bottom line? So what s the bottom line when it comes to business phone service? If you stick with a traditional PBXs or traditional providers, you ll probably continue to pay a lot of money for a limited set of features. That s why tens of thousands of small businesses have already made the switch to VoIP phone service. If you re interested in learning more about what a VoIP phone system can do for your business, check out this helpful page at We ll help you explore the many ways you can save money and enhance employee productivity with our industry-leading solutions. We replaced our AT&T service and old hardware with VoIP business phone service. Our bill is half the cost of AT&T, and the savings paid for our new phones in less than twelve months! Michael Applegate VP/CFO/Broker, St. Helena Insurance Business VoIP gives my business the tools to be as efficient as larger companies, at a fraction of the cost. Jason Casman Owner, Lightning Production Studio To learn more at: NASDAQ: EGHT The 8x8, Inc. logo is a registered trademark of 8x8, Inc. 8x8, Inc. is a publicly traded company. SALES512/1212
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