VoIP. What it is – and what it isn't.

In an industry that thrives on buzzwords and breakthroughs, one that has received a great deal of attention the past few years is VoIP - Voice over Internet Protocol. But for many companies, the big question is, What exactly is VoIP?

In a nutshell, Voice over Internet is a way to communicate using your broadband network, rather than a standard telephone line. Analog voice calls are converted into packets of data that travel just like any other information does online; for example, your email.

The enhanced aspect is that you can also make computer-to-computer calls, where both parties on that call speak into a computer microphone and listen via their speakers or on headsets.

How to stay secure.

Though you can use VoIP services over the public internet with satisfactory results, many companies prefer using unified communications on their private networks. Not only does this provide them with a higher degree of security and service quality, but it also offers a more convenient way to combine all their forms of communication.

With a unified communications system, faxes, email, and voicemail arrive in a single inbox. Phone and customer relationship management (CRM) systems can be combined to make customer service better and more efficient. And if voice, video chat, web conferences, and instant messaging are provided through a single solution, collaboration among employees is enhanced as it's never been before. Even from remote locations or on the road, wireless IP phones can access your data network and place information into your employees' hands effortlessly. Anywhere there's a wireless broadband connection, your people are connected.

Productivity up. Expenses down.

Anyone in business can appreciate the increased productivity that comes with having a single, integrated solution, tying together virtually every manner of your company's communications. But beyond the greater productivity and enhanced collaboration, VoIP and unified communications save on hard costs that are measurable, well-defined, and essential in this economy.

Just a few of the ways VoIP saves include:

• Reduced travel costs through web and video conferencing
• Reduced phone service charges
• Lowered costs to manage your communication system thanks to a single network
• Additional features such as voice mail, caller ID, forwarding, and unlimited long distance, without extra expense

But is VoIP for you?

The easy thing to do would be pick up the phone and call the first person who claims he can sell you VoIP services. But that wouldn't necessarily be the wise thing to do.

As with any investment in technology, it's important to consider the pros and cons of something so new and comprehensive. And while it may be perfect for some companies, it may not be the right solution for others. Here are a few issues to think about:

The biggest issue would be why your company is considering switching to VoIP. Is it because this is the "latest and greatest"? Or is it because it's truly more efficient and cost-effective for your company. Once the glitz wears off and your IT people warn you how it's eating up your bandwith, it may not appear as attractive - unless you are seeing true cost benefits.

As a rule of thumb, the type of companies that benefit most are larger ones with scattered work forces. This could mean several branch or satellite offices, telecommuters, or people in the field. Tying all these workers together with a single tool that provides data quickly and easily can be of enormous benefit. Having it because it is "cool" may not be of any benefit.

We recommend that you undergo a cold, clear-eyed cost/benefit analysis, determine the ROI, and consider any risks of implementation. Bringing together your IT people and your finance people is the best way to determine what's best for you.