If you need a new phone system, this buyer’s guide will bring you closer to taking the first steps of testing a system and making the move. Go for it. All you have to lose is lousy call quality and expensive maintenance payments for your wheezing old phone system. All you have to gain is higher quality, lower prices, more features, easier growth options, better system management, and improved customer service.
White Paper Business Phone Systems Buyer’s Guide Contents Introduction 2 Decision Time 3 The Telephone World Has Gone VoIP 3 Technical Advances 4 On-premises versus Hosted VoIP Phone Systems 4 Cost Advantages 5 Standard VoIP System Features 5 Phone System Vendors 7 Testing Hosted Services 10 Make the Move, Enjoy the Future 11 ® ® About Ziff Davis B2B Ziff Davis B2B is a leading provider of research to technology buyers and high-quality leads to IT vendors. As part of the Ziff Davis family, Ziff Davis B2B has access to over 50 million in-market technology buyers every month and supports the company’s core mission of enabling technology buyers to make more informed business decisions. Contact Ziff Davis B2B 100 California Street, Suite 650 San Francisco, CA 94111 Tel: 415.318.7200 | Fax: 415.318.7219 Email: marty_fettig@ziffdavis.com www.ziffdavis.com Copyright © 2014 Ziff Davis B2B. All rights reserved. ziffdavis.com 2 of 11 Ziff Davis | White Paper | Business Phone Systems Buyer’s Guide ziffdavis.com Introduction Back in the day, buying a phone system for your small to medium sized business was simple: you called AT&T. They sold the phones, the lines, and the long distance service. Easy choice, although innovation was a rare commodity and long distance calls cost dollars per minute. Today, long distance calls cost effectively nothing and innovation has added so many new features you won’t use a third of what your new phone system offers, yet you will still be thrilled. Choices? Used to you only chose whether your desk phones were black or beige, but now you have a seemingly endless number of decisions to make. That’s the joy of innovation, even if it makes shopping more involved. At least you don’t have to talk fast so you can keep your long distance calls affordable with today’s phone systems. ziffdavis.com 3 of 11 Ziff Davis | White Paper | Business Phone Systems Buyer’s Guide Decision Time Companies don’t buy new phone systems often. Most telecom analysts say the time between new phone systems averages a bit over seven years. There are three times events that typically trigger a new phone system purchase: • When a company forms • When a company moves • When a company’s current contract ends or it pays off the phone system and doesn’t want to incur high maintenance contract rates for their older system Telephone technology changes so much in seven years every company needs to take a good look at how the technology has advanced no matter their reason for the search. Brand new installations have fewer constraints in their selection, while system upgrades may be asked to integrate pieces of the older system in the new design. Some of the new issues those looking for phone systems after seven or more years must address include: • The maturation of VoIP technology • Distributed company offices • Teleworkers • Reliance on mobility devices • The BYOD (Bring Your Own Device) movement If your last phone system was either PBX (Private Branch Exchange) or TDM (Time Division Multiplexers) based, you will find those technologies now relegated to “replacement parts only” status. Ignoring the Internet and other modern communication tools when buying a phone system today is like pushing aside computers, tablets, and smartphones to fondle the dusty IBM Selectric typewriters in the back of the store. Today, VoIP (Voice over Internet Protocol), sometimes called Internet Telephony systems, must be your primary search area. Larger companies may keep parts of the PBX systems, but they will add-on VoIP support. Older phones can use ATA (Analog Terminal Adapters) to connect to modern VoIP systems. The Telephone World Has Gone VoIP VoIP phones transform vocal sounds into data packets then route those packets over the network like any other data. Packetized voice traffic was developed decades ago when long distance calls started routing across data networks, so this technology developed long before ziffdavis.com 4 of 11 Ziff Davis | White Paper | Business Phone Systems Buyer’s Guide the first viable VoIP systems showed up in the early 2000s. Once the packets are digitized, they act like any other data packets, and are reassembled into vocal sounds in the phone at the far end of the connection. Voice traffic is no more: consider VoIP an application for voice transmission rather than the phone network developed by AT&T. Technical Advances Just as your computer browser connects to a website across the network, all digitally, a VoIP phone call connects to another VoIP phone digitally. Slow voice networks don’t get in the way to degrade performance or voice quality. For connecting to older non-VoIP phones, a VoIP system needs a PSTN Gateway. This device acts like a VoIP phone to convert digital packets into vocal sounds. Then it routes them over the old-fashioned phone network (PSTN for Public Switched Telephone Network) to an old-fashioned phone. Say, “Hey, Grandma, how are you?” when she picks up the phone. When in digital form, VoIP calls benefit from all the LAN (Local Area Network) advantages in speed and cost that have transformed local and wide area networking over the past decade. VoIP calls, which require about 100Kbps for voice and overhead, will not stress your internal network unless you’re still running a 10Mbps LAN (if so, upgrade now for multiple reasons). For calls outside the company, a good rule of thumb is 10 calls per each 1Mbps of Internet access speed. Look at both the downstream (usually much higher) and upstream network speeds. People moving to VoIP often have to increase their connection speed to their ISP (Internet Service Provider). On-premises versus Hosted VoIP Phone Systems PBX and TDM phone systems were always on-premises (although AT&T’s Centrex system moved much of the hardware offsite, back to the AT&T Central Office). Those boxes hanging from the wall in the phone closet, where all the phone lines terminated? That was your PBX or TDM console, which connected your internal phones to the outside phone lines connected to that weird punch-down block you were careful not to touch in case a wire came loose. Many TDM systems were called KSU (Key Systems Unit) depending on the vendor. Three things happened inside old-fashioned phone closets: • Local phone wiring terminated at the PBX or TDM box • Outside phone lines connected to the PBX or TDM box • Management duties were performed through the PBX or TDM box These three functions must happen with new VoIP phones as well, but now we have some choices. The beautiful thing about the Internet is that location doesn’t “matter” like it did in the old days. Blazing Internet speeds connect to the VoIP equivalent of the PBX box fast enough that it can be in your phone closet (on-premises) or in the phone providers data center (Hosted ziffdavis.com 5 of 11 Ziff Davis | White Paper | Business Phone Systems Buyer’s Guide VoIP) and give the same speedy performance. If your VoIP console is in your phone closet, you will need a PSTN Gateway box to connect to non-VoIP phones. That box will be beside your VoIP console, or in a few cases it will be at the phone provider’s data center as well. If you host your own PSTN Gateway, then you’ll need to lease lines from the local provider to terminate in your phone closet, just like in the old days. Management and configuration duties will be performed through VoIP console in your phone closet, or through a browser to your phone provider’s software. Either way, speeds are comparable, although software portals tend to be easier for less technical users than hardware console interfaces. Looking at the paragraphs above, you now realize you have a choice of where to locate your phone hardware, unlike in the past. Hosted VoIP systems are quite popular for smaller companies eager to exchange upfront capital expenditures on hardware for smaller monthly fees. Larger companies with IT staff often want to host their own hardware for better control since they are able to expend the money upfront without hurting their budget. Cost Advantages Just as the Internet has driven costs down in a variety of areas, your phone costs will be lower with a new VoIP system. Here are just a few of the ways VoIP will stretch your budget: • Long distance calls are pennies or free (especially in the US and Canada) • Phone handsets using SIP (Session Initiation Protocol) from any vendor work rather than buying proprietary handsets from your phone vendor • Softphones (phone software running on your computer) can replace handsets • Hosted VoIP systems avoid the need to buy expensive hardware upfront • Many phone system features that cost money before are free with VoIP systems (see next section) • If you use your existing data network, you don’t need to run wires to each handset location Other cost advantages are harder to compare head to head, but will still improve your bottom lined. Hosted VoIP systems upgrade constantly to add new features and improve old ones, which is difficult or impossible with older PBX systems. Call quality jumps up, especially when talking to another VoIP phone. Standard VoIP System Features The old phones you are replacing probably make and receive calls, transfer and put callers on hold, and have some type of voice mail for messages. Modern VoIP phone ziffdavis.com 6 of 11 Ziff Davis | White Paper | Business Phone Systems Buyer’s Guide systems have nearly 100 other features, depending on vendor. Here’s a list of the most common and popular features that every VoIP provider will include with their system: • Caller ID • System phones work from anywhere on the Internet • Call Forwarding • Dual Ring or Find Me / Follow Me • Ring groups (often called Hunt Groups) • Auto Attendant (Press 1 for sales, etc) • Dial by extension • Dial by Name (another feature of the Auto Attendant) • Personal Phone Book • Group Phone Book (optional on some systems) • Conferencing (sometimes including videoconferencing) • Voice Mail to WAV file conversion and forwarding via email • Voice Mail to text transcription (optional on some systems) • Music on hold • Presence (lights indicate who is at their desk) • Desktop sharing (optional on some systems) • Softphones on computers The most popular features? Many love the ability to take a configured desk handset anywhere on the Internet and have it act exactly like it was sitting in the office. Remote offices, mobile employees, and teleworkers will be an extension away. As employees become more distributed, this feature becomes handier and handier. Others feel the ability to make sure a call to one number gets answered. Sometimes the call will “Dual Ring” that person’s cellphone (perfect for this world where employees use their own phones, or BYOD for Bring Your Own Device). Other systems allow you to list phone numbers to check, one after another, for cellphones, home phones, or other company phones. Both these options make it easier for customers to find the person they want. Why list three or phone numbers on a business card, and force your customer to find you? These features make it easier on your customer, which always improves the business relationship. ziffdavis.com 7 of 11 Ziff Davis | White Paper | Business Phone Systems Buyer’s Guide Phone System Vendors Now is the time to show some of the more popular phone systems vendors and how to get more information about each of them. This by no means the complete list, nor is the order in which they are listed an indication of preference. A small blurb from each company is included, in their own words. 8x8, Inc. http://www.8x8.com/ Hosted VoIP Services Systems for small to large businesses to schools and colleges Virtual Desktop sharing and Virtual Meeting features “8x8 business VoIP helps you serve your customers better with mobile, flexible solutions that help you do business anywhere, anytime. From hosted VoIP business phone service and cloud- based call center software to unified communications, our services are easy to use, incredibly advanced, and less expensive than traditional solutions. Ranked #1 hosted VoIP provider. Proven. Reliable. Secure.” Aastra Technologies Limited http://www.aastrausa.com/ Hosted VoIP Services, on-premises system, telephones “Aastra is a leading global communications company providing solutions for small and medium sized businesses, as well as large mission-critical enterprise environments. Aastra is focused on meeting our customers’ communication technology needs while exceeding their expectations for value and performance.” Avaya Inc. http://www.avaya.com/ On-premises phone systems, telephones, networking equipment “Our global, experienced communications services team helps maximize your investment in collaborative communications. Services range from communications initial planning and design, to seamless implementation, to integration and ongoing optimization. We help you use communications to minimize risk, enable people, and deliver a differentiated customer experience.” ziffdavis.com 8 of 11 Ziff Davis | White Paper | Business Phone Systems Buyer’s Guide Broadview Networks, Inc., OfficeSuite http://www.broadviewnet.com/ Hosted VoIP Services “Broadview’s business phone systems provide solutions for many business needs to all business sizes: Small, Medium, and Large. Best of all, the OfficeSuite virtual phone system is easy. It is easy to set-up, easy to make changes and easy to use. Anyone can make updates online in seconds. OfficeSuite protects you from disasters by making sure you never miss a call and can help you gain new visibility into your organization. Seeing is believing, so ask for a live demonstration of our VoIP business phone system now.” Cisco Systems, Inc. http://www.cisco.com/ On-premises systems, telephones, wireless telephones, networking equipment “Combining your company’s voice and data systems makes it easier to keep in touch and share information. By unifying your business’ phone and computer network, team members can easily find each other, wherever they are, and customers and prospects can be quickly routed to the best resources.” Jive Communications, Inc. http://jive.com/ Hosted VoIP Services “Jive Communications provides enterprise-grade Hosted VoIP and Unified Communications to businesses and institutions. Jive is rapidly becoming the standard for business communications worldwide. Jive’s hosted services run on Jive Core, a proprietary, cloud- based platform. The Jive Core architecture has been purpose-built to deliver the most reliable, powerful, and economical hosted communication services available to the enterprise market.” Mitel Networks Corporation http://www.mitel.com/ On-premises systems, telephones, networking equipment “The Mitel MiVoice business communications platforms provide extensive communication features, robust call control, and support for a wide range of innovative desktop devices and applications.” ziffdavis.com 9 of 11 Ziff Davis | White Paper | Business Phone Systems Buyer’s Guide NEC Corporation of America http://www.necam.com/ On-premises VoIP, telephones, networking equipment “NEC’s Unified Communications solutions unleash the productivity within organizations large and small. Access voice mail, e-mail and faxes from any device anywhere. Locate a colleague and determine how best to contact them regardless of location.” Nextiva http://www.nextiva.com/ Hosted VoIP Services “Cut the Cord and Get a Complete Cloud Phone System The Nextiva cloud-based phone system is an all-inclusive unified communication (UC) solution designed for small to large enterprises.” Panasonic Corporation of North America http://www.panasonic.com/ On-premises phone systems, telephones, wide range of other telecom products “When it’s your business, there’s nothing small about it. Panasonic, a global leader in business communications, is pleased to offer our latest Enhanced Communications Solutions for small to mid-size businesses.” Polycom, Inc. http://www.polycom.com/ VoIP telephone handsets and audio conferencing equipment “With all the advancements in technology, why do we settle for the same old experience when it comes to one of our most valuable office productivity tools – the telephone? Shouldn’t today’s desk phone sound dramatically better than your mobile phone? Wouldn’t it be great to access video and applications with the swipe of a finger?” RingCentral, Inc. http://www.ringcentral.com/ Hosted VoIP Services ziffdavis.com 10 of 11 Ziff Davis | White Paper | Business Phone Systems Buyer’s Guide “Since 2003, RingCentral has been breaking down the communication barriers created by complex on-premise hardware. RingCentral delivers cloud business communications solutions that frees people to work the way they want in today’s mobile, distributed and always-on work world. Delivered on a state-of-the-art cloud infrastructure, RingCentral’s cloud communications solutions help more than 300,000 customers thrive in a new world of work.” ShoreTel Inc. http://www.shoretel.com/ Hosted VoIP, telephones “Brilliantly simple VoIP, PBX and mobile solutions tailored to your phone system needs. Whether you need just the basics for a single location, or a multi-office and contact center solution with application integration, ShoreTel has the technology and expertise to provide a phone system experience you will love.” Vocalocity (a Vonage company) http://www.vocalocity.com/ Hosted VoIP Services “The Most Affordable, Reliable Business VoIP Phone System Vocalocity delivers the best value with the most included features. Learn more about why over 23,000 customers trust us for their business VoIP service.” Testing Hosted Services Everyone loves a test drive, especially in something as personal as a telephone system. Good news: it’s easier to get a thorough look at a hosted or on-premises system than ever before. For a Hosted VoIP service, some companies offer trial periods of a week or more for testing. If not, or you want to test without marking yourself as a potential customer and get those phone calls, sign up for as a single user. All systems offer month-to-month services, so your investment will be quite low. Buy or borrow a common SIP phone, like a Cisco 500 series model. These units are supported by everyone. Sign up and test the service for a few weeks. If you don’t feel comfortable, test another system. If you do feel comfortable, upgrade to build your new phone system. On-premises systems will often have referral customers in your area that you can talk to and perhaps even visit. If not, they can grant access to a demonstration system so you can test all the administration functions and spit out reports to see if you feel comfortable managing the system. [...]...Ziff Davis | White Paper | Business Phone Systems Buyer’s Guide Make the Move, Enjoy the Future You need a new phone system or you wouldn’t be reading this Buyer’s Guide And if you read this far, you’re close to taking the first steps of testing a system and making the move Go for it All you have . use their own phones, or BYOD for Bring Your Own Device). Other systems allow you to list phone numbers to check, one after another, for cellphones, home phones, or other company phones. Both. | Business Phone Systems Buyer’s Guide Broadview Networks, Inc., OfficeSuite http://www.broadviewnet.com/ Hosted VoIP Services “Broadview’s business phone systems provide solutions for many business. for a live demonstration of our VoIP business phone system now.” Cisco Systems, Inc. http://www.cisco.com/ On-premises systems, telephones, wireless telephones, networking equipment “Combining