With VoIP seeming to have a rather positive effect on businesses, the telecommunications market is awash with VoIP providers literally falling over themselves to “wow” customers with solutions that promise effective, economic and reliable communication.

However, faced with a plethora of choices for premises-based and hosted phone systems, the customer is confused. Hence, it is incumbent on the end user to select the right system, but to do that they need to understand the technology, the options available, the difference between VoIP service and VoIP system and why at all they need VoIP.

This is the message that that Walt Grudi, president of Grudi Associates, a provider of telecom and IT services, tried to drive home while underscoring the benefits and suitability of hosted VoIP and premises-based VoIP.

"After deciding to go with VoIP service, it is important to choose the right VoIP phone system," observed Grudi, and added, "Hosted VoIP phone systems are usually best for small to mid-sized businesses, while premises-based systems can offer real advantages to large companies with capable IT staffs."

So, while VoIP service refers to voice and multimedia being delivered over the Internet or a private IP network, a VoIP phone system will typify the equipment and software that the business uses either on premise or in the cloud.

Hosted VoIP requires no capital expenditure, provides automatic seamless service with minimum downtime and ensures business continuity, low total cost of ownership, automatic upgrades, no maintenance needed and very little IT support. Security of data however does remain “under the cloud” although trusted cloud-based services do promise extensive security.

That said, although premises-based systems do incur capital expenditure, the physical control of the business vests with the company and it is argued that data is better protected in such an environment.

Grudi thus advises a thorough assessment of companies’ local area network before provisioning and implementing any VoIP phone system and urges them to do their homework well in respect of cable adequacy, network speed, type of LAN and other issues. He also adds that the benefits of VoIP are “opportunities that businesses should explore.”

In other news, IP phone maker Yealink provides high-quality IP phones and IP communications solutions, and it has the industry recognition to prove it. Recently, Frost & Sullivan (News - Alert) recognized Yealink (News - Alert) for its growth leadership, showing a CAGR of 83 percent during 2009-2011 in its IP phone shipment.