I watched a rather scary video on YouTube (News - Alert) recently — you know, the one where the guy is explaining how to install an IP PBX. It’s a virtual horror story for any small business that had the impression that installing and setting up a VoIP phone system can be as easy as plugging in a household appliance.

 

That led me to think about the conflicting messages the SMB market is receiving from vendors, the media, and users. First there’s the message that VoIP levels the playing field for large and small businesses — pretty much true when it comes to the functionality and cost given that an enterprise grade phone system is now within reach of even the smallest businesses.

 

On the other hand we’re being led to believe that the glorious array of new PBX appliances flooding the market from the likes of Microsoft, Linksys (News - Alert), et al, can be set up with a wave of the magic phone wand. So, is it really that easy and can your average Joe Blow small business owner really install a full-featured VoIP phone system in less than 15 minutes?

 

Myth?

 

Or fact?

 

With nearly five million small businesses in the U.S. alone, there’s a huge market potential for phone systems. Unfortunately, what we see today is that the majority of VoIP solutions for SMBs still involve having to install and configure a piece of pretty technical equipment. No matter how much vendors attempt to dumb down the install and setup of these appliances, problems linger. At best the process still requires having to dabble with hooking up wires and fiddling with configurations, all of which are not easy for the technically uninitiated. At worst the small business owner is confronted with a piece of phone equipment that is little more than a scaled-down version of a complicated enterprise phone system, which most definitely requires the dexterous hands of a seasoned IT professional to install and maintain.

 

Given that virtually all small businesses with less than 20 people do not have IT/communications resources on staff, any VoIP solution involving on-site equipment starts to become very unpractical. According to business VoIP consultancy Savatar, while on-site PBXs give businesses more administrative control, the downside is the time and the know-how to make changes to it. Typically for small businesses, external consultants would be required to install and support on-premises equipment. And without dedicated on-site IT resources, businesses could be exposed to a higher risk of having no phone service for longer periods of time.

 

Hubs in the network? Cat 5 cabling? Firewall blocking a port? The phone system for the micro-enterprise needs to be easy enough for the office manager or the receptionist to install and manage if VoIP is to be a practical, cost-effective solution.

 

A hosted VoIP solution eliminates the hardware part of the equation (except for the actual phones), which in turn dramatically reduces the complexity and effort required to manage the phone system. There are no “boxes” or appliances to install and maintain, no additional cabling, and no upgrades or patches to install. With the equipment completely managed by the hosted VoIP provider, small businesses and micro-enterprises don’t need communications or computer knowledge to set up and use a hosted VoIP solution.

 

Installation amounts to receiving the preconfigured phones and then plugging them into the network, like a PC. Voila!... the phone system is up and running. Occasionally, the network router may need tweaking, but this is performed by non-technical personnel quickly and easily with some phone support from the service provider.

 

“The concept of voice communications as a hosted service is becoming very appealing as these small businesses have almost no IT/voice communications expertise and resources,” commented Sanjeev Aggarwal, VP for SMB Infrastructure Solutions at AMI_Partners.

 

Michael Osterman, President of Osterman Research, agrees and adds, “the new IP appliances have made the task easier for micro enterprises to realize the cost benefits of VoIP, but even the most basic ones still require some level of technical knowledge of phone systems to install and manage.”

 

Aside from the easy-install aspect of a hosted system there is the added benefit of a far better price point as well. Unlike on-premises solutions, hosted VoIP solutions require no capital expenditure for equipment beyond the cost of the phones (usually $150-$200 each), which puts a smile on the face of any micro-enterprise owner.

 

So what about the myth? Given the quick set-up nature of a hosted PBX is it possible for micro-enterprises to set up a full-featured VoIP phone service in less than 15 minutes? Moreover, is it possible for anyone in the business to set up the system — a receptionist, a salesperson, the business owner? The answer is definitely yes providing a good hosting provider is used. Maybe the day will come when a simple on-site phone appliance can achieve the same result and be plugged in as easily as a toaster, but we’re not there yet. Who knows, maybe our friends at Apple (News - Alert) are working on an iPBX as we speak?

 

You can find some examples online of how quickly a full phone system can be setup. Try the video below. It’ll give you a flavor of what I’m talking about.

 

 

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