You
are considering installing a new telecommunications system. Like
many business owners or managers, one question may be haunting
you: Am I about to spend thousands of dollars on a system that
will soon be outdated?Today, it
seems that technology becomes obsolete faster than you can
purchase it. This is becoming more and more true of
communications systems, as they are experiencing dramatic
advances in technology, such as the growth of IP Telephony. Not
just telephones any more, today's systems offer many
applications that allow for more efficient business management
and operation. As a business owner or manager you want to
consider this fact when evaluating telecommunications systems.
In fact, the best alternative may be not
to buy such a system. That is not to suggest not installing new
equipment, but instead that you consider not only what type of
system to install and what type of vendor will install it for
you, but also the method of ownership and management of that
system.
A brief history of telephone system
ownership:
For decades, the only option for
American businesses had one option when it came to their
telephone systems was to rent it from the telephone company.
Private ownership of business telephone systems, much less
individual telephones, was not allowed. Various decisions in the
courts and by the FCC in the 1960's and the 1970's paved the way
to private ownership of telephones and business telephone
systems. In the years since, businesses and organizations
purchased their such systems in droves. Many would finance their
purchases through leases, bringing the cost of the equipment
down to a smaller monthly cost. This monthly cost was generally
much lower than the previous cost of rental.
Unfortunately, along with ownership of
telecommunications equipment comes the associated cost of
ownership. If equipment broke down, it had to be repaired or
replaced. If it became obsolete, it had to be upgraded or
replaced. As new technology was introduced, from voice mail to
computer integration to digital phone lines, new phone systems
had to be installed that could utilize that technology.
Hosted Solutions.
Many who were concerned about the rising
cost of ownership began considering alternatives to having in
house telephone systems. One such alternative was the hosted
solution. There have been many variations of hosted
telecommunications solutions over the years, from Centrex
solutions offered by many telephone companies, to privately
owned Hosted PBX services, to the more recent Hosted VoIP (Voice
Over Internet Protocol) services offered by many Internet
companies today. The way a Hosted system works is that the host
company would have the switching equipment in their own
facilities, and all the subscribing organizations need worry
about is purchasing the telephone sets.
For many, this was an attractive
alternative as there was no need to purchase or manage expensive
control units, cards etc. The hosting company took on most of
the risk of ownership and provided many phone system like
features to their subscribers. There was no need for software or
hardware upgrades, no repair costs. All that was needed was to
plug in the telephone and let the hosting company be responsible
for the rest.
There are a number of disadvantages to
the hosted solutions. This generally is a much more expensive
option with more limited options as far as features and
capability. Organizations normally need to pay for special phone
lines or data connections to connect their phones to the hosting
equipment. The slightest changes in services or features usually
result in a fee, and standard features such as paging or music
on hold or call accounting are often difficult or impossible to
add. More advanced features are rarely available. On top of
that, if circuits between the hosting company and an
organization's facilities go down, that company would lose all
local, long distance, and even internal communications.
The Managed Telecommunications
Alternative
Many leading telecommunications company
have developed a new model that is designed to offer businesses
and organizations the features and capabilities that come with
ownership, but with the protections and peace of mind that many
found in the hosted options. Businesses today can now opt for a
Managed Telecommunications service that allows them to
consistently keep up with technology while eliminating most of
the associated risks.
The way a managed service works is that
for a regular monthly fee, the management company provides the
equipment on the premises of the subscribing organization. This
allows the full set of features and functionality that
businesses prefer. The end result is that the hosting company
takes responsibility for the equipment. If software needs to be
upgraded, or if there is a hardware failure, the management
company is responsible to take care of those issues without
additional cost to the subscriber. The management company
monitors the networks and equipment to ensure there are no
problems, thus ensuring greater performance and quicker response
in the event of any equipment problems.
Instead of buying expensive cards and
equipment (or having to replace the system) when a business
expands, there is only an increase in monthly fees that is much
more proportionate to the growth experienced. In fact, some
management options allow for equipment to be completely replaced
with brand new equipment if the system becomes obsolete or if
its capacity is completely outgrown. Additions, moves, and
changes are all included in the management plan.
In short, for a regular monthly fee, the
management company agrees to provide and manage whatever
telecommunications equipment is required to help a business
operate as efficiently as possible. The management company
assumes all the risk of ownership while providing the
functionality that a business would expect to have when they own
their own equipment.
One benefit normally not available
through ownership or through the hosted option is administration
of the communications system without additional cost. In fact,
even when businesses administered their own systems there were
often company resources (particularly labor costs) involved.
With most managed options, such administration is provided as
part of the service.
An internal employee charged with
administering a phone system often doesn't understand the subtle
nuances of telecommunications management such as the
relationship between a boss and a secretary or what all the
different options are in routing calls to various groups.
Experience is generally limited to that of one organization. By
contrast, a management company can draw upon the experiences of
hundreds and even thousands of businesses, giving them access to
new ideas and new ways of looking at things. You benefit from
this experience because new ways of doing things can be brought
into your business that may never have been considered without
that experience. Such experience with other organizations can be
a tremendous asset to a subscribing business.
Today's Rapidly Advancing Technology
Several years ago, a phone was simply
that: a phone. Today, it's more than just a phone system.
Communications systems are applications that can integrate with
other systems and with your computers. This convergence of voice
and data allows your organization to become more and more
efficient and focus even more on doing the things you do best.
This technology is improving at a tremendous pace, a pace that
is difficult for an individual business to keep up with. Today's
systems have a greater risk of obsolescence and can be harder
than ever to manage and administer.
Because of this ever advancing
technology, your business may be best served by working with an
organization that not only provides equipment, but manages it
for you and takes away much of the risk of ownership. Such a
company will often offer different tiers of management, allowing
you to custom fit the available options to the unique
requirements of your business. You may find that a managed
option can give you the best of both worlds: The reliability and
functionality of on site equipment, and the peace of mind and
lack of risk that previously was only available through hosted
options.
Since 1982 and the very beginning of the deregulation and
privatization of the telecommunications industry, Mark Wadnizak
has been owner of Southern Counties Telephone, Inc, dba Voice
Smart Networks in Ventura, California. He started the company
with his father, and in 1986 assumed the role of President and
CEO. He is responsible for growing the company from a small
cabling and telecom company to one of the largest and most
respected telecom companies in California known for its
exactitude in engineering and innovative, solution specific
technical expertise. Mark has steered Voice Smart Networks
through several incarnations and adaptations in the marketplace
as the telecom industry has moved from analog to digital to
voice and data to voice over internet protocol (VoIP) and
complete integrated voice and data convergence. Mark serves on
the advisory panel for a number of manufacturers, bringing a
great value with his understanding of customer needs and
applications as well as his expertise in voice over IP.
Voice Smart Networks
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