VoIP Business Phones - show me the ROI

While VoIP PBXs are usually cheaper than their TDM equivalents, VoIP business phones are significantly more expensive than their analog or digital equivalents. Consequently when comparing the all up cost of VoIP phone systems with older TDM technology it's not unusual for VoIP options to be only slightly cheaper.

The Cost of VoIP Business Phones

1. They range in cost between $300 and $750.


2. The cost of VoIP handsets typically represents 40% to 50% of the total cost of a VoIP business solution.

Clearly the cost of VoIP business phones is a matter that deserves special attention in an objective analysis of VoIP pros and cons.

For a start it's worth noting that their is an enormous spectrum of VoIP handsets. They range from very basic desktop models to mobile, wireless enabled, large screen conferencing devices.

The brands that currently dominate the IP business phone market are the same as those that dominate the market for proprietary VoIP PBX solutions i.e Cisco, Avaya and Nortel. Other significant contenders include: Polycom, Siemens and ShoreTel.

In addition to the proprietary handsets, there are an increasing number of options based on Open Standards, SIP in particular. They are usually less expensive than the proprietary products, but they also don't support every feature that maybe available with a particular brand of switch.

The sleeping giant is the VoIP softphone. They are an excellent option for call center agents, teleworkers and mobile employees. Priced at less than $40 a copy. There are some issues with softphone technology that have dampened enthusiasm for them, but we believe that in a few years these issues will be resolved and their popularity will surge.

See also: SIP Softphones - the standards based option

The VoIP handset market is enormous and it is rapidly getting bigger. Juniper Research projects an annual demand for 16 million units by 2010. Predictably this will result in the emergence of more manufacturers, competition and lower cost units.

VoIP Business Phones - where's the ROI

• The business can be more agile as decisions will be made faster because conference calls can happen spontaneously.
• Travel costs will decline because face to face communication can be achieved without leaving the office.
• Sales will increase because salesmen will be able to close business more effectively over the phone.
• Customer service will shine with great sincerity.
• Productivity will increase because of improved application integration and web based collaboration.

While these arguments are difficult to translate into a quantifiable business case, it's clear that they have been sufficient to do the job. According to Gartner, 75% of companies are spending on average over $150 more than they need to on their IP phones. They are referencing the fact that not everyone needs all the bells and whistles. The requirements of each user need to be objectively identified rather than standardizing on one or two high end models. As a result the period required to achieve a return on investment in VoIP phone systems can be significantly reduced. It's also essential that everyone with a new VoIP handset is made familiar with how to use the full range of features available in order to further leverage these powerful business phone tools.

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