subject: Voip - Low Cost Calls Not Adequate. Rapid Roi Critical To Win Contracts [print this page] VoIP providers have been playing on low-priced international and domestic calling rates and low service charges to sell the VoIP service to customers looking for low cost phone service. However, top financial heads do not make decisions based just on per minute price savings. VoIP service vendors have their job cut out - persuading business leaders on the speedy payback potential of implementing VoIP systems.
Short time to break even for technology costs
Trends indicate that businesses are looking at technologies that break even in less than six months - a sharp contrast to current industry expectations of six quarters. In spite of advances in VoIP technology and products, this stipulation increases the pressure on its service providers. They now must substantiate their claims with financial break even data to close deals as financial plans are confined to projects that show noteworthy returns preferably within the same financial year.
Phased implementation of projects
Tight clamps on technology expenses have made C-level executives rework their project roadmaps. Executives no longer make purchases in a single shot but in a phased fashion. In the past, implementing a VoIP system was a colossal task involving upheaval in data lines, hardware and desk equipment. The situation today is much different. Interoperable equipment enable phased implementations of a long-term project as and when money is on hand and business downtime is minimized.
Measuring results of VoIP systems
To measure the gains of installing or upgrading a VoIP system, CTOs have to look at both tangible and intangible results. Voice clarity and other useful features are intangible benefits that positively impact employee efficiency. Apart from this, CTOs need statistical results that have to be calculated differently over a cyclic period. A few strategies used by CIOs to quantify the performance and savings from a VoIP system include:
* Assessing the impact of the time expended in reconnecting dropped calls on staff's productivity in terms of wasted hours.
* Collecting feedback from clientele and evaluating the impact of a clear phone connection on deals that worked out and those that didn't.
* Comparing the expense of managing a tele-presence suite using VoIP services with an executive's travel bills.
* Spreading the net price of a new VoIP system over the operations and maintenance budget of an existing system over half a year.
Return on investment (ROI) cannot be determined without accounting for the actual cost of ownership. If a VoIP system successfully breaks even in 6 months, finance heads can remove a line item from the budget. No CEO can turn a blind eye to such an advantageous proposition.
VoIP system service providers - Substantiating claims
VoIP service providers have to come up with credible financial data to back up their claims. They will have to come fully equipped with case studies and facts to prove the real cost of ownership over the existence of a VoIP system. For example, a VoIP project that breaks even in less than half a year and does not need expensive maintenance at least three years wins hands down with CTOs. The budget allocated to the enterprise's business VoIP system can be amortized over 3 years.
As VoIP systems are adopted in offices and homes, service vendors must deal with bigger expectations from customers. Enterprise VoIP system distributors must do their homework and gather necessary financial data to convince potential buyers of the feasibility of seeing returns in 6 months. This is the only way VoIP providers can close more deals.
