subject: Voip - Cheap Calls Not Enough. Rapid Roi Essential To Win Contracts [print this page] Till recently, VoIP vendors have highlighted low-priced international and domestic calling rates and low service fees to sell the VoIP service to customers looking for low cost phone service. However, IT executives base their decisions on more than per minute cost savings. VoIP service providers have their job cut out - convincing corporate leaders on the quick returns of investing in 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 existing industry expectations of a year and a half. Though VoIP has developed significantly in recent years, this condition is tough on its service providers. They now must substantiate their claims with financial break even facts to win contracts as corporate budgets are restricted to projects that show major returns preferably within the same financial year.
Phased execution of projects
Limits on technology costs have made CIOs, CFOs, and IT managers rethink their project roadmaps. Technology needs are now met in a phased manner. In the past, moving to a VoIP system was a gargantuan task involving upheaval in data lines, servers and desk equipment. The situation today is much different. Interoperable equipment enable phased implementations of a long running project according to when funds are available and business downtime is minimized.
Assessing results of VoIP systems
To measure the gains of implementing or upgrading a VoIP system, CTOs have to look at both quantifiable and unquantifiable results. Voice clarity and other useful features are intangible results that positively impact worker efficiency. Apart from this, CTOs need statistical results that have to be measured differently over a cyclic period. Some schemes employed by CIOs to measure the performance and cost savings from a VoIP system include:
* Assessing the impact of the time spent in reconnecting dropped calls on staff's output in terms of unproductive hours.
* Collecting feedback from clientele and evaluating the effect of a clear phone connection on sales that worked out and those that didn't.
* Comparing the expense of running a tele-presence suite over VoIP services with an executive's travel expenditure.
* Spreading the total cost 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 true cost of ownership. If a VoIP system manages a break even period of half a year, business heads can remove a line item from the budget. Few CEOs would argue with such a cost benefit.
VoIP system service providers - Substantiating claims
VoIP service providers have to come up with sound financial facts to back up their claims. They will have to come fully equipped with case studies and statistics to prove the real cost of ownership over the existence of a VoIP system. For example, a system that breaks even in 6 months and does away with expensive maintenance for the next three years is a sure winner with CIOs. The budget allocated to the corporation's business VoIP system can be amortized over 3 years.
As VoIP systems move into offices and homes, service providers must deal with bigger expectations from customers. Enterprise VoIP system distributors must prepare themselves with essential financial data to convince potential buyers of the viability of a six-month ROI. All value-added VoIP service providers must learn this skill to win contracts.
