It’s rare that technology gets a second act, so it is really surprising to see a tech solution that first made the Gartner Hype Cycle more than a decade ago being touted as if it’s the next big thing. Whilst VoIP first emerged in the mid-nineties its majority adoption phase only began in 2015. Compound annual growth rates from now until 2023 are estimated to be at just under 10 per cent. Part of the delay of widespread adoption can be traced to the financial crisis but after a long period of slow burn, why the sudden interest?
Low cost internet connectivity
The main answer is fast internet connections have become substantially cheaper. In the early days only large corporations could afford high-speed connectivity. Whilst VoIP can work over traditional copper networks, it cannot scale. As fibre optic connections and super-fast broadband became ubiquitous, rates dropped substantially. IDC estimates companies can save as much as 30% on their communications expenses and if you are an SMB there are few better ways to cut costs.
Its much cheaper
Everybody now knows a VoIP call is substantially cheaper than a traditional call made over a fixed line network. This is because it is cheaper to carry the data and many hosted providers offer bundled deals that come with a large number of calls. In fact, if you are calling from one network to another, the cost is often free. VoIP also means there is no need to invest in traditional telephone infrastructure or lease hardware and pay maintenance charges.
Another reason for the popularity of VoIP is it allows employees to work remotely. This is a huge benefit for companies of all sizes because it means customer can always contact the key employee using the same number whether they are in the office, working from home or are on the road. In fact, VoIP allows calls to be diverted to mobile phones which means employees are always contactable. Aside from the flexibility VoIP also facilitates video conferencing and other features within the bundle. There is no longer a need to meet in person regularly which saves on travel costs and time. So the question is, if you haven’t already migrated to a VoIP solution, why haven’t you?