Converging communications: voice over Internet Protocol (VoIP) offers features to enhance business productivity.

WHEN VOIP WAS FIRST introduced in the marketplace, much of the hype around it focused on "free" long distance calls. Since then long distance costs have dropped to such an extent that free long distance alone is no longer justification for switching to a new IP-based phone system. But VoIP features and additional Cost savings are very attractive, and business use of VoIP, in one form or another, is growing dramatically.

Pete DiPaola, CEO, Indianapolis-based G3 Technology Partners with Indiana offices in South Bend, Fort Wayne and Evansville, cites a recent survey conducted by Forrester Research that reveals nearly half of the businesses surveyed have already adapted VoIP in some form or are planning to do so in the near future. He finds businesses deploying VoIP tend to fall into three main categories: businesses with employees in multiple locations, businesses which employ "road warriors" or businesses that offer employees the flexibility of working from their homes to meet their lifestyle changes and as well to retain an experienced workforce. "VoIP allows all these employees to be connected in an organized way back to their business," he says.

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Improved customer service. In today's competitive business environment, excellent customer service translates to a businesses advantage.

"What we are finding is our clients are able to use VoIP technology to allow them to do other kinds of higher-end applications that they weren't able to do before," DiPaola says. "And the reason for that is, now their database resources and their client information is more readily available from the desktop."

DiPaola says call centers are a prime example of how VoIP technology can help improve customer relations. VoIP telephony systems can recognize the caller's number and automatically match it to the client database, delivering the information to the computer screen right along with the call. "It saves time from the human perspective, and it also displays a better class of service," he says.

Flexibility and convenience. "VoIP disconnects the cord from the desk, not physically, but logically," says Don Barrett, director of telecom solutions for Indianapolis-based ESCO Communications which has offices in Richmond, Fort Wayne and Mishawaka. "That is very advantageous."

With Web-based "follow-me" capabilities, calls to an office phone Can be redirected to a cell phone, home phone or other location without anyone being the wiser. Caller ID also works even though the call was initially placed to a different phone number.

An IP soft telephone can transform a laptop into a telephone. "We load a little piece of software in the laptop and give that road warrior a USB-based headset that plugs into the PC," says Trent Smith, general manager converged technologies group for Indianapolis-based Van Ausdall & Farrar, which has offices in Evansville, Fort Wayne, Lafayette and South Bend. "All they need is access to the Internet and their PC becomes their phone."

Some larger models of IP telephones are capable of displaying more information on the screen, and that can be useful in emergency situations. "Having a VoIP infrastructure in place allows you to push that kind of information because everything is running on an IP network," Barrett says.

Phone greetings can also be modified from a remote location with an IP-based phone system and Internet access to announce office closings due to weather conditions or other emergencies.

Unified messaging. Another useful feature of VoIP is unified messaging--meaning voice mails, fax messages and video messages all reside in and can be accessed from the email inbox. They can also be forwarded to others connected to the system. Having everything located in one location is an incredible timesaver and convenience for businesspeople. Your inbox will reveal not only who called, but the call-back number in the subject headline. You can place a return call without even listening to the message and selectively respond to "hot" calls while leaving others on the backburner. Plus, you can save voice messages indefinitely

"Nobody likes to get on the phone and have to fumble through all the buttons to save, delete or forward," Smith says. "You have to carry a road map around to remember how to use voice mail because those commands are different for each voice mail system. Put everything in your inbox. It's much easier. Everybody knows how to use an inbox."

Saving hardware costs. Even though long distance savings aren't what they originally were, there are many ways that VoIP can make a dent in business costs.

To begin with, integrating voice and data on one circuit reduces expenses since only one circuit is needed. Businesses with multiple locations that network their systems together via VoIP can centralize their voice mail, eliminating hardware costs, maintenance costs and service costs.

That goes for receptionists, as well. One "centralized attendant" can answer the phones for all locations.

There are also savings in the area of "moves, adds and changes"--moving phones, pulling wire, changing classes of service and making software changes. Typically a billable service, with VoIP those services can be done in-house.

"While there are probably true cost savings, I think we are entering in another phase where that's not the compelling reason for clients ... to go to VoIP," DiPaola says.