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Skype Vs. Business VoIP: How They Stack Up 2008-02-29
A head-to-head comparison of how the two approaches stack up in key areas, including scalability, reliability and cost.

It's a choice that many companies, particularly small businesses, ponder: deploy a business IP telephony system — either an IP PBX or a hosted VoIP service — or use Skype, the popular consumer VoIP service. Both approaches present distinct benefits and drawbacks, which can make choosing between them confusing and difficult. To determine which type of VoIP system will work best for your business, consider the following key points.

Installation

Skype: With Skype, installation is pretty much a nonissue, since all that's required is to install the host software on the user's computer and plug in a headset. There are also many Skype-compatible phones that work independent of a computer, including wifi phones and dual-mode phones that support both Skype and traditional phone connections.

Business VoIP: With business VoIP, installation is very much an issue if the company is planning to deploy an IP PBX. Selecting, deploying and testing an IP PBX is a process that can take up to several months. Companies can bypass much of this work by choosing a hosted business VoIP service, although this comes at the expense of overall control and various other benefits.

Cost

Skype: While Skype may no longer be the least expensive VoIP service, it's still very cheap. Skype enables users to make unlimited voice calls to other Skype users at no cost. To call actual phone numbers, businesses must purchase blocks of Skype credit in $10 increments to cover per-minute charges, which start at 2.1 cents for the U.S. and Canada. Most businesses, however, opt to pay a flat $3 per month for a Skype Pro account that includes unlimited calls to the U.S. and Canada. Receiving ordinary phone calls on a Skype account requires companies to purchase a phone number — $24 per year for Skype Pro subscribers. Phone numbers aren't transferable.

Business VoIP: An IP PBX is a serious capital investment, even if the business decides to use an open-source technology like Asterisk. IT employees or outside consultants must be paid to build and test the system. Meanwhile, hosted business VoIP service will charge anywhere from $20 to $50 per employee, per month. Phone numbers usually are transferable.
Features

Skype: Compared to conventional telephony, Skype provides a full array of advanced features. Users can take advantage of conferencing calling, voice mail, call forwarding, video calls and various other services.

Business VoIP: Most IP PBXes and hosted business VoIP services provide a more extensive array of features than Skype. You can shop around to find out the specifics.
Scalability

Skype: Infinite scalability is possible simply by distributing software to additional computers, although internal network limitations should be considered.

Business VoIP: Like Skype, hosted business VoIP services are very scalable, at least up to the limits imposed by the business's network resources. IP PBXes, on the other hand, are generally scalable only to the extent that an enterprise is willing to add additional computing and telecom resources.

Management

Skype: Skype's management capabilities are limited. A Business Control Panel enables IT administrators to allocate user numbers and Skype credits. IT administrators can also control the behavior of Skype software within their network by disabling various features, such as file transfers. A Windows installer is available to deploy the Skype client to multiple computers in the company's network.

Business VoIP: IP PBXes typically give businesses full control over how IP telephony services are configured and provided. Hosted business services offer varying degrees of management support, often depending on the service's price level. Unlike Skype, many business VoIP providers will work with their customers to address management needs.

Reliability and Support

Skype: Although Skype service is considered to be generally reliable, a number of users have, over the years, reported various types of connectivity and quality problems. Business users aren't given preferential treatment, so it's impossible to get any type of service guarantee. Skype provides a great deal of online support in the form of user guides and a knowledge base. The provider doesn't offer one-on-one phone support or site visits, although many independent contractors do.

Business VoIP: Many business VoIP providers offer an SLA (service-level agreement) that guarantees specific service thresholds. Customer support varies among vendors and providers, so check before you sign the contract.

In terms of cost and simplicity, Skype beats the competition hands down. But businesses looking for guaranteed support and service, as well as a high degree of control over their IP telephony system, will want to opt for some type of business VoIP deployment.

By John Edwards
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