Cisco Logo


Small Business

The right IP phone system can help improve customer service and employee collaboration.

Voice over IP (VoIP) is a technology that seems tailor-made for small businesses, especially now that IP networks are as common as landline telephones, and broadband Internet access is within anyone’s budget. And the benefits of VoIP for small businesses are many, including reduced phone expenses, improved customer service, and enhanced employee productivity.

Small business VoIP solutions include hardware and software dedicated to handling voice traffic and offer a variety of calling features previously out of reach for smaller companies using a traditional PSTN (public switched telephone network) phone system. VoIP systems are designed to be flexible and scalable. So whichever system you choose now will grow along with your business, allowing you to easily add users, upgrade features, and expand into more sophisticated modules as you need them.

If you already have an IP network and a high-speed Internet connection, you can implement a VoIP phone system—and you can do it in three steps.

Step 1: Assess your needs and choose your solution

You have two choices when implementing a VoIP system. You can install an IP voice system (or, IP PBX [private branch exchange]) that will handle all aspects of your phone system. Or, if you don’t want to completely replace your traditional PBX, you can install a voice gateway that works with your analog equipment to add Internet calling to your existing phone system.

Once that decision’s made, you have to determine how many extensions and IP handsets you’ll need. For instance, if you choose to install a voice gateway, you need to know how many of your existing analog phones you want to connect along with new IP phones. Cisco’s SPA8000 voice gateway, for example, can connect as many as eight analog phones to your IP network.

If you opt for an IP voice system, you’ll have a lot more decisions to make about calling features, such as automated attendant, music on hold, and integrated voicemail, in addition to how many phones you’ll need to connect. For example, Cisco’s Small Business Communications 500 Series, supports all of these features and connects up to 100 IP phones.

It’s important to figure in the cost of IP phones or softphones (desktop clients that allow users to make calls through their computers) when you’re determining the scope of your VoIP installation.

Step 2: Prepare your network

Adding voice traffic to your network can be a significant additional load for your network to carry. You need to make sure it can handle the additional traffic smoothly, with no audible delay during a conversation (referred to as “jitters”) or dropped calls. You want your IP calls to sound as clear and be as reliable as calls placed on the PSTN.

Voice traffic must be given a higher priority on the network than data traffic. This is called Quality of Service (QoS), and it cuts down on jitters and dropped IP calls. To determine whether your network can handle this additional traffic, it’s important to conduct some performance tests. If you do need more bandwidth, consider setting up a virtual LAN (VLAN) for voice traffic on your network.

Step 3: Install the voice products

This is the trickiest part. Deploying an IP PBX system or adding a voice gateway to your network is no small undertaking; it affects your entire network, from capacity to performance. Working with an IT partner will ensure you get the right solution to fit your business needs. In addition, a partner can implement a VoIP system with as little disruption to your business as possible.

Has your company made the switch to an IP phone system? Share your experience!

See how Thurston Kitchen of Colorado improved its customer service with a Cisco small business phone system.

In an effort to keep conversations fresh, Cisco Blogs closes comments after 90 days. Please visit the Cisco Blogs hub page for the latest content.

5 Comments.


  1. Great Post!

    One other alternative that clients may want to consider if they do not want to make the investment in CPE is to use a Hosted Service.

    When choosing a Hosted Service vendor look for one that delivers the voice applications via private network to avoid the QoS problems encountered with delivery via public internet links.

       1 like

  2. Excellent Post!
    You made it look so easy.

       1 like

  3. Will Voice traffic that be given a higher priority on the network will interfering normal data traffic so we always need to upgrade our bandwith?
    I am so sorry for my newbie question. By the way, thanks for sharing!

       1 like

Trackbacks and Pingbacks:

  1. Return to Countries/Regions
  2. Return to Home
  1. All Small Business
  2. Return to Home