Virtual PBX - more affordable, more accessible IP telephony for SMBs

Outsourcing of various information and communications technology (ICT) services is a growing international trend for many reasons, but traditionally South Africa has lagged behind in this space due to a number of factors, not least of which has been the lack of international bandwidth capability.

However, the imminent completion of the Seacom cable should go a long way towards addressing this concern, as it is expected to drive connectivity and lower the cost of Internet bandwidth, making IP technologies more accessible and affordable.

With this, and other major developments in the telecommunications landscape, the time is ripe for new players and new service offerings to help expand the once limited local telecommunications offering. That being said, one of the latest international trends to hit South African shores is that of virtual PBX systems.

There are traditionally two types of virtual PBX services, namely IP Centrex, where the service provider maintains all equipment, connectivity and services at a central site and offers a full spectrum offsite telecommunications offering, and Hosted PBX, where the service provider maintains the customer PBX on site and manages telephony, or keeps the PBX at the customer site but manages it remotely.

These options open up the field of IP telephony to companies, such as the myriad SMBs in South Africa, which traditionally may not have been able to implement such a system due to staff and/or bandwidth constraints.

These types of services have particular relevance locally, as much of the business environment is made up of smaller enterprises, and outsourcing PBX systems to a service provider can give SMBs the features and functionality of an IP telephony system without the need for crippling capital expenditure. Another benefit to outsourcing IP telephony services is that for smaller businesses, who may not have the staff capabilities of larger firms, hosted PBX systems provide a managed solution and access to expertise without the huge cost of having to hire someone with this type of specialisation. Hosted services also take away the major headache of maintenance, and can help businesses to control and accurately budget costing.

Virtual PBX systems are growing in popularity because of their ability to simplify processes and control costs. Using a pay-per-month system, virtual PBX systems enable accurate costing forecasting, which allows for very tight budget control. Operating costs are also reduced, as the company does not need to own the physical system to make use of it. With virtual PBX systems, smaller businesses can obtain access to all of the features and functionality of IP telephony, such as lower costs on a per user basis, and integration of telephony into business applications without having to spend a lot of capital up front purchasing expensive equipment. This also dramatically lowers the total cost of ownership of telephony systems.

Hosted or virtual systems are also highly flexible, and allow smaller enterprises to take advantage of newer technologies without the need to conduct forklift upgrades, as the service provider maintains the equipment and will bear the upgrade costs, with minimal outlay for the customer.

The virtual PBX model is a highly attractive one, especially for South Africa, as there are many small start-up businesses within the market. Using a hosted system gives these SMBs access to reliable, high quality communications and allows them to compete in the market with larger enterprises by providing solutions that fit their budgets and minimise capital expenditure.

By reducing operating expenses into the bargain, and providing access to specialised expertise without large costs, hosted services such as the virtual PBX give smaller businesses that all important competitive edge; something which is vital during times of economic uncertainty.