Don’t get me wrong, I’m not a critic of the PBX-as-a-service industry.   For certain applications and customers, it’s the perfect solution.  In fact, our company sells hosted VOIP for specific applications.   However, much like its analog predecessor Centrex, it’s a one-size-fits-all product, with very little capability to customize the service to meet your business needs.   Therefore, it works well in simpler, less communications-intensive businesses.  However, a technology assessment is not what this post is all about.

Today, the hosted VOIP marketplace is the wild west.  There are virtually hundreds of companies providing the service, most with little business history and no track records.   The technology and business case of hosted VOIP can be quite compelling, but beware the industry.  After all, you entrusting your entire business communications to these folks.

There are some excellent players in the marketplace who’ve got sustainable business models and have been in the game for years.   San Francisco-based CallTower has been around since the turn of the century and is thriving.    Wholesale Hosted VOIP provider, New Global Telecom (NGT) boasts of beginning their business way back in 1996, making them a grandfather of the industry.

However, these two are exceptions in this wild territory.   Large providers such as SunRocket and VOIP Inc. both evaporated in the past year leaving customers without service.   Locally, a swarmy company by the name of Xiptel, headed by the fast and double talking Peter Geddes did the ol’ corporate switcheroo buying out the assets of the old company and reviving themselves the next day as, guess what, Xipcom dga XIPTEL.   However, they “forgot” to tell their customers and agents.   Pretty sleazy if you ask me.

As time goes by, the industry will mature, the weak will whither and die and the sleazeballs move to the next wild west game.  Until then, be very careful when considering hosted PBX.  there are some safe choices, but you’ll have to do some heavy digging to find the gems.

I’d like to hear about your experiences.

Randy Kremlacek

Teledynamic Communications provides free educational materials about telecommunications on an ongoing basis to our subscribers and customers. The company provides a complete range of VOIP, telecom and data solutions for business.

When Cisco and3Com introduced the IP PBX in late 1998, their desk phones were quite limited in functionality but had a “new technology” feel to them and were readily embraced by buyers.  It didn’t take long for IP PBX manufacturers to catch on to this wave of interest and design telephones with large screen menus and brushed silver bezels.  These new phones were really a hit.  It wasn’t unusual for buyers to spend up to $1,000 for a fancy new IP phone with a color screen, web-browsing and other features rarely used.

However, that seems to be changing rapidly.  Phones are being replaced by devices.  Huh, you say?   Softphones eliminate the desk phone.   Smart wireless phones are serving dual purpose – they function as a cell phone outside of the office and as a mobile office phone within the business.  Microsoft’s Office Communicator has a built-in softphone.  Any IP-enabled product could conceivably be a phone.  Thus, the change from “phone” to “device”.  It’s funny, I’ve heard a multitude of names for phones over the years:  Station, set, phone, terminal, handset and now device.

So after many years of experts prognosticating the disappearance of the common desk phone, to be swallowed up by the data network may finally be coming true.   Certainly desk phones won’t be obsolete tomorrow, but rather they’ll be just another “device” from which to choose.  My prediction is that these devices will blossom and users will have an overwhelming array of products from which to choose.   It’s likely that users will find something that fits them just perfectly.  Good luck to the IT department in supporting this potpourri of new technology!

tell me what you think.

Randy Kremlacek