Technology is Worthless Sitting on a Shelf

March 11th, 2010

I always try to learn from my mistakes.  Given that one of the prime focuses of our company is educating customers, I try to let them learn from my mistakes as well.  That can be a bit embarrassing at times.

Tuesday evening, I was relaxing a bit after returning from the gym.  My phone rang, and it was the alarm company reporting a burglary alarm at the office.  I left for the office pretty quickly, but assumed it was the cleaning people accidentally setting it off.  It looked like a false alarm at first, but as I looked around, I discovered that the inside door had been forced open, and the cash drawer stolen.  Not a big deal in terms of monetary value, but quite annoying.  It appears to be someone associated with the office complex, since getting to the side door requires a key to the a public hall in the building.

As the officer was completing his report, he asked about any video surveillance.  I glanced around, and remembered that we had installed a camera in the showroom so we could see who was coming it when we were not out there.  Unfortunately, we had never bothered to setup recording of the images.  Given the inside nature of the theft, were video available, the thief would probably be behind bars now.

The moral of the story is that if you are going to pay for technology, use it to its full value, and don’t let some of all of its features sit on the shelf.  That is a bit like having a deadbolt lock on your door, and never locking it.

An Inexpensive Fax Server

February 24th, 2010

For the unfamiliar, ra fax server is a device that receives and routes inbound faxes via email.  A basic fax server unit can receive a fax and send it to a pre-defined email address.  The more expensive units can route a fax to different email boxes based on the number dialed.  This allows different numbers to be assigned to specific individuals or functions (sales, customer support, etc), thus forwarding their faxes to them automatically.  This is a very attractive prospect, but until now has almost always required expensive T-1 based phone service with DID numbers to work.

With the 3CX phone system, there is now an inexpensive way to implement a fax server.  The 3CX software has fax functionality built-in.  Since it can handle VoIP calls without additional hardware, it is easy to get multiple phone numbers issued for little cost.  Thus, the sender dials a number specific to the desired recipient, and the fax routes to the associated email box.

The beauty of the 3CX approach is the cost.  The basic 3CX software supporting 4 simultaneous calls is $450 plus installation.  If you install it on an existing PC or server (which we would not recommend for a full phone system, but if only used for faxing is ok), there are no other hardware or software expenses.  Basic VoIP service from nexVortex is $30 a month, and DID numbers are $5 or less per month.  The result is a very inexpensive fax server than can route inbound faxes directly to a large number of recipients.

Since faxing over VoIP is still a bit tricky, it is important to use a VoIP carrier that supports T.38, the latest standard, which ensures the best possible fax reliability using packet redundancy.

While the use of faxing is continuing to decline in the face of email, it is still used quite heavily, and is not going away any time soon.  If your organization is stuck with a large volume of inbound faxes, 3CX provides an inexpensive approach to automating the handling of them.

Using VoIP Service with Legacy Phone Systems

February 15th, 2010

According to industry statistics, 31% of businesses use some form of Voice over (VoIP) IP service today.  While the available statistics are not too specific, I suspect that this percentage represents mostly larger companies.  The same study indicates that by 2013, a total f 74% of businesses will use some form of VoIP.  This number is large enough to include many small and medium businesses.

In my experience, concern about call quality often stops smaller businesses from moving to VoIP.  That being said, the great potential savings involved, and the growing acceptance of VoIP for home phone service is winning them over.  In many cases however, once a smaller business decides to consider VoIP, they run into a roadblock - their legacy phone system.

To be honest, I would like to sell everyone with a legacy system who wants to deploy VoIP a new system.  It would mean better profit for me, and better satisfaction and superior call handling for them.  That being said, it is possible and practical to deploy VoIP with a legacy phone system.  This approach does not require ANY changes to the legacy phone system.

With the growing acceptance of VoIP, a number of manufacturers have begun  to produce analog to VoIP gateways.  These devices have a network connection and an analog line port.  The network connection is connected to your network, and the analog port to a phone line on your existing phone system.  The gateway is then programmed to communicate with a VoIP provider.

When a VoIP call arrives, your gateway converts it from VoIP to analog, and connects it to your phone system.  As far as the phone system can tell, it is an analog line.  Using this approach, you can mix and match analog and VoIP service to increase your capacity and minimize your costs.

We did an installation last week of a Patton 4112, 2-port analog gateway.  It was easy to configure, and resulted in excellent call quality.

In summary, if you want to get your feet wet with VoIP, but you also want to preserve your legacy phone system investment for as long as possible, consider a gateway.

You Cost More Than You Think - The Economics of Outsourcing

February 9th, 2010

I have been doing bookkeeping for many years for churches, non-profit organizations, and small businesses.  Unlike many people today whose knowledge of accounting extends only to the capabilities of Quick Books, I learned the hard way, with double-entry accounting using green ledger paper.  It might surprise you to learn therefore that I don’t do the bookkeeping for my company.  I can’t afford myself.

Here are the numbers:  My time bills out at a minimum of $85/hour, and most weeks, I don’t have trouble filling it.  When I do have gaps, my focus is on building the business, which pays dividends down the road.  My very competent accountant charges me $25/hours for his work, and since he is far more experienced than I, it probably takes him half the time it would take me.   Given the above, it is saving me at least $60/hour to use him instead of doing it myself.

As another example, we provide IT services for various law firms.  I suspect they bill $150/hour at a minimum.  If they pay us to handle their IT rather than trying to do it themselves, they save conservatively $65/hour.

The bottom line is that if you think you are saving money by handling routine tasks such as IT yourself, you may well be wrong.  This is the essence of the new outsourcing.

The New Outsourcing

February 7th, 2010

In the IT world, the idea of outsourcing has been around for some time.  In 1994 while working at Digital Communications Associates, I ultimately lost my job because the entire IT function was outsourced to EDS (an odd situation, since I helped negotiate the contract).  In those days, the primary benefits of IT outsourcing were: 1) Containing IT costs and making them predictable; 2) Allowing staffing levels to be ramped up and down based on needs at any given time.  Many companies outsourced their entire IT function in this era, and most never realized the benefits they sought.  There were always more functions than were put in the agreement, leading to higher costs, and since outsourcing companies were not fond of paying people they did not need, staffing levels could not really be rampled up quickly after all.

Sixteen years later, a different version of outsourcing, what I call the “new outsourcing”  is a viable option for smaller companies.  The focus of this version is using a company with IT expertise to handle routine functions such as server management.  In his book Meatball Sundae, Seth Godin says of outsourcing

“Either what you are doing is repetitive, in which case you ought to outsource it, or it’s homemade, insightful, and filled with initiative and judgement, in which case you can charge for it.”

His point is clear.  If IT is a major factor in how you make money, you should be doing it and making money for it.  In the case of organizations which depend on their IT to carry out their profit-making work, but for which IT is not part of that profit, routine IT functions like server management, PC repair, phone system maintenance, etc, are good candidates for outsourcing.  In the case of such companies, routine IT functions distract them from their money-making function.  For an IT company however, they are part of the core function, and can be performed at a low cost via economies of scale.

As a specific example, we recently began handling server and backup management for a medical practice who had just converted to an electronic medical records system.  Their monthly cost is low, because we do that function frequently, and for us it is a very quick and efficient process.  On the other hand, them doing it in house would take them away from the function of providing patient services, which serve the community and make them money.

If you are a small business bogged down in routine PC, server, and/or phone system functions, you are a good candidate for the new outsourcing.

Using VoIP to Solve Tenant Problems

February 6th, 2010

In our challenged economy, small businesses are constantly looking for ways to reduce their costs.  Many are combining offices, or renting spare offices to individuals.  Having multiple businesses in a single office can cause phone wars, with competition for phone lines, lack of privacy, and the inability to properly apportion costs.

In the past, a tenant in an existing office could just be another extension on an existing phone system, which caused many of the aforementioned issues, or could have the local carrier install one or more lines just for them, which was expensive.  We worked with one such customer last year, who had multiple companies in a single space, each with their own individual phone lines, resulting in very complicated cabling.

Voice over IP (VoIP) can be of great benefit in solving tenant issues.  Since VoIP lines are virtual, they do not involve the expense of the installation of a physical line.  A single number can scale to handle multiple incoming calls, and mutiple numbers can be used to direct calls without having the expense of multiple lines.

We had this situation occur today with one of our TalkSwitch customers.  This company had sublet a single office to an individual, and had let him use their existing phone number and line capacity.  This arrangement was causing difficulty for both sides.  To solve the problem, we opened a new nexVortex account for the individual, had a new number assigned to him, and set the TalkSwitch to route calls to that number to his phone only, and to only use his number for his outgoing calls.  We completed this within a few hours, resulting in two very happy customers.

If no VoIP-capable phone system exists, an inexpensive VoIP gateway could be used, which would allow an analog phone to be used with VoIP service.

Phone Systems - Getting the Cart Before the Horse

February 3rd, 2010

I am been on the perifery of a raging debate on Linkedin about which is better, a premise phone system, or a hosted solution.  For the uninitiated, a premise system involves physical equipment installed in your office.  A hosted solution involves phones in your office connected to a remote phone system via the Internet.  I will refer to both options in this entry as a “system.”

Not surprisingly, most people participating in the discussion were strong advocates for whichever system they sell.  There is nothing inherently wrong with this.  After all, if you cannot speak highly of your product, why should you be selling it?

In reality however, most systems available on the market today have very similar major functions.  There are differences, but in today’s world, these differences are getting more and more minor.  The major difference is economic - a premise system involves a larger initial cash outlay and low recurring costs, and a hosted system has a low initial outlay, and larger and continuing recurring costs.  If you do a feature by feature comparison however, you will find more similarities than differences, particularly in the most important areas.

I would suggest however that the single most important component of any phone system is the service and support provided by the vendor.  Phone systems are complicated, and mot phone users to not really want to understand the technology; they just want clear and reliable phone calls.  The best system on the market when accompanied by poor vendor support will be a miserable experience.  On the other hand, a mediocre system with outstanding support will meet your needs well.

If vendor support is truly as important as I think, then I would contend that selecting a system based on features and price first is getting the cart before the horse.  The choice of vendor should be at least as important.

Some years ago, I was a phone system customer selecting large systems for a call center and a new corporate office.  In the call center, I had the choice between a system from a vendor with an excellent support reputation, and a system with roughly equal functionality from a large, bureaucratic phone company.  Despite the fact that the phone company was also a major customer, I selected the vendor with the good reputation, and never regretted the decision.  Since I did not want to offend the large customer, I selected them to provide the corporate system, a decision I later regretted.

I would suggest therefore that you begin any search for a phone system by selecting the vendor.  Once you select a vendor, pick a system they sell.  You will very likely be very pleased in the long run, regardless of what system you end up with.

In a future blog entry, I will offer some tips for selecting the right vendor.

Cat Attacks Keyboard

February 1st, 2010

In what qualifies as our most unusual support call of the year, we just got a call (from a staff member’s son as it happens), who reported that his cat had just jumped on his PC keyboard, causing the Internet Explorer toolbars to disappear.

The answer is that the cat accidentally put IE in full screen mode.  Using F11 gets is back to normal.

There are plenty of anti-virus packages on the market, but I wonder if anyone sells an anti-cat package?

“Full Service” Customer Support

January 29th, 2010

We really do try to go the extra mile for our customers, even when it hurts our backs.  We were handling a relocation for a local company today.  We were moving a phone system, servers, PCs, and porting 30 numbers to a new carrier.  The cut went really well, and we had the customer’s phones up early in the day.  Since we had to wait around for the furniture setup to reinstall the PCs anyway, we pitched in and began carrying boxes and furniture.  While our backs are sore, we feel good about having been able to really help our customer get through the difficult day.

As a side note, I have not done many circuit cuts with Cavalier Telecom before today, but their work on this one has been top notch.  They installed a new T-1 in new space with the porting of 30 numbers in less than 30 calendar days.  They are offering some very low prices in this area, so if you are considering a T-1, they are a good choice.

Cabling and VoIP - Plan for the Future

January 27th, 2010

While small and medium businesses have been cautious about adopting Voice over IP (VoIP) phone service in a big way, IP-based extensions are rapidly replacing digital and analog phones.  This is not surprising, given their advantages, the most significant of which is the fact that most are standards-based, meaning a buyer can mix and match phone systems and phones.  Given that phones are often 75% of the total purchase price of a phone system, this can be a big cost savings.  As an example, a recent customer bought only the PBX from us, electing to keep the IP phones they had purchased for use with a hosted phone service, a substantial savings.

Another advantage of IP extensions is that you can plug them directly into existing network connections.  Most IP phones have a built-in switch, allowing both the phone and the PC in an office to be connected to the same jack.  This approach does have call quality implications however.  If a PC and a phone are connected to the same network jack, and the user decides to stream hi res video while making a phone call, they may find that the audio on their call is choppy.

For existing offices with a single network jack in each office, this problem can be addressed by the use of a small network switch in each office that can prioritize voice traffic.  We sell an inexpensive 5-port switch with high-priority ports.

For those building out new space or planning a major remodel, now is the time to plan for optimal cabling for IP phones.  Ideally, each office should have a network jack for a PC, and one for an IP phone.  This allows IP phones to be on a spearate network, maximizing performance and call quality.

If you are building new space but want to stick with digital or analog phones for the time being, I suggest you do what I have recommended to my cabling customers.  Install a jack for each digital or analog phone using cat-5 cable, and terminate them appropriate to the existing phones.  Later, when you want to switch to IP phones, it is a simple matter to have those cables re-terminated to cat-5.  The cost differential between cat-3 and cat5 cable is minimal.