The answer probably has more to do with your situation than with the technology.

Few deny that voice over Internet protocol (define) technology offers a far more robust set of options and features than traditional private branch exchange (define) systems. But questions about the actual savings that can be realized with the technology persist. For example, the recent rash of cost cutting by the major telephone carriers has taken the luster off long distance cost savings originally touted as the main reason to invest in VoIP. Other cost cutting measures, like PBX toll bypass and special calling plans, have further dulled this argument.

"The focus has definitely shifted to things other than toll savings that can be done with VoIP," said Galen Schreck, analyst for Forrester Research. "Things like extensions at employee's homes, not having to put PBX hardware at branch offices, higher quality video conferencing, and follow-you-roaming are all things that are driving the market now."

The lure of new capabilities is certainly strong, but, at the same time, most business believe their current systems work just fine and see no reason to switch to IP. Moving to IP telephony means expensive network improvements, including upgrading lines and infrastructure and enhancing redundancy. Most can't justify the related costs and additional work unless their business requires extensive international calling or they are involved in new construction.

Still, there is no denying that converged technology -- like VoIP -- is on the march. In a recent study, Allied Business Intelligence predicted that the deployment of IP PBX voice over IP gateways will skyrocket to 47.6 ports in the next five years from the current estimate of about six million.

Out with the old

Consolidation of voice and data networks brings with it a myriad of benefits. In offices where moving employees and facilities is common, a significant amount can be saved by not having to rewire and install new phones. With an IP system, adding a new phone is as simple as plugging into a network jack or logging into the network through a workstation.

An IP PBX system also allows for the consolidation of voice, data and video. This opens a wealth of communication possibilities, which can result in increased revenues. Although many circuit-switch PBX systems have sophisticated features, often they can only be accessed via a dedicated call center. IP systems are far less discriminating and allow users to tap into all available features. For example, with an IP system, a user can log into the network from any location and route calls and data to the station they are using. By integrating call and data information, logs, journals, and notes can be created and kept for future reference.

For most service providers, the decision to switch is not one they make, but one that is made for them. Generally, the best, and most cost efficient, time to incorporate VoIP is when your old PBX system finally quits and it's sent to the junk heap.

"Any forward looking company should realize that the circuit-switch PBX is a relic of the pastIP is the wave of the future," said Schreck. For most, the best time to make the change is when the old system gives out."

But the switch to VoIP should not be made lightly even if you are facing new construction or failure of old equipment. Full consideration should be given to such things as the lifecycle cost of the equipment, and which vendor can provide the best service, support and training for your company.

In with the new

You should also take a serious look at the quality of service (QoS) of your IP infrastructure, giving special attention to your existing routers and switches. Old routers and switches that can't stand up to new demands and leverage QoS advances of the last few years, can be your biggest enemy. Check with your router and switch vendors. Just because the brochure says the equipment has "full QoS support," doesn't mean it will be true in every situation.

Backup power is also critical since the last thing you want is to lose your phones when the power goes out. Such additions and upgrades can be expensive, but it may be cheaper than trying to make an unworkable system functional.

Security is another issue that cannot be overlooked. Most systems, such as those from Cisco, 3Com, Nortel and Avaya run call-control software on a server running Windows 2000, Unix or Linux as the base operating system. Since they all have standard IP stacks, all of these systems can be hacked or hit with denial-of-service (DoS) attacks.

"Anyone who thinks that sensitive data is not transmitted via voice must be from another planet," said Ray Muller, an ISP based in Los Angeles, California. "Credit card numbers, financial account numbers, and schedules that can tell you when someone is not going to be at home are just some of the things a hacker could get from a voice conversation. Voice is just another type of data."

For VoIP, hacker protection includes using switches rather than hubs, which can reduce the ability of would-be wrong doers from 'packet sniffing," keeping a close watch (and a strong lock) on the wiring closet, changing passwords regularly, and always keeping up with the latest security patches for your server platforms.