IT Departments should NEVER buy their hosted VoIP handsets!

When we are proposing a hosted VoIP phone system from a service provider, our clients often ask if they can buy the phones.  My answer is yes but DON’T DO IT!  Before I tell you my logic, I have to tell you my story.

I will never buy my own company’s handsets again!  I’m sure you are aware that we represent every major hosted VoIP provider but you may not be aware that I am also the decision maker and admin for our own phone system, here at AeroCom.  We have been using hosted PBX since 2005, when I hired my first salespeople and opened our first office.  At that time, Covad was pretty much the only major service provider offering a hosted VoIP system.  We had to purchase the Cisco 1720 router for around $750, the Cisco ATA (for our fax) for around $100, and we had to more importantly, purchase our Cisco 7940 handsets for about $320/phone.  That system worked well for 7 years but over that time, the old Covad platform we were on (the legacy GoBeam platform), became grandfathered and it was eventually time to switch.

2 years ago, our AeroCom HQ office moved locations and so it was the perfect time to finally make the move to a new hosted PBX service.  We ended up choosing SimpleSignal (now Vonage Business), because I felt they had some great, flashy features that our sales staff could use to showcase how cool hosted PBX can be.  SimpleSignal, however, could not work with our Cisco 7940’s (because they were using MGCP protocol instead of SIP), or our Cisco 1720 router or our Cisco ATA.  At that time, SimpleSignal also did not have an option to rent the equipment.  As a result, we had to scrap all of the Cisco stuff and purchase all new equipment.  I bought the latest Polycom Soundpoint handsets, a new ATA and new router.  OUCH!

Flash forward to today, as we are sitting through countless hosted VoIP demo’s, I’m already bummed out that in only 2 years, our phones totally suck compared to the new stuff!  We don’t have a USB port in the back for recording calls on the fly, we don’t have color or touch screens and we don’t have a video screen for direct video calls to our remote employees!

Sure, your needs might be different than mine but it does not matter one iota.  LONG GONE are the days when you will buy a handset that you can realistically keep for 10-20 years, like the old ones I sometimes still see sitting on desks.  Technology is moving way too fast and the innovation isn’t just shiny new toys – it’s actually innovation that is driving higher levels of workplace efficiency.  For at least the next decade, my strong belief is that every two years, your handset functionality will be not just improved but revolutionized.  And guess what – your company’s needs will also be completely different every two years because technology is driving changes in every aspect of your business.

Renting a phone from a provider costs only $3 – $10/month/handset.  Sure, you can do the math and say “but that means I will pay for my handset within 10-12 months,” and you’re right…. Except that your handset will stink and your business will be suffering while you ride out that paperweight for the next 10 years.  Common, would you keep your cell phone more than 5 years?  …and most of your cell phones are only a part-time business tool, let alone your FULL TIME business tool.

I’ve heard people say “our business just doesn’t need all that technology,” but I’d argue that does not hold much weight.  I don’t care what industry you’re in or how old the old fart is in the corner office, new technology will absolutely help your company and it’s up to the smart IT people to be the voice of reason.

I assure you that within 2 years, the screens on handsets will be bigger and have apps on them.  Who knows what those apps will allow you to do… but I guarantee that is where we’re headed and we also know how fast apps are improving.

Finally, renting also helps you immensely during trouble-shooting a voice quality issue, which is bound to happen and has happened with phone systems since the dawn of time.  You will never hear the provider blame your phone and tell you that you need to buy a new one.  It’s their phone so THEY have to fix it, regardless of where the problem lies.

Trust me, rent your hosted VoIP handsets.  The providers typically let you upgrade them for FREE!  Don’t make my stupid mistake and be stuck with a sunk cost on something that is dead obvious.

That’s just my opinion.  Tell me yours?  After all, I am the one who’s bought my phones twice, so I obviously don’t always have it all figured out!

About the Author
Mike Smith is the Founder and President of AeroCom and has been immersed in the business telecom and cloud industry since 1999. He has been the recipient of numerous industry awards and in 2011, he was honored as one of the top 40 business people in Orange County, CA., under 40 years old. Mike is passionate about simplifying the way IT buyers shop and select telecom and cloud solutions for their company. Follow Mike on LinkedIn, Twitter or SpiceWorks.