According to a recent research report, 95 percent of SMB VoIP users said they would recommend or highly recommend the technology to a colleague. Overall among VoIP users, 74 percent cite cost benefits, while 82 percent of all current users say they are getting more functionality out of their phone systems. Just as important: 73 percent say that VoIP systems are easier to manage than their previous systems. And the quality is definitely there, with 84 percent of all VoIP users saying call service is as good as or better than their previous traditional service.

There are two main types of VoIP: premise-based, where a company purchases and manages all the hardware and software, and hosted, which entails renting equipment and - at least most of the time - letting someone else do all the technical leg-work for you. A second option - business trunking - is much less common. It allows companies to keep their existing phone system, but use some aspects of VoIP technology. Calls on both, however, are typically carried on a private IP network where voice packets get priority over data packets. And both can provide cost savings for many businesses that range between 15 and 30 percent less than what traditional phone service costs, according to Savatar's Macario, since you're paying for service rather than individual telephone calls. No matter where in the world you call, your monthly fees don't change.

So how do you choose which VoIP service might be right for you? Think about your company - its size, telephony needs, IT capabilities, and growth potential - before you make any purchases.

For example, if you purchase a hosted solution, your service is taken care of by your VoIP provider or one of its value-added resellers (VARs) or consultants. You also don't have to buy any equipment upfront. Everything you need is rented, and service and equipment upgrades will probably be built in to your service contract. If something goes wrong you'll have a contact who will troubleshoot remotely or come into your offices to fix any problems. Bottom line: if you want to outsource your phone service, hosted VoIP allows you to do it.

Premise-based VoIP, on the other hand, is just what it sounds like: you purchase your own equipment, which you either install and maintain on your own or pay someone to install and maintain for you. But there are benefits to this option as well. For one thing, since all your equipment resides in your office you can upgrade, add lines or seats, or modify your service on the fly. You're also saving on equipment leasing and maintenance fees.

No matter which option you choose, you can make your purchase easier by shopping around and asking plenty of questions once you select a provider. Make sure you feel comfortable, and that your provider will be there if you have any questions, problems, or concerns.

"Customer service - especially in the beginning - is going to be key," explains Macario.