Feasibility Analysis Case Study - Essay Example

Chief Information Office (CIO) [Click here and type CC: [Click here and type 11/25 Re: Purchasing VoIP I am writingin this to you to recommend you to purchase the VoIP system instead of leasing it. In order to come down to a valid conclusion regarding the two available options, I did an NPV analysis (excel sheet attached) and the results of my NPV analysis suggest that NPV would be a wiser option compared to leasing. If you look at the numbers in the NPV analysis template, you will also see that the NPV would be a wiser option to opt for against leasing.

At an interest rate of 12%, the template shows that the NPV would be $892 with positive future cash flows. Similarly NPV is positive as shown by the template, for all other lower interest rates. This makes NPV a wiser option compared to leasing. Purchasing VoIP will also incur savings on maintenance costs too. The basic costs in acquiring VoIP include the initial setting up of the equipment which has to be purchased. It should be ensured that the equipment is in sync with the company’s existing system.

Then the company’s employees are complete novices to this system. They will also have to be trained. That’s another additional cost that needs to be considered. The NPV cost for purchasing is inclusive of trouble shooting and IT assistance costs. (Vercilo, 2007) VoIP technology is growing really fast and is becoming a growing business world over. Companies are adapting fast to the new needs of customers. There are constant developments going on in both medium scale and large scale businesses for which both on –premise and hosted VoIP systems are provided.

It is thus important and essential to keep up with the growing trend of technology adoption. VoIP is the way towards future goals. The paradigms of the world are changing. A lot of major computer companies have already started to integrate VoIP. Some of the big wigs that have purchased VoIP include Yahoo and Google. Yahoo bought VoIP and integrated it with its Instant Messaging Program, so did MSN and AOL. These companies felt that purchasing VoIP was far more cost efficient and cheaper than most other telecommunication applications.

One can reduce costs at home by saving up on long distance and local telephone calls. Most VoIP service providers offer plans that offer unlimited local and international calling. Similarly , installation of VoIP does not need one to install additional phone jacks and wires. On the whole, VoIP purchase over leasing is a very lucrative offer and I hope you consider it. (The 5 Biggest Benefits to Adding VoIP, 2009) Bibliography The 5 Biggest Benefits to Adding VoIP. (2009, April 13). Retrieved July 26, 2011, from VoIP Providers List: http://www.

voipproviderslist.com/articles/pros-cons/the-5-biggest-benefits-to-adding-voip.html Vercilo, K. (2007, Aug 30). How to buy a VoIP system. Retrieved July 26, 2011, from PC World Business Center: http://www.pcworld.com/businesscenter/article/135915/how_to_buy_a_voip_system.html