Voice over Internet Protocol (VoIP) also known as Internet Telephony, IP Telephony, Voice over broadband and Voice over Network; it is a technology that allows calls to be made over the internet or a computer network.
VoIP is not a brand new technology but it is gaining more popularity due to the general movement towards cloud technology, improvements in the speed and reliability of internet connectivity and the trend of workforce mobility.
How VoIP works
Traditional landline phones operate through a Public Switched Telephone Network (PSTN) and you can gain access to it through the telephone sockets. These networks use circuit switching – when a call is made, these circuits change within the exchange in order to connect the caller and the receiver.
Whereas, VoIP calls are made over the internet and use the method of packet switching – when making a call the data is broken up into data packets, transported across the network and reassembled when it reaches the receiver.
Why VoIP? The Benefits
With the vast improvements of internet connectivity and the decrease in prices since 10 years ago, VoIP is becoming a feasible option for businesses today.
To deploy a traditional telephone system a high capital outlay is needed because of the number of components required i.e. buying a phone system, business line rental, maintenance contracts, hardware costs and pay for software upgrades.
Whereas, VoIP systems compared to traditional telephone systems has minimal capital expense i.e. the purchase of IP enabled phones and internet connection. But, it is also simple to administer and user friendly because it uses the power of the cloud technology.
A VoIP system can provide businesses with an integration of both office and mobile devices, allowing employees to have an office phone that can ‘go anywhere’, making it ideal for those who work remotely and for companies that have hot desking. This flexibility can help increase efficiencies and productivity as users can easily manage and receive calls. It can also be scaled up and down when required, offering future proofing capabilities.
For more information on VoIP or advice whether to switch contact us today.