The Differences Between VoIP and Traditional Phone Systems

VoIP converts voice into digital data that transmits over the Internet. It can be used on IP-enabled phones, smartphones, or computer apps. You may Ooma guide to VoIP phones.

Traditional phone service uses copper wires to transmit analog data. Consequently, it has significant initial costs and hardware and maintenance expenses.

Scalability

As businesses grow, they often need to increase lines and features. This is difficult with traditional landline systems because the hardware they require (like PBX servers) is expensive and hard to upgrade. VoIP eliminates needing a PBX and can scale easily to meet your business needs.

A cloud-based VoIP system allows employees to access their work phone lines and features from home or on the go. This is ideal for remote workers who want to maintain a connection with customers and coworkers.

While a VoIP system is flexible and scalable, it depends on a reliable broadband internet connection to function properly. A disruption in internet service can affect the audio quality and may slow emergency responders who try to triangulate call locations. Cybercriminals have even targeted VoIP systems, though this is rare and can be prevented with proper team awareness and monitoring. Still, VoIP is an incredibly safe and dependable option for your business.

Reliability

VoIP phone systems have come a long way, and when using a reliable provider, sound quality can be indistinguishable from traditional landlines. However, it is important to note that VoIP requires a broadband internet connection and will only function properly with one.

Landline systems use copper wires from a local or national telecommunications company to provide service and require a significant upfront investment for hardware and upkeep. A VoIP setup can be much cheaper and easily scale up or down with changing business needs.

VoIP phone systems also offer improved reliability for businesses. They are fully mobile and are not impacted by power outages or weather conditions that can impact traditional landlines. Additionally, VoIP calls can be routed to other devices (e.g., cell phones) or a computer with an internet connection eliminating the need for additional equipment and cost. This allows for greater flexibility and mobility for customer service teams.

Costs

Traditional landline systems require a large upfront investment in copper wire and exchange infrastructure. VoIP systems operate over your existing internet connection, making them much cheaper to install and maintain.

Businesses can easily scale their phone system as needed, allowing them to add or remove lines anytime. This translates to lower costs per employee and more flexibility in organizational change.

Retail companies rely on VoIP to stay connected with their customers and partners. Whether in one store or across the country, the team can provide a consistent customer experience and keep track of important customer data with a single integrated platform.

VoIP also helps businesses make international calls much cheaper than standard landline rates. If your team is scattered worldwide, they can work together using a single company number and advanced features that can be used on mobile devices or in the cloud.

Features

There are many VoIP phone features that you won’t find on traditional landlines. These include video conferencing, automatic call forwarding, and even a way to eliminate spam calls. Some VoIP providers, like Dialpad, also incorporate artificial intelligence into their systems that transcribe calls and can help you identify key topics during meetings.

Unlike traditional PBX systems, which require bulky hardware installed at each location, VoIP services work over an internet connection, which the provider manages. This means they’re a good fit for remote teams, as there is no need to purchase and install hardware at each office.

The software-based nature of VoIP technology allows for scalability and makes it easy to add new users with the click of a button. This feature is great for businesses that experience seasonal or cyclical fluctuations in their workload. It’s also possible to easily transfer calls to other team members, for example, if a client calls customer support and the person on hand doesn’t have the answer.