The New Age of Phone Systems: Taking a look at VoIPs

VOIP business telephonyYou have a business, many hard-working employees, and now you need to implement a cost effective, but high performing phone system. Which option do you choose? Do you go with the time-tested landline, or do you try the improved method of VoIP? Many managers contemplate this decision, and having the most trusted information out there can be incredibly beneficial. In determining the best fit for a company, let’s take a look at exactly what VoIP is, the difference between the system and landlines, as well as the pros and cons of utilizing it over traditional phone systems.

VoIP is voice over internet protocol, and utilizes the same broadband internet connection that powers computers. In the most basic terms, when you use VoIP to place a call, you use your computer to call another person, and the cloud-based enterprise VoIP providers system connects you to the call. Rather than using telephone lines and switch boxes, you are connecting via your IP address, the same exact technology that is used when connecting to the internet. In real terms, you are converting the digital signal to a traditional phone signal when connecting the phone call.

cloud telephonyOne of the biggest benefits of choosing a VoIP system is cost efficiency, as it saves so much money versus a traditional phone system. When looking at a relatively large company, roughly 500 or more employees, the cost of phone systems can be quite substantial and include costly annual maintenance. Typically, installation of a traditional landline phone system can run between $50 and $100, with a deposit running between $100 and $500. On top of those initial costs, annual maintenance of phone lines can cost in excess of $1000. International calls can be as much as $1 per minute, which can become very expensive if the company has many overseas clientele. On top of all the costs, landlines also include running a hard pull credit check, which can be potentially damaging to a credit score if done more than once.

When comparing these costs to a VoIP, the savings are immediately noticeable.

VoIP typically costs around $35 per month, does not require regular maintenance, and has more reasonable international call rates of around $0.01 per minute. This saves companies precious resource money that can be allocated to other departmental costs that may be needed. Along with cost savings, most employees use computers already, so setting up a VoIP system takes nothing more than an adapter to get up and running, and is much more efficient than landlines.


While people may believe that VoIP systems are a relatively new technology, they have been around since the early 1990s. The difference is that over time, the technology has been refined and has become solely reliable on high speed internet connections to work properly. With internet and broadband services becoming more streamlined over the years, VoIP systems have also become more user friendly and streamlined to maintain the highest quality phone calls available using the computer. Over time, it would be feasible to see more and more companies initiate VoIP systems for their employees.