What Is VoIP and Why Does Your Business Need It?

Almost every business out there relies on some kind of phone system for regular communication with team members, clients, leads, suppliers, and many other people that impact the day-to-day operations of your business. It’s important to ensure that your phone system is secure and reliable, which is why many companies have turned to VoIP over the last few decades. If you don’t have VoIP, you might be wondering what it is and what all the fuss is about. Here’s what you need to know.

What Is VoIP?

VoIP stands for Voice over Internet Protocol, which essentially means that you can make phone calls using an internet connection instead of a normal phone line. If this doesn’t sound like anything all that new or interesting, it’s because it’s not. VoIP has been around since the late ‘90s, and many people use it on a daily basis without even realizing it.

However, many business owners, when setting up their offices, don’t realize that phones on their employees’ desks can use VoIP. And so, they turn to the phone company out of sheer habit. However, VoIP is often the better option.

How Does It Work?

Phone calls made through VoIP use small data packets to connect you to the other party and relay the conversation between you. The internet can send those data packets across the world in under a second, traveling between your phone and the VoIP provider, and can connect you to other VoIP users or those using a traditional phone service. Here’s how it works:

1. Your phone connects with your router or switch in the Local Area Network (LAN).
2. You dial a phone number, and your phone relays this to your VoIP service provider to call the other person.
3. The VoIP service connects the call and exchanges data packets from your phone.
4. Your phone translates these signals into audio signals that you can hear.

Benefits of Using VoIP

So, why should you opt for VoIP instead of traditional phone lines? Here are four big benefits for your business:

1. Lower cost – While this can vary depending on your company size and exact needs, many businesses have seen significant cost savings, lowering their phone bills by more than 60% in some cases.
2. Quality sound – Audio over a VoIP connection is noticeably clearer and is almost never muffled or fuzzy.
3. Additional features – VoIP allows you to utilize advanced features like call recording, call queues, and auto attendants.
4. Ready for remote use – A VoIP phone service works from anywhere, so if you have employees who work from home, they can continue to use the same work phone number without requiring a special setup.

If you want to establish VoIP in your business, contact an Orlando IT company to help with setup.