8 mins read
With telecommunications technology soaring through the sky, enterprises need a communication system that is reliable, scalable, and cost-effective. In one hand we have traditional phone systems (landlines), which rely on analog signals and physical wiring.
On the other hand, Voice over IP (VoIP) phone systems are transforming enterprise communication by using the internet to make calls, offering several advantages over traditional calling. Let’s explore the surge of VoIP adoption and its transformative impact on business operations.
How Traditional Phone Systems (Landlines) Work
Landline phones rely on a closed network of physical phone lines to transmit voice calls from one location to another. They have been around for decades, completely unchanged, with the same features and difficulties since their launch.
With each call, a landline converts your voice into analogue signals, transmitting them over underground copper wires to a Private Branch Exchange (PBX). This PBX routes the analogue signals to the recipient’s landline phone, where the earpiece converts these signals back to your voice.
How Do VoIP Phone Systems Work
VoIP phone systems work vastly differently from traditional phone systems. When you make a call using a VoIP phone, your voice is converted into long wave like electrical signals. Once converted, the ADC chops the signals into small data packets to transmit using VoIP technology.
The VoIP hosted PBX routes the data packets to the designated VoIP phone (recipient), where the data packets are converted back to your voice. The receiving VoIP phone/ regular phone rings or notifies the recipient of the incoming voice call, completing the call.
Read in depth how VoIP phones work “What are VoIP Phone Services” here.
Why VoIP Phone Systems are suitable for Modern Enterprises
There are several upsides and only a handful of downsides to using VoIP phone system for modern enterprises. Here are a few of the most important advantages of VoIP:
Cost-effective:
VoIP systems can be significantly less expensive than traditional phone systems. VoIP phones eliminate the need for expensive copper wiring and PBX hardware. Furthermore, the cost of transferring data across the internet is far less than transmitting signals over the copper wired lines.
Scalable:
VoIP phone systems are easily scalable to meet the needs of growing businesses. You can add or remove user extensions at a single click. On the contrary, traditional phone systems need to add new physical lines to add new users or vice versa.
Flexible:
VoIP phone systems offer a wider range of telephony features than landlines. Features such as voicemail, auto attendants, IVR, real time monitoring, call conferencing, call forwarding and more. These features can improve the efficiency of your enterprise’s communications.
Mobility:
VoIP allows employees to make and receive calls from anywhere with an internet connection. This gives businesses with remote or mobile workforces a major upper hand than those with landlines.
Limitations of Traditional Phone Systems
Scalability:
Adding or removing phone lines requires handling physical copper wire, which can be expensive, complex, and time taking.
Limited Features:
Landlines offer basic functionalities like call waiting and voicemail and lack advanced features such as video conferencing and call forwarding, available in VoIP systems.
Immobility:
Landlines are restricted to the location of their installation. The chances of you missing out on business calls while on the move are close to 100%.
Are VoIP Phones Right for Your Business?
VoIP phone systems are a great solution for enterprises in most situations. Here are a few factors to consider before making the switch to VoIP:
Network Infrastructure:
VoIP phone systems require a strong and reliable internet connection to operate. Analyze your existing internet connection to ensure you get consistent connectivity for your calls. Go for business-grade internet connections to avoid call latency, call drops, jitter and disrupted calls.
Identify Your Needs
Make a list of the call functionalities, number of users, virtual numbers and other features you currently need for your communication operations. Once you complete the list, begin prioritizing the ones you find most important and look for VoIP providers that offer the services and features you need.
Security:
Look for VoIP providers who offer strong data encryption and multi-layered network firewalls for their services. It is important to choose a VoIP provider that offers a secure system.
Costs:
Consider both upfront costs and ongoing monthly fees to see whether the VoIP phone service fits your budget or not. Check out the installation fees, license fees, maintenance fees and other additional charges (if any).
Future Scalability:
Be sure to look for VoIP plans that can accommodate future growth of your business and evolving usage needs. Search for options like Pay-as-you-go plans and flexible contracts.
If you are considering switching to a VoIP phone system, be sure to do your due diligence and choose a VoIP provider that can meet your enterprise’s needs.
The Bottom Line
Traditional phones have served us well, but the future of communication is undeniably moving towards a digital front. VoIP phone systems offer us a powerful concoction of cost-effective plans, scalable solutions, flexible calling, and advanced telephony features that traditional phone systems simply can’t match.
So, why wait? Take the leap into the future of communication and unlock the potential of VoIP for your enterprise.
