Should you consider adopting Voice over Internet Protocol (VoIP) phone systems for your business, or will legacy phone systems suffice? The decision will ultimately boil down to which technology can best address your business needs. To help you decide whether VoIP is right for your company, read on about this phone technology that’s enabling organizations to deliver excellent results while helping them cut costs.

What is VoIP?

Traditional telephones are still very much a part of today’s business operations, and companies use them to connect with various stakeholders such as customers, investors, and suppliers. But telephony has come a long way from when the first telephone was invented in 1876. Modern phone systems are now automated, cheaper than ever to acquire, and have virtually unlimited reach. One of the most widely used modern phones in the market today is the VoIP phone.

VoIP technology uses the internet instead of wired circuits to transmit data. And it does more than just transmit audio like legacy phones do. It can also send a variety of data (e.g., video, multimedia, SMS, etc.) and perform other tasks such as call routing and anonymous call rejection.

VoIP setups: On-premises vs. hosted

A VoIP system’s hardware and software can be either on-premises or hosted. On-premises means that all of the VoIP’s components are housed within the premises of the company. Hosted VoIP, meanwhile, means that only some of the hardware, like phone units and other equipment, can be found within a business’s premises. The rest of the technology, including the software, is hosted online. In this setup, service providers look after hosted systems for their clients. 

Which setup should you choose? You may want to consider the condition of VoIP hardware and software in different environments.

Generally, hardware is affected by the wear and tear stemming from daily use, so whether you choose to house it on-premises or not doesn’t make much of a difference. Barring any accidents or physical damage, any VoIP hardware should last several years.

On the other hand, software requires regular updates and security patches, and it’s faster and cheaper to update software that’s hosted in the cloud versus one that’s on-premises. If you want to better protect your systems from cyberattacks and enjoy the latest VoIP features as soon as they come out, choose hosted VoIP.

Business adaptability with VoIP

In the past, hardware and software were built to last. Traditional phone systems, for instance, rarely get new features once they’re deployed. Meanwhile, modern IT solutions like VoIP are built to adapt and change.

These days, critical updates are released regularly, with complete overhauls taking no longer than 2–3 years. If you choose hosted VoIP technology and outsource its management, then you can enjoy a faster, easier, and cheaper upgrade via cloud-based rollouts.

Most hardware components are also improved upon every once in a while, with replacements and upgrades coming every 5–8 years on average. Note that if you outsource your VoIP systems, your VoIP provider will be the one to ensure that the hardware is up to date, and your company won’t have to shoulder outright hardware upgrade costs.

As your business moves forward, you must have a phone system that is agile and fast, and can integrate smoothly with the other systems in your business, such as email or management software.

Be one step ahead

VoIP is reliable. As long as you have a high-speed internet connection, you can guarantee high-quality voice calls with 99.9% connection uptime. Unavailability, choppy connections, and other traditional phone issues translate to lost sales and productivity. If your phone service is spotty and is constantly unreliable, perhaps it’s time to switch to VoIP phones.

VoIP is reliable, adaptable, and won’t cause a dent in your budget. Call our experts today so you can always be a step ahead with VoIP.

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