Today’s businesses need a cutting-edge communications system to ensure a seamless collaboration experience between employees. This is especially true for businesses that rely on remote working—a practice that’s likely to stick around.

One technology that makes business communication easier is VoIP telephone systems. Although VoIP technology isn’t new, it’s increasingly popular for voice calls. If you haven’t already considered getting a VoIP telephone system, now could be the time to do so.

But what exactly is VoIP, and how can it improve your business phone system? In this guide, we’ll explain the basics of a business VoIP system, how it compares to conventional telephone systems, and what to consider when choosing a VoIP service for your business.

Here’s what we’re going to touch on:

VoIP stands for Voice over Internet Protocol. As the name suggests, it’s a way to make phone calls via the internet instead of a conventional phone line.

A VoIP call compresses the sounds we make into packets of data. These packets travel over the internet to the person we’re talking to; their own hardware decompresses the data, turning it into a coherent audio feed when they receive calls.

VoIP voice calls depend on several different mechanisms of a business VoIP phone system working at the same time. A key technology in VoIP phone systems is SIP or Session Initiation Protocol. This is a key component of VoIP systems that use existing hardware, and allows calls to be made between two internet-connected devices. SIP can also connect larger groups of people, and facilitate activities like file transfer, instant messaging, and video conferencing.

Another crucial component of VoIP calls is RTP or Real-Time Transport Protocol. In simple terms, RTP allows real-time audio-visual data to be exchanged over the internet. This has obvious applications when we need to communicate online, especially since online video conference calls are so popular nowadays.

To use VoIP for your business phone system, there are several things to consider. While VoIP calls can be made using just an app (on a laptop or mobile device), businesses regularly making VoIP calls typically invest in further infrastructure.

A reliable internet connection

• An essential component of any business VoIP system is a solid internet connection. Since IP telephony depends upon broadband internet to work effectively, a weak signal will have a significant impact on the call quality of an IP phone. The required strength of your internet connection depends upon how many people are using it at once.
• Work out how many people in your business will be using your VoIP system. Each device (desk phones or otherwise) making a VoIP call needs a bandwidth of 100 Kbps.
• You can use an online speed test to check your connection quality. You can also speak to your internet service provider to ensure your internet connection is strong enough.

A capable router

• After a strong internet connection, you’re likely to need some kind of router. This ensures data packets get to where they need to go.
• A router also provides an additional level of security to desk phones and mobile phones. IP telephony (communication over the internet) can be vulnerable to interception if it isn’t end-to-end encrypted. While people eavesdropping on your calls is alarming, it takes on added significance if you’re discussing sensitive business matters. Look for a router that can encrypt your communication to prevent this.

Compatible hardware

• Next, you’ll need to think about the VoIP hardware used to actually make a call. If you’re a new business, consider investing in VoIP desk phones. These phone models typically have specific features such as caller ID, speed dial, call transfer, and more. These phones come in both wired and wireless versions; the former using ethernet cables to power them.
• If your business uses a lot of analog phones, you can still use VoIP telephone systems. An analog phone can often be paired with an adapter to work with broader VoIP setups. Indeed, if you still communicate via faxing or are otherwise attached to your existing infrastructure, a VoIP adapter might be preferable to completely replacing your phone system.
• If you prefer to run your VoIP service through software (commonly known as a softphone) you can also buy separate phone handsets or headsets. These usually plug into a USB port on a computer and facilitate both comfort and privacy. Of course, using a mobile device as a softphone makes this separate handset redundant.

A VoIP service provider

Finally, you’ll need to choose a VoIP service provider. This allows you to make calls outside of your own business. The VoIP solutions of these providers (which include the setup of hardware and a phone number) usually require recurring payments.

VoIP phones are an excellent choice for businesses and are used across many different industries. Their popularity has been trending steadily upwards for several years, and are ideal for very specific contexts, such as a call center.

Remote working is a natural fit for VoIP systems, as they allow professionals to work from a wider variety of places than before. Remote working has also grown in popularity for several different reasons, but the improving quality of VoIP (and internet speeds) are significant factors.

However, even if remote working is growing in popularity, that doesn’t mean there aren’t some bumps in the road. As we’ve made clear, VoIP communication depends on a strong internet connection to work properly. For a business with several remote workers (where regular communication is a concern), this is where VoIP can become a stumbling block.

The more remote workers you have, the more variables you have to account for. A business’s own premises can invest in higher internet speeds, but this isn’t necessarily true for remote workers. As such, individual employees may face problems like uneven call quality when trying to work.

For remote workers, the solution may be to reduce certain activities (like streaming video) during work hours. Just be prepared for some teething troubles with remote work environments.

With several VoIP service providers out there, it can be tricky to know what is the best system for your business. Different businesses will have different needs, and there’s no off-the-rack option for businesses to choose from. However, you can focus on two broad areas when looking at phone system providers.

Relevant features

• First, ask what specific services your preferred VoIP service providers offer. Besides allowing you to call outside your premises, you’ll want to look for the benefits of conventional phone systems.
• Think about features like caller ID, call forwarding, online faxing, and voicemail. If you’re using it in a contact center, look for call recording, call routing, and auto attendant. You should also consider cost-saving measures such as toll-free numbers and unlimited calling options.
• Other things to consider include sending voicemails to an email inbox, a connected mobile app, a text messaging option (some providers offer SMS messaging), and even integration with a CRM system. Not everything a VoIP provider offers will be useful for an office phone, but try to hit all of the key points you need to.

Quality of services

Next, consider this: how pleasant are these VoIP service providers to deal with? This covers things like monthly costs, reliability of services, and customer service levels. You may also want to look at how old the company is, how easily you understand their product offerings, and what other customers make of them.

Within a business context, a voice over IP phone comes with several advantages.

Lower operating costs

• The obvious advantage of a VoIP phone is a reduction in operating costs. A conventional phone service means your business will incur charges for individual calls. Even if each cost is small, these can quickly accumulate. Depending on the size of your business, the cost of phone calls can be significant.
• VoIP services do come with a monthly cost, but this pricing is likely to be considerably smaller than that of a conventional phone system.

Less hardware

• While we’ve talked about hardware requirements, a VoIP service can actually reduce the amount of hardware you need. Older phone networks within a business need a Private Branch Exchange or PBX. This hardware is used to run a business’ internal phone network, allowing for seamless transfer of calls between phones inside the office.
• PBXs are difficult to set up, requiring a sizable chunk of experience in telecom hardware to install. A PBX also takes up a significant amount of space; a server room is a common place to install one. Furthermore—much like all technology—a PBX needs maintenance to run properly. This comes with additional costs and additional headaches for your business.
• VoIP phones allow you to eliminate this chunk of hardware from your business since many VoIP phone packages include cloud PBX functionalities. If you’re a smaller business with limited space, this can be a big help.

Accessibility

• VoIP services are more widely accessible than previous communication methods. Since they’re not necessarily hardwired into a fixed network, professionals can communicate from a wider range of locations than ever before.
• This has obvious benefits for businesses that use remote workers. However, it can also benefit businesses with on-premise employees. If they need to be contacted via a cell phone when out of the office (through instant messaging, for example) VoIP phones can make this all the easier.

Scalability

• If you’re aiming for future business expansion, a VoIP service is a good investment. Once again, this comes back to hardware. If you want to expand a conventional phone system, this often requires some kind of hardware component that needs physical installation, which will cost you time and money.
• While introducing a VoIP solution does require some new hardware (a new handset or laptop, at least) it’s relatively easy to do in comparison to a conventional phone system. You can also expand your access to specific VoIP services if the way you do business changes over time.

Although the basic functionality of VoIP phones seems unlikely to change (and big improvements like dedicated mobile apps are already here) we may still benefit from certain advanced features going forwards.

Better internet

The most obvious improvement seems likely to come via improvements in internet connectivity. Internet quality and coverage are probably going to expand as time goes by, with developments like 5G growing in availability.

If this happens, it’s possible that VoIP phones will bypass conventional Wi-Fi and use 5G as standard. This will, in turn, solve the problems we might experience with VoIP calling over 4G, such as poor call quality.

Smarter artificial intelligence

Another emerging technology that could see significant improvements to VoIP is artificial intelligence. AI is already playing a key role in businesses; it’s helping us analyze data and automate certain business tasks. Among these is dealing with certain customer queries, either through IVR systems or smart call routing.

If (like other technologies) AI continues to improve, it could be very handy when used in conjunction with VoIP phones. On a basic level, AI could handle a wider range of customer queries, reducing pressure on employees. It might also help you to understand how your customer support could be improved, by offering insights about call quality and volume.

Improved security

Another major change to VoIP may come via the security that surrounds it. Despite measures like encryption, VoIP phones can (at times) suffer from issues such as latency and poor call quality. These can be the result of hostile attacks from outside the business itself. Businesses may also be vulnerable to other threats, like incoming calls masquerading as someone else to access confidential information.

Since these are obviously major strikes against VoIP as a technology, we can (hopefully) expect these security holes to be plugged before too long.

VoIP: The best choice for businesses

By now, we hope you can see the benefits of a business VoIP phone for business communication. If you’re unsure, we’ve highlighted the key points of our guide below.

1. While VoIP phones can seem intimidating, they are in practice easy to use once set up and compatible with computer or mobile hardware.
2. VoIP voice calls depend upon strong internet connections, but some concessions can be made.
3. VoIP business phone services are growing in popularity, buoyed in part by remote workers.
4. When choosing a VoIP provider, look for the specific features you need. These may include older features (like SMS/text messages), industry-specific features (like call routing), and the overall quality and price of service.
5. When compared to a traditional landline, VoIP systems allow for reduced hardware (such as running it through a mobile phone), lower operating costs, and easier usage and expansion.
6. VoIP phones allow you to circumvent problems like excessive wiring and on-site hardware maintenance.
7. Technical improvements and advanced features (in spheres like 5G, AI, and security) will make VoIP features a more attractive prospect going forwards, and solve problems such as uneven voice quality.

As a popular and versatile form of business communications, VoIP telephone systems are worth considering if you haven’t already. While they do require strong internet connections, they’re ideal for flexible working and other emerging workplaces. Many VoIP communications features, too, can come as part of a broader Unified Communications as a Service (UCaaS) platform.

UCaaS is a great way to avoid headaches in how you communicate. Companies like 8x8 offer flexible, intuitive communication solutions, improving both the employee and customer experiences in the process. Check out our website for information on our communications platform, our broader capabilities, and our various pricing tiers.