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Business VoIP: Advantages and Disadvantages

Veronika Petrenko

July 16, 2020

In today’s globalized and fast-paced world, more and more businesses reject traditional telephony in favor of online communication. Mainly because of the convenience, cost-savings, and flexibility it offers to business. However, like with any other system, there are some pitfalls that may not fit your telecom needs. Let’s try to weigh all the Voice over Internet Protocol advantages and disadvantages. So that you get a clear picture of how VoIP works, its fundamentals, and reasons why you should give this technology a try.

Definition of Voice over IP

Voice over IP or simply VoIP is an advanced telephone system that uses the internet for making video and voice calls. VoIP technology uses packet switching to transmit the data through the internet, which is much more efficient and provides better sound than landline telephony could ever offer. With VoIP, you can easily place calls anytime and anywhere using your computer, IP phone, softphone, or any other data-driven device. 

VoIP Advantages

Voice over IP technology offers multiple advantages that can transform your business communication. So, let’s unpack the key advantages of VoIP: 

1. Cost-Effectiveness

The number one reason why choose VoIP technology over landline is cost saving. You do not need to invest in expensive equipment, as all you need is a stable internet connection with sufficient bandwidth. This technology can reduce your expenses on international calls because you get local rates no matter what country you are calling to. Besides, most VoIP providers bill per minute or even per second, and there are no long-term contracts or hidden fees. Typically, VoIP providers offer different plans, special offers, and even discounts for their customers. 

2. No Location Barriers

Switching to VoIP will be a great option if your business deals with international calls or you are about to enter new global markets. You can easily forward your calls to any location or device in the world without relocating your office. Plus, you can easily answer the calls on the go from your personal mobile phone, as you’re not bound to a stationary phone. 

3. High Scalability

Scalability is not at the end of our Voice over IP advantages list. VoIP system is very flexible — it literally takes minutes to add new users or configure your system. You don’t need to rely on your tech team or call your provider each time you need to make some adjustments. Most VoIP providers have an intuitive admin portal where you can easily manage everything yourself. 

4. Improved Productivity

The VoIP telephone system usually comes with a variety of call management features that can better your communication experience and increase your productivity. Including call forwarding, call recording, IVR, etc. With VoIP, telecommuting is made easy — you can work from anywhere and not be stuck at the office all day long. But, what is more important, VoIP technology can better the collaboration within your office as well as with your customers, as many working processes are automated and facilitated. 

5. Easy Integration

Implementing a VoIP system can enhance the customer experience, as usually this telephone system can be integrated with any CRM of your choice. Meaning, you can access the information about your leads or call your customers in just a single click.

6. Premium Voice Quality

Over the last decades, the quality of VoIP calls has improved drastically. So, choosing a VoIP telephony over landline one, the chances that you face such problems as looping voice, broken calls, or high latency are relatively low.

VoIP Disadvantages 

Before switching to Voice over IP, you should be aware of its negative side as well. So, what are the disadvantages of VoIP?

1. Internet-Related Problems

As stated from its name, IP or simply the internet is an integral part of Voice over IP technology. The VoIP service can’t work unless you have a stable internet connection with enough bandwidth. If it’s not so, you may experience some audio quality problems, including choppy voice, latency, jitter, or echoes. They mainly happen because there are some problems with the internet connection or data servers of your VoIP provider. If you want to have excellent voice calls, you also need to get a separate internet line for your VoIP calls. And of course, choosing a credible VoIP service and ISP provider will help your business operations run smoothly. 

2. Emergency Calls

Not all VoIP services offer emergency 911 calls, as they are not bound to do this by regulations. If this is your primary concern, you should find this out before switching to VoIP.

3. Security

Many potential VoIP users worry about system reliability and security. Yes, there are some potential security risks because VoIP works through the internet. These include spamming, ID spoofing, service theft, viruses and malware, phishing, and call tampering. However, the security risks are minimal if you choose a trustworthy VoIP provider that uses strong encryption technologies to keep the data secure. 

Wrapping Up

The use of VoIP service is growing worldwide, as many companies are about to go online and are looking for ways to make it fast and effortlessly. If you search for an alternative to your landline business telephony, VoIP service is worth considering because the advantages of Voice over IP outweigh its disadvantages.