What Is A VoIP Phone System?

What Is A VoIP Phone System?
What Is A VoIP Phone System?

What is a VoIP phone system?

A VoIP phone system, or Voice Over Internet Protocol phone system, uses a high-speed internet connection to transmit your calls across the internet – sort of like sending an email or fax. In most cases, it uses an existing network so there is no need to run new cables.

VoIP systems typically require less physical equipment and easily integrate with your computer to enable features such as voicemail-to-email and click-to-call. Other features offered with VoIP Phones are:

  • Auto attendant
  • Personal Directories,
  • Do Not Disturb
  • Call Forwarding
  • Ring Groups
  • Directory Assistant

These features, and more, can be utilized with a land-line connection but are more complicated to set up. VoIP users also enjoy the scalability these systems offer. Many companies experience growing pains when adding to their team, so the less you have to worry about the better. Easy setup and configuration allows those growing teams to quickly add new users and adjust user type.

Hosting your VoIP phone system

Now, your VoIP phone system can be hosted one of two ways – on-premise or in the cloud. The phone equipment is housed at your business when hosted on-premise. This set up typically has higher up-front installation charges compared to cloud hosting. However, with your IT team maintaining the system, on-premise hosting allows for a highly customizable system configured to your business needs.  This hosting option is great for businesses that can afford those installation fess and wants the added flexibility of configuring their own phone system.  

Cloud-based VoIP systems, on the other hand, have little-to-no up-front installation charges. There is, however, a per user, per month fee that is dependent on your business needs and phone system features. With so much focus on cloud-based technology these days, hosting your VoIP phone system in the cloud is becoming just as customizable as on-premise hosting.  Just make sure to have enough bandwidth and backup equipment to reroute calls during power  or internet outages!

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