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zSHARE » News » Technology » The Ultimate Guide for Beginners on VoIP in Business and How it Works
Technology

The Ultimate Guide for Beginners on VoIP in Business and How it Works

Anna BiddleBy Anna BiddleAugust 4, 2023Updated:August 4, 2023No Comments6 Mins Read
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The Ultimate Guide for Beginners on VoIP in Business and How it Works
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Voice Over Internet Protocol (VoIP) is a new technology that allows businesses to communicate over the Internet via voice calls. The technology compresses a caller’s voice into audio data through the internet, breaks it down into smaller data packets, passes it through an IP network, and when it gets to a destination as audio data. 

Unlike the typical telephone system limited to one office desk, a voice mail system allows users to receive and make calls from various devices; tablets, PCs, and smartphones, but only through an app and compatible office phone sets. All calls are made from the Internet, making them cheaper for domestic and international calls. Most businesses that use VoIP services provide unlimited call time at no extra cost.

How VoIP Works in a Business

Today, most businesses use VoIP as their telephony solution because it is cost-effective, offering advanced phone features such as numerous phone numbers, call waiting, caller tones, call routing, and auto-attendant. VoIP is slowly taking over and is expected to grow in the foreseeable future.

The telephony system allows a business to be accessible from anywhere as long as there’s an internet connection through virtual phone numbers. VoIP (virtual) phone numbers aren’t linked to a particular telephone, meaning they can connect to any device used by a company.

Besides connecting to different devices, organizations can choose the type of phone number they want, depending on their goals. For instance, obtaining a toll-free number helps a business to have national exposure, which is ideal for positive growth. 

Alternatively, getting a local number connects the business to grassroots enterprises and the local communities. A local number allows a company to create a virtual presence in a society even without a physical presence in the locality. VoIP technology also enables service providers to provide support and other collaborative communication solutions, such as audio and video conferences. The different options that VoIP offers are why more businesses are adopting VoIP system technology because it is mainly suitable for business growth.

Benefits of Using VoIP in a Business

VoIP has transformed business communication by enabling voice call transmission over the Internet rather than traditional phone systems. If you’re new to VoIP in business, here are the benefits of VoIP in business.

Cost Effective

The primary benefit of VoIP for any business is a cut in costs. VoIP banishes the need for separate phone lines reducing infrastructure costs, and the charges for international calls are much cheaper than regular telephone services.

Scalability and Flexibility

Eliminating phone lines and extensions and replacing them with VoIP allows for accessible communication in a business. VoIP only requires an active internet connection, and any devices connected to it can receive or make phone calls anywhere, anytime, without significant hardware changes. The voice mail system also offers flexibility, as employees can use the same phone number and extension without changing physical locations. Hence, remote work and mobile employees receive equal support. 

Advanced Features

Businesses that incorporate VoIP systems enjoy advanced features that enhance business productivity. The advanced features include a voice mail system that transcripts call to emails, call forwarding, virtual phone numbers, call recording, and an auto-attendant. 

Unified Communications

Since VoIP can easily blend with other communication channels like video conferencing to create a unified communication environment for a business. The seamless integration with other communication channels enhances productivity in a company.

Quality and Reliable Communication

In its initial stages, VoIP went through challenges like call quality and reliability due to internet connection problems. However, as technology advances and the availability of high-speed internet, VoIP has improved in quality. Another development is the implementation of Quality of Service (quality of service) protocols to prioritize voice traffic to enhance call quality and reliability.

Business Continuity

The internet can be disrupted occasionally by disasters or technical hitches, but VoIP is resilient at such times. During the disruption, calls can be rerouted to different devices or locations to ensure business continuity and communication. Additionally, cloud-based VoIP solutions are essential to offer backup during a disaster, safeguarding business operations. 

Integration and Collaboration

VoIP technology system is compatible with various business applications like CRM and helpdesk. The compatibility enables seamless workflow, as employees can make calls from different devices and access call history.

Analytics and Insights

Businesses that adopt VoIP systems benefit significantly from analytical and reporting features from the data collected by the technology. The data provides insight into call durations, volumes, patterns, and customer interactions. These analytics help identify trends, optimize business operations, and boost customer service.

Security Considerations 

As with any internet-based technology, VoIP’s security is crucial. Businesses must implement measures to protect against unauthorized access, eavesdropping, and service interruptions. Secure network protocols, encryption, and regularly updating software and firmware can enhance VoIP security.

Regulatory Compliance

A business must review regulatory compliance before adopting and implementing VoIP solutions, like data security and privacy regulations. Incorporating a compliant system that’s in line with industry-specific regulations is an assurance of additional security measures for the system in terms of call recording capabilities, auditing, and legal purposes.

The Downside of VoIP

With the above benefits of VoIP communication systems, the technology is significantly helpful to a business. However, the technology has a few limitations, as detailed below.

  • For a company to adopt and run VoIP seamlessly, there must be a stable internet connection to make and receive calls without interruption.
  • To avoid business interruptions due to power outages, a company needs power backup for continuity.
  • Adopting a VoIP system in a business means the staff must be retrained on using the technology, which means further expenses. 

Conclusion

Voice mail systems are simple answering machines that process messages for an entire company. Depending on the size of the business, answering phone calls requires that personal and business calls must be separated. Established companies need more robust voicemail systems to accommodate their employees. 

On the other hand, a business that adopts VoIP revolutionizes its communication system, saves on call costs, and offers flexible, advanced features. However, every business needs a voicemail service provider tailored to its needs. An organization should assess its needs, security preferences, and network infrastructure before adopting a VoIP solution.

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Anna
Anna Biddle
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Editor-in-Chief at zSHARE, exploring SaaS and more. Contributor at The Next Web, and Forbes.

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