What is “VoIP”?

VoIP is:


VoIP phone systems utilize the internet to transfer sound waves, rather than traditional landlines. Commonly referred to as cloud phone systems, this technology is rapidly replacing many companies’ land lines, or POTS lines.

Other terms commonly associated with VoIP:

  • Cloud

  • Hosted

  • UCaaS

  • Internet Telephony

  • IP Telephony

  • Broadband phone service

How does it work?

First of all, a communication device is connected to the internet, whether wirelessly or by a “hardline” plugged directly into the data port. Then, a call is placed through the device, whether it is a traditional handset phone, a cell phone, or a computer. Then, the VoIP system or software program, converts your speech into packets of digital data. It is then handled by the internet in the same way as email and other data, traveling via the internet and being converted back into sound at the destination.

Who is a good candidate for VoIP?

Businesses that don’t want to house, maintain, and mange the hardware and software programs necessary for modern communication are candidates for VoIP. It is also an excellent choice for companies that may not have the capital in their budget to buy these systems outright. By using a data network for your voice calls, a business can reduce costs, improve productivity, and enhance collaboration capabilities.

VoIP often opens the way to add other unified communications (UC) solutions for small businesses. Most VoIP providers offer integration and collaboration tools that can be tied into your VoIP system creating a “single pane of glass” user interface to easily access voice, video chat, Web conference, and instant messaging, fax, email, customer records, and more.