What is Business Phone System and How does work on VoIP?

Voice over Internet Protocol (VoIP) is a remarkable innovation and a veritable boon to the business community. With VoIP phone systems voice communication is transported over the internet instead of over the public switched telephone network (PSTN) and because of this, VoIP holds numerous benefits for the user.

VoIP is a way to make calls across your Local Area Network (LAN) and or Wide Area Network (WAN). The VoIP technology converts analog voice into digital packets which are then sent across a network using the Internet Protocol (IP) to the receiving end.

To avail VoIP facility, you require a dependable broadband (high speed Internet) connection. This can be via a cable modem, or high speed services such as DSL or a LAN. If you want to use your computer, then you will require some software and a microphone.

Businesses that have switched over to VoIP have found that sending voice digitally over the internet has vastly improved communication efficiency and has contributed to increasing the overall productivity. VoIP has facilitated the integration of all internet based digital technologies such as, email, directory services, web, instant messaging, and mobile.

The major attractions of VoIP are cost savings, feasibility to use IP Phones wherever there is an Internet connection, improvement of business efficiency, increased productivity and scalability. Here are some of the salient advantages of VoIP system for business houses:

1.A noticeable reduction in monthly long distance call charges

2.Several standard as well as advanced features like conferencing, three-way calling, call forwarding, call transfer etc at no extra cost.

3.The system is scalable and you can enlarge the system as your business grows. In other words, you only pay for what you use.

4.Unified communications is feasible User can integrate voice with other business systems including email, CRM and web system.

The question most business owners ask is - how is a VoIP phone system different from the existing PBX? Please know the VoIP system is a game changer. The traditional PBX uses TDM technology whereas a VoIP phone system uses IP (Internet Protocol) technology. The existing PBX uses its own closed network while a VoIP phone system uses the existing LAN. The age-old PBX uses the PSTN for dial tone while a VoIP phone system avails the services a VoIP provider and/or the PSTN for dial tone.

VoIP phone systems give you a host of standard as well as optional features and functionality. Some of the most common features that most businesses ill be enamored of will be - Auto Attendant, Direct Inward Dialing (DID), Caller ID, Call Transfers, Call Waiting, Call Forwarding, Conferencing, Call Park, Call Recording, Call Routing, Voicemail (and voicemail to email), Web based management etc.

There is a clamor for VoIP Phone Systems by business houses because they are feature-rich and offer remarkable functionality, much-needed flexibility, significant cost savings as well as advanced optional features that substantially improve employee efficiency and overall productivity.

In general phone service via VOIP costs less than equivalent service from traditional sources. Some business houses use VOIP without abandoning the traditional phone service, since VOIP service providers sometimes do not offer 911 service, phone directory listings, 411 service, or such other special phone services.