How can VoIP help your business improve communications and save money?

Voice over Internet Protocol (VoIP) technology has quietly revolutionized the way that businesses communicate and presents us with the opportunity to extend that revolution to our communication budget.  Most of us now use some form of VoIP technology multiple times a day for personal or business calls without even realizing it; Skype, Zoom, Microsoft Teams, Google Voice, and many of our vendors’ phone systems all depend on it.

What advantage does VoIP have over traditional phone systems?  

Today’s landline phones still work in the same basic way as they did more than a century ago in Alexander Graham Bell’s experiments. They convert sound waves into analog signals to be sent across wires (or radio waves in the case of cell phones) to the receiving phone. In contrast, VoIP phones convert sound into digital packets to be sent across the internet. This seemingly insignificant innovation has transformed the performance, capability, flexibility, scalability, and cost of modern phone systems.   

1. Performance 

A VoIP system can maintain the traditional call structure of a PBX (Private Branch eXchange) with greater speeds and reliability. This means that your office can still have a primary phone number for incoming calls that has extensions, call forwarding, voicemail and other call management options, but with improved performance. When coupled with modern high-speed internet connections, VoIP calls are generally faster and more reliable than traditional landlines. This can be very important for keeping customer service, and other high call-volume business areas, running smoothly. 

2. Capability

Unlike traditional landlines and phone systems, VoIP calls are not constrained to simple audio calls. By using a digital information model, VoIP enables users to send text, audio, and video simultaneously – opening the door to today’s videoconferencing calls. As many of us have discovered, the ability to instantly share our computer screen with a co-worker or organize a quick video call with an ad-hoc team has transformed our ability to communicate personally and efficiently. 

3. Flexibility

Due to the internet-based nature of VoIP, your business calls are no longer tied to your office location. With no switchboard or cabinet, VoIP systems are extremely portable and flexible. Ideally suited to today’s hybrid and home-based work culture, VoIP is an excellent option for those companies that have decided not to return to a “five days a week in the office” model following the disruptions of the COVID-19 pandemic. 

4. Scalability

Unlike a traditional phone system, adding a “line” to your VoIP system does not require you to physically run a wire to your new employee’s desk. As a result, you can easily add (or remove) employees from your VoIP system without complicated or expensive support from your phone service provider. Most businesses opt to retain traditional desk phones for their VoIP systems, although all you really need for a VoIP call is an internet connected device such as a computer, cell phone, or tablet.

5. Cost

Let’s be honest, although the first four reasons are great, they are really just icing on the cake. For many small businesses, the cost savings of VoIP alone are reason enough to consider switching. By eliminating the costly infrastructure and maintenance of traditional landlines, VoIP can cut the annual communications budget of most businesses by at least half. 

Much of the savings come at the time of installation. Small businesses can usually count on spending around $1000/employee to install a traditional system, compared to $100-$400 per employee to simply purchase and plug a VoIP capable phone into the wall and connect it to the internet. After installation, your savings continue each and every month. Depending on the unique needs of your office, a VoIP plan will likely cost between $15-$40 per user. Compare that number with what you are currently paying for a traditional phone service. 

Is VoIP a better choice for your business?

As the technology matures, VoIP service providers have greatly expanded their offerings and the technology is available for businesses for any imaginable size or budget – from five employees to 5,000. Although there are some rare instances when a landline might be a better fit for your business, more and more businesses are switching to VoIP due to the reasons above. 



If you are interested in discussing the options available for your business, NOC Technology provides expert guidance to businesses in Missouri and beyond to select, switch to, and manage their VoIP phone systems. Get in touch with us today for a free strategy consultation with our VoIP experts. We can help you make the best decision for your company and your wallet.