- Voice over Internet Protocol is a phone system that uses online technology to send and receive voice data. Instead of having dedicated phone cables, VoIP systems send packets of data over Internet cables and through servers to other computers, where they are unpacked into sound instead of images. This allows you to use your online system as a phone service, in addition to the usual Web applications.
- Businesses use VoIP throughout their own companies when they adopt the system. A single user can drop phone charges and simply use his Internet provider for phone service, with a slightly raised charge that is still less than a separate phone service fee. A business multiplies this savings many times over, working out deals with Internet providers that allow for minimal charge fees over the customary fees for internet access. While the cost of replacing a phone system with VoIP must be accounted for, VoIP systems tend to save businesses money, especially over the long term.
- Businesses that use VoIP have more office flexibility than offices with traditional phone systems. First, physical space is easier to manage. Phone microphones and speakers plug directly into the computer, removing the need for any physical space taken up by phone banks or wires. Second, VoIP applications run online and are customizable. You can set up and route phone calls however you wish, making it easier for customer service employees to choose a caller, answer them and pull up their file from the database all in one action.
- Despite its benefits, VoIP does have downsides. First, it's subject to security issues. Because the information is sent online, it's subject to hacking and secure information may be stolen or blocked. Also, VoIP services depend entirely on the quality of the Internet service. If the Internet service goes down or bandwidth is taken up, then phone calls will be dropped and your business will be stuck without phone communication abilities in addition to loss of online functionality.
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