What is VoIP and How Does it Work?

Voice over Internet Protocol or VoIP, as the name suggests, is a technology that is designed to transmit phone calls over the internet. The technology converts voice into digital packets which are then transmitted over the network all the way to the receivers’ end. VoIP technology allows businesses to make phone calls directly from their VoIP phones, computer, and other data-driven devices.

In simple words, VoIP is a phone service that is delivered over the internet. VoIP is also widely recognized as IP telephony or IP phone service. In this article, we will discuss how VoIP technology works in more detail.

How does it Work?

VoIP technology makes use of standard analog phone calls over the PSTN (Public Switched Telephone Network) and converts these analog calls into digital packets. These digital packets are then transmitted over the internet to the other parties on the call at the receivers’ end. These packets travel over the internet in the same manner as that of any other digital data including email or files.

As VoIP makes use of digital packets to transmit voice, much more information can be sent over the network to enhance your business communication needs. In addition to this, VoIP provides access to different features and functionalities that can potentially increase the productivity of the employee and your business, in general.

VoIP solutions have progressed into a wide variety of services that treat all communications including phone calls, voicemail, faxes, and conferences as discrete units which can all be delivered through any means and to any device, including business cell phones.

Types of VoIP Services

There are two different types of VoIP services – Hosted PBX and On-Site PBX services. Hosted VoIP services are those wherein the phone connects through the internet connection to a VoIP provider who maintains the hardware and equipment at an off-site location. Whereas, On-Site VoIP services are those where the hardware and the equipment required for VoIP services are maintained on-site inside the business server room.

With Hosted VoIP services, the business places majority of the IT responsibilities with the service provider. All of the burden related to maintaining and monitoring the VoIP system lies with the service provider. There is no need for the business to have additional IT staff and training to operate VoIP services. However, businesses still have to configure the devices connection to the PBX server, firewall settings, and others.

With On-Site VoIP services – all of the hardware is kept within the business, thus providing better opportunities for customization. Businesses get the freedom to customize various features including call routing and scalability. However, when majority of the hardware is kept on-site, businesses are recommended to have trained IT staff to better manage the operations. This can increase the cost burden on your business.

Final Thoughts

If your business is looking to implement VoIP technology, VoIP.ms can help you setup your business communication requirements. With much hype around it for years now, it is about time for your business to take advantage of what VoIP has to offer to your business.