Voice Over Internet Protocol (VoIP) is a phone system used by businesses to speak with customers. The significant difference between VoIP and traditional phone systems is the technology used to transfer voice data and messages.

A VoIP system uses an internet connection to make and receive customer calls. On the other hand, PBX (Private Branch Exchange) phones deal with wires & cables to handle customer calls using landline connection. In this strategy, customer care agents have to go to the location in person to manage calls rather than remote work.

In this blog, let us discuss the VoIP Advantages and Disadvantages and which strategy can be the best for your business.

With modern technology, VoIP advantages and disadvantages are important to be noted. You have to consider them carefully before making a business decision.  

VoIP Phone Systems have numerous benefits that businesses can enjoy. Here are a few such VoIP advantages for businesses:

One of the leading advantages of VoIP is cost-effectiveness. VoIP Phone Systems can unlock up to 50%-75% savings when compared to traditional phone systems. The primary reason is landline systems require multiple phone lines, which businesses must pay to have installed and to keep active. A VoIP needs one internet connection to deliver the same number of phone lines. The design of VoIP technology means installation, maintenance, and operating costs are relatively lower than traditional phone systems with comparable capabilities.

You don’t have to pay for installation or ongoing maintenance with VoIP phones. Instead, you can pay a monthly fee and use existing devices to call and text your customers. The best VoIP phone systems usually roll out low-cost pricing plans for the features needed to grow your business. Recurring or monthly subscription costs have no hidden charges, so you know what to expect and be ready to pay for it.

VoIP providers also provide significantly lower rates on long-distance calls. If you are working with international customers, clients, or team members, you don’t need to spend a hefty amount on landline phones. Instead, with a virtual phone system, you can buy international VoIP numbers of your choice and make unlimited international calls around the world.

By enabling remote work for your business, you don’t need to pay a massive amount for infrastructure. With a virtual phone number, you can choose where and when to work without any constraints. In addition to all these benefits of VoIP services for businesses, you can have access to more & advanced features without paying extra.

Secondly, when speaking about the advantages of VoIP desk phones, they are easily scalable and portable. You can add or remove multiple team members in a single click without going through a complex process of dealing with the IT team. With a VoIP phone service, adding a new member is as simple as inviting them through email.

If you want to establish a presence in a country with a broader customer audience, you can buy a VoIP telephony number for that particular location and engage them with that. By doing so, you can expand and grow your business in that specific area.

Additionally, you will never be bored with the VoIP phone features. However, if you are looking to add new ones, you can always upgrade to where you can explore transcriptions, analytics, and more. If you need to remove your existing team members who are not a part of the team, do it seamlessly with just a single click. With a traditional phone that is connected to PSTN (Public Switched Telephone Network), you should pay a significant amount for adding new members or features.

When it comes to portability with VoIP technology, phone numbers are not tied to any specific location. They are entirely portable, which means you and your team can move anywhere. For instance, if your office relocates to another place, you don’t need to deal with the complexity of switching phone numbers and updating contacts.

When you are working on the go, you cannot take desk phones or landline phones with you. These phones rely on hardware available in the office, so when you walk outside, there are higher chances that you may miss a call.

The critical advantage of VoIP solutions and softphones is the mobility factor. You can manage calls from whatever internet-enabled device is suitable and works for you. For instance, if you are working from the office, you can work on desktops or laptops. If you are working outside, you can plug in your mobile phone and tap on the app to handle calls. Even if you are flying in a plane, as long as you are connected to a strong internet connection, you can engage your customers without any issues.

TeleCMI, as one of the leading VoIP Providers, has designed a superfine and user-friendly application to ring your business number on your phone. This means you will get all the convenience of using your mobile phones without sharing your personal number.

When speaking about VoIP advantages and disadvantages, VoIP excel in security. Cybersecurity threats are one of the major concerns for any business in this digital world. You need a phone system that can rule out any security attacks and remain protected. This is something professional VoIP service systems do.

A cloud-based VoIP phone service comes up with advanced security measures to protect against threats such as social engineering, hacking, and denial of service attacks.

VoIP uses encryption to eliminate eavesdropping and allow more secure calls. For instance, when you are calling your home, your phone number will be visible on the caller ID. On the other hand, if you are calling from your business phone number, it will be hidden behind a number that is not used by anyone.

VoIP phone systems have complex security features, making it difficult for hackers to access VoIP networks. For example, if someone wants to hack your network with VoIP, there is no chance of succeeding in it as in traditional phones.

VoIP solution has the benefit of UCaaS (Unified Communication as a Service), allowing for a single centralized location and service provider for the entirety of a business communication needs. This means teams no longer have to coordinate with multiple telecom service providers and struggle with numerous apps as all the communication platforms

The more productive your team is, the more profits you can reap in the industry. Plugging your VoIP system into automation, webhooks, and third-party tools can help you streamline business tasks so that your team can focus on what is important and build a customer relationship and grow our business. By setting up business hours, incoming business VoIP calls can go straight to voicemails when you are not working.

You will be able to be efficient you would be by routing calls through IVR or quickly responding to missed calls and voicemails even if you are not available to pick the calls. Added, you will also be able to engage your customers through calls, texts from your computer, laptop, smartphone, or tablet. Since you don’t need to purchase third-party hardware, you can start handling calls from wherever you want.

Here are a few disadvantages of VoIP which should also be considered for your business:

If you are somewhere without an internet or experiencing a power outage, your clients and team members may not be able to reach you right away. For instance, let us consider a situation where you went to a vacation in a remote destination with no or limited internet facilities. There won’t be business calls, but customers can contact you through voicemails which you can access when you have a proper connection.

Non-fixed VoIP phones are not tied to a specific physical location which gives them the mobility many professionals are looking for. However, this can cause an issue when there is no way for emergency services to your location. If you have a physical address linked to your VoIP account but you are working on the go, emergency workers may be dispatched to the wrong location.

The advantages of VoIP are hard to deny: more ways to save time, more data-backed decisions, and more mobility at a far lower cost. Hence it is a win-win situation for businesses. VoIP phones can improve your business communication while keeping your wallet satisfied and happy.

When considering advantages and disadvantages of VoIP Phone System, the latter one does not affect your business. The benefits of VoIP are higher and makes you to switch from traditional phones to VoIP phone services which is an easy decision.

After analyzing VoIP advantages and disadvantages, if you are looking to switch to VoIP services for your business, TeleCMI is here to help you. We have numerous features integrated in our application and you can explore them for a clear perspective. Get in touch with us for a free demo to know more about the product.