How VoIP is a Cost-Effective Phone Service for your Business

VoIP, which is short for Voice over Internet Protocol, is the preferred telephone system technology that allows a user to make and receive calls using an internet connection. More and more businesses are choosing VoIP phone systems over traditional phone systems, as they don’t require the use of outdated hardware and aging infrastructure. In the beginning of VoIP technology, the problem was unreliable internet service. As the internet becomes more dynamic and powerful, VoIP is following suit and growing more robust and sophisticated. Being more cost-effective than traditional telephone services, VoIP phone services are now allowing more small businesses to save on costs associated with integrating a telephone system. Read on to learn more about some of the benefits of integrating a VoIP business phone system.

Lower Long-Distance Bills

If your company makes international calls, investing in a VoIP phone system can help your business see considerable savings. Many businesses that place long-distance calls see a drastic reduction in long-distance bills after opting for a VoIP phone system. Because calls are placed over the internet and don’t require the infrastructure of a Public Switched Telephone Network (PSTN), the costs to the end-user are minimal. Using a telephone line on the PSTN infrastructure requires the use of a large network of cables, wires and satellites to function – and this requires a lot of maintenance. With VoIP, the calls are placed over the internet and don’t require any heavy lifting through costly hardware. Because the long-distance fees are minimal, and sometimes nonexistent, the process of calling someone overseas is the same as calling someone down the road.

Lower Teleconferencing Expenses

Did you know VoIP allows your business to save money on teleconferencing capabilities as well? Many VoIP providers include teleconferencing capabilities at a minimal fee. If you find the right provider, you may even get this service at no extra charge. Opting for a VoIP system that offers teleconferencing is a solution that helps your business save money in the long run, as you are not required to sign up for a separate service that allows you to have team meetings, chat with clients, or have large-scale meetings via a teleconferencing system. This service also enables your business to run more efficiently, as it increases the opportunity for quick collaboration.

Hardware Costs

Traditional phone systems require PBX hardware, a system that is costly to implement. Choosing to install a traditional phone system that requires PBX hardware can cost you several thousands of dollars per user, even if you opt for a small PBX solution. By using your business’s internet connection to host VoIP, you are removing the need for PBX hardware and making an investment in your business communication system at a fraction of the cost. A hosted VoIP solution gives you all of the advantages of a traditional telephone system without the trouble or cost associated with installation and maintenance. You can add or remove users quickly and easily, allowing the phone system to grow with your business. Having a flexible telephone system that can adapt to quick changes without the downtime required for upgrades is a big win for your business in the long run.

Network Costs

Not all businesses are immediately equipped to host a powerful VoIP telephone system. In order to have hosted VoIP, you must have satisfactory bandwidth, high-speed internet access and reliable networks. This is why some businesses may need to upgrade their internet speeds and network hardware in order to accommodate more traffic via their VoIP phone system. As a business owner, it is important to weigh the options of cost versus cost-effectiveness. While VoIP is the more cost effective option for a telephone system, if your internet speed is not up to par, you may end up spending more money just to get your network hardware to a more reliable level. If your business already has plans to upgrade the wireless and wired networks, it is a better option to invest in VoIP when those upgrades take place.

Less Expensive to Scale

As your business grows and changes, you want a telephone system that can keep up with demand and adapt. With a traditional phone system, adding new phone lines as you hire more employees can be very expensive. Meanwhile, with VoIP, adding new users is cost-effective and very simple to implement. Adding additional users to your VoIP system is also an option that providers offer with little to no additional fees tacked on. In terms of a physical office, VoIP is also the wiser choice for growing businesses. If your business grows to a point where you need a new office space, you don’t have to worry about moving your telephone system when you have a VoIP system in place. Your VoIP telephone system goes with you wherever you go, and it is easy to install and upgrade. A traditional telephone system would require thousands of dollars just for a new PBX install at a new office location, which is a significant undertaking. VoIP is the optimal phone system choice for businesses, as it is the scalable, cost-effective and user-friendly option for your business’s telephone system requirements.