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The benefits of VoIP have catapulted the technology into our daily lives and virtual phones are making their way into businesses all over the world. In fact, you have probably, unknowingly used a VoIP service in the past 24 hours.  

Facebook messenger, WhatsApp, Skype, Google Voice… sound familiar? These are all VoIP apps. Instead of asking: how does VoIP work? Ask why it works so well. 

Here are a few facts that outline the benefits of VoIP and illustrate the success of the technology:

• Companies that switch to VoIP save between 50 and 75 percent. Small businesses save roughly 40 percent on local call costs with VoIP.
• In the United States, over 30 percent have seen the benefits of VoIP and are using virtual phone systems because they boost productively and cut costs.
• Traditional phone services are losing over 500,000 customers every month and VoIP services for small business are receiving more business from first time buyers and startups. The benefits of VoIP for startups include cutting initially costs by up to 90%.
• The VoIP market is project to grow at 10 percent every year until 2020

Let’s compare virtual phone systems to traditional:

The Hardware

Virtual – Modern VoIP services for small businesses are taking the term “virtual phone systems” to the next level. They are going virtual by using offered club VoIP services. The hardware consists of servers and the phones used by the business.

Traditional – They are still stuck in the physical world. Hardwired phone lines stapled to office roofs and along door way arches. Physical phones are not an option like they are with virtual phone systems, instead they are the only choice. 

The Software

Virtual – Like all communication via the Internet, virtual phone systems use packet-switching. Data is collected, broken into tiny pieces, sent, and then reassembled upon arrival. The process has been streamlined and is very fast and efficient these days. RingByName is one of the tech companies that uses this method.

Some VoIP services that do not require physical phones install software on a computer you already own to convert it to a phone. These are called softphones.

Traditional – Hardline phones use circuit-switch telephony. The copper wires in phone lines create a single channel between two points and allow for the call to take place.