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Business VoIP Systems VS. Traditional Phones
Updated: March 11, 2024
Throughout the 20th century, landline phones rocked the communication sector. However, a few years into the 21st century, a new system disrupts this space. The Voice over Internet Protocol has come up strong, offering a communication system with an infrastructure on a cloud server. Hence, businesses can leverage its high-speed operation system to streamline inbound and outbound communication.
However, VoIP can confuse many business owners, mainly because of how it works. So, they stick to landlines and still reap the benefits of that communication. Landline communication is still relevant in modern communication. However, VoIP has taken significant steps ahead of it, revolutionizing communication in the modern era.
So, which communication system should you bank on as a small business owner between landline and VoIP? This article explores the significant differences between the two communication systems to help you determine which will work best for your business. We’ll also dive into the sell-out benefits of each system and the essential aspects that any business needs, such as redundancy and emergency services.
Advantages of Business VoIP Systems
1. Cost savings
Voice over Internet Protocol is an internet-enabled service that facilitates calls and other voice-based services. This goes in step with the development of high-speed data networking, software technology, and widespread broadband internet access. This means you can only make all your voice calls, including video calls, through the Internet. With access to an internet connection and a good VoIP service provider, you can run your business remotely, saving on rent and other related costs.
VoIP services come at a friendly rate, favoring even small businesses. As the implementation process is fast and affordable, you can set up this communication system immediately after launching your business. Good service providers have high-tech features and numerous integration options without breaking the bank. Most pro plans include advanced features, all for a few dollars per month.
2. Flexibility and scalability
VoIP supports a variety of third-party tools that you can easily integrate and remove whenever you feel like it. This means you can hire this service as you start your business and scale it up as it grows. VoIP is a price-friendly option because it lets you choose which features to prioritize and when to add advanced features.
This best aligns with market trends because you can add and remove features whenever your business needs them. Typically, a business strains when its operations go down because its premium features will demand payment regardless. However, VoIP allows you to agree on which tools or service locations you can permanently sideline whenever you reach a stall.
3. Enhanced features and collaboration tools
VoIP elevates call quality at a glance, making it crystal clear and providing advanced features. So, you have advanced IP phone tools like call forwarding, call queues, auto attendants, and call recording. This system supports a variety of voice calls, including video, voicemail, email, three-digit dialing, and three-way calling. You can also have real-time messaging through email or SMS.
With VoIP, you can do more than just make calls. You can cater to your clients’ needs by analyzing their calls and transcribing their needs or details. Such features include call analytics, voicemail-to-text transcription, and anonymous call rejection.
4. Geographic flexibility
VoIP’s communication infrastructure is cloud-based. This means that it relies on data transmission, which happens through an active internet connection. As such, you can access this service from anywhere, provided you’re logged into an internet connection.
This suits modern-day business operations, registering your business’s online presence. Conventional working hours or on-premise operations do not restrict your operations. So, you can leverage this aspect to expand your business anywhere in the world without meeting the set business premise modalities.
That way, you’ll avoid taxation, insurance, and other financial obligations from setting up a business premise. A virtual communication system can operate without insurance coverage because all your data is stored in the cloud and can be easily retrieved in a disaster.
5. Integration with business applications
Most businesses today bank on customer relationship management, email, and other essential tools. This suits any modern business setup without significantly changing your existing business infrastructure. Hence, businesses can route calls, send texts, video files, and SMS, and forward calls to the relevant agents, regardless of location.
Advantages of Traditional Calls
1. Reliability
Landlines have made a mark even in the most advanced business areas. Its near-global reach makes it a reliable communication tool that most people can use, especially in areas with low susceptibility to internet disruptions. This communication system uses electric wire transmission, which is less spotty, an essential aspect of making your business available whenever your clients need you.
With a good service provider, you can have relatively low downtime in case of technical hitches or lousy weather effects.
2. Call quality
Landline calls depend on copper wire transmission rather than internet bandwidth. This means the quality of the call is always stable if all other factors, like internet stability, keep changing. So, if you’re in a low-network area, a landline phone will make better calls than a VoIP system.
3. No dependency on internet connectivity
Landlines operate without an internet connection. They depend on a physical communication system rather than a virtual one, which can’t be accessed without a stable internet connection. As such, this communication system offers consistency in business operations without the threat of prolonged downtimes during internet fluctuations and outages.
4. Security
Landlines offer a safe communication system far from cyberattacks. With landlines, you can be sure that only you can access your data and business information. You also don’t have to worry about expensive cybersecurity plans. You win clients' trust since you completely control business and client information. Unlike a porous VoIP system, landlines are not susceptible to hacking and other cyber threats
Considerations for Business VoIP Systems
1. Internet dependency
A poor internet connection translates to a flawed VoIP system. VoIP systems rely on a stable, high-speed internet connection to function correctly. It’s, therefore, essential to source a provider that optimizes latency and has geographically redundant data centers. You also need ways to combat disruptions, like automatic calls and battery backup options.
2. Quality of Service (quality of service)
Quality of service measures different types of traffic, including bandwidth, loss, jitter, and delay. Hence, quality of service manages network congestion, link efficiency, classification, and traffic policing. If all these aspects are catered to, the quality of service will go up, setting your business up for success.
3. Training and adoption
Many workers prefer the old communication method, especially if the new one requires more adoption. VoIP is a new technology that requires familiarity with a few high-tech features and tools to operate. However, it is not all new, and with the necessary training, the system will be easy to use and manage. Also, providers curate their user interface to be navigable by newbies.
Consideration for Traditional Phones
1. Limited features and innovation
As the world adopts more digital technology, analog telephony systems are gradually becoming obsolete. Being accessible all over the world is becoming a necessity for many businesses with limited landlines. Since the latter doesn’t adopt digital technology, it cannot support advanced feature upgrades, collaborative tool integration, and other related tools.
2. Higher operational costs
Landlines are considerably more expensive than VoIP systems. Small businesses may struggle to sustain the high fees associated with additional features like voicemail, caller ID, and call waiting. Other costs related to landlines include taxes, rent, and maintenance costs.
Making the Decision
Consider your priorities to determine which communication system is suitable for your business. VoIP will be a perfect fit if you need cost-effectiveness, scalability, and flexibility. You can also cut costs on long-distance calls. This is a friendly option for international businesses with high call volumes.
On the other hand, landlines are best when security, reliability, and tenacious call quality come first. You have a track record of security and data privacy. If your area of operation is prone to power or internet outages, then landlines are more reliable for consistency.
Future Trends & Innovations
Communication keeps improving with the latest advancements, such as 5G connectivity, artificial intelligence, etc. Integration tools keep increasing daily, serving businesses with convenience and collaboration. Such advancements are futuristic and will shape the future VoIP and landline telephony landscape.
Conclusion
Your choice of which communication system to use depends on your business needs. This speaks to which aspects to prioritize and which you can sideline. Remember, VoIP comes first if you’re looking at scalability and want to be flexible across different geographical locations.
Landlines come in handy when you need consistency and top-notch security. Consider the above factors to ensure your communication infrastructure perfectly fits the puzzle.
Read our reviews, blog posts, and comparisons to learn more about VoIP providers and which one to work with.