VoIP Phone Systems vs. Traditional Phone Systems

According to Toolbox.com, “combined business and residential VoIP services will grow to be worth $74.5 billion in 2015.” VoIP business is booming because more and more companies are looking into the benefits of switching to VoIP. But should you migrate to VoIP? We will try to answer that question as we compare traditional phones versus VoIP Phone Systems.

The immediate advantage of VoIP technology is that it removes the ‘middleman’ in favor of a more cost-effective telecom solution. Businesses no longer have to build their own phone network or depend on convoluted public networks prone to downtime and security issues. VoIP reduces the cost of long-distance communication, simplifies infrastructure and increases scalability.

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Comparing VoIP and Traditional Phone Systems

To effectively compare VoIP Phone Systems versus traditional business phones, we need to take a closer look at how each system performs based on the following factors:

1. Features
Both analog phone systems and IP-PBX (VoIP Phone) systems have a very rich feature set for small or large business use.

2. Flexibility
Because VoIP phone systems are more scalable and customizable than analog (traditional) phone systems, they provide far more flexibility for businesses.

3. Reliability
Traditional phone systems are usually more reliable because they are not subject to Internet outages.

4. Internal Communications
Both PBX and IP-PBX systems provide support for free internal calling and extensions for individual lines.

5. Installation
Traditional phone systems require expert help to install and configure; however, VoIP Phone systems are usually plug-and-play.

6. International Calls
This is a major advantage of VoIP phone systems, because only a ‘traditional’ IP-PBX can provide affordable long-distance communication, the rest of them can get pretty expensive.

7. Cost Savings
VoIP wins by a mile on cost savings because it provides cheaper local and international calls, with a unified phone bill that is always lower than that of a traditional phone system.

8. Small Business Support
Traditional phone systems tend to have higher operational costs. This difficulty has been overcome by VoIP phone systems, which have empowered small businesses by reducing costs and simplifying growth.

Why Businesses are Migrating to Hosted PBX Solutions

Cloud Hosted PBX solutions are less complex and more cost-efficient than traditional options, thanks to their remote Internet-based PBX administration and operation. This simplifies communications for businesses and reduces costs. If your business has been using a traditional phone system for years, but you are feeling the need to ‘modernize’ your operations, look into a PBX System solution.

We hope you enjoyed reading this article. Please give us your feedback by commenting below. If you have any questions about VoIP phones, call 1-888-BIRNS-TEL or send an email to contact@birns.net and talk to our experts.

5 thoughts on “VoIP Phone Systems vs. Traditional Phone Systems

  1. Well, the best reason there is to switch to VoIP is the cost especially when making international calls. I have seen lots of businesses using internet calls these days rather than the traditional phone calls. It is more convenient and cost-effective.

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