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Advantages and Disadvantages of VoIP Systems for Small Business

advantages and disadvantages of voip systems for small business cornerstone protection

Voice over Internet Protocol (VoIP) refers to a communication technology that conveys all business communication, e.g., voice calls through the Internet. It needs an active internet connection to function instead of the normal copper wires.

Its advanced features and significant cost savings have made it popular with modern businesses.

Besides offering high-quality audio, modern-day VoIP providers now offer other functionalities such as Interactive Voice Response and video conferencing. Others include business process automation and call routing strategies.

All these functionalities combined have helped make the VoIP niche a 20-billion-dollar industry. As a business manager, the question now remains, ‘Should you abandon the traditional copper wires in favor of VoIP?’ learning the advantages and disadvantages of VoIP can help with this!

What Is a VoIP Phone Business?

The VoIP systems for small business enable you to make voice calls over local area networks (LANs) instead of the normal landline or mobile network. Popular apps such as WhatsApp, Viber, Facebook Messenger, and LINE are examples of apps that use VoIP to complete calls.

Many businesses are adopting this technology due to its low cost, convenience, and added advantages over normal phone service. As most of our customers have come to learn, VoIP allows you to make calls at any time so long as you have a reliable internet connection.

The advancements happening in the tech sector have led to small business VoIP solutions being transformed into fully-featured unified communication hubs. These are hubs that can handle all forms of communication, including voice, email, fax, voice mail, and web conferences.

So, What Are its Advantages and Disadvantages?

Advantages of VoIP

If you’re wondering what are the benefits of VoIP, you should note that they’re many and varied. They include saving money on phone bills by making the switch to a more flexible system. Our experience with them has also proven that they’re more secure than traditional landlines.

advantages of voip cornerstone protection

1. Lower Costs

Every business owner cares about their bottom line. It doesn’t matter whether you’re a startup, an SME, or a large enterprise; every expense matters. For this reason, you must grab every cost-saving opportunity that presents itself.

One way to go about doing this is to realize the kind of savings you can make with a VoIP system. Look at it this way: it costs you an average of $50 a month to make local calls on a landline. With VoIP, you can make the same calls for as little as $20.

While the above figures indicate that a shift to VoIP can lead to lower costs, you should note that this isn’t a guarantee that the same will happen to you. Different businesses will have different needs, which translates to varied expenses each month.

2. Portability

Is VoIP reliable for business? This is one of the most commonly asked questions by our clients, especially when we mention portability as a benefit. We have to mention that VoIP is a standout benefit for teams that are highly mobile, hybrid, or remote.

Since VoIP operates online, your people can access their phone systems from any location provided they have an active internet connection. It’s what makes it ideal for companies that have personnel working from different locations and time zones.

Additionally, VoIP works seamlessly with any internet-enabled mobile device or desktop. It offers a softphone interface, web browser-based calling, and iOS and Android applications for smartphone use. It’s a solution that keeps your teams and executives connected 24/7.

3. High Scalability

As we continue to explore the many VoIP features and benefits to expect, we can’t help but mention its high scalability. A growing business needs access to a scalable system that can scale up or down in line with business demands without impacting business operations.

Consider this: if the call volume were to increase suddenly, you’d need to scale up fast without incurring too many expenses. VoIP allows for such a possibility at no additional cost to the business. If the need to scale up arises, all you need to do is add another line or two to the existing ones.

Scalability lets you enhance customer experience without increasing the operating budget.

4. Advanced Features for Teams of All Sizes

VoIP solutions come with advanced features such as call transferring and auto attendant. Their presence makes it possible for small ventures to project the image of an established company. For larger enterprises, such a system makes them appear more approachable.

For example, the auto attendant feature can make a company appear larger than it is. The sole proprietor or manager can use this feature to make it sound as though the business has multiple departments. And this is not forgetting the multi-party calling abilities.

These are among the benefits of VoIP for business that you stand to experience.

5. Increased Security

Although VoIP had a rough beginning security-wise, the advancements happening in the tech sector have helped improve the situation. Today, the VoIP solutions on offer include remote monitoring capabilities with access control and real-time security alerts.

These business solutions now boast of advanced security features that rival those of traditional landlines. You can expect your solution to have the following ten security features.

business phone installation security cornerstone protection

Live reporting and security notifications

  • Two-factor authentication
  • Call blocking
  • Spam blocking
  • Meeting host controls and waiting rooms
  • Fraud prevention
  • Automated data backups
  • 24/7 network monitoring
  • End-to-end encryption
  • PCI, SOC 3 Type 3, GDPR, and HITECH compliance

Each security feature mentioned above improves its trustworthiness in a business setting.

6. Supports Multitasking

VoIP phone solutions are much more than your ordinary landline – they’re a modern way for your business to communicate. For example, a typical VoIP router can handle all your incoming voice calls and internet traffic and remain available for use on the business or home network.

What this means is that you can use the router for all your communication needs, including playing online games, streaming music, and sending and receiving emails. Moreover, it allows you to easily switch between different devices without having to pay for additional software.

With VoIP phones, you’ll no longer need to worry about investing in new phones also, as you can transfer contacts from one phone to another. The only time you may need to incur an additional expense is when switching providers.

Disadvantages of VoIP

As with everything tech-related, each solution has its set of advantages and disadvantages. And despite the many benefits mentioned above, VoIP telephony isn’t exempt from this rule. However, knowing its potential downsides can make it possible to manage your expectations.

disadvantages of voip cornerstone protection

1. You Need a Stable Internet Connection

Your availability will depend on the stability of your internet connection. If your current network bandwidth is low, please note that your service will be affected. For optimal service, we recommend ensuring each device has an upload speed of at least 100 Kbps.

Based on our extensive experience in this industry, we believe the following are the best connections for VoIP:

  • 5G internet (cellular)
  • Fiber internet
  • LTE internet (cellular)
  • DSL internet
  • Cable internet

The bandwidth you’ll need in your business will vary depending on the number of concurrent calls you intend to make at any given time. Our technicians can run a bandwidth scan for you to determine your needs.

2. Emergency Situations

A loss of power in the face of an emergency means all VoIP communications will get disrupted. Remember, VoIP-compatible devices in your business network require a sustained power source to operate.

Therefore, you may need to invest in a backup landline to handle emergency situations.

3. Incompatibility with Some Older Systems

Not all fax machines and alarm systems can work with VoIP solutions. Depending on your niche, you may have to modernize the on-site security to support integration. Alternatively, consider using an ATA to retrofit the current hardware to work with this business solution.

Conclusion

In this article, we have covered the most prominent advantages and disadvantages of VoIP systems. And as you can see, its benefits outweigh its disadvantages. If you’re still unconvinced about making the switch, note that copper wire telephony won’t last forever.

As a result, you’ll have to make the switch at some point. The bottom line is that VoIP is superior to traditional landlines due to its scalability, portability, and enhanced security. It’s a solution that will lead to significant cost savings in the long run.

FAQs

What is VoIP and what business advantages does it provide?

VoIP or Voice Over Internet Protocol is a business solution that allows you to communicate through the Internet. Its advantages to a business are many and include cost-savings and better security than normal landlines.

Is VoIP better for business?

Yes. It’s an attractive solution for business owners as it enables them to use the same hardware to run voice and data calls on one network. Plus, the savings it guarantees are extensive, even for those who decide to extend their lines.

How does VoIP allow a business to make calls over the Internet?

It works by allowing voice communication via the Internet. What this technology does is that it takes audio data, such as your voice, condenses it, and then breaks the data into smaller packets. This is what it sends to the recipient via the Internet.

Why use a VoIP phone system?

There are many reasons to use a VoIP phone system, including better audio quality, advanced features, scalability, and flexibility.

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CornerStone Protection

Based out of Lexington, Kentucky, CornerStone Protection has years of experience protecting and helping others. Clients come from Winchester, Elizabethtown, and other parts of Kentucky as well as Charleston, West Virginia. Shannon Stone retired from the City of Winchester Police Department and realized locals needed better security. CornerStone Protection took a new approach to the field, using his experience to help clients find the right products and equipment. Clients now get help every step of the way.

Learn more about the best security solutions for a home or a business with a call to CornerStone Protection at (859) 353-6020 or send us a message online.

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