VoIP technology offers flexibility, cost savings, and advanced features that outshine traditional phone systems.

The phone is dead. Long live VoIP.

Traditional phone systems are no match for the demands of modern business. Expensive to maintain, inflexible, and stuck in the past, they’re quickly being replaced as countries phase out analogue systems for digital alternatives.

VoIP (Voice Over Internet Protocol) helps you cut costs, supports remote and hybrid teams, and integrates seamlessly with tools you already use, all while keeping you ready for whatever comes next.

Here’s a closer look at how VoIP technology works, its benefits, and the challenges to help you decide if it’s right for you.

What is VoIP technology and why is it used?

VoIP lets you make calls over the internet using desktops, laptops, tablets, or smartphones. It’s flexible, cost-effective, and fits right into the tools your team already uses, making it easy to stay connected from anywhere.

VoIP could also save you up to 45% on costs while boosting productivity by an impressive 67% compared to traditional phone systems.

How does VoIP work?

In three simple steps, VoIP takes your voice, converts it into digital data, sends it across the internet as ‘data packets,’ and then reassembles it into sound at the other end.

What Is the difference between VoIP and a phone call?

The main difference is how calls are sent. Traditional phone calls use copper wires, which can be affected by interference, weather, and signal loss over distance. VoIP typically uses fibre optic internet connections for faster, more reliable communication without location restrictions.

VoIP also saves money by treating all calls, even international ones, as data – usually at a flat rate – and offers enhanced features like voicemail-to-email.

Key benefits of VoIP for SMEs

VoIP offers SMEs a range of benefits, including:

Quick setup

Getting started is simple, usually only needing an internet connection and a few clicks.

Flexibility

Supports remote and hybrid working, matching people’s expectations and helping productivity.

Scalability

Adding new people is quick and easy, so VoIP grows with your business.

Improved customer experience

Intelligent call routing and multi-channel options like voice, video, and messaging get customers to the right person faster.

Collaboration

Features like video conferencing, group messaging, and file sharing makes it easier than ever for teams to work together, wherever they’re based.

Global reach

Assign local numbers for a presence anywhere in the world, without a physical office.

Business continuity

Built-in redundancy and failover options keep you working during power cuts or disruption, as long as you’ve got an internet connection.

Integration

Syncs with your CRM, email platforms, and other tools to keep everything connected.

Customisation

VoIP adapts to your business needs, not the other way around.

Analytics and insights

Track call volumes, response times, and team performance for handy insights about the way you work and customer engagement.

How can I present my business telephone number on landline and mobile?

Brand consistency is more than logos and colours. With VoIP, you can use the same number across landlines, mobiles, and web-based calls, so no matter how your customers get in touch, they see a familiar, professional contact. As well as making you easier to reach, it’s an effective way to give your image a little extra polish.

What are the challenges of VoIP calling?

VoIP’s biggest challenges revolve around its reliance on the internet, which can impact reliability, call quality, and security. Here are a few things to look out for:

Reliability and connectivity

VoIP hinges on a stable internet connection. If your Wi-Fi drops or your broadband goes down, so does your phone line. Emergency calls can also be trickier since VoIP doesn’t always provide precise location tracking like traditional landlines.

Cybersecurity

VoIP systems can be targets for cyber threats like hacking or phishing. Choose a provider with strong security measures like encryption, multi-factor authentication, firewalls, and regular updates to keep your data safe.

Call quality

Without enough bandwidth – the capacity to handle data – you might face delays or lags (known as latency), or choppy audio and echoes (jitter). Choose an internet plan that provides enough bandwidth for your VoIP traffic.

Quality can also drop if your calls are competing with streaming or large downloads. Changing your Quality of Service (QoS) settings to prioritise voice data on your network can keep calls clear and reliable, even during busy times.

Is VoIP right for your business?

If you’re unsure if VoIP is the way to go, it’s worth asking yourself:

Is your internet reliable? A strong, stable connection is key for VoIP performance.

Do you have remote or hybrid teams? If you’re all about flexible work, VoIP can keep you connected.

Is your business growing? Adding users, features or expanding into new areas can be simple.

Do you need advanced features? VoIP offers tools like call forwarding, video conferencing, voicemail-to-email and more.

Are you looking to make your business more sustainable? VoIP’s reduced reliance on physical infrastructure can lower your carbon footprint.

If you’ve answered yes to most of these, VoIP could be right for you.

VoIP offers a fresh approach to staying connected, productive, and competitive. Whether you’re managing remote teams, expanding, or looking for a system that syncs with your tools, understanding the technology, its challenges, and choosing the right provider can help you create a communications setup that’s ready for the future.