Voice over Internet Protocol (VoIP) is a technology that allows you to make calls via the internet rather than through traditional telephone lines. Converting voice signals into digital data packets, VoIP ensures smooth communications at a fraction of the cost of traditional telephony. This method introduces flexibility, scalability, and newer functionalities like video calling and instant messaging.
Alternative: More expensive and inflexible traditional public switched telephone network (PSTN) systems.
It’s about communication
- Over 70% of businesses globally employ VoIP for business communication purposes.
- When switching to VoIP, companies experience a 30–40% reduction in communications spending.
- VoIP networks can increase call effectiveness by up to 50% because of features like call routing and integration with CRM systems.
- Due to the growing number of remote workers, VoIP adoption is predicted to grow by 20% in 2025.
Tech savings
VoIP is more than a cost-saving technology – it’s a basic transformation in how we communicate globally. It eliminates the old barriers, enabling easy, cheap connections around the globe to be a reality.
John Chambers’ quote highlights that VoIP is not just about cost savings – it’s a revolutionary technology that has changed global communications.
Cutting costs
RingCentral, a global leader in cloud communications, adopted VoIP to replace its phone system with newer facilities and improve its customer service. With the exchange of legacy PSTN systems with a VoIP solution, RingCentral cut operation costs by 35% while greatly enhancing customer satisfaction ratings. Features like video conferencing and unified communications that RingCentral implemented on rollout made their internal collaboration smooth and enhanced customer interaction.
In another instance, Vonage transformed business communications by implementing a VoIP infrastructure that facilitates remote working and global connectivity. After deployment, Vonage realized 40% improved call quality and reliability and a 30% decrease in the cost of overall communications. This improvement helped them deliver services like unified communications, which increased customer retention and interaction.
Quality over quantity
Challenge: One of VoIP’s main challenges is maintaining stable call quality and reliability, especially during periods of high traffic or in internet-low areas.
Solution:
- Use Quality of Service (QoS) protocols to reserve VoIP traffic.
- Incorporate backup internet connections to maintain call quality during outages.
- Ensure your VoIP software and hardware are up-to-date and trustworthy.
An efficiency list
- Deploy QoS and bandwidth management.
- Buy high-quality VoIP telephones and servers.
- Keep your VoIP software updated with the newest security patches and functionalities.
- Use analytics to track call quality and troubleshoot rapidly.
- Have redundant connections to prevent downtime.
