Ip Business Phone System Vs Traditional Phone System

Businesses thrive on the quality of communication engagements they have with their customers. Traditional phones transmit sounds through wires connected to the phone service provider through a PBX that is onsite within the business premise.

In contrast, the IP phone ideology operates with the Voice over Internet Protocols technology, which suggests that you can make and receive phone calls, texts, and share files like videos, images, etc., using any internet connection. It is basically a phone connection using the internet instead of a local telephone tower.

Pros of IP Phone System

The advantages of an IP phone are numerous. Chief among them being: 

  • Scalability: Hosted/ Cloud-based IP business phone systems offer latitude for sudden changes. Often, you may consider adding/ removing telephone lines easily as occasion warrants. This keeps you at the same pace as your business expansion.
  • Adaptability: Hosted IP business phone systems can be used with many devices with an internet connection. This includes smartphones, computers/ laptops, IP phones or handsets, and softphones- an application installed in a device that converts such to a virtual phone system.
  • Portability:it encourages remote worker teams as all needed is a device that connects to the internet. Workers have the luxury of working from any location.
  • Cheap/ Free Calls:VoIP service is less expensive than traditional landlines, especially on long-distance (oversea) calls.
  • Incredible Features:it can easily incorporate CRM and other exciting features on your devices and do multiple activities on the device simultaneously.
  • Little/ No Overall Costs:The basic costs are the subscription charges incurred.

Cons of an IP Phone System.

  • Upgrading Costs: The initial cost of upgrading or switching from a PBX system. These include spending lump sums of money to purchase the hardware, paying an expert to install and train your employees, maintenance costs for IP PBX involving onsite hosting, etc., among other miscellaneous charges.
  • Dependency: IP phone system is dependent on a strong internet connection for all activities. The whole process is reliant on the capacity of your IP provider. This may adversely affect the QoS, thereby causing latency, ping and jitters to your communications.
  • Security concerns: We live in troubled times where discontented elements send malware, viruses and steal users’ data for nefarious purposes. IP phone system depends on third parties storing your business data in the cloud where such data can easily be hacked. Communication that does not offer end-to-end encryption can be tapped.
  • Dependability: IP system is totally reliant on your VoIP service provider who keeps the communication system up and running. A bad day for the provider will also mean a bad day for your business. It is advisable to consult only reputable service providers.
  • Hard to Contact Emergency Services: This is because IP Phones packet switching uses an IP address rather than a number, making localizing emergency services difficult.

Pro of Traditional Phone System

  • Affordable: It requires a one-time payment to buy the system.
  • It completely changed the concept of communication
  • It is easily customizable
  • Very easy to reach emergency services
  • The system is easy to use.
  • The system offers good voice quality on calls

Cons of Traditional Phone System

  • It requires a massive outlay of cash for the system.
  • It does not work whenever there is a power outage.
  • It would be best if you bought new sets to enjoy the latest innovations.
  • It makes a room look disorganized because of its many wires.
  • A single fault may ground the whole system, e.g. a broken wire.
  • Each user needs their line.
  • Installation/ repairs are usually from a technician.
  • Broken parts are not really available.
  • phone number is fixed to an address, and such one must be ‘localized’ to use the phone.

Which is better for My Business

Technological breakthroughs and innovations always seek to make life and living easier for people. Many factors are responsible for how people do make their choices.

Features of IP phone system.

An IP phone comes with awesome features, with modern UcaaS (Unified-Communications-as-a- Service) protocols that allow it to work with software and custom applications to increase productivity and maximize profitability in your business. An IP Phone’s basic features are voicemail & call forwarding, call recording, automatic IVR, caller ID, video conferencing, etc.

An end-to-end encryption feature is also suitable for office IP phones.

Features of Traditional Phone System.

A traditional phone comes with rudimentary features like caller ID, call waiting, call forwarding, SMS, voicemail, etc.

A traditional phone is limited to only voice capability, and such will be a heavy drag on any modern business.

Reliability of the IP phone system

In a world that is always in a state of technological/ innovative flux, the VoIP system is fast becoming a lifeline for businesses.

VoIP phone system depends on strong internet connections for all activities. The whole process is reliant on the capacity of your broadband. This may adversely affect the QoS, causing latency, ping and jitters to your communications, leading to drop calls or scrappy communications.

Reliability of the traditional phone system

Traditional landline phones are often better in areas with poor internet connections. The traditional phone system offers good call qualities once the wires or copper cables are okay. This makes communication consistent between businesses and customers.

Most cell towers are maintained by phone companies in the locality, making repairs of downed lines very fast. Storms or other natural disasters may down cables and wires.

Cost of IP phone system

The cost of an IP phone depends on the type of VoIP system that you use.

Upfront costs can be defined as any expenses incurred until the phone system becomes operational. Upfront cost depends on many factors, and as such, their cost analysis can be very fluid all dependent on the size, needs, equipment available, packages and services subscribed to.

For an IP PBX system- this is where traditional landlines are combined with IP capabilities. The major purchases here are- ISP connection fee, phones, routers and VoIP adapters. You may also pay for LAN installation, onsite/ on-premises server, technician, etc. as part of upfront costs.

The ongoing cost is majorly down to maintenance cost, including repairs and outright replacement of worn out or damaged components, hiring an IT engineer for the equipment and monthly usage billings and charges. This is often the best approach for big businesses with a massive volume of calls, the financial capability and the IT savviness to maintain the equipment in-house. This is because its call rates are cheaper than in hosted/ virtual arrangements, saving long-term costs.

The upfront cost for other types of VoIP systems includes- your hardware setups, which comprises quality internet connection, routers/ firewalls and server, SIP trunk, wireless routers, and IP phones (quality & prices differ). Should you decide to separate your IT setup from the VoIP setup, you may need to get different internet connections for each. A one-time connection fee is paid to your ISP. Ongoing cost for virtual/ hosted/ cloud-based VoIP system is limited to monthly charges.

Cost of a Traditional Phone System.

The upfront cost of traditional phone systems is tied to the numbers of phone cards and needed lines. Landlines phones require physical hardware like wires, switch boxes and PBX software that are relatively expensive to set up. Ongoing cost includes the cost of maintenance, repairs and replacement of hardware. The highest cost of all is call charges, especially long-distance calls which may cost an arm and a leg.

Final Thoughts

Businesses thrive on the quality of communication engagements they have with their customers. Traditional phones transmit sounds through wires connected to the phone service provider through a PBX that is onsite within the business premise.
In contrast, the IP phone ideology operates with the Voice over Internet Protocols technology, which suggests that you can make and receive phone calls, texts, and share files like videos, images, etc., using any internet connection. It is really a phone connection using the internet instead of a local telephone tower.

Each of these phone systems plays essential roles in business growth.

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