IP technology has a lot of different names, so you may have heard of ‘VoIP’, ‘cloud telephone system’ or maybe even ‘hosted’. All of these phrases essentially mean the same thing, but you could still be confused about how it works and whether this technology is right for your business. Within this article, we’ll look to explain the technology, review the benefits and help you to understand why an upgrade could be right for your business.
Our ‘No jargon’ explanation of how a VoIP phone system works.
VoIP stands for "Voice over Internet Protocol". In simple terms, it means a telephone system that transmits audio using the internet, rather than a standard landline phone network. Hosted systems, cloud based and IP phones are all the same thing and the technology is the same.
VoIP phones replace your traditional landline with a cloud-based solution that relies on an internet connection. Replacing an entire phone system might seem like a big step, but when you weigh up the benefits, it's easy to see why so many companies are making the switch.
What are the benefits of VoIP?
Upgrading to a VoIP system is very much an upgrade and a business will most likely benefit from additional features. Some the benefits include:
- Save on call charges – some VoIP packages include free calls between sites or to UK Landlines. Therefore, you’re immediately saving on these costs.
- Make quick changes – by having a VoIP system, you suddenly have more flexibility if you need to make a change or update to your calls. Our support team can either train you on how to make quick changes, or we help you with any changes you need.
- Less kit – A VoIP system will require far less equipment than your traditional phone system and will run on just a router and PoE in most cases.
- Work from anywhere – Users can connect their handset to any internet line, or even utilise a soft phone or mobile app to take calls – like they’re in the office.
Get ready for the Big Switch off
Traditional phones work through a system called "circuit switching". On circuit-switched networks, analogue audio signals are carried back and forth across copper wires. This technology has been around since around 1876 and is no longer running efficiently. In 2025, BT plan to ‘switch off’ this traditional network and this will force many businesses to make the switch to IP technology.
The good news is, if you’re ready to make the change now – you can be ahead of the game and ensure that your business isn’t disrupted by the network changes. What’s more, Director of DTX Network Services Samantha Hayes says “Not only are we beginning to see more businesses make the move to IP based systems, but we’re also encouraging them to do so now – rather than wait. There’s likely to be a sharp rise in costs for licenses and hardware as we approach the BT switch off date.”
Find out more about the Big Switch off by reading our article here.
If you’re ready to have a conversation about VoIP, hosted, IP technology – or whatever you would like to call it, get in touch with our team today.
