How Does Each VoIP Service for Businesses Work?

You may have seen one of the many names of Voice over Internet Protocol (VoIP), such as, Internet telephony, voice over broadband (VoBB), IP telephony, broadband phone, and many more from your Internet and telephone service providers. But what do you really know about VoIP and how can it help you improve your business?

What is VoIP?

VoIP is a communications technology that harnesses the power of the Internet. It works by converting the voice message into data packets and transmits this in turn from your IP (Internet Protocol, or how the information travels between computers) to another through the Internet. The packets are sent one by one, then re-formed or decompressed so that the signal is returned to its original state for the receiver. It might sound like a new technology that can’t be trusted, but VoIP has been developed in 1995 for long-distance and international calling.

With so many new innovations today, however, a lot of questions come to mind regarding the use of VoIP in business. So, what happened to the telephone, fax, e-mail, texting, instant messaging, voice and/or video chat that we now use today? Why can’t your business use a combination of those communication tools instead? Why not use the smartphones for long-distance and international calls?

The thing is, VoIP would not exist if not for the tools used for the activities listed above, such as the telephone, the Internet, and the IP. VoIP started as an Internet phone, which can make calls from computer-to-phone and phone-to-phone, but was later improved as a hosted IP PBX in Singapore technology improved over the next two decades. When voice calls and instant messaging became free through the use of VoIP software, businesses saw the potential of this technology in improving communication. This means that you can communicate with employees and with clients or customers within the country or outside Singapore through VoIP Singapore. As long as you have ethernet and Wi-Fi, analog telephone adapter, or a softphone, you will be able to use VoIP and perform all the tasks listed above.

Is VoIP Good for Business?

VoIP for business has the following advantages:

  1. Reduces the cost of setting up equipment and maintenance
  2. Saves money for communications and is scalable
  3. VoIP is easy to install and troubleshoot
  4. VoIP is user-friendly
  5. It has an array of media services, such as video calls, voice calls, instant messaging, etc.
  6. VoIP integrates other business systems
  7. It uses bandwidth more efficiently and streamlines networking

Most businesses in Singapore and the rest of the world, use three types of VoIP; such as the analog telephone adaptor (ATA), VoIP Singapore Phones or IP Phones, and Computer-to-Computer.

Now, let’s look some common terms related to VoIP services used in businesses in Singapore.

What is Cloud VoIP?

Cloud VoIP, also called cloud telephony, hosted telephony or cloud-based VOIP system, uses only IP phones to harness the power of cloud technology. This means that with cloud VoIP there is no need to install and maintain hardware other than the IP phones. Cloud VoIP will replace conventional phone equipment with a VoIP service. It will also be easier to add more lines as the business grows, and there is no need to pay additional fees because the charges are either paid monthly or are per-used-based. Unlike a hosted PABX, which is discussed below, the cloud VoIP has a remote provider that maintains it for free.

What is Hosted PBX?

Also called self-hosted VoIP systems, a hosted PBX allows a business to own and pay for its own phone system equipment. The PBX refers to private branch exchange or the conventional business phone equipment, while the term hosted refers to an off-site location where the hardware and PBX are hosted. The company will have its call platform and PBX features hosted by a service provider. A hosted PBX is ideal for companies that want to have control over their infrastructure, but it can be more difficult to maintain than cloud VoIP because of the equipment, manpower, and maintenance costs.

What is a Hosted VoIP System?

The name hosted VoIP system can be confusing, because it can mean either of these two: a type of VoIP phone service or a hosted server in a company, like the hosted PBX discussed above. To make it easier to understand, a hosted VoIP system means that the VoIP service is provided by a third company in one of its data centers. Therefore, a hosted PBX is just another name for a hosted VoIP system. This type of VoIP service is ideal for big companies that need to make and receive calls over the Internet, virtual attendants, call routing, voicemail, and others.

What is IP PBX Telephone System?

An IP PBX telephone system will consist of at least one SIP phone or VoIP phones, a hosted PABX server, and a VoIP gateway. So, what is a hosted PABX server? It’s similar to what a proxy server does, which makes it ideal for companies in Singapore that want to have all the benefits of VoIP technology, because the phone systems are connected through SIP trunking. In other words, the Internet will replace the conventional phone trunks, so that employers and employees can communicate with others through mobile and fixed numbers. SIP trunking or session initiation protocol is the use of VoIP to provide a connection of a PBX system to the Internet so that all the telephones trunks are replaced.

What is a PBX Phone System?

PBX phone system is just another name for IP PBX telephone system, but it can also mean that it’s a service that mimics the function of SIP trunks and is managed instead by a third-party provider. Also called managed IP PBX, the PBX phone system is an alternative to companies who do not want the added cost of equipment, manpower, and maintenance to get all the benefits of VoIP Singapore services.

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