Establishing a strong communication channel is an instant need of the modern day businesses. Organizations today prefer adopting a unified communication channel that offers the best benefits to the customers and businesses. This advancement in technology has introduced multiple new techniques and VoIP phone service is one of them. Do you know that about 31% of global businesses use VoIP systems only? That is a great number, but what is the reason behind its ubiquitous preference?
One of the prominent reasons behind its growing popularity is that Voice-Over-Internet Protocol or VoIP eliminates the need for traditional PBX systems and uses the power of the internet in establishing a smooth communication channel. With more and more businesses switching the traditional phones with VoIP technology only, knowing about their key advantages and disadvantages would be helpful in informed decision-making. Here are some of the prominent advantages of confiding in VoIP phone service.
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Advantages of VoIP phone service
Do you know that more than 83% of businesses have lost a customer only due to communication issues in 2019? To overcome this flaw, VoIP phone service can prove to be effective, as they not only help businesses get the best for their customers but also are also advantageous in many ways.
1. Reduced costs
Small and medium businesses along with startups face the difficulty of managing the operational costs that should never exceed the designated budgets. VoIP technology can reduce the calling costs of businesses to almost half. Multiple segments to these cost savings include:
- No PBX costs: This on-premise physical hardware used in businesses costs large amounts of money. VoIP services use broadband connection and hence there is no need for the hardware.
- No copper wiring charges: You can exchange voice and data over the same internet in VoIP and hence there is no need for the additional copper wiring. A single Ethernet connection is sufficient for VoIP services.
- Cheap call rates: The rates of VoIP calls are much less than the traditional PBX systems and hence offer reduced operational costs.
- Zero maintenance costs: There is no need to pay for the maintenance fees, repair fees, and taxes that can significantly reduce the overall costs.
- Repurposed manpower: With the introduction of automatic bots in VoIP, businesses can channel their existing manpower on other important tasks.
- Add-on features with no additional costs: There is no need to pay for the additional features like call queuing, group ringing, call transfer, etc., that come in the package of VoIP services.
- Remote working: VoIP ensures smooth remote working with the least costs of operations, as employees can go for these services without additional hardware needs.
2. Flexible operations
It is easy to offer flexible services to the customers with the help of VoIP phone service. Businesses can opt to turn on or off different features according to the seasonal demands. Whether it is working from home or remote working, VoIP offers ultimate benefits.
3. Multitasking
There is no need to switch between different platforms when you can establish an omni-communication channel with VoIP phone service. Further, it becomes easy to integrate all meetings and data analytics over this platform.
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4. Scalability
One of the key benefits of VoIP phone service is that they are highly scalable. Hence, small businesses and startups can confidently invest in these advanced technological services. It is easy to scale the business on certain seasons or toggle the different preferences of customers.
Disadvantages of VoIP phone service
Like any other technology, VoIP is also prone to certain limitations that are important to monitor before zeroing in on these services for your business. Some of the main disadvantages in using VoIP phone service that need proper evaluation include:
1. Quality of calls
It is important to maintain the quality of the calls as voice travels in packets or short information packages. These packets flow smoothly but any technical or non-technical issues may disrupt communication services. Hence, the internet plays an important part while maintaining the quality of calls. While many businesses know the value of the internet in maintaining smooth internet communication, it is important to increase the internet bandwidth before switching to VoIP phone service. It is easy to switch to the latest service providers that offer ultimate internet speeds at optimal costs.
2. Security concerns
Since the internet is the key to VoIP technology, businesses should make sure to establish the security of communication and data exchange. Hence, all devices using VoIP are subject to cyber security issues. It is easy for hackers to target ransomware, malware, viruses, etc. Using the latest version of the antivirus or system protection software is an instant need of all devices that use VoIP services. This ensures the use of the right measures that help implement VoIP technology quickly and safely for different devices.
3. Power outages
While VoIP eliminates the use of hardware, you should make sure to have reliable power and internet connection. Power outages could cause problems during communication through VoIP phone service. It is therefore necessary to manage the IT support by the recognized services providers that ask for paid services to offer a seamless internet connection. Further, the reliable power connection ensures that all necessary hardware works seamlessly to offer reliable VoIP services.
Wrapping Up
With the global VoIP phone service all set to cross 55 billion USD by 2025, it is a technology worth investing in. It helps businesses to lower operational costs, increase accessibility, ensure portability, improve scalability, clear voice quality, improve flexibility, and support multitasking.
While every technology comes with its limitations, the same goes with the VoIP, as you need to monitor it before implementing it at your business. All the businesses should have seamless internet connectivity, as lack of emergency call tracking and latency due to technical issues could create problems in proper communication. A dedicated execution of the VoIP phone service helps businesses get the best out of this powerful communication technology.