Best VoIP Systems
What is VoIP and how does it work?
How much does business VoIP cost?
How to choose the best VoIP provider
Efficient communication is undeniably the key to any business’s success. Although email and instant messaging have become the pillars of modern correspondence in the workplace, there is still an ever-present need for phone systems. Thanks to advancements in technology, businesses are no longer required to subscribe to expensive and complicated traditional phone lines. Instead, business VoIP offers an affordable and simple solution that guarantees high call quality without breaking the bank.
Versatile, advanced call handling features
Huge number of integrations
Unlimited domestic calls and texts
Free team collaboration platform
30-day money-back guarantee
Comprehensive array of features
30-day money-back guarantee
Multiple device compatibility
Unlimited multi-digit extensions
Unlimited international calling
Extensive phone system management tools
Reliable web conferencing and team messaging
Editor's choice:
RingCentral
Reviews
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Versatile, advanced call handling features
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Huge number of integrations
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Unlimited domestic calls and texts
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Extensive analytics
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14-day free trial
Offers
Up to 33% off RingCentral subscriptions
14-day free trial of RingCentral
30-day money-back guarantee with RingCentral
Full product demo of RingCentral
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Comprehensive software
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Built-in CRM
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Free team collaboration platform
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30-day money-back guarantee
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24/7 customer support
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Lack of international numbers
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Admin console isn't intuitive
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No free trial
Offers
Up to 30% discount on Nextiva plans
30-day money-back guarantee with Nextiva
Free demo of Nextiva plans
International calling:
Ooma Office
Reviews
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Easy-to-use account manager
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Feature-packed mobile app
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Unlimited calling for U.S., CA, MX, and PR
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30-day money-back guarantee
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No annual billing
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No international numbers
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No free trial
Starting price:
$19.95/user/mo
Offers
Just $19.95 per month for business voip
50% on Ooma Office's IP phones
30-day money-back guarantee with Ooma Office
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SMS campaigns
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Comprehensive array of features
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Broad number selection
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30-day money-back guarantee
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Intuitive interface
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International numbers unavailable
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Lack of conference calling software
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No free trial
Offers
$50 exclusive discount on 800.com for Best Reviews readers
$20 exclusive discount on 800.com for Best Reviews readers
30-day money-back guarantee with 800.com
Growing businesses:
Talkroute
Reviews
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Highly customizable
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Multiple device compatibility
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Unlimited multi-digit extensions
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Extensive reporting
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Conference call
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No international numbers
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No faxing
Offers
Just $9 per month with Talkroute
No-contract voip provider with Talkroute
7-day free trial of Talkroute
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Unlimited international calling
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Extensive phone system management tools
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Reliable web conferencing and team messaging
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User-friendly
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No international virtual numbers
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Basic plan doesn't include call minutes
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Lack of a free trial
Offers
Up to 12% discount on GoTo Connect
What is VoIP and how does it work?
Voice over Internet Protocol (VoIP) is a technology that allows you to make voice calls using an internet connection instead of an analog phone line. Depending on the VoIP service, you may be able to only make calls from a computer or a special VoIP phone, but some services work with traditional phones connected to a VoIP adapter.
In a nutshell, VoIP services convert audio into a digital signal (called data packets) that travels over the internet. In cases where you’re calling a normal phone number, this digital signal is then converted to a regular phone signal before it reaches the destination. Since virtual phone systems only require an internet connection, you can make calls wherever you are as long as you either have a Wi-Fi, ethernet, or cellular data connection.
SIP vs VoIP
As the name implies, Session Initiate Protocol (SIP) is the technology used to initiate, maintain, and end multimedia sessions within VoIP applications. More than voice, these sessions can also include video, fax, and messaging in a call.
SIP enables SIP trunking, which acts as a virtual phone line that also uses packet switching to connect calls. In other words, it works the same way as VoIP. The main difference is that SIP trucking supports video, messaging, and fax (in addition to voice).
So, VoIP and SIP aren’t totally separate from one another. In fact, SIP (and SIP trunking) is a subprotocol that enables VoIP. While VoIP is an umbrella term that covers many voice communication protocols, SIP is a protocol that explains how VoIP calls are established, maintained, and disconnected.
Types of VoIP services
There are various types of VoIP systems. Something as basic as making a call on Teams is considered VoIP. The most common ones are:
- On-premise VoIP: A modernized version of the traditional POTS where all the hardware and connections of the VoIP system are deployed and maintained within the company. While more secure, it’s the most expensive solution and requires a dedicated team of technicians.
- Hosted VoIP: The most common VoIP service deployment, in which the system provider maintains all the hardware, and your business just needs to supply the phones and internet connection. Although it’s more affordable, it’s important to bear in mind that the company’s communication will be reliant on this provider to maintain 24/7 uptime.
- Hybrid VoIP: Combines analog and digital components, making it a good option for businesses with existing phone lines or in the process of migrating from a traditional landline to VoIP. Despite being more expensive upfront, it provides higher flexibility and cost savings in the long run.
Fixed vs non-fixed VoIP systems
The main difference between fixed and non-fixed VoIP systems is that fixed systems require an associated physical location. It might seem like a small detail, but it actually comes with some important differences that need to be taken into account when running a business.
While a fixed VoIP provides higher security and reliability, it’s more expensive and difficult to scale and port. Meanwhile, non-fixed VoIP systems allow you to have a local presence even in places where you’re not located – but it has a higher potential for fraud.
VoIP hardware and equipment
The hardware and equipment you require for VoIP highly depend on the system you opt for. The simplest systems available just require a computer and an internet connection, whereas the more complex ones may need a team of specialists to deploy all the phones and connections. With this in mind, it makes sense to divide the type of equipment required into categories of essential and optional:
Essential equipment needed for VoIP
- Modem and router: For your business to have access to the internet, you’ll need a modem and a router. There’s no need for special equipment, but it’s important to guarantee a strong internet connection for optimal call quality. This can be done either by having the equipment you’re making calls with close to the modem or by using ethernet cables.
Optional equipment needed for VoIP
- Analog telephone adapter: Also known as ATA, analog telephone adapters allow you to use a standard phone to make calls over IP. One adapter supports one phone.
- VoIP gateway: Converts analog telephone signals into VoIP data packets, making it an essential piece of equipment for businesses that want to keep their original infrastructure of traditional phones. One VoIP gateway can handle dozens of calls simultaneously, so one is usually enough, even for large teams.
- VoIP desk phones: The VoIP version of traditional desk phones. They look like traditional telephones but work with VoIP and also come with buttons to hold, transfer, and make conference calls.
- IP PBX server: Only required for on-premise VoIP systems, an IP Private Branch Exchange (PBX) server works as the center of your phone system and routes the businesses’ calls through the appropriate channels.
- VoIP router: While not necessary, a VoIP router is configured to ensure higher call quality and reliability.
How much does business VoIP cost?
Business VoIP costs depend heavily on the phone system you decide to deploy, the provider you opt for, and the type of plan you go with. Prices vary so much that it’s impossible to pinpoint an exact amount.
Still, a basic business VoIP system with a free phone number and unlimited calling within the U.S. can cost as little as $20 per user per month. Of course, plans that offer more advanced call handling functions and other built-in communication tools are usually more expensive and can go up to roughly $40-$50 per user per month.
If you opt for a hosted VoIP system where you just make calls from your computer and cell, the entry cost is usually zero. However, if you prefer a hybrid or even an on-premise solution, you need to keep in mind that the initial investment can cost several hundred dollars.
Finally, another aspect that highly depends on the provider is calling rates – especially international ones. It’s essential that you go over these rates before committing to a solution to make sure you choose a provider that best suits your needs.
How to choose the best VoIP provider
As with any technology or software, there isn’t a one-size-fits-all business VoIP solution. Depending on the type of business and specific needs, the features you require may be completely different from the business next door. Still, if you follow these steps, you’ll be able to find a solution that’s perfect for you:
1. Determine the phone system you need 📞
Before you start looking for a VoIP provider, you need to have a clear vision of what phone system you require. In addition to the types already discussed (on-premise, hosted, and hybrid VoIP), you may also prefer an all-in-one platform:
- UCaaS: Unified communications as a service (UCaas) goes beyond VoIP by providing tools for video conferencing, instant messaging, and more. Some good examples of UCaaS providers are RingCentral, Nextiva, and 8×8.
- CPaaS: Communication platform as a service (CPaas) goes a step further by providing customized communication services for UC systems. In short, it’s the way to go if you want a system fully tailored to your needs. Some companies providing this service include Twilio, Microsoft (Azure Communication Services), and Vonage.
2. Decide which features you can’t live without 📲
There are plenty of features to choose from when shopping for a virtual phone system. It’s vital to clearly understand what you need, so you don’t end up paying for a more expensive subscription with functions you don’t use. For example, while businesses in the healthcare sector require a VoIP system that’s HIPPA compliant, other companies may save some money by ditching this feature.
3. Figure out how many users and lines your business requires 👥
Most VoIP providers offer subscriptions that are paid per user or per line. So, it’s only possible to calculate how much the business communication solution is going to cost if you have a clear idea of how many people are going to need it. This is especially important, as most providers will have discounted rates for customers with a higher number of users.
4. Always check uptime and customer service 🧑💻
Any minute your phone system is down, it’s money that your company could be making either through sales calls or answering customers’ issues. That’s why we recommend always checking the provider’s uptime. The best and most popular virtual phone system providers usually have 99.99% uptime, but this isn’t always the case with lesser-known companies.
Additionally, going for a solution with fast and reliable customer support is key. Checking which contact channels are available and the opening hours for customer service is recommended. For example, if your business runs the usual 9-5 schedule, you might not need around-the-clock customer support. However, if your company runs 24/7, you should be able to get in touch with an agent if you have an issue even in the middle of the night.
5. Do your research 🔎
More than checking the VoIP solution’s website, you should do your own research by searching third-party websites like Best Reviews for best lists, comparisons, and expert (as well as customer) reviews.
Finally, search for coupon deals and promotional offers. Some business VoIP providers have dedicated promotions for affiliates, which are usually better than their seasonal discounts, making them a great way to get the virtual phone system you need for a much lower price.
Main VoIP features to look for
The main VoIP features you need will depend on the type of business you’re running. Still, there are some core functions that you should always look for:
- Call forwarding: Reroute inbound calls to a secondary device if the primary phone is unavailable.
- Call transfer: Transfers the call to a team member.
- Call queueing: Allows for calls to stay in the queue when the line is busy.
- Call recording: Records calls, which can be used for training, quality assurance, or saving key customer information.
- Voicemail-to-email: Sends a transcription of voicemails to the person’s email, ensuring no customer is overlooked. Voicemail-to-text is also a possibility.
- Auto-attendant: A voice menu system that transfers calls to the right people by directing customers to press a button that corresponds to a particular department or agent.
- Interactive Voice Respondent (IVR): Similar to auto-attendant, it routes calls by using prerecorded audio that tells callers to press specific buttons to reach the department or agent they need to speak with.
- Mobile app: A mobile app with a softphone is essential to make and receive calls on the go.
- Call analytics: Provides an overview of the calls made by everyone on the team, tracking metrics like calls made, calls missed, average duration of calls, and more.
- Third-party integrations: If you’re already using other business software, make sure the VoIP provider smoothly integrates with it.
Essential VoIP integrations to look for
As already mentioned, VoIP integrations are key to ensuring a unified system for your business. The most common integrations you should look for include:
- CRM integration: Allows teams to easily include call logs, recordings, and more into CRM software.
- Social media integration: Lets employees quickly contact leads gained from social media by providing them a link to a call on Facebook, X, Instagram, or TikTok.
- Live chat integration: Makes it simple to jump from a live chat to a call to provide better customer service or close deals.
- Calendar integration: Hop into scheduled calls from your calendar with one click instead of manually doing the work. It also helps ensure that appointments don’t overlap.
- Online collaboration tools integration: If you’re using tools like Slack or Teams, this integration sends real-time notifications on activity, calls, messages, and schedules directly to the software.
- Zapier: Provides thousands of extra integrations to boost productivity even further.
Best business VoIP providers for small business of 2024
Free team collaboration platform
30-day money-back guarantee
Straightforward account manager
Versatile, advanced call handling features
Huge number of integrations
Unlimited domestic calls and texts
Comprehensive array of features
30-day money-back guarantee
Multiple device compatibility
Unlimited multi-digit extensions
Benefits and drawbacks of business VoIP
The main reason why business VoIP has become so popular is due to the high number of benefits it brings to the table. It’s more cost-effective, provides excellent call quality, and improves productivity – just to name a few. Still, as with everything, there are also a few drawbacks to consider, such as the susceptibility to network jitter or the incompatibility with older fax machines.
Pros
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Lower cost
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Scalable
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Accessible
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Complete portability
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High call quality
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Advanced features
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Flexible
Cons
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Latency
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Requires internet access
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Susceptible to network jitter
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Compatibility issues with older devices
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Less secure than traditional phone lines
VoIP use cases
Any business that requires a phone line is a use case for VoIP, but here are the most common:
- 💼 Business communication: VoIP has revolutionized how businesses communicate. From much lower costs and accessibility to advanced features that anyone can set up, it’s no surprise that businesses from all industries are taking advantage of VoIP.
- 💻 Remote work: It’s much easier to manage the phones of remote workers with a centralized VoIP system than a traditional phone provider.
- 🎧 Call centers: Known for having a high volume of calls, VoIP decreases the cost of call centers significantly. In fact, call centers have an enhanced version of VoIP called contact center software at their disposal.
- 📞 International calling: International calling is extremely expensive with traditional phone providers. Not only are international call rates lower (or even free) with business VoIP, but some providers also include international phone numbers so that your business can have a local presence abroad.
- 🏥 Healthcare: With HIPAA-compliant VoIP, healthcare businesses have an easier time communicating while ensuring patients’ sensitive information is secure.
How to set up a VoIP system
The setup process of VoIP depends on the system you choose. For the simplest one – hosted VoIP – the process is as easy as:
Setting up a VoIP system
1
Sign up for a business VoIP provider.
2
Select a phone number(s).
3
Add users depending on your needs.
On-premise and hybrid solutions are more complicated to deploy, as there are some additional steps to set up the equipment and hardware. Businesses that decide to have everything in-house will require a team of experts to configure and maintain the system. From setting up the servers to ensuring all desk phones are properly working, these technicians will be your best bet to guarantee a stress-free installation and continuous uptime.
The future of business VoIP systems
As technology becomes increasingly more advanced, VoIP systems are bound to follow. AI has become more common, and it’s already being integrated into virtual phone systems.
In the future, we foresee AI becoming even more prevalent in business VoIP. From AI-generated voices for auto-attendants to complex IVRs created with just a few prompts and easier-to-understand analytics, we believe that setting up a comprehensive virtual phone system is going to become easier and more beginner-friendly.
We also predict a higher adoption of unified solutions, such as UCaas and CPaaS. Customers are getting more selective about being able to communicate with companies the way they prefer. So, having an omnichannel system that allows a conversation to start on social media and end in a phone call will be necessary to provide stellar customer support.
On the other hand, online services are going to become less secure, as hackers are also evolving with the new technologies that are accessible to them. As a result, it will be crucial for VoIP providers to invest in cybersecurity and keep up with the new threats that appear every day.
Which phone numbers can I use on a virtual phone system?
You can use all types of phone numbers on a virtual phone system. Depending on the service, you can have a local, toll-free, vanity, or international phone number. Porting your number is also possible (and usually free), even if you’re coming from a traditional phone provider.
How many VoIP lines can I have?
Technically, you can have unlimited VoIP lines. However, keep in mind that some virtual phone system providers allow for unlimited lines with just one phone number, while others require one phone number per line.
Can I use multiple phones with VoIP?
Yes, you can log into multiple different VoIP devices with one account, which includes desk phones, mobile apps, and laptops.
Does VoIP a need VPN?
No, VoIP doesn’t need a VPN to work. Still, having a VPN service running in the background while making calls will make them more secure due to the end-to-end encryption. For example, hackers won’t be able to eavesdrop on conversations if you’re using a VPN service.
Do you still need a PBX for VoIP?
It will depend on the VoIP system you choose, as VoIP can be used with or without PBX. For simple, cloud-based VoIP systems, calls can be made via VoIP directly. However, complex virtual phone systems with more advanced features may require either an on-premise IP PBX or a hosted PBX.
Can VoIP receive text messages?
Yes, you can use a VoIP system to send and receive messages. In fact, some providers even offer advanced text features that allow businesses to create SMS campaigns without leaving the platform.
Do VoIP phones work without internet?
No, VoIP phones require an internet connection to work. Even so, some providers offer call continuity, which routes your calls to a backup phone number (either cell or landline) in case of an internet shutdown.
Does VoIP work from mobile phones?
Yes, VoIP works from mobile phones. Most providers offer a mobile app that can be used as a softphone to make and receive calls. You can also import contacts from your phone and divide them into ‘personal’ and ‘work’ groups.
What are the limitations of free VoIP services?
Although free VoIP services can be a great option for individuals and small businesses, there are plenty of limitations to be aware of:
- Lack of security: Most free VoIP providers offer the most basic security features, which pale in comparison to those provided by paid solutions. Plus, it’s essential to read the company’s data usage policies, as free services are known for selling users’ information to third parties.
- Basic features: Free VoIP providers might be enough to make and receive calls, but they don’t usually offer advanced features like call forwarding, IVR, and call transfer.
- Limited customer services: Free VoIP providers’ customer service is usually limited to email, and response times may take several days.
- Call rates: Normally, free VoIP providers offer the service at zero cost but charge for the calls you make. While this may be fine for individuals or small companies, larger enterprises may find themselves paying more on a monthly basis in call rates than they would with a paid VoIP subscription with unlimited calling.
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