The Meaning of VOIP

So you have heard talk about VoIP, but what exactly does it mean? Well, the answer is that VoIP means different things to different people; it all depends on who you ask. Since the term VOIP can be applied in many unique ways, there is usually another word in front of VoIP to accurately explain the service. Usually the term VoIP is applied in one of the following ways: peer-to-peer VoIP, Virtual PBX VoIP, hosted VoIP, managed business VoIP, etc. Below is a short run down of these services providing you with a quick look at each niche market to help you better understand this service.

Peer-to-Peer. All this means is that two people, who have downloaded the same software, can talk directly to each other at no cost. The most popular example of this type of VoIP is Skype. Some important things to keep in mind with this service is that although it is free, it works best for individuals. This service is quite popular with students when they study abroad because it allows for easy communication with friends and family back at home in America. This service should not be used for businesses.

Residential VoIP. In general this means that you use your analog phone to chat with other people except in this case the call is going over the Internet instead of a phone line. An example of this is Vonage. An important thing to keep in mind is you get what you pay for. The price is better than a regular phone but service is often spotty.

Virtual PBX is a service that it makes a small company look bigger. If you have a one-person firm, this is a great option. You can set up a virtual PBX and have callers press one for sales, two for marketing and three for technology. Then you can have all calls routed to your cell phone. An example is GotVMail. Keep in mind however that while this is inexpensive, its functionality is limited.

Hosted is another type of service, and this means that there are phones but no central piece of equipment (i.e. server) at your office. This central technology is hosted by the provider. An example is Packet 8. The benefit of this service is that you get more functionality than with a virtual PBX, yet you don’t have to spend as much as you would on a managed business VoIP.

Managed Business. The positive is that it is nearly identical to hosted VoIP, except everything runs on private lines, instead of the public Internet. This makes it ideal for a very large company that will be in trouble if its phone system goes down, even on a very rare occasion and even if only for a few minutes. Some examples for this type of service are: M5, CBeyond, Cisco. Keep in mind though that better quality control here is going to cost extra. Be warned– this is the most expensive of all the VoIP options.

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