Technology has essentially changed the way we do everything these day - how we shop, the way we look for jobs and how we run our businesses.  It has even made drastic transformations to simple tasks such as how we talk on the phone.  Internet-based technologies are responsible for adding much simplicity to our lives.

Voice over Internet Protocol, more commonly known as VoIP, is a technology that enables us to make phone calls over the Internet, as opposed to using a traditional analog system.  Phones such as the Siemens Gigaset C475 IP can even accomplish this task without a PC. Aside from being extremely convenient, this method offers tremendous savings in the home setting and without exception to the networked business environment.

Easy on the Communications Network

When calls are made on a circuit-switched network, ports in the sending and receiving switches are completely tied up for the duration of the call.  When calls are made with VoIP, the virtual circuits are able to make better use of the network’s bandwidth.  The seamless integration of voice and data efficiently uses the data communications channel, resulting in bandwidth consolidation and stable performance.

Flexibility at a Lower Cost

As the name implies, VoIP takes advantage of the same technologies and equipment that powers the internet.  Many of the hardware and software components are widely available and developed by a range of vendors.

VoIP is also far more scalable than an ordinary telephone system. Conventional telephone networks are geographically limited by their circuit switches, which are required to service particular areas.  VoIP enables the installation of a soft-switch at the regional level. This allows multiple markets to take advantage while using limited equipment, thus resulting in tremendous cost savings.

Lower Toll Expenses

Many companies benefit from VoIP by using their network to transmit internal office calls, a move that essentially eliminates all charges within the work place.  Some also use the technology to reduce the expense on calls outside of the company.  This simply describes an instance when a VoIP call is placed to a mobile or traditional land line.  The company carries the data to the closest point in their network and then hands it off to a PSTN (Public-Switched Telephone Network) which completes the procedure.

Simplifies Network Infrastructure

Although the results are made evident through a device, a VoIP exchange relies more on software as opposed to hardware.  This makes the technology easy to modify, configure and administer.  An example would be the vast improvement in the efficiency of telephony circuits and the reduction in staff and overhead expenses.

Savings All Around

VoIP also offers cost savings for the service provider.  Because these systems are running computer programs on high-capacity computer servers, the costs are significantly lower than conventional systems that require telephone switches and various hardware.