VOIP For Your Business

Many businesses are considering VOIP for their telephone businees needs. Many don't know exactly when they should consider it an option for them. Many do not understand how it differs from regular telephone service and how the two differ.

Many companies are now beginning to look into alternatives to high priced telephone systems currently in use. They are realizing that there are huge benefits financially to those switching over to VOIP. They are realizing there is greater functionality with VOIP as well as cost savings and room for growth.

The simple basics of VOIP is that it uses high speed internet lines to carry voice traffic instead of telephone lines.

There are two basic technologies.

IP telephony runs over a local area network also known as a LAN. this is a very cost effective way for communicating within an organization. It allows voice transmissions between people within a company who are part of an internal network.

VoIP is carried over a wide area network also know as a WAN. VoIP can be used to transmit voice through a WAN (such as the internet) or carry voice over a public WAN (such as the Internet) or a private WAN, which provides enhanced security for communications.

Why would a business consider making this change?

Large companies currenly use PBX systems. This is a private phone system within an organization. Users work with a certain number of lines for all external calls.

Some companies use a cental office exchange service know as Centrex, which is basically a PBX in which all routing occurs not on a company's premises, but at the local telephone company.