Benefits of VoIP vs Analog: Give Your Startup a Better ROI

Do you know the benefits of VoIP vs analog? If you're starting a new business you might rely on landlines. It's low cost, right? It's likely your phone carrier might even sell you on a cheap monthly plan. Features will include sending faxes and call waiting. But, digital is also cost-efficient. It works remotely and it offers more features. And, it's a better return on your new investment. VoIP/digital cuts startup costs by up to 90 percent. And, users have increased at a rate of 15.3 percent every year through 2017.

Here's a breakdown of VoIP vs. analog and why you might prefer the features VoIP has to offer.

Analog vs. VoIP 

In exploring what analog and digital have to offer for new retail businesses, they want to keep costs down. They want phones to have the basic features and they want cheap pricing. As a startup business, you might assume that analog is the best option. The lines are already in place and you can set up a cheap monthly plan. But, base your decision on the features you will need. The costs for VoIP are reasonable and VoIP has a lot to offer as you grow and scale your business.


Analog phones use traditional landlines. These are copper lines that have been in place for decades. The phones are plain old telephone service (POTS). The technology turns audio signals into electronic pulses and then carries it into phone lines so you can have conversations. 

You can use analog phone lines for: 

  • A basic fax machine
  • To run a basic phone
  • To run a dial-up modem


Advantages include analog is cheaper than digital. It's likely existing landlines can be used for a new business. Features include call waiting, call forwarding, and voicemail. Additionally, if there's a power outage or natural disaster, landlines still work. You can reach 911 and they can trace your location.


Disadvantages include if you relocate you often can't take existing landline numbers to new locations. And, if you want to change the location of extensions, a punchboard may need to be rewired to do so.

Some business owners prefer analog to start with. It's cheaper than digital because you're basically getting one or two lines. You might have a dedicated business line and a fax line. 

The drawback is that if you don't know all the features digital has to offer, you might settle for analog. 


VoIP stands for voice over internet protocol. This type of services uses the internet or cable. It takes audio and video signals and breaks them into binary codes. These codes are made of 0s and 1s. Once translated, they can be used in modems, VoIP phones, and TVs. 

Digital uses PBX systems. Its proprietary bus structures let you add capabilities and features. You might want to connect an alarm system. Or, another option is to add hold music for callers. These are supported when a modular add-on board is used. 


Advantages include better sound quality. Digital compresses audio sounds and removes any unnecessary frequencies. It's one of the reasons VoIP is preferred. Another advantage is security. Digital uses encryption during transmission. And, it blocks other parties from listening to calls.

Other advantages include the IP interface capabilities. These can turn your PBX into a hybrid but it will require digital hardware with a standard IP network.

You can add custom features like:

  • Fax to email, voicemail to email and voicemail to SMS
  • Remote calling when you're on the go (callers won't know they've reached you on your smartphone)
  • Click-to-dial and desktop clients


Disadvantages include that costs can be slightly higher than analog. But, with more features, VoIP is proving cost-efficient. 

Benefits of 8x8's VoIP Phone Service and Software

Because businesses want to ensure they reach their bottom line, VoIP is a viable option. VoIP offers businesses a cost savings of up to 90 percent. VoIP can reduce startup costs by up to 90 percent. Cost savings for international calls are up to 90 percent. Local calls are reduced by up to 40 percent. 

8x8 offers several VoIP phone service and software features for retail businesses. 

These include: 

  • Voicemail and remote call forwarding
  • Conferencing for flexibility for meetings on the go
  • Team messaging
  • A helpful contact center
  • Analytics and customer support

Ready to leverage communications technology? 8x8's offers comprehensive communications solutions for retail businesses. 8x8 offers optimized phone features and 24/7/365 support. Your customers, clients, staff, and partners can seamlessly connect anytime and anywhere. 


Clearly,  there are several benefits to having VoIP phone service. Startups and businesses of any size can benefit from 8x8's VoIP phone service and software. 8x8's VoIP features include remote calling, team messaging, and conferencing flexibility. Because you want to grow and scale your business, use VoIP phone service. It provides more flexibility. You can engage customers and clients and maximize customer experiences. And, that will increase your ROI. 

Choosing the right technology is crucial to a successful retail business. Establish a streamlined retail communications strategy with 8x8, and focus on growing your business.  Call 1-866-879-8647 or fill out an online form to request a  no-obligation quote from an 8x8 product specialist.

  • Request a

    or call 1-866-835-2979