VoIP vs. Landline: Which Is Better for Business?

If you're like a lot of business owners and you struggle to understand the difference between VoIP and traditional landline phone systems, you might benefit from a bit of literature on the topic. VoIP and landlines both offer business benefits, but there are significant differences between the two that must be understood in order to make smart business decisions for your company. So, let's take a look at how each service works, what each service includes, and the benefits they can provide. But first, let's take a look at what VoIP actually is.

What Is VoIP?

VoIP stands for voice over Internet protocol and it's a business phone solution that gives companies the tools they need to communicate better with customers and prospects, as well as employees in other offices across the world. VoIP has become popular for small and growing businesses because it provides great service at a fraction of the cost of a traditional landline phone service. It also provides a bit more flexibility when it comes to upgrading and maintenance.

VoIP Software Vs. Landline Phones

So, what's the difference between VoIP software and landline phones?

The main difference between VoIP software and landline phones is the way each service is delivered. While VoIP software uses a cloud-based solution, landlines use an old-fashioned analog system that’s transmitted via your local or regional telephone company's copper wiring. In order to use a landline service, your company needs private branch exchange (PBX) hardware on site. This kind of hardware gives you the ability to create multiple phone extensions and allows you to transfer calls and provide an extension directory to your callers.

VoIP phone service, on the other hand, is much more technology-driven and requires no hardware setup. Companies that want a sophisticated phone system at a modest price typically turn to VoIP because it usually comes with a suite of tools designed to help you communicate better with customers, prospects, and external business contacts.

Advantages and Disadvantages of VoIP

VoIP services usually come with tons of benefits that traditional landline phone services just can't match. If you're looking for a business phone solution that allows you to save on international calls, then VoIP might be the right choice. With call routing over the Internet using VoIP to bypass traditional phone company lines, you save 50 to 90 percent on costs and get amazingly clear long-distance phone calls no matter where you are. VoIP provides plenty of features with ongoing enhancements to service and it's also easy to set up and configure. With VoIP, you have the ability to use your desk phone, smartphone, or computer to make and receive calls.

However, VoIP relies on the Internet and power connections, so if there are any unexpected outages, your company may be affected. Also, if you experience high call volumes, your bandwidth might not be able to handle it with ease like a traditional phone line might be able to.

Advantages and Disadvantages of Landline Phones

If you're looking for a simple solution for higher call volumes and you don't need all the works that come with VoIP solutions, consider a landline phone for your business. It provides a simple, clear-cut way to make and receive calls in a business environment. Landlines are also known to be more reliable cause they have time-tested technology that isn't affected by power outages. Landline phones are best for small and growing businesses in remote areas or areas without a stable high-speed Internet connection.

Landlines also come with more expense and more complex setup. These systems also require more ongoing maintenance and IT support. And the technology is no longer being improved upon, which means that this is probably as good as it gets. So if you're considering a landline phone, just know that you might not get "the works" when it comes to modern business communications solutions.

Now that you know the advantages and disadvantages of both VoIP and landline business phone services, you can make an informed decision about what's best for your company. Whether you need additional features to help your business grow, or you just need the basics, one of these solutions can provide just what you need for a seamless business communications experience.

When it comes to VoIP, 8x8 provides a reliable and compliant cloud solution at a demanding level rarely seen by other cloud providers. Don't take your chances with a subpar cloud-based telecom system. Call 1-866-879-8647 or fill out an online form to request a no-obligation quote from an 8x8 product specialist.

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