For small and medium-sized businesses (SMBs) using an analog phone system, switching to VoIP (voice over internet protocol) can be intimidating. So what are the differences between VoIP vs Analog phone systems? To help determine if it’s the right move for your enterprise, we’ve done the research and have compiled an in-depth comparison between VoIP vs Analog phone systems to help you make the best decision for your business.
The main differences between VoIP vs. Analog phone systems can be seen in their work. Landlines transmit voice into analog signals through a copper wire connection from your home or office to your telephone service provider’s central office.
In short, landlines require a physical connection (copper wire) for them to work.
On the other hand, VoIP uses a wireless, cloud-based system that transmits voice digitally over the internet in the form of data packets. Since VoIP works through the internet, you need a reliable broadband connection for it to work efficiently and have good call quality.
Let’s see which wins in technology, cost-effectiveness, reliability, and features.
Technology
Landlines and VoIP use a Private Branch Exchange (PBX) that manages an organization’s phone calls internally and externally. This system was developed to reduce communications costs for SMBs by letting them handle their own telephone system routing while still being able to connect to their telco’s PSTN (public switched telephone network).
PBX allows a company to assign an extension in multiple offices within the same building. Analog phone systems have a PBX box within the premises.
Analog PBX systems used in landlines require phone lines and need a complex hardware setup within a company location. Because VoIP is cloud-based and uses the internet to send and receive phone calls, a phone line isn’t necessary. This is a major advantage for SMBs with strong broadband connections and looking to embrace and leverage various technologies.
Moreover, PBX boxes require a constant software upgrade. And that’s why companies usually hire an expert to keep their system running well and address any issues that arise.
But with VoIP’s Cloud PBX features, there’s no need for you to manage a hardware device like the PBX box because everything happens in the cloud! There are no software upgrades to deal with and very little chance of being without call functionality.
Mobility
If there’s anything that makes VoIP the number one choice for SMBs, it’s the ability to be location independent and scale easily. You can easily add or remove users/lines at a relatively low cost. Research indicates that VoIP can cut startup costs by up to 90 percent. It’s no secret that one of the top priorities of any business is to keep costs low and increase ROI, so in this category, VoIP takes the cake.
Analog phone systems keep you stuck in one location because it requires a physical connection to work. If you ever decide to scale or open up a business in a new place, you will have to buy extra hardware and phone lines.
Typically, VoIP vendors offer a mobile app that allows your employees to use a smartphone or a computer as their desk phone whenever and wherever they are in the world. This is a great feature that leads us directly to our next topic.
Benefits of VoIP vs Analog
Rich Features
Modern VoIP systems have new and advanced features tailored to meet your unique business needs without breaking the bank. You can set up your own music on hold, IVR, call queues, and more. Many of these features are not available with traditional phone services. Yet another bonus is that VoIP systems have much better sound quality than analog phone lines. This is because the digital system compresses audio sounds, removing any unnecessary frequencies. Other VoIP features include:
- Encrypted security.
- Self-managed, easy-to-use Switchboard interface.
- Remote calling (super important right now as millions continue to work from home).
- Click-to-dial.
- Desktop and Mobile softphone applications.
- Self-managed online portal accessible anywhere, any time.
Moreover, most VoIP providers also offer CRM integration for tools like Salesforce. This way, your employees can load customer information faster and with ease as the customer reaches them.
Cost
Hardware
We touched on this briefly above, but it’s worth going into more detail about. You may think a landline phone service would be cheaper than a VoIP, but this isn’t the case. VoIP’s rates are very affordable, the service is more efficient, and we’ve found a much higher satisfaction rate amongst SMBs who go this route.
An analog phone system’s initial setup for a landline is expensive because it’s incredibly labor-intensive. But with VoIP, that’s not the case. There’s no setup fee because all you need to do is create an account to get started.
Additional hardware may be needed, but it mostly depends on your personal preference and needs. Most of the time, the hardware necessary to call from your desktop computer is available. Your computer already has a microphone and speaker, and that’s all you need to get started. It sounds too good to be accurate, but it’s not! VoIP is genuinely that easy, as long as you have a computer and a good internet connection.
If you wish, numerous upgrades can be made to a given VoIP system, such as purchasing an upgraded headset or a VoIP phone that you can connect via Wi-Fi for added convenience.
Maintenance and Support
Second, maintenance with a hosted VoIP service is little to zero. Since VoIP runs via the internet, no hardware has to be maintained. Landline phones sometimes require a technician onsite or periodical tech visits for routine maintenance to prevent interruptions.
Third, many affordable VoIP plans in the United States allow you to call internationally or anywhere in the nation at a fraction of the cost of standard voice plans. Also, the prices of adding features with VoIP are very low compared to landlines. With landlines, you may need to upgrade or add a new piece of equipment if you want a new feature, which only adds to your monthly plan’s cost.
Features
And finally, VoIP has a more expansive list of features like a virtual receptionist and IVR that are typically included in your monthly plan.
We hope you now understand the differences between analog phone systems and VoIP and can make an intelligent decision about which is best for your SMB. Don’t hesitate to ask if you have any questions or are curious about your options through 2talk.
Reliability
If you have a compatible network bandwidth and a high-speed internet connection, there’s no question about your VoIP phone’s reliability. Just make sure you have a backup power source in case of power outages or a secondary internet connection in case your primary internet service provider has network problems.
If you are not running a big call center with hundreds of people, your residential internet speed should still be able to meet your needs and give you excellent and clear sound quality.
VoIP vs Analog Wins! So make the switch to 2talk Business VoIP now.
In the VoIP vs Analog debate, there’s no doubt that VoIP is the clear winner. And, we can safely say that it is the future of business communication. It’s high time to take your business to new heights and experience the difference VoIP can bring.
2talk is one of the leading VoIP providers in the U.S. We have helped many businesses set up their business phone systems across the country.
Get in touch with us today, and we’ll show you how you can change the way you communicate with your customers and clients for the better through VoIP.
