VOIP refers to the ‘Voice Over IP’ phone system. It is a way to make calls across ‘Local Area Networks’ (LAN) and or ‘Wide Area Networks’ (WAN) instead of using networks of telephone service providers. By adding voice to data networks, one can reduce costs of calls, improve productivity as well as enhance collaboration.
IP phone systems are usually built on standard PC or embedded hardware which is more cost-effective and powerful than the hardware of traditional phones. At the same time, IP phone systems are scalable, as they are not limited to a certain number of physical phone ports. This means one does not need to replace one’s phone system when one’s company grows.