VoIP vs Virtual Phone Systems | Which Is Best And Why?

VoIP and virtual phone systems are the new standards for modern-day business communications. They’re less expensive than traditional landline-based services, and they also provide greater flexibility, advanced features, and integrations. But what is the difference between these two? Read this article on VoIP vs Virtual Phone Systems to find out.

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Want to know the difference between VoIP vs Virtual Phone Systems?

Voice over Internet Protocol (VoIP) is a well-established technology that allows anyone to make phone calls over the internet. With the rise of broadband, VoIP has become the clear choice for consumers and businesses alike for phone service.

However, Virtual phone systems also allow you to make and receive calls from your mobile device, but they are typically less expensive and require an existing line to forward calls.

In other words, VoIP helps people to place and receive phone calls over the Internet. This method eliminates the need to use traditional landlines. But virtual phone systems work differently. They use VoIP as their starting point.

Still a bit confused? Wait!!

We will move deeper into this. Welcome to our article on VoIP Vs Virtual Phone Systems.

Overview Of VoIP vs Virtual Phone Systems

FeaturesVOIPVirtual Phone System
Best ForMidsize-to-large teamsSolo workers, freelancers, and tiny teams
Price Range$19.99 to $59.99 per user, per month✔️
Advanced Features✔️
Automated Attendant✔️✔️
Software Integration✔️Sometimes
Video Conferencing✔️
Multiple Simultaneous Phone calls✔️✔️
Does Not Require an Existing Phone Line✔️
Advanced Analytics✔️
AdvantagesRuns independently, advanced features, unlimited scalabilityAffordable, basic features, easy to use
DisadvantagesExpensive, overkill features for small teamsLimited features, requires an existing line, difficult to scale

VoIP vs Virtual Phone Systems

👉 What Is Voip?

VOIP stands for Voice Over Internet Protocol, or phone service over the Internet in layman’s terms. You can get phone service delivered through your Internet connection rather than through your local phone company if you have a reasonably good Internet connection.

In a nutshell, VoIP stands for digital calling over the Internet. Voice over IP is right there in the name. Multiple innovators realized they could use the new technology to send voice signals for free rather than relying solely on landlines as the Internet developed and various protocols were introduced.

Because VoIP uses packet switching rather than circuit switching like landlines (think switchboards and operators), traditional telephone company costs are nearly eliminated.

With VoIP, you get a powerful business tool that costs just a fraction of what it takes to install and maintain a traditional call center. It’s also fully packed with useful features such as auto-attendants, IVR, voicemail, and conference calls.

👉 Voip Working: How Does VoIP Works?

At a Glance: How VoIP Works

  • Analog voice calls are converted into data packets with VoIP. The packets travel over the public Internet and/or any private Internet Protocol (PIP) network just like any other type of data, such as e-mail.
  • You can call landlines and cell phones using a VoIP service. You can also make a computer-to-computer call by speaking into a computer microphone and listening to each other through computer speakers or headsets.
  • When evaluating, keep in mind that landline phones can be used to make or receive calls. All you need is a network-connected analog telephone adapter. Consider using your VoIP or other communications system on a private IP network to ensure the best voice quality and security.

👉 When To Use VoIP System?

VOIP systems are best suited for midsize and large businesses. When it comes to your calling needs, look into what a VoIP provider has to offer. Most VoIP systems come with a full suite of communication tools, allowing you to combine your VoIP mobile apps, video conferencing channels, and team chat tools into one platform.

VoIP services operate entirely over your network, so make sure your internet connection can handle the expected call volume.

👉 Why VoIP Is the Better Choice for Established Companies?

To ensure that agents and customers can make calls whenever they need to, larger teams require additional lines, licenses, and extensions. With more members and teams, you’ll have a wider range of use cases, and some people will likely require video conferencing, file sharing, and team messaging. VoIP platforms are the ideal all-in-one solution for meeting everyone’s needs.

👉 VOIP System Pros and Cons

Positive
  • Doesn’t require an existing line to forward calls from.
  • Advanced features add additional channels and call management control.
  • Unlimited scalability for growing your teams and communications program.
Negatives
  • Overkill feature sets for smaller teams with more limited needs.
  • Expensive setup and monthly pricing, especially compared to virtual phone solutions.

👉 Best VoIP Ssrvice Providers Of 2022

Some of the best VOIP providers are:

👉 What Is Virtual Phone System?

A virtual phone system is a communications platform that handles your business calls through an internet connection. It lets users accept incoming and place outgoing calls on a desktop app, mobile phone, or desk phone.

Unlike traditional phone systems that only work in one location, you can use your existing hardware to work anywhere. If you have an internet connection, you can make and receive phone calls.

In a nutshell, Virtual phone systems let you make and receive calls using mobile devices, but while they often cost less, they lack high-level features and typically require an existing line to forward calls.

👉 Virtual Phone System Working: How Virtal Phone System/ Number Works?

Virtual Phone Systems works similarly to VOIP. To connect you to callers or call recipients, virtual phone systems use the technology of VOIP.

VoIP converts your message into digital voice data when either of you speaks into the phone. This information is then divided into small pieces (called “packets”) that can be transported across the internet. Once a set of packets reaches its intended recipient, they are reassembled into the original voice data. This is the information that comes through your speaker or headset.

You can get crystal clear call quality as long as you have a good internet connection. Furthermore, the behind-the-scenes process can be extremely quick.

👉 When To Use Virtual Phone System?

If your company only requires a dedicated phone line with basic features, a virtual phone system is an excellent choice. They won’t have video conferencing or group messaging, but they will have texting, calling, voicemail, mobile apps, auto-attendants, and other features. Furthermore, they can be significantly less expensive than VoIP systems, which can be a game-changer for small teams on a budget.

👉 Why Virtual Phone Is the Better Choice for Smaller Teams?

Budgets are often tighter in smaller teams, and there are fewer use cases. In most cases, virtual phone service will meet all of your requirements. Unless you require more advanced features such as CRM integrations, call management control, or video conferencing, virtual phone service will suffice for your communications needs.

👉 Virtual Phone System Pros and Cons

Positive
  • Easy-to-use tools that keep communications quick and simple.
  • Provides the basic features most small businesses need.
  • Affordable setup and monthly pricing costs (some are even free for limited uses).
Negatives
  • Requires an existing phone line to forward calls from.
  • Lacks advanced features like video conferencing, team messaging, and file sharing.
  • Difficult to scale to larger teams and businesses.

👉 Best Virtual Phone Systems

Some of the best Virtual Phone Number Providers are:

Virtual Phone Systems vs VoIP: Other Points Of Differences

VoIP allows users to make and receive phone calls over the internet. It has nothing to do with traditional phone networks. Virtual phone systems aren’t the same as traditional phone systems. They are services that begin with VoIP as a base.

That is the main distinction between the two. Now you’re probably wondering how these two compare in terms of dependability, features, and other factors. Below, we’ll compare the two in a variety of ways.

1. VoIP Vs Virtual Phone Systems – # Price

VoIP services range in size and complexity, and this impacts the price.VoIP services range in size and complexity, and this impacts the price. For example, the pricing plan of RingCentral is starting from $19.99 per user, per month for two to 20 users on an annual plan. If you scale your plan to add more users and functionality, then you could end up paying as much as $49.99 per user, per month.

Virtual phone services come at different price points. For example, you can use Grasshopper for only $26/month with 1 phone number and 3 extensions. And Grasshopper’s Small Business plan is just $80 per month for 5 phone numbers and unlimited extensions.

VoIP and virtual phone numbers/systems are less expensive than traditional wired communication services. This is due to the fact that VoIP and virtual phone systems do not necessitate the purchase of expensive equipment. When compared to traditional services, VoIP and virtual phone numbers and systems can save you up to 50%.

2. VoIP Vs Virtual Phone Systems – #Features

The main feature of VoIP platforms is that they allow you to make and receive calls over the internet. VOIP provides more advanced features add additional channels and call management control.

On the other hand, Virtual phone number systems lack advanced features like video conferencing, team messaging, and file sharing. 

3. VoIP Vs Virtual Phone Systems – # Outbound/Inbound Calling

In this case, VoIP systems have the upper hand. Virtual phone systems allow you to forward calls to a landline or mobile device at a lower cost than traditional phone companies, but you must already have one. Without a landline or a cellphone, VoIP systems allow you to receive and make calls.

4. VoIP Vs Virtual Phone Systems – # Phone Number Availability

When you use VoIP services, you are usually given a separate phone number. However, the phone number usually can’t be ported. This is a disadvantage for those who want to pick their own phone number and then transfer it to another provider later.

You can choose your own phone number with virtual phone systems. You can even select a toll-free or UIFN phone number. Furthermore, you have the option of transferring your phone number at any time.

5. VoIP Vs Virtual Phone Systems – # Reliability

The quality of VoIP calls is determined by the public internet connection. In other words, if your internet connection is poor, your VoIP calls will be poor. Because data centers are involved in the transmission process, this isn’t the case with virtual phone systems. To put it another way, virtual phone numbers and systems are usually more reliable than VoIP services, but this isn’t always the case.

Conclusion On VoIP Vs Virtual Phone Systems

Compared to a traditional business phone system, VoIP and Virtual Phone systems just make sense. They’re generally cheaper, packed with more features, and highly flexible around the world. They also provide greater flexibility, advanced features, and integrations.

If you are in the market for a new VoIP system, we suggest you to check our articles on the Best VOIP providers. Just make sure you research what both types of services offer because, at first glance, the VoIP services and virtual phone systems can look the same.

Hope you liked reading this article on VoIP vs Virtual Phone Systems. If you have any questions, or if I missed some points regarding VoIP vs Virtual Phone Systems, do let me know in the comment section below. I will be happy to respond.

Soumyajit Saha

Soumyajit Saha

Soumyajit is addicted to quality and has a passion for turning data into meaningful information. As a forward-thinking, technology-driven, and brilliantly creative software Analyst and Tester, he knows what it takes to ‘productize’ an IT solution or concept. Experienced in functional testing, quality testing, and front-end testing for Software Quality Assurance (SQA). Skilled at analyzing logs, generating thorough reports, and identifying any failures. Besides being a tech freak, he loves football and has a deep interest in Arts and Painting.

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