VoIP vs. Traditional Phone Services: Which One Is Right for Your Business?

VoIP vs. Traditional Phone Services: Which One Is Right for Your Business?

By Anna Benzaquen
Published: 3/30/23

Voice over Internet Protocol (VoIP) technology is revolutionizing the way businesses communicate. By allowing users to make calls over the internet, VoIP tools offer a cost-effective and reliable way to stay in touch with customers, colleagues, and partners. This article will provide an overview of VoIP tools and their benefits, as well as a guide to choosing the right one for your organization.

What is VoIP technology?

VoIP (Voice over Internet Protocol) is a technology that allows users to make voice calls over the internet. It works by converting sound into digital data packets and sending them over the internet, allowing users to communicate using voice, text, and video.

VoIP is becoming increasingly popular due to its cost-effectiveness and flexibility. It can be used to make international calls at a much lower cost than traditional phone services, and it can be used in conjunction with other services such as video conferencing. If you need further explanation on what these do, we wrote a full on explanation on what VoIP callers are just over there.

The best VoIP tools available

VoIP tools offer a range of features and benefits, enabling users to make calls more easily and cost-effectively than traditional telephone services. With VoIP, users can make calls from anywhere in the world, as long as they have an internet connection. VoIP tools also provide features such as conference calling, video conferencing, and caller ID, making it easier for businesses to stay connected with their customers.

Let’s compare some of the best:

Display in full screen

Vonage Business

8x8

Nextiva Call Center

Dialpad

3CX

CloudTalk

Grasshopper

Ooma

Skype

For all companies For companies with 2 to 5000 employees For all companies For all companies For all companies For companies with more than 1 employees For all companies For all companies For all companies

Pricing on request

Free versionFree trialFree demo

Pricing on request

Free versionFree trialFree demo

Pricing on request

Free versionFree trialFree demo

Pricing on request

Free versionFree trialFree demo

Pricing on request

Free versionFree trialFree demo

Paid version from €25.00 /month

Free versionFree trialFree demo

Paid version from $26.00 /month

Free versionFree trialFree demo

Pricing on request

Free versionFree trialFree demo

Paid version from €1.70 /month

Free versionFree trialFree demo
Learn more about Vonage Business Learn more about 8x8 Learn more about Nextiva Call Center Learn more about Dialpad Learn more about 3CX Learn more about CloudTalk Learn more about Grasshopper Learn more about Ooma Learn more about Skype

RingCentral

RingCentral is a cloud-based VoIP phone system that provides businesses with an efficient, cost-effective way to communicate with their customers, employees, and partners. It offers a wide range of features such as voice, video, messaging, and collaboration, making it an ideal solution for businesses of all sizes.

Benefits

Users can easily set up and manage their business phone system, allowing them to stay connected and productive no matter where they are. It is also designed to be flexible and scalable, allowing businesses to easily grow and adapt to changing needs.

Who is it for?

RingCentral is great for businesses that need a reliable, cost-effective way to communicate with their customers, employees, and partners.

RingCentral offers features such as:

  • cloud-based, enterprise-grade phone system that allows users to make and receive calls, send and receive text messages, and collaborate with colleagues and customers.
  • unified communications capabilities, such as instant messaging, video conferencing, and screen sharing.
  • automated attendant capabilities that allow businesses to route incoming calls to the right department or person.
  • forward incoming calls to any number, including mobile phones, landlines, and other RingCentral VoIP numbers.

Vonage

Vonage is a cloud-based Voice over Internet Protocol (VoIP) tool that enables businesses to make and receive phone calls over the internet.

Benefits

With Vonage, businesses can benefit from lower costs, improved scalability, and enhanced features.

It also offers features such as call forwarding, voicemail, conference calling, and more. With Vonage, businesses can stay connected and collaborate with their customers, partners, and employees.

Who is it for?

Vonage is an ideal tool for small to medium-sized businesses that need a reliable and affordable way to make and receive phone calls.

Vonage offers features such as:

  • unified communication platform that allows users to make and receive calls, send and receive text messages, and access their voicemail from any device.
  • forward incoming calls to any number, including mobile phones.
  • receive voicemail messages as email attachments, making it easier to access messages from any device.
  • make video calls using the existing broadband connection.
Vonage Business

+200 reviews

VoIP and business telephony software
Learn more about Vonage Business

8×8

8x8 is a comprehensive VoIP solution that provides businesses with advanced communication tools.

Benefits

It is designed to help companies improve their customer service, streamline their operations, and reduce their costs. It is a great tool for businesses of all sizes, as it can be customized to fit their unique needs and budget.

Who is it for?

8x8 is an ideal solution for companies looking to improve their customer service, increase their efficiency, and reduce their costs.

8x8 offers features such as:

  • Automatically answer incoming calls and route them to the right person or department.
  • Record calls for quality assurance and training purposes.
  • Automatically forward calls to another number or device.
  • Block unwanted calls and screen incoming calls.
8x8

77 reviews

Call, meet, chat, share, work better.
Learn more about 8x8

Nextiva

Nextiva is designed to improve communication, collaboration, and productivity for businesses of all sizes.

Benefits

With Nextiva, businesses can stay connected and collaborate more efficiently, no matter where their employees are located.

Who is it for?

Nextiva's intuitive user interface and robust features make it an ideal VoIP solution for businesses looking to streamline their communication needs.

Nextiva offers features such as:

  • Automatic attendant greets and directs incoming callers to the appropriate department or individual.
  • Record and store incoming and outgoing calls for future reference.
  • Route incoming calls to the right person or department and manage call volume.
  • Connect multiple parties on a single call.
Nextiva Call Center

66 reviews

The VoIP system for small business
Learn more about Nextiva Call Center

Dialpad

Dialpad is a cloud-based communication solution that offers a comprehensive set of features and services to help businesses stay connected, productive, and efficient.

Benefits

It also offers integration with popular business applications such as Salesforce, Microsoft Office, and Google G Suite. With Dialpad, businesses can manage their communication needs in one place, allowing them to focus on their business goals and objectives.

Who is it for?

It is designed to help businesses of all sizes, from small businesses to large enterprises, to stay connected in a cost-effective way.

Dialpad offers features such as:

  • HD audio quality for crystal clear calls.
  • record calls for later review.
  • forward calls to any other device.
  • access and manage voicemails.
Dialpad

+200 reviews

Turn Conversations Into Opportunities
Learn more about Dialpad

3CX

3CX is designed to help businesses of all sizes improve their communication and collaboration capabilities.

Benefits

With 3CX, businesses can enjoy improved efficiency, collaboration, and customer service.

Who is it for?

It is ideal for small and medium-sized businesses, as well as larger enterprises that need advanced features and flexibility.

3CX offers features such as :

  • Automatically queue incoming calls and route them to the next available agent.
  • Send and receive faxes directly to and from email accounts.
  • Monitor and manage call agents and their performance in real-time.
  • Create interactive voice response menus to direct callers to the right department.
3CX

+200 reviews

VoIP Software on cloud
Learn more about 3CX

CloudTalk

Cloudtalk helps businesses to improve their communication and customer service.

Benefits

Cloudtalk is an ideal choice for businesses looking to streamline their communication and customer service processes. With Cloudtalk, businesses can reduce operational costs, improve customer satisfaction, and increase efficiency.

Who is it for?

It is designed to be user-friendly and intuitive, so businesses of any size can use it to enhance their customer service.

Cloudtalk offers features such as:

  • user-friendly web-based interface to manage your VoIP account.
  • CloudTalk automatically provides your VoIP services and makes it easier to manage your VoIP account.
  • advanced call routing features so you can customize how incoming calls are handled.
  • record and store calls for later review.
CloudTalk

+200 reviews

Intelligent Phone System for support and sales team
Learn more about CloudTalk

Grasshopper

Grasshopper

Grasshopper allows businesses to make and receive calls, send and receive faxes, and manage their business phone system from any device.

Benefits

It is designed to make business communication more efficient, secure, and cost-effective. It is easy to set up and use, making it an ideal solution for businesses looking to streamline their communication.

Who is it for?

Grasshopper is ideal for small and medium-sized businesses, entrepreneurs, and freelancers who need a reliable and flexible phone system.

Grasshopper offers features such as:

  • unified communications platform that includes features such as call forwarding, voicemail, call recording, and text messaging.
  • toll-free numbers for businesses, allowing customers to call without incurring long distance charges.
  • Grasshopper VoIP provides a range of business phone numbers, including local and toll-free numbers.
  • forward your calls to any number, including landlines, mobile phones, and other VoIP services.
Grasshopper

+200 reviews

Separate personal and business calls
Learn more about Grasshopper

Ooma

Ooma provides businesses with a cost-effective and feature-rich communication solution. It is a great choice for businesses looking for an affordable and reliable VoIP solution.

Benefits

Ooma is also ideal for small businesses, remote teams, and those who need to stay connected while on the go. With Ooma, users can make and receive calls from any device, including computers, tablets, and smartphones. Ooma's intuitive interface makes it easy to manage calls, contacts, and voicemail from any device.

Who is it for?

It is designed to help businesses of all sizes stay connected and productive.

Ooma offers features such as:

  • crystal clear voice quality with advanced HD Voice technology.
  • plans with low monthly fees and no contracts.
  • forward incoming calls to another number, such as a cell phone.
  • block unwanted callers.
Ooma

4 reviews

Telephone service and personalized service
Learn more about Ooma

Skype

Skype is a popular VoIP tool that allows users to make voice and video calls, send instant messages, and share files over the internet.

Benefits

Skype is a great tool for both personal and professional use, providing users with an easy and convenient way to stay connected with friends, family, and co-workers. Skype offers a variety of features that make it a great choice for users looking for an affordable and reliable communication tool.

Who is it for?

Skype is a great choice for users who want to stay connected with their friends and family. It is also a great choice for businesses that need to communicate with remote employees and clients.

Skype offers features such as:

  • free voice and video calls over the internet.
  • send and receive instant messages.
  • share files such as documents, photos, and videos with other Skype users.
  • share your screen with other Skype users.
Skype

+200 reviews

Online Business Meetings
Learn more about Skype

Wrapping up VoIP tools

Overall, VoIP tools offer a wide range of benefits for users of all types, from businesses to individuals. They are convenient, cost-effective, and provide a reliable way to communicate with others. While the initial cost of setting up VoIP tools may be high, the long-term cost savings and the range of features offered make them a worthwhile investment. 

With the right VoIP tools, users can enjoy the convenience of modern VoIP calling, if you're curious about other VoIP solutions we also wrote an article with a full list of VoIP telephone systems.

Transparency is an essential value for Appvizer. As a media, we strive to provide readers with useful quality content while allowing Appvizer to earn revenue from this content. Thus, we invite you to discover our compensation system.   Learn more