ReeHart – Blogging from the Heart

So you have heard talk about VoIP, but what exactly does it mean? Well, the answer is that VoIP means different things to different people; it all depends on who you ask. Since the term VOIP can be applied in many unique ways, there is usually another word in front of VoIP to accurately explain the service. Usually the term VoIP is applied in one of the following ways: peer-to-peer VoIP, Virtual PBX VoIP, hosted VoIP, managed business VoIP, etc. Below is a short run down of these services providing you with a quick look at each niche market to help you better understand this service.

First there is Peer-to-Peer. All this means is that two people, who have downloaded the same software, can talk directly at zero cost. The best known example of this is Skype. Some important things to keep in mind with this service is that while it is free, it works best for individuals. This service is quite popular with students who study abroad and want to keep in contact with their friends and family in America. This service should not be used for businesses.

Residential What it is: You use your analog phone to chat with other people. The only difference is the call is going over the Internet instead of a phone line. Example: Vonage What you should know: You get what you pay for. The price is better than a regular phone but service is often spotty.

Virtual PBX is a service that makes a small company look bigger. If you have a one-person firm, you can set up a virtual PBX and have callers press one for sales, two for marketing and three for technology. Then you can have all calls routed to your cell phone. Example: GotVMail What you should know: It is inexpensive but functionality is limited.

Hosted. This basically means that there are phones but no central piece of equipment (i.e. server) at your office. This central technology is hosted by the provider. An example is Packet 8. The benefit of this service is that you get more functionality than with a virtual PBX, yet you don’t have to spend as much as you would on a managed business VoIP.

Managed Business. This service is nearly identical to hosted VoIP, except everything runs on private lines, instead of the public Internet. This is ideal for a very large company that will be in trouble if its phone system goes down, even on a very rare occasion and even if only for a few minutes. Example: M5, CBeyond, Cisco. What you should know: Better quality control but most expensive of all VoIP options.

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