The Best VoIP Providers & Software Compared

VoIP Software Definition: What is Voice-over-Internet Protocol Software?

VoIP stands for "Voice-over-Internet Protocol", also known as Voice over IP. It relates to voice communication over internet-based networks. VoIP forms the technical basis of modern telephony. The terms "VoIP", "IP telephony", "PBX (Private Branch Exchange)" and "Internet telephony" are often used synonymously.

In fact, most telephone connections in Germany today are made via VoIP. Telecommunications providers started a few years ago to switch the traditional telephone network over copper lines to connections using Internet protocols. This technology uses the Internet connection to enable voice communication and offers a number of advantages, including cost efficiency and improved voice quality. Beyond cost savings, this also offers new possibilities. The setup of multiple connections or the rapid integration of video conferences is no problem. Communication is converted into data packets, which are then transmitted in a similar way to emails or other Internet conversations.

VoIP Software is a program that enables corresponding telephony on compatible end devices. Particularly the VoIP software has revolutionized the way we communicate by offering an alternative to traditional telephone connections such as landlines and ISDN. It transmits phone and video calls (depending on the equipment) between all possible Internet-enabled devices - or alternatively from an online device to a landline connection. A VoIP program can be installed either on a special telephone system or run on a PC, Mac, smartphone or tablet. The latter variants are commonly called softphones.

Often, such VoIP telephone system software can be downloaded as freeware. Free IP-Phone-Software usually comes with good basic functions.

Why should companies use VoIP software?

There are many reasons why companies should use VoIP software. The most weighty argument, however, concerns today's working conditions, which have changed significantly in many sectors over the past few years. Remote work and home office have also now arrived in the German business landscape. With the Covid-19 pandemic, new work models have gained even more relevance – and in general, many areas of activity are now much more flexible than just ten or even 20 years ago.

This demanded - and still demands - a change in telecommunications services. A greater level of flexibility is needed, which can keep up with the present and future requirements. The solution: VoIP telephony and software that makes it possible. With VoIP Phone software, virtually any Internet-enabled device, such as the desktop PC, notebook, tablet or smartphone, can be set up for phone calls using a company number. VoIP enables location independence, as all that is required is an Internet connection to make or receive calls. Users are not tied to a specific phone line and can easily communicate from any mobile or other network.

As such, employees, regardless of where they perform their work, can be reached at their usual fixed network number from the office or even their service number. They remain integrated into all familiar business communication processes, such as forwarding, ringing calls, conference calls or answering machine call acceptances.

In a corporate setting, a virtual or cloud-based telephone system replaces traditional physical telephone systems such as landlines and ISDN. These virtual systems, often referred to as hosted solutions, can support a large number of extensions connected to different numbers. Businesses can even purchase whole blocks of numbers or port existing numbers into the VoIP system.

It is also worth noting that the use of this type of telephony can help to save a lot of money. Compared to traditional telephone systems, the costs can sometimes be reduced by more than 50 percent. Many providers offer rates with a monthly basic fee that includes a flat rate for calls to certain networks. These flat rates can often also include calls abroad or to mobile networks at particularly favorable conditions. Manufacturer-specific and often expensive systems and system telephones are not needed. Everything can - depending on the focus - be managed via the cloud. Such cloud services are inexpensive primarily because their providers can use the Internet connections already available in companies for their services.

Thus, IP telephony and Voice over IP programs are an important factor for the functioning of modern working models and for maintaining productivity within them. They can also significantly reduce operating costs in the long term.

How does IP Telephony Software Work?

The operating principle of VoIP telephony is always the same. Regardless of which technology or software is used, it transforms human speech into digital signals using analog-digital converters and finally into individual data packets. The latter are then exchanged via the network. There are of course minor differences - also with regard to the different end devices. However, the basic principle remains the same.

Telephony software via VoIP can bring with it a wide range of features that go beyond mere telephony. These naturally have a particularly strong influence on its practical function. The elements listed below are commonly found. By the way, even telephone system software that can be downloaded for free often includes many of these tools.

• Phone Calls: At the most basic level, VoIP software allows its users to make telephone calls over the Internet. This leads to a cost-friendly, reliable and mobile solution for businesses - especially when employees generally have to make telephone calls from various locations.

• Instant Messaging: Some VoIP software allows sending instant messages over the Internet. This feature can be used for both internal communication and customer service.

• Collaboration: VoIP software sometimes enables the sharing of screens over the Internet. Here lies the potential to share presentations or support brainstorming, which can be of great use to remote workers.

• Call Monitoring: One of the particularly useful features of VoIP software is the ability to monitor, record and log calls. This can especially help businesses streamline the customer service process or improve performance.

• Video Calls: VoIP software sometimes also allows video calls over the Internet. Corresponding features can be highly beneficial for remote meetings. By enabling employees to communicate "face-to-face", engagement and collaboration effectiveness can be significantly increased.

• Conference Calls: VoIP software offers the opportunity to hold telephone conferences with little effort, allowing several users to speak to each other simultaneously over the Internet. Corresponding video calls are also possible depending on the program. This again optimizes team collaboration and communication with external employees.

• VoIP Telephone Number: VoIP telephony can be done via a unique phone number that can be used by all possible phones as usual. Special-IP numbers are ideal for businesses that do not have a landline connection.

• Many more functions: VoIP software or providers of such solutions often have many more features on hand – such as pairing functions, automatic switch functions, browser extension functions, hold music functions, VoIP voicemail software and more.

What are the Pros and Cons of VoIP Telephone System Software?

While the many definite advantages of using IP-Phone software have been outlined repeatedly so far, there are also some disadvantages worth mentioning. These can be called more challenges to using VoIP software than disadvantages per se, and edging them out is often possible with proper planning and the right choice of provider.

• Network Dependence: VoIP systems are dependent on high-speed Internet to work. This is an important piece of information to keep in mind when researching a VoIP product. If the bandwidth is too weak, the quality of communication suffers – some features may no longer be usable. If there's a complete power or Internet outage at one of the company's or its employees' locations, calls can at least be taken via mobile devices.

• Call Restrictions: Another consideration to make early on before deciding on VoIP software is the typical call restrictions. Some products – especially when VoIP software is used for free - are blocked for example for international calls. This would of course be highly annoying for a business with customers or locations abroad.

• Initial Costs: When choosing VoIP software, one should also take into account some initial costs – especially when it is to be used with specific desk phones. The cost of such devices can indeed quickly ramp up.

How to Choose the Right Software for IP Phones?

The VoIP software market is huge. VoIP software can be used free of charge or paid for. In terms of prices, features and integrability, there are countless variations. Finding suitable VoIP software in comparison given these circumstances can be a massive challenge. The selection process becomes easier if you consider the following tips. Company decision-makers should primarily take note of these things when searching for an IP telephony software.

The Costs What budget is available for a VoIP system? There are many free VoIP software solutions. Most business solutions, however, are subscription-based paid programs. This means that a certain fee per month/year is due. In addition, the costs for potentially needed hardware and other associated fees should definitely be factored into the calculation. These often increase the overall expenses significantly.

The best VoIP solution allows for connections, functions, etc. to be tailored exactly to the respective budget. If a large team is to make phone calls via VoIP, the software package needs to be geared toward higher capacities and appropriate reliability. For smaller businesses or freelancers, a simple free VoIP is often sufficient. A free VoIP software, however, can generally do little more than mediate phone calls.

The Features What types of features are needed? Does the business need a system that allows conference calls, video calls, flexible forwarding, etc.? Or is standard telephony, which even a free VoIP software can implement very well, sufficient?

The best VoIP system includes all the features that the teams need for their communication and ideally significantly optimizes this. For smaller businesses, a VoIP freeware with limited feature scope may be sufficient. The larger the departments and the customer or support volume, however, the more differentiated the communication generally needs to be.

In the latter case, decision-makers should at least consider all the options that VoIP providers offer: from automatic call forwarding, voicemail to email, conference calls, video conferences and other service functions to instant messaging, direct dials and much more. All these features ideally make communication between employees and with customers much easier.

The Security The best VoIP service should also be secure and reliable, so businesses can ensure that all calls remain private and protected. Phone numbers are critical data and business matters discussed via VoIP software can be strictly confidential.

Therefore, attention should be paid to VoIP providers with up-to-date encryption and other safety measures, such as two-factor authentication. Furthermore – especially with potential call recordings – all data protection conditions must be adhered to.

The Integrability It is also important to find a VoIP provider that can be integrated into existing business systems - for example into the CRM program. This way, communication can go ahead highly efficiently and ultimately effectively.

The combination of VoIP with other business applications primarily offers the chance to greatly improve customer service and to manage communication with (potential) customers more practically.

The Mobility Finally, it is often appropriate to find a VoIP system that has a feature-rich mobile application. This is particularly important for businesses with many remote workers who need to access the VoIP service from multiple locations and on the move.

Here, attention should be paid to functions that ensure high quality and functionality even on mobile devices. This includes HD audio, video conferences, answering machine call acceptances, call forwarding from on the go and - particularly important for support teams - CRM support.

What Does VoIP Telephone Software Cost?

Most providers offer both free VoIP software for download and paid versions. Both variants can be appropriate in a business context. But not every business will find it sensible to use Voice-over-IP software for free, as the range of functions may not meet their requirements.

Free tariffs often only include basic functions, such as the integration of a phone number, call forwarding and caller ID with voicemail. In some cases, additional features such as voicemail-to-email or video functions may be included. However, larger teams and businesses with higher phone call volumes are usually better advised to use a paid system. Good solutions are already available for very few euros per month and per workplace.

When it comes to the purchase of VoIP telephone systems with hardware, the costs can escalate quickly. Between 100 and 500 euros per phone are not uncommon. Added to this are ongoing costs - including maintenance and service fees - between ten and 25 euros.

There are generally two main factors that determine the cost of a VoIP telephone system or VoIP software. The first cost factor is the number of telephone extensions and the second relates to the number of possible connections.