VoIP stands for voice over Internet protocol. It is a method of taking analog audio signals and then turning them into digital data which is transmitted over the Internet. This method is very useful for businesses in particular, because it saves money and is very simple to use. One can make free phone calls simply by using VoIP and the Internet. Expensive phone companies can be bypassed altogether if mostly local calls are made. Even major carriers are offering VoIP services and packages to their customers.

The low cost and convenience of VoIP technology provides businesses with a simple solution to traditional phone use. Several businesses have been switching from older, copper-wire telephone systems to VoIP systems. Companies have another way to reduce monthly costs, especially if phone use is prevalent.

There are VoIP features that have been specifically targeted to businesses. VoIP has shifted into unified communications services. Many services will offer business phone calls, faxes, voice mail, e-mail, Web conferences, etc. Some companies focus on VoIP services fit for medium to large companies, while others are best suited for small-to-medium market.

VoIP allows for both voice and data communications to be used over one network. This is not only easier to manage for maintenance, but it will significantly reduce infrastructure costs.

Most VoIP devices feature easy to use interfaces for users. This allows users who usually make simple system configuration changes to do easily. Dual-mode phones can be used so that business people can continue their conversations as they move between an outside cellular service and an internal Wi-Fi network. Due to this improved technology, it is no longer needed to carry both a desktop phone and a cell.

Skype, for example, was once mainly used for friends and family to keep in touch. It has evolved in order to suit the needs of businesses. Its services include free-of-charge connections between any Skype users along with connecting to and from ordinary PSTN telephones for a reasonable charge.

If international calls are made often at a business, then VoIP offers a considerable cost savings advantage. Using a simple VoIP service can allow for free calls, or there are VoIP providers that will allow unlimited calls to anywhere in the world for a reasonable monthly price.

Depending on the needs of a business, there are packages that offer features to ensure that the best VoIP service is utilized. As with traditional phone services, VoIP services offer conference calls, message services, voice mail, caller I.D., call forwarding, etc.