What Is VoIP? A Simple Guide for Business Owners

The way we communicate is changing, with the traditional UK PSTN (public switched telephone network) landline system due to be switched off by 31st January 2027. But the moment has been planned for, and keeping your phone system is as simple as switching to a hosted VoIP phone system instead.

Here at Flotek, our Purple Army of IT experts have put together this guide so you understand VoIP for business and how to ensure customers and employees can keep using your phone lines.

What Are VoIP Phone Systems?

Definition of VoIP

‘VoIP’ stands for ‘Voice over Internet Protocol’, and has actually been available in some form since at least the mid-1990s. Put simply, the VoIP system converts the sound of your voice into digital data and sends it via an internet connection rather than directly down traditional phone lines. The tech may be different, but the end result is the same.

Why Businesses Are Switching to VoIP

There are several reasons why companies have been switching to business VoIP systems over the last few decades, including lower costs, the ease of adding extra lines, the flexibility and scalability of the system and the advanced features VoIP can bring. The main driver of recent adoption, though, is simply that the traditional phone system in the UK will be discontinued on 31st January 2027.

How VoIP Works for Business Calls

Converting Voice into Digital Data (and Back Again)

We won’t get too technical here, but VoIP works by converting sound into digital ‘packets’, which are transmitted through the internet before being converted back to audio at the receiving end. Aside from replacing the current analogue system like-for-like, there is a stream of benefits too, including clearer sound and a range of advanced features available through the use of digital handsets and integrated software. It can be thought of as a cloud phone system for businesses.

Devices Used for VoIP

VoIP can be used on a range of devices, making it more versatile and scalable than the traditional landline system. Devices that can integrate with a VoIP phone system include:

- VoIP desk phones

- laptops and desktop computers

- mobile apps

- headsets and softphones

Key Features of a Business VoIP System

Call Forwarding and Call Routing

The beauty of VoIP is that it isn’t tied to a literal landline, so it can be used anywhere there’s an internet connection. Whether you’re office-based, on the road or need to receive business calls to your mobile while away from work, VoIP can handle it.

Voicemail to Email

Many VoIP systems can forward voicemail recordings to your email address, so you have another way of listening to and organising them. Some go further and even include a voice-to-text transcript in the email itself, so you can read the message.

Video and Team Collaboration

Many VoIP systems integrate with collaboration tools and conferencing platforms, so teams can catch up, present work to each other and stay on top of projects all from this one system - no need to install a different system for each function.

Benefits of VoIP for Businesses

Lower Communication Costs

VoIP systems can be much more cost-effective than the outgoing PSTN network and its expensive line rentals. With this comes more flexibility and scalability, too, plus modern features designed to make working more efficient and productive.

Flexibility for Remote Work

The way we work is changing rapidly, and VoIP for businesses offers the ideal solution for keeping your teams connected. As long as there’s an internet connection, employees can make and receive calls from anywhere.

Scalability for Growing Businesses

When it comes to growing your business, a VoIP system is infinitely more scalable than the old system. You can keep all your old numbers, but it’s also much easier to add lines as your business and teams grow.

VoIP vs Traditional Business Phone Systems

Traditional Landline Systems

Traditional systems can be expensive to maintain, cumbersome to expand and feature very limited flexibility when it comes to keeping up with the pace of change in the modern workplace. They also have to be tied to a physical landline.

VoIP Phone Systems

With a cloud-based communication system like VoIP, flexibility is expanded to anywhere with an internet connection. This makes remote access to your calls and voicemails easier, allows a range of advanced features and integrations such as call forwarding, voicemail-to-email, video conferencing and other integrations, and keeps you connected to your business even when you’re out and about. The benefits are huge, and with the impending PSTN network switch-off at the end of January 2027, now is the time to take the plunge and prepare for the future.

Is VoIP Right for Your Business?

Businesses That Benefit Most from VoIP

VoIP is ideal for growing SMEs, businesses with hybrid or remote teams and companies looking to reduce their telecom costs. It offers flexibility, easy scalability and access across a range of devices, helping everyone stay connected while keeping communication efficient and cost-effective. We work with businesses of any size, but VoIP phone systems for small businesses are a speciality of ours.

Signs You Should Upgrade Your Phone System

High phone bills, limited features and outdated technology are all signs that your current phone system is at best inefficient, and at worst holding your business back. Upgrading to VoIP improves flexibility, reduces costs and introduces modern tools that support greater efficiency. With a looming deadline for the switch-off of the traditional landline system, a move to VoIP is nigh-unavoidable for most businesses, too.

How Flotek Helps Businesses with VoIP

Hosted VoIP Telephony Solutions

The benefits significantly outweigh any drawbacks - even more so with Flotek’s seasoned experts on your side. We’ve been helping businesses upgrade to hosted VoIP phone systems for many years, and can make the process as simple as possible. You won’t even lose your existing numbers.

We’ve written on the subject before, including our guides to VoIP data security and our complete guide on how to switch to a VoIP system. Plus, the Purple Army are here to answer your questions and allay any worries you may have about changing to a hosted VoIP system. Just get in touch.

In Conclusion: What Is VoIP?

Modernising Business Communication with VoIP

We hope this blog post helped you understand what VoIP is and how it can benefit your business. You can explore more about VoIP systems and how they work in practice, but the key takeaway is simple: modern communication is more flexible, scalable and cost-effective than ever before. If you rely on a traditional landline system, moving to VoIP is a necessity in the coming months.