VoIP vs Analog Phone System. What’s Best for My Business?

What’s best for your business communications? VoIP or analog telephony? Cloud or on-premise deployment? If you’re confused, grab some coffee, and let’s go over a few things.

When it comes to deciding what is best in VoIP (Voice over Internet Protocol) or analog phone systems, it’s important to understand all the variations of phone systems available.

There are six types of phone systems for business that can be deployed, with each one containing certain benefits and restrictions:

• Landline phone systems
• Mobile networks
• Virtual phone services
• Self-hosted VoIP
• Cloud-based VoIP
• Hybrid phone systems

As the nature of work transforms, businesses' communication needs are changing and stakeholders around the world are seeing new benefits in communication solutions they may not have previously considered.

What is a VoIP Phone System?

VoIP (Voice over Internet Protocol) and analog phone systems are two different types of telecommunication systems, each with its own set of benefits and drawbacks.

Starting at the top – what is VoIP? 

A VoIP phone system is a communication solution that uses the internet to complete calls, rather than a traditional PBX and phone line.

Calls can be made from a computer or other connected devices such as smartphones or tablets and routed through a virtual PBX hosted in the cloud. This means calls can be made from a business number without the caller needing to be physically present at a particular location and comes with a host of additional benefits.

Related: What is VoIP?

Benefits of VoIP Phone System

VoIP business phone systems offer a range of benefits that can help businesses operate more efficiently and effectively while saving money.

Flexibility & Scalability. First is the flexibility afforded by a VoIP phone system. Because VoIP requires no physical hardware – such as copper lines – to function, businesses can scale up and down as the needs of the company evolve.

If a business is experiencing a surge in line requirements, increasing call capacity is as simple as calling up their provider and adding more lines. As long as each person has a computer or similar connected device, they can make calls.

Mobility. With VoIP, offering remote working options is easier than ever as employees simply need to log in from any location and can make and receive calls as if they were in the office.

Cost Savings. Maintenance costs are also kept to a minimum with VoIP phone systems. Because there is extraordinarily little physical hardware required and the PBX is hosted digitally in the cloud, as long as your business’s computers are working and you have an internet connection, you’re good to go.

The lack of hardware also means there is no installation required and your business can be set up quickly when onboarding a new VoIP phone system.

Advanced Features. VoIP phone systems offer a wide range of advanced features such as call forwarding, call recording, voicemail to email, auto attendant, and more. These features can help businesses operate more efficiently and provide better customer service.

Integrations. VoIP phone systems can easily integrate with other business applications such as CRM software, making it easier to manage customer interactions and data.

Reliability. VoIP systems are typically more reliable than traditional phone systems because they are less susceptible to hardware failures and network outages.

What is an Analog Phone System?

An analog phone system is any traditional phone system which uses copper wires to make calls as well as physical hardware on site at a business such as a PBX and phone base sets.

Benefits of an Analog Phone System

Traditional copper wire-based phone systems have been around for a long time and have supported businesses well since their inception. Analog phone systems are becoming less common as VoIP phone systems become more popular. However, there are still some advantages to using an analog phone system, such as:

Reliability. Analog phone systems are known for their reliability and have been around for decades. They are not dependent on an internet connection, so they are not affected by network outages or power outages.

Sound Quality. Analog systems can sometimes have better sound quality than VoIP systems, especially in areas with poor internet connectivity.

Compatibility. Traditional copper wire-based phone systems are compatible with a wide range of devices, including fax machines and credit card machines, which may not work with VoIP systems.

Simple to Operate. Analog phone systems are simple to operate, and most people are comfortable using them because they have grown up with them all their lives. They are easy to set up and not difficult to maintain. 

Security. Traditional phone systems are arguably more secure as there are fewer points of failure, and they are less prone to social engineering type scams.

VoIP vs Analog Phone Systems: Key Differences:

VoIP phone systems use the internet to transmit voice data, while analog phone systems use traditional copper wire phone lines.

While analog phone systems may have some advantages, they are becoming less popular as VoIP technology advances and becomes more widely available. In the long run, businesses may find that the benefits of a VoIP system outweigh those of an analog system.

• Installation

Analog phone systems can come with a significant line setup cost – often charged at $50-$100 per line – whereas VoIP can be installed in minutes with little setup fee or disruption to your daily business.

• Maintenance

With analog, maintenance needs to be carried out onsite by a technician, which can be expensive and disruptive. With a hosted VoIP phone system, your provider will carry out all maintenance and updates remotely.

• Monthly Cost

An analog phone system often has higher monthly service fees and call rates. A VoIP phone system typically offers free or exceptionally low calling rates, including those to international numbers, and can offer significant savings.

• Feature-rich

VoIP phone systems will come with rich advanced features at no additional cost, whereas analog phone systems have limited options for add-ons. Add-on features available for analog phone systems usually carry an additional cost or require additional hardware to be installed.

VoIP Phone vs Analog Phone – Device Comparison

An analog phone will typically come with the kind of basic features you’d expect from a commercial grade phone system such as call waiting, hold, transfer, etc.

However, the features on an analog phone pale in comparison to those available on a digitally powered VoIP device.

Because the interface of a VoIP phone system is presented on a computer or similar device, there exists the potential for many more features than one could hope to fit on a single analog phone.

Caller information can be instantly and automatically populated, calls can be transferred warm or cold, an auto attendant can route calls automatically, data can be gathered and analyzed to help make future improvements, a powerhouse softphone can help reception staff manage large call volumes with ease, and so much more.

While analog devices are fixed at the point of manufacture, VoIP phones are only limited by the hardware they are operating on. New features can be added, and existing ones updated constantly.

Related: What is VoIP Phone?

VoIP vs Analog Phone System – Which is Best for My Business?

Without a doubt, a small business phone system will supercharge your business’s communications capabilities and make your organization more competitive and a smoother operation.

The choice between VoIP and analog phone systems depends on a number of factors, including your budget, business needs, and location. Here are some factors to consider when deciding which system is best for your business:

1. Cost

VoIP phone systems are generally less expensive than analog systems, especially for long-distance and international calls. However, analog systems may be cheaper for small businesses with only a few employees.

2. Features

VoIP systems offer a wider range of advanced features, such as voicemail to email, call forwarding, and auto attendant, which can help businesses operate more efficiently and provide better customer service. Analog systems have limited features in comparison.

3. Sound quality

Analog phone systems generally have better sound quality than VoIP systems, but only in areas with poor internet connectivity.

4. Reliability

Analog systems are known for their reliability, while VoIP systems may be more susceptible to network outages and power outages.

5. Security

VoIP systems may be more susceptible to hacking and cyber attacks, while analog systems are less vulnerable to these types of threats.

6. Compatibility

Analog systems are compatible with a wide range of devices, including fax machines and credit card machines, which may not work with VoIP systems.

7. Location

If your business is located in an area with poor internet connectivity, an analog system may be a better choice. However, if your business operates in multiple locations, a VoIP system may be more convenient.

If you’re ready to take your business to the next level with a VoIP phone system, get in touch with the experts here at net2phone today.