What Is VoIP? An Introductory Guide

While VoIP has been around for quite some time, it remained largely under the radar. Until recent years, when VoIP stepped into the spotlight and took the world by storm. Suddenly, business owners found themselves asking, "What is VoIP? Why is it so important for my business?"  

If you're one of them, you've come to the right place. We here at Cloud9 will walk you through the ins and outs of VoIP like only we can.  

What is VoIP?  

Voice over Internet Protocol (VoIP) is a technology that gives you the ability to make - and take - phone calls using the internet instead of traditional phone lines. Although it's been around for a while, this technology has boomed in recent years.  



Thanks to the surge in remote and hybrid work. And it's showing no signs of stopping.  

But how does VoIP work? We're glad you asked.  

First, your voice is captured by a microphone on your device. The microphone converts your sound waves into electrical signals. Then, VoIP turns these electrical signals into something your computer can understand through encoding. It's a process that turns electrical signals into a string of numbers representing sound waves.  

Next, these numbers are split into small pieces called "packets." Think of them like small envelopes that carry a part of your voice, and each packet has a label saying where it came from and where it's going. This helps the packets reassemble in the correct order when they reach their destination.  

Once that’s complete, the system sends these packets through your internet connection. When they arrive at the other end, the receiving VoIP system puts the packets back together and translates the numbers back into an electrical signal. That electrical signal is then changed back into sound, which is what your recipient hears on their end.   



How VoIP Systems Works  

Now that we've answered the question "What is VoIP?" it's time to answer the question "How does a VoIP system work?" Well, a VoIP system consists of several key components:  

IP Phones and Softphones  

IP phones are devices specifically designed for VoIP calls, while softphones are software applications that turn computers or mobile devices into VoIP-capable phones. Both devices handle the conversion of sound into digital data and vice versa.  

VoIP Gateway   

A gateway acts as a connection point between traditional telephone networks (PSTN) and VoIP networks. Its job is to convert analog voice signals from regular telephones into digital packets that can travel over the internet and vice versa. This allows communication between VoIP and conventional phone systems (aka the PSTN). 

Internet Connection  

The quality of your VoIP calls is dependent on how fast and reliable your internet connection is. Voice data packets must be transmitted and received smoothly for clear, uninterrupted conversations.  

Benefits of VoIP for Businesses  

Cost Savings   

Using VoIP means all calls are transported on the internet, which also means no more back-breaking long-distance and international call charges, and no more expensive maintenance costs. Since they rely on your existing internet connection and require minimal setup. 


Especially compared to more traditional systems.    

Scalability and Flexibility   

Adding or removing users with VoIP is a breeze because it doesn't need complex installations or rewiring. All it takes is a call to your Cloud9 rep. Now you can adapt to match changing demands within hours, rather than days or weeks. Since VoIP platforms are accessible online, you can support remote and hybrid teams without issue. They can log into the system or use the app to connect with customers and coworkers.  

Enhanced Features   

VoIP systems have a wide range of features that improve your business communication. However, instead of listing out all the features Cloud9 offers, here is our list of "essentials" that have a significant impact:  

  • Call Routing distributes incoming calls to agents based on set criteria. It reduces wait times, transfer rates, and improves first-call resolution.   

  • Interactive Voice Response (IVR) uses voice prompts and customer input to direct calls,     shortening the time spent on hold.   

  • Call Recording monitors and records agent-caller interactions, storing them securely in the cloud. They can be reviewed quickly and easily, giving valuable insights into agent performance.  

  • Visual Voicemail transcribes voicemails to text and sometimes sends them to your email, allowing you to prioritize callbacks well.  

  • Call Forwarding sends incoming calls to different numbers in the order you choose. Now you can easily forward a client to a remote agent's cell phone without putting the caller on hold. Cloud9's system lets you forward to multiple devices or agents if needed.  

VoIP can also integrate easily with essential business tools like your CRM (Customer Relationship Management) systems and task management apps. It speeds up workflows and helps employees be more productive.  

Geographic Independence   

All VoIP phone numbers are virtual. You don't have to install a physical phone line to use them! You can establish a global presence without planting physical offices in multiple locations. Now you can reach more customers, hire international employees, and provide better service without breaking the bank.  

So, what is VoIP? It's a way to make your day-to-day communications work for you, not against you. Let's be honest, traditional phone systems just can't keep up.   

Security and Privacy   

Over the years, we've gotten a lot of questions about VoIP, and one of the most common has to do with security. Some of the most common concerns include:  

  • Eavesdropping, where unauthorized parties intercept calls.  

  • Identity spoofing, where attackers manipulate caller ID information.  

  • Call tampering, where the content of conversations is altered in some way, and  

  • Denial-of-Service (DoS) attacks, where spammers flood your system with excessive traffic  

We've done something about their concerns, because what is VoIP without top-notch encryption protocols? Here are just a few you can expect from a Cloud9 solution:  

  • Secure Real-Time Transport Protocol (SRTP) encodes your voice so only the person you're sending it to can understand it. If someone tries to listen in, they'll only hear gibberish.  

  • Transport Layer Security (TLS) and Secure Sockets Layer (SSL). When devices communicate over the internet, they have to prove their identity to each other. TLS and SSL are like super secure digital IDs. They ensure that the device you're talking to is who they claim to be.  

  • Two-factor authentication (2FA). With us, you need not just one but two ways to prove that you're you. It can be something you know (like a password) and something you receive (like a code sent to your phone). It makes it harder for unauthorized people to access and use your VoIP account.  

We also update our security protocols regularly and maintain compliance with all relevant data protection regulations because we believe in going the extra mile for our customers.  

Types of VoIP Services   

While there are many flavors of VoIP, two stand out: hosted VoIP and on-premises VoIP.  

Hosted (or cloud-based) VoIP means your phone system runs on your provider's servers. They're responsible for ensuring your calls connect and your communications run well. Many small to medium sized businesses choose this type because:  

  • It doesn't require expensive hardware.  

  • Users can be added or removed with a thirty-second phone call.  

  • The service providers handle all their maintenance and updates.  

On the other hand, on-premises VoIP systems involve hosting your VoIP system on your own servers. It gives you more control over how the system is configured from a feature and security standpoint, but it also:  

  • Needs a more extensive upfront investment (in servers, etc.).  

  • It requires you to add users yourself, which can take some time.  

  • Places the burden of updates & maintenance squarely on your IT team.  

  • You can limit your options when it comes to remote work.  

This is why only the biggest companies with the most specialized requirements choose an on-premises system, but at Cloud9, we believe businesses of any size should be able to benefit from VoIP. Our solutions are always easy to use, built to meet your specs, and priced with utmost transparency.  

Transitioning to VoIP  

We've talked about your options – now let's talk about how to implement VoIP. When you work with Cloud9, you can transition in three simple steps: 

Step 1: Figure Out What Your Needs & Goals Are  

Why are you removing the old phone system, and what do you want from VoIP? Is it cost savings? Better features? Flexibility? Once you answer these questions, you will know what to look for in your new solution.   

Next, take stock of your current bandwidth because you'll need a strong and stable internet connection for VoIP to work well. Finally, talk to your team and make a feature "wish list." After all, you don't want to purchase add-ons they don't – and won't –use.  

Step 2: Plan Your Migration Process  

You can't just yank out the old phones overnight, which is why our technicians at Cloud9 help you work out a migration timeline. You decide how many phones to transition, how quickly the transition should go, and the end date.   

After the plan's set, we can help you decide on the phone types you'll need. Are you looking for desk phones, softphones on computers, mobile apps, or a phone system that can do it all? This will let you know what kind of hardware you’ll get– if any.  

Finally, get your IT team in the loop. They'll need to do a little work on your network to ensure your new VoIP system runs smoothly. When you go with Cloud9, you’re choosing a company that puts customer service at the forefront, meaning you'll also gain access to our network techs, who can give you expert advice whenever you need it.  

Step 3: Train & Support Your Employees  

Don't assume employees will "get" the new system right away. Cloud9 works with you to set up training sessions to show them how to use the new system. We've got an all-human help desk that operates 24/7/365 because we understand technical glitches aren’t always polite and don’t just occur between 9-5 Monday through Friday, which is why your team needs someone to talk to when things go south any time of day or night.  

We'd also recommend keeping a feedback channel open. If something isn't working, your team should feel comfortable telling you, and you should feel comfortable telling us!  

So, is VoIP a Good Fit for My Business?  

Before we answer, let's summarize everything we've covered about VoIP in today's post.  

  • What is VoIP? It is a protocol that lets calls travel over an internet connection, replacing traditional phone lines.  

  • VoIP digitizes voice signals, divides them into packets, and sends those packets over the internet, ensuring precise and timely communication.  

  • VoIP offers significant advantages over traditional phone systems that can significantly benefit your business:  

  • Cost Savings: VoIP reduces long-distance charges and maintenance costs, providing cost-effective communication solutions.  

  • Scalability and Flexibility: VoIP adapts quickly to changing business needs, allowing effortless addition or removal of users.  

  • Enhanced Features: VoIP systems come with a large library of features that make communicating more efficient.  

  • Geographic Independence: Virtual phone numbers enable global reach without needing physical offices, while location flexibility enhances customer service.  

Considering these advantages, yes. VoIP is an excellent solution for businesses. Whether you're a startup, a small enterprise, or a Fortune 500 company, VoIP can help keep your communication relevant for years to come. After all, it stays up to date for you, allowing you to adjust to new communication trends in days, not years.  

That's well worth a month-to-month investment, wouldn’t you say? 

Ready to Get Started with VoIP? We're Ready to Help!  

Cloud9VoIP is here to help you with your transition into the VoIP world. Our team can guide you in the best direction for your business no matter your size and no matter your industry. Give us a call today so we can get you started on your VoIP journey.