» The Different Flavors of VoIP

The Different Flavors of VoIP

Lots of companies talk about VoIP but exactly what does it mean? Well, the truth is, VoIP means a lot of different things, in the same way that ice cream means a lot of things. There needs to be a descriptor in front of “VoIP” to accurately explain a service—Peer-to-Peer VoIP, Virtual PBX, Hosted PBX, Managed VoIP, because all are different and distinct. Here’s a quick look at each niche:

Peer-to-Peer

What it is: Two people who have downloaded the same software can talk directly for free. The service uses the existing internet connections between two computers to allow people to communicate via headsets.

Example: Skype, Gizmo Project

What you should know: It is free but works best for individuals (when you want to chat with your kids or spouse from a business trip, for instance) especially for international communication. However it’s not a comprehensive enough as a tool for business needs.

Residential

What it is: You use your analog phone to call people. The only thing different from traditional analog service is that call is going over the Internet instead of a phone line. The advantage is that you get unlimited usage for a flat fee, as opposed to per minute rates.

Example: Vonage, Packet8

What you should know: You get what you pay for. The price is better than a regular phone but service can be spotty.

Virtual PBX

What it is: An inbound office presence for individuals who want a toll free number with extensions. If you have a one-person firm, you can set up a virtual PBX and have callers press one for sales, two for marketing and three for technology. Then you can have all extensions routed to the same phone.

Example: GotVMail, RingCentral

What you should know: This service is geared towards entrepreneurs who are on the road or work from home and need an office appearance for inbound calls. There is no outbound functionality with a Virtual PBX, so you must use another service to make outgoing calls, such as another VoIP service, cell phone, or analog phone. It is inexpensive but functionality is limited.

Hosted PBX

What it is: A private branch exchange for your office, hosted in the internet cloud. There are phones with extensions, voicemail, auto attendants and more, but no central piece of equipment at your office. The central technology is hosted by the provider. All functionality is managed via a web page. Individual extensions settings can be managed online, as well as auto-attendant settings and call routing.

Example: Aptela, Vocalocity

What you should know: You get more functionality than with a virtual PBX, yet you don’t have to spend as much as you would on a managed business VoIP. However the service comes over the public internet, so quality isn’t guaranteed.

Managed Business Voip/ Managed Hosted PBX

What it is: Nearly identical to a hosted PBX, except everything runs on private lines, instead of the public Internet. This is ideal for a very large company that will be in trouble if its phone system goes down, even on a very rare occasion and even if only for a few minutes as these services generally guarantee quality and connectivity.

Example: M5, Smoothstone

What you should know: Superior quality control but by far the most expensive of all VoIP options. Additionally managed solutions require onsite install and maintenance.

Uncategorized | fbnewman | February 12, 2009 11:16 pm

3 Comments

By Erik LaBianca, February 14, 2009 @ 3:22 am

Great breakdown, thanks. I’d suggest a category for the services being sold by telcos and cable companies that they try to tell you aren’t VoIP because it runs on their “private network” instead of the internet.

AT&T FlexShare, Comcast Digital Voice come to mind.
By Erik LaBianca, February 14, 2009 @ 3:31 am

Another “flavor” to keep in mind is wholesalers such as Gafachi or VoicePulse Connect. Obviously you’d have to run your own Asterisk box or the like to use them, but it’s certainly VoIP.