Are there disadvantages of Using VoIP for business?

VoIP phone systems are increasing in popularity among companies that have dedicated more resources to their customer service aspect of the business. We all know that good customer service is the cornerstone of building your customer base and maintaining customer loyalty. Customers who receive satisfactory customer service are more likely to stay loyal and recommend your services while a poor customer service interaction can drive loyal customers away.

VoIP isn’t all gravy; there are disadvantages to switching to a VoIP solution. You may encounter bandwidth problems if you do not upgrade your Internet connection. Also, you may find that switching is too expensive to roll out an equipment-based solution when you calculate the stronger connection and cost of new hardware.

Voice Over Internet Protocol (VoIP) technology allows us to make and receive calls using an internet connection. These cloud-based phone systems also provide video and chat communication tools to improve business collaborations by centralizing communication tools in one easy-to-use, affordable platform. 

Cloud-based VoIP providers are becoming the most embraced business communication option for companies of all sizes. Landline and traditional on-site PBX systems are being phased out increasingly every year due to the vast benefits of VoIP such as robust feature sets, cost savings, and impressive productivity hikes. 

Whether you have a small business or an international enterprise, there is a VoIP solution provider on the market to fulfill your needs and improve your business communications with new features and efficiencies.

Using the best phone system for your business can bring many benefits (for communication and otherwise) to your company, including:

• Enhanced communication, both internally and externally
• Increased collaboration opportunities among employees and remote teams
• Increased mobility and flexibility
• Improved efficiency and productivity by seeing actual data and analytics about your phone system
• Reduced costs due to calls being placed over the internet vs. traditional landlines racking up long-distance call charges.

VoIP solution providers are more affordable than PBX and provide companies with increased mobility and efficiency, so the majority of new software implementations or upgrades are trending toward the cloud.

Some businesses encounter problems with a lack of redundancy and dependability, as VoIP can be more susceptible to disruptions than PSTN lines.

VoIP phone systems can only run when the server is working, when the Internet connection is functioning, and when there is a steady supply of power; if one of these is removed from the equation you will lose your service. Hosted VoIP solutions however have redundant backups and can provide more reliable service.

Let’s explore the different drawbacks of a VoIP phone system:

• VoIP phone systems are dependent on a working Internet connection

Connectivity to the internet is a must for VoIP services to operate. You will have to invest in a separate router and/or internet connection for your VoIP service to ensure uninterrupted service. This could also mean that you may not be able to reach geographical areas with low signals.

Employees that may be working remotely and away from home are dependent on the reliability of their home or remote internet connection. This may be cause for concern and your company may want to invest in reliable internet connections for all remote locations as well.

• Varying quality of the call

Since the VoIP call is transmitted via the Internet, it might not seem like the smoothest call at all times. You may experience low-quality voice and video or slight delays in the speed of transmission creating a very tedious experience from time to time. This may be dependent on how strong your IP signal is. You may also experience sudden call drops when using a VoIP service due to connectivity issues. This is avoidable by investing in a reliable internet connection dedicated to your VoIP phone system.

• Security concerns

Since VoIP calls are transmitted via the internet, there is the possibility of interceptions and eavesdropping which can compromise the level of security of the conversation. VoIP security breaches can also affect your hardware via phishing attacks, malware, and viruses.

Most VoIP vendors are diligent about security and have gone to extra lengths to ensure that you are able to securely communicate. It is also advisable to educate your staff and follow a thorough VoIP call protocol to avoid unnecessary security breaches.

• Not reliable as an emergency service

We cannot emphasize enough that VoIP services are dependent on an active internet connection which means it might not be the most reliable way to communicate in case of an emergency where internet services may be compromised. These days, most VoIP providers provide an E911 service that would alert someone of your location in case of an emergency.

Nowadays, with robust internet connection speeds and the mainstream availability of 5G. VoIP services have become much more reliable and don’t seem to suffer from their usual drawbacks as much. And with the introduction of cloud-based services and mobile apps, VoIP phone systems are easier to use than ever.

Like many other innovations to make doing business easier, VoIP phone systems also have their drawbacks as discussed above. But it can be assured that the benefits of a VoIP phone system would far outweigh its shortcomings.

VoIP phone systems are not meant to replace the traditional phone or cellular communication but rather to be used as a business tool to streamline communication. Making communication tools available to everyone via the internet is the best feature of VoIP technology and VoIP phone systems have allowed businesses to move beyond their geographical constraints.

A VoIP service is a great investment for a small or mid-sized business and if you need more help selecting a VoIP phone system that is right for your business, you can consult with our buyer’s guide. You can also compare the best VoIP providers for the unique features they offer that might be just what your business needs to reach the next level of success.