Voice over internet protocol (VoIP) software uses an IP network to transmit phone calls seamlessly without the need to connect to an extra telephone network. It is a modern form of PBX (private box exchange, or private branch exchange), a broad term for private telephone networks within organizations. VoIP providers can offer different types of PBX, including hosted PBX, virtual PBX, and cloud PBX. The differences between each of these options is minimal, with each form defined by the amount of user maintenance required for use.
The hardware required for a given VoIP solution can vary; some providers require clients to use their specific phone system, while others may be used with any type of proprietary VoIP phone. Other VoIP providers allow users to make calls using their personal cell phone, a solution called softphone, either in addition to or instead of a traditional PBX.
VoIP capability can be featured in other types of communication software. The voice component in video conferencing software is provided by VoIP. However, VoIP providers offer internet-based call connectivity without requiring the use of video messaging services or other outlets. VoIP is a mainstay of UCaaS software and contact center infrastructure software. Many UCaaS solutions include both softphone and PBX solutions within their offerings.
To qualify for inclusion in the VoIP category, a product must:
Provide VoIP PBX systems for businesses and/or offer a VoIP softphone application
Offer necessary hardware, should a solution require it
Include features that assist in regulating incoming calls
