Phone Systems (VoIP) Software

What is Phone Systems (VoIP) Software?

Phone systems software, also known as Voice over IP (VoIP) software, transforms voice data into digital signals that are transmitted through an internet connection to make and receive phone calls. VoIP systems do not require physical landline services or networks to function, and many organizations are now choosing VoIP software due to its convenience, cost-effectiveness, and flexibility.

Modern VoIP solutions are no longer siloed from other business technology, and fully integrated communication systems are becoming a must-have for competitive advantage. For example:

  • VoIP is part of overarching UCaaS solutions that centralize communication tools such as voice calls, video conferencing, and messaging into one platform.
  • VoIP software can also be integrated with contact center solutions to centralize an organization’s communication tools, increase agent productivity, and streamline customer experience.
  • Many leading VoIP providers now offer CX software solutions as all-in-one suites for facilitating communication, centralizing support and experience tools, and managing customers and employees for a streamlined experience.

Key Capabilities of Phone Systems (VoIP) Software

  • Basic Calling Features:
    • Domestic & International Calling
    • Voicemail
    • Caller ID
    • Call Waiting
    • Speed Dial
    • Ring Groups
    • Conference Calling
    • Call Blocking
    • Call Forwarding
    • Hold Music
  • Call Monitoring & Whisper Coaching: VoIP solutions offer call monitoring tools for supervisors to listen in on calls and provide live coaching tips for employees or agents.
  • Automatic Call Distribution (ACD): VoIP systems offer ACD, which helps maximize efficiency by automatically distributing incoming calls based on customized rules.
  • Intelligent Call Routing: AI-powered VoIP vendors can deliver intelligent call routing, for transferring calls to the best agent based on need or sentiment.
  • Click-to-Call: VoIP solutions provide one-click calling buttons that can be integrated into company websites or CRM systems for instant call connections.
  • Softphones: Virtual softphones, either via desktop or mobile apps, make it possible to use VoIP for calls on any device with an internet connection.
  • Auto-Attendant: By automatically answering calls, an auto-attendant, also known as a virtual receptionist, provides information such as business hours and location, while also being able to route callers to the appropriate agent or department.
  • Call Analytics: Many VoIP providers offer call tracking tools that companies can use to analyze call quality, for process improvements and customer experience insights.
  • Voicemail-to-Email Transcription: VoIP systems provide voicemail-to-email transcription that will send a recording of a voicemail along with a written transcript to employees' inboxes.
  • Interactive Voice Response (IVR): IVRs guide callers through automated menus to identify needs and efficiently route calls, helping reduce wait times.
  • APIs: Many VoIP providers provide APIs so developers can integrate VoIP features directly into company systems and applications.

Have more questions about phone systems software? Jump to our phone systems FAQs to learn more.

Top 10 Phone Systems (VoIP) Providers

PanTerra - Streams / Crexendo / Phonexa / Twilio Voice / Vonage / RingEX / VirtualPBX / 8x8 X Series / Switchvox Cloud / VoIPstudio

WH Score
Starting Price:$20 per user / per month
Phonebooth provides data and voice communication services for small and medium-sized businesses. True to their words, for $20/month Phonebooth services include all the features SMBs need in a phone system, plus unlimited minutes: no hidden charges and no surprises.
WH Score
Kinetic Business
Starting Price:$0 per phone number / per month
Broadview Networks and Windstream have joined forces to become the leading nationwide UCaaS provider. The merging of our two companies combines Broadview’s secure, award-winning, unified communications solution,and more than a decade of UCaaS expertise, with Windstream's extensive portfolio of...

Learn more about Phone Systems Software

Is VoIP better than landline?

Landline and traditional on-site PBX systems are being phased out increasingly every year due to the vast benefits of VoIP, such as cost-savings, productivity hikes, and robust feature sets including global VoIP calling, virtual assistants, intelligent call routing, and even customer journey mapping. 

Is VoIP cheaper than a landline?

VoIP phone systems are cheaper than landlines, typically costing less than 50% of what a landline costs. This is because a VoIP platform operates through your existing internet connection, compared to the copper wires of landlines, which must be physically installed.

What is the difference between VoIP and UCaaS?

VoIP is one form of communication i.e. voice-based communication, which can be facilitated over the internet. UCaaS, on the other hand, is short for Unified Communications as a Service, which consolidates a variety of different communication channels into one centralized platform.

In other words, UCaaS solutions consist of voice, SMS, chat, email and even video, all within a single agent console - while VoIP refers to only one communication channel, which is voice.

Does VoIP work during a power outage?

No. VoIP does not work during a power outage. VoIP relies on an internet connection, so when the VoIP router loses power, the system cannot be used to make and receive calls. However, organizations can reduce VoIP system downtime during a power outage by using backup power sources or forwarding calls to mobile devices while the power is off.

Can VoIP work without the internet?

No. VoIP will not work without an internet connection. VoIP software converts voice signals into digital data that is transmitted through a high-speed internet connection to make and receive calls. When the internet is down, companies must rely on mobile devices for communication.

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