VoIP vs UCaaS: Which One Is Best for My Business?

November 3, 2022 4 min read

Mark Greer

Mark Greer

what is VoIP vs UCaaS - which one do I need for my business

In today’s fast-paced digital economy, choosing the ideal communications solution for your business model is essential for success.

Given the improved choices for business communications, many organizations still have difficulty deciding between UCaaS and VoIP as the best technology for their requirements.

Both systems have advantages, but which is best for your business depends on your unique needs.

What is VoIP?

VoIP stands for voice over internet protocol; VoIP is a technology that delivers voice communications (phone) and video sessions over an internet connection, as opposed to traditional landline phones. 

VoIP provides you with all the advantages of a landline phone, including the ability to call both landlines and cell phones, as well as the ability to receive and monitor calls. 

If you need a business phone number that can easily scale to more lines as your business grows, VoIP is an excellent option over traditional landlines

How Does VoIP Work?

VoIP converts your voice into a digital file, which is then compressed and sent over the internet. The VoIP service provider places the call, quite like your internet service provider.

VoIP completely bypasses the telephone company and can be used anywhere you have an internet connection. Compared to an analog phone system, it is a big improvement.

Because it is digital, it also offers important features like voicemail, voicemail transcription, call recording, call forwarding, and more.

Benefits of VoIP

The following are the top benefits using VoIP technology offers:

  • With VoIP, businesses lower their phone bills by over 50% compared to traditional landlines
  • VoIP comes with advanced features like call recording, auto attendants, and call queues to run your business smoothly
  • Low long-distance rates 
  • Remote work teams can use their business phone number regardless where they work

What is UCaaS?

UCaaS (unified communications as a service) is an integrated platform for all your business communication services such as instant messaging, phone, video conferencing, and email. 

VoIP is not really an alternative to UCaaS, since UCaaS services come with VoIP calling. Instead, you can think of UCaaS as the bigger umbrella of all your communication tools, which might include VoIP.  

Common UCaaS features include: 

  • Video: Multi-participant and one-to-one video conference for meetings that have a personal touch. Guest is able to join through web conferencing
  • Collaboration: Tools that improve office collaboration with project management, messaging, and scheduling
  • Voice: Phone service featuring call recording, forwarding, and advanced call routing.
  • Messaging: Internal team instant messaging that enables real-time conversation between individuals and groups
  • Cloud-based: Internet-based hosting in a private cloud or secure data center
  • For instance, it merely requires a few clicks to change the call routing of incoming calls. UCaaS makes technical telephone tasks easier

Nextiva’s productivity software is a UCaaS solution that gives your staff the freedom to easily switch from chat messages to phone conversations and video meetings on the same platform. It increases productivity and offers people ways to connect through various communication channels.

Benefits of UCaaS

Below are the top six reasons you should switch from your outdated PBX to UCaaS:

  1. Lower costs: UCaaS is more affordable and valuable compared to your current phone system. As a business owner, you can save up to 65% when you switch to the cloud.
  2. Flexibility in working remotely: Employees can work from home without any specialized equipment, thanks to UCaaS. This benefit frees employees from the restrictions imposed by an on-premises phone system.
  3. Streamline many communication tools: UCaaS combines various channels of communication into one. With Nextiva, your list of things to accomplish is much shorter. It takes less than an hour to set up a complete range of business communications tools. As a result, your team can maintain communication, serve customers, and manage important tasks seamlessly. Additionally, you’ll cut your monthly spending.
  4. Secure communication solutions: The reason UCaaS employs a defensive security strategy is to safeguard consumer data. Thanks to features like TLS/SRTP call encryption and detailed call logs, you can sleep a little easier at night.
  5. Achieve enterprise-wide scalability: Companies of all sizes can grow more quickly with the aid of unified communications as a service. How? You can grow your team and keep everyone connected with basic technological tools.

    Only internet access needs to be taken into account. You won’t need to install phone lines, telephone equipment, or on-site servers.
  6. Improve customer experiences: Now that communications are fully unified, you can finally deliver the best possible customer experience. Your touchpoints can focus on customer satisfaction thanks to UCaaS. You can lower churn by conducting customer surveys at crucial stages in the customer journey.

What Is the Right Choice for Your Business: UCaaS or VoIP?

Examine your company’s needs as well as your internal and external communication strategies. Is the majority of your workforce located away from the office? Are they spread across offices, possibly worldwide, making it increasingly harder to collaborate? Which communication channels do your customers prefer? Would employing SMS or chat apps help your business? 

If your business needs a more extensive range of communication channels, think about UCaaS as a time- and money-saving option.

Conversely, VoIP technology might be a better option if most of your company’s activities—such as taking orders or closing sales—take place strictly over the phone. VoIP is a cheap and practical option if all you’re trying to do is reduce your monthly bill.

Regardless of your chosen solution, switching to an efficient, internet-based communication tool will undoubtedly benefit your business. 

Need help deciding? Talk to an expert at Nextiva to see which solution is right for your business. 

Mark Greer


Mark Greer

Mark Greer is a Sr. Product Marketing Manager for Nextiva. His background in the IT sector includes CCaaS, UCaaS, DBMS, business intelligence/data warehousing, endpoint management, and directory technologies. Mark likes traveling the South Pacific, scuba diving, off-roading, and exploring Western rivers with a fly rod in-hand.

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