From handling client negotiations to helping employees engage with each other, communication is at the heart of any organization’s success.
But with so many different communications systems to choose from, selecting the right platform can be tricky. Ultimately, it all depends on your organization’s specific needs.
Here, we discuss two communications systems in depth: Voice over Internet Protocol (VoIP) and Unified Communications as a Service (UCaaS). By examining the strengths of each technology, we will guide you toward deciding which platform will work best for your business.
Intro to VoIP & UCaaS
As of 2023, 40% of US employees work at least one day a week from home.1 Research also shows that remote worker productivity depends heavily on organizational communication tools. This means that optimizing your workplace’s communication infrastructure is vital for ongoing productivity.
What is VoIP?
VoIP enables businesses to make voice calls via an internet connection, bypassing traditional phone lines and phone services.
For small businesses, VoIP stands above traditional phone lines because it’s more affordable, especially for long-distance calls, and it’s versatile because it allows users to make and receive VoIP calls from any internet-connected location.
Voice over IP also offers a range of features such as caller ID, call forwarding, and voicemail to email, which are normally more expensive or completely unavailable with standard landlines.
What is UCaaS?
UCaaS is a streamlined solution that uses the cloud to deliver phone, chat, video, and messaging, all in one platform. Often shortened to “UC,” unified communications optimizes team and customer interactions into a single cloud-hosted system that employees and organizations can access easily from any geographical location.
The benefits of UCaaS go well beyond those of traditional VoIP services by offering more features that enhance collaboration and productivity. UCaaS solutions also scale with business growth and integrate with different business applications, enabling more connected and efficient workflows.
VoIP and UCaaS Differences
While both VoIP and UCaaS are cloud-based communication solutions, they serve distinct purposes.
VoIP specializes in voice calling, whereas UCaaS offers a comprehensive communications solution, including video conferencing, instant messaging, and other collaborative tools and voice capabilities.
In terms of cost savings, VoIP systems present a more budget-friendly option compared with UCaaS solutions.
| Feature | VoIP | UCaaS |
|---|---|---|
| Primary offering | Voice-based calling features | Voice, video, and collaboration features |
| Cost | More affordable | Higher cost for more features |
| Ease of Setup | Straightforward setup | Steeper learning curve |
| Communication Tools | Desk phones, softphones | Desk phones, softphones, web-based apps, and CRM/email integrations |
| Integrations | Limited | Comprehensive |
However, UCaaS justifies its higher price point with a broader set of features and seamless integrations with business applications, offering more value for businesses seeking an all-encompassing communication tool.
Ease of setup and use is another consideration; VoIP is relatively simple, which gives it an edge for quick implementation, making it the straightforward choice for voice communication needs.
UCaaS, while more complex, delivers the advantage of unifying all communication channels into one platform, potentially streamlining workflows after climbing the initial learning curve.
Comparing VoIP & UCaaS Features
Buyers in the market for a communications system must decide between a VoIP or UCaaS solution. Understanding the features of each solution allows you to assess which are must-haves for your business.
Noteworthy VoIP features
Key VoIP features center on facilitating easier phone calls and managing incoming calls:
- Phone calls: VoIP phone systems let businesses make and receive high-quality voice calls over the internet, made across the public switched telephone network (PSTN). This ensures businesses can make calls from traditional landline phone numbers.
- Auto attendant: Auto attendant features facilitate screening and directing incoming calls, providing menu options to help callers reach their intended department or contact within the organization.
- Softphone capabilities: Softphone applications for mobile devices and desktops, such as the NextivaONE, allow employees to make and receive calls, check voicemail, send and receive text messages and SMS, and use other VoIP features on personal devices.
- Call forwarding: Call forwarding and call routing functionality help businesses redirect incoming calls to alternate numbers, should the intended recipient not be at their desk phone.
- Conference calling: VoIP service providers can host multiparty conference calls, making it easy to conduct group discussions without needing third-party conference call services such as Zoom or Google Meets.
- Call recording: Calls can contain extensive amounts of information that are impossible to recall unless the call is recorded. Call recording and transcription features allow users to replay calls later, ensuring they get all the necessary information.
“As times change, we want the ability to tell our employees to go home and work. […] If you have the client installed on your laptop or your cell phone, you don’t have to do anything. Just work from home and it’s as if you’re receiving or making a call from the office.”
Tom Rybak
Top UCaaS features
UCaaS providers focus on offering users a comprehensive suite of features that deliver an all-in-one communications system, capable of handling the business needs of organizations of all sizes.
UCaaS includes all the core features of VoIP and these features in one fully integrated platform:
- Video conferencing: A standout feature of UCaaS is its robust video conferencing capability, allowing for real-time video calls with multiple participants, including screen sharing and collaborative tools, facilitating face-to-face meetings regardless of location and time zone.
- Team messaging: UCaaS platforms also offer team messaging functions, enabling one-on-one or group discussions between employees over various chat channels. This streamlines communication within teams and projects, promoting a faster and less formal interaction than email.
- Presence information: The “presence management” feature in UCaaS systems provides real-time status updates, indicating whether colleagues are available, busy, or away. This helps employees decide the best time to reach a colleague for a quick reply.
- Business application integrations: Perhaps one of the most popular features of UCaaS is its ability to integrate with other business applications, such as Customer Relationship Management (CRM) systems and project management tools. Integrations such as these allow users to manage all their communications from the same applications they use daily, boosting productivity and efficiency.
These main UCaaS features contribute towards a more streamlined and optimized communications experience. Together, UCaaS provides a solid foundation for communication.
Similarities Between VoIP and UCaaS Solutions
First off, it’s important to understand that VoIP and UCaaS are cloud-based services. Both communications solutions facilitate the remote and flexible nature of modern work, allowing teams to make and receive calls from anywhere.
These similarities lay the foundation for a more connected, efficient workplace, regardless of location.
| Feature | VoIP | UCaaS |
|---|---|---|
| Cloud-based | Yes, when not on-premises | Yes |
| Remote-work friendly | Yes, most of the time | Yes |
| Communication features | Calls, voicemail, mobile phone applications | Calls, voicemail, mobile phone applications, video calling, team messaging, third-party application integrations |
Popular VoIP & UCaaS Use Cases
Best uses of VoIP
For small- to medium-sized businesses, VoIP enhances business phone systems and voice interactions between team members and clients.
It’s a cost-effective solution for organizations looking to streamline their communications without a significant initial investment.
VoIP is also a match for businesses that might not need a full suite of communication tools but want reliability and flexibility in their calls, such as having voicemails converted to email or forwarding calls to mobile phones when out of the office.
Moreover, companies with limited budgets benefit from VoIP’s cost-efficiency, as it requires less upfront investment than UCaaS solutions and can significantly reduce monthly phone bills, particularly if the organization makes frequent international calls.
Businesses that require basic telephony but still want access to more sophisticated features, such as auto attendants or conference calling, will find VoIP meets their needs without the complexity of additional integrations.
Best uses of UCaaS
Unified communications is the go-to solution for larger businesses or enterprise companies that need an all-encompassing communication solution. This includes telephony, video conferencing, instant messaging, and file sharing, all integrated into one platform.
It’s an ideal solution for businesses aiming for seamless connectivity among employees and clients, providing a consistent user experience across various communication channels.
For organizations with remote teams or those spread across different time zones, UCaaS offers tools that support collaboration regardless of physical location. Features such as real-time presence information and team messaging unify remote workers as if they were in the same room.
Organizations that rely heavily on team collaboration, such as tech companies, design firms, consultancies, or those operating call centers and contact centers, particularly benefit from UCaaS’s ability to combine communication with workflows and streamlined project management.
UCaaS excels in environments that require tight integration with other business applications, such as CRM systems, email, and project management software.
This interconnectedness allows for a more streamlined workflow, where communication can happen in tandem with customer data management and project tracking, which is essential for businesses that rely on real-time data to deliver quick, informed responses to customer inquiries or project updates.
Related: The Best BlueJeans Alternative to Consider (+ 4 Corporate Meeting Platforms)
VoIP vs. UCaaS: Which Is Right for You?
Deciding between VoIP and UCaaS depends on several key considerations, each tied closely to your business’s specific needs, goals, and resources.
- UCaaS is best: If your business requires a versatile communication system that goes beyond voice calls and integrates smoothly with other business tools, UCaaS is likely the best fit.
- VoIP is best: If the primary need is for reliable internet-based voice communication with some additional features, and budget is a significant consideration, VoIP may be the right choice for you.
This decision should be made by assessing your business’s communication needs, user requirements, and financial capacity, as discussed in depth below.
💰 What is my budget?
Budget is one of the primary considerations that organizations consider when deciding which technology they should invest in.
With this in mind, UCaaS is a pricier option than VoIP because it offers more features and capabilities. It consolidates various communication and collaboration tools into one centralized system, which leads to savings in the long run by replacing multiple redundant tools and streamlining operations.
While VoIP is initially more affordable, offering a straightforward solution for internet-based telephony, UCaaS presents a comprehensive platform that can effectively replace entire suites of communication software, justifying its higher price point with added value, especially over the long term.
💪 What communication features are most important to me?
Consider the communication features that are vital for your business. If the goal is to simply modernize voice calls, VoIP technology will serve you just fine, providing internet telephony with some advanced features such as call forwarding and voicemail to email.
However, if your business requires a complete communications platform that includes video meetings, team messaging, and presence management alongside voice capabilities, then UCaaS is most certainly the better choice.
🙋Who will be using the system?
Identifying who will use the system and for what purpose will also guide your decision.
Suppose the system is primarily for customer support or service teams that handle a high volume of calls. In that case, VoIP’s efficient call management functionality will be exactly what you need to deliver an outstanding customer experience.
On the other hand, if the system needs to support internal communication across sales, product, and other teams in addition to customer service, UCaaS’s diverse feature set and collaborative tools will be a more appropriate and beneficial choice.
🧩 Do I need to integrate my communications with other business applications?
Finally, buyers weighing up the decision between a VoIP and UCaaS solution must consider their need for integration with other business applications.
UCaaS platforms are designed with integration in mind, offering compatibility with a wide array of business apps such as CRM systems, project management tools, and productivity suites.
This enhances workflow automation and data accessibility, providing a more seamless experience for users. Comparatively, VoIP systems offer limited integration ability.
Is your organization ready for UCaaS? Take the UCaaS Readiness Quiz — and see how you score. One of our experts will follow up and suggest the best solution for your business.
✅ Whatever You Choose, Nextiva Has You Covered
Selecting the right phone service provider for your organization is crucial for every business. Your decision must meet your organization’s current needs and plan for future growth, ensuring scalability that matches your business performance.
Nextiva understands this balance and offers solutions that cater to a diverse range of business sizes, from SMBs to large enterprises.
Whether your priority is a sturdy on-premises PBX or an all-inclusive UCaaS platform, Nextiva’s suite of business communication solutions scales with you.
With Nextiva, you gain a partner equipped to propel the growth of your enterprise with its future-ready communications platform.
VoIP vs. UCaaS FAQs
Reliability is a major concern for businesses considering switching to cloud-based communication solutions. However, UCaaS and VoIP have become increasingly reliable in recent years, thanks to advancements in technology and cloud infrastructure.
Top-rated providers like Nextiva offer a redundant network and 99.999% uptime. Additionally, UCaaS and VoIP can often be more reliable than traditional phone systems, as they are not subject to the same outages and disruptions.
UCaaS costs between $30 and $50 monthly per user, depending on the features and commitment. However, it is typically much more affordable than traditional phone systems, especially for businesses with multiple locations or remote employees. Additionally, UCaaS eliminates the need for separate meeting apps like Zoom, Bluejeans, Uberconference, and Google Meet.
VoIP is an older brother to unified communications, but don’t count it out completely. There are a few areas where VoIP is better than UCaaS.
1. Monthly cost: VoIP is generally less expensive than UCaaS. This is because VoIP focuses solely on business phone calls, eliminating the need for additional software and infrastructure for other communication channels.
2. Simplicity: VoIP is a relatively simple technology, making it easy to implement and manage. This is particularly beneficial for small businesses with limited IT resources.
3. Focus on voice calls: If your primary need is to replace your traditional phone system with a more cost-effective and flexible solution, VoIP might be sufficient. It offers excellent call quality, advanced features like call forwarding and voicemail.
Even with these advantages, VoIP falls short of UCaaS because of its limited features, less mobility, inferior collaboration functionality, and overall value for business owners.
1 – WFHResearch [PDF]
