SIP Trunking vs. VoIP: Key Differences & Benefits for Businesses

Looking to modernise how your business stays connected? Two heavy hitters often come up – SIP trunking and VoIP. Both promise to improve communication and save you money, but how do you know which technology is the right fit for your business?

Keep reading for everything you need to know about SIP trunking vs VoIP, including how each can benefit your business and impact your day-to-day operations, as well as what to consider when deciding between the two.

Defining SIP trunking and VoIP

To really understand the nuances of SIP trunking vs VoIP, it’s helpful to start with a clear picture of what each technology is.

What is VoIP?

VoIP (the acronym for Voice over Internet Protocol) is a technology that allows businesses to make phone calls over the internet, instead of relying on traditional landlines. It’s an internet-based service which means that all voice data is converted into digital packets and sent through the web. Sounds straightforward, right? That’s because it is.

VoIP has been growing in popularity for years, and for good reason. Many businesses have turned to VoIP as a reliable and cost-effective alternative to landlines. Since all calls – whether local or international – are routed over the internet, the expensive long-distance fees are a thing of the past.

Benefits of VoIP for businesses

VoIP isn’t just about saving money (though that’s a big part of it!). There are lots of extra benefits that make the technology attractive to businesses of all sizes.

  • Cost savings

No one likes a huge phone bill, especially when it’s packed with sky-high charges for international calls. VoIP allows businesses to slash their telephony costs, even if long-distance or international calls are made on a daily basis. Whether you’re calling across the street or across the globe, the cost structure of VoIP tends to be far more predictable and affordable than traditional phone lines.

  • Work from anywhere

Flexibility is non-negotiable for modern workplaces where remote and hybrid working arrangements are becoming the norm. With VoIP, your team can make and receive calls from their laptop, smartphone, or any device with an internet connection, no matter where they are. How does this benefit businesses? Whether your team’s scattered across different time zones or simply working from home, VoIP keeps everyone connected without being tied to the office.

  • Advanced features

VoIP systems come packed with smart features that give your business a competitive edge. From call forwarding to voicemail-to-email integration, VoIP comes loaded with tools to help businesses stay on top of communications. Need to set up a quick video call with a client? VoIP makes it easy. Want to record calls for training purposes? That’s built in too. It’s like getting a phone line and a suite of professional communication tools all rolled into one.

  • Scalability

Is your business growing fast? Scalability is a key factor to consider when deciding between SIP trunking vs VoIP. Whether you’re a small business just getting started or an established and fast-growing enterprise, adding more lines or users is a cinch with VoIP. There’s no need for extensive hardware installation or configuration. Just upgrade your subscription and keep on growing.

Sure, there are some disadvantages of VoIP. But they’re generally linked to subpar internet connections, which is an easy fix. Simply upgrade to a superior connectivity solution like FTTP, SOGEA or a leased line to experience VoIP at its best.

What is SIP trunking?

SIP trunking, short for Session Initiation Protocol Trunking, is another powerful technology that enables businesses to make calls over the internet. This is where things get interesting. SIP trunking is more than just a voice service. It’s a solution that connects your company’s Private Branch Exchange (PBX) system to the internet. In short, it acts as a bridge between your existing phone infrastructure and the modern realm of internet-based communication.

The main difference between SIP trunking vs VoIP is whether an existing PBX system is in place. 

SIP trunking allows businesses to keep their PBX internal infrastructure intact while taking advantage of the benefits that come with internet-enabled calls. We’re talking cost savings, flexibility, advanced features, scalability and more.

Benefits of SIP trunking for businesses

If your business has a traditional PBX phone system but you’re ready to embrace the future of communication – without the hassle of a total system overhaul – SIP trunking could be exactly what you’re looking for. It’s the perfect way to modernise your setup and take advantage of internet-based communication while keeping what’s already in place.

Here’s a rundown of the key benefits:

  • Keep your existing system

One of the main advantages of SIP trunking is that it allows you to keep your current PBX setup while still enjoying the benefits of internet-based communications. If your business has already invested in a PBX system and you’re not ready to ditch it, SIP trunking bridges the gap between traditional telephony and modern internet solutions.

  • Higher call quality

SIP trunking often provides superior call quality compared to traditional lines. Why? Because it can handle larger bandwidth and prioritise voice data.

  • Cost control and savings

Like VoIP, SIP trunking can dramatically reduce the costs associated with traditional phone lines. By routing calls over the internet, businesses can avoid paying for multiple landlines and reduce (or even eliminate) expensive long-distance charges.

  • Centralised management

Another standout benefit of SIP trunking vs VoIP? It allows businesses with multiple locations to manage all communications through one central hub. For example, if you operate offices in different regions or countries, you can streamline your communication infrastructure and reduce costs by consolidating all phone lines under a single system.

SIP trunking vs. VoIP: What’s the real difference?

Yes, VoIP and SIP trunking are both internet-based communication solutions. But they serve very different purposes and as a result, are suited to different types of businesses. To make the best choice for your organisation, it’s important to understand the technical differences between the two.

Here’s a closer look at how they compare:

Technology and setup

VoIP is primarily a service that allows voice calls to be made over the internet. It’s a great solution for small to medium-sized businesses that want a straightforward, plug-and-play communication system with minimal hardware requirements.

SIP trunking is more of an extension of an existing PBX system. It allows businesses to connect a traditional phone system to the internet. For larger organisations, or those with more complex communication needs, the flexibility to manage voice, video and messaging over a single connection is a major draw.

Scalability

VoIP is highly scalable. This makes it ideal for growth-oriented businesses or those that experience fluctuations in demand. Since it’s typically cloud-based, you can easily add or remove users as your business changes, without worrying about hardware or installation.

SIP trunking, while also scalable, is more suited to larger businesses that need more control over their communication systems. It offers flexibility in terms of managing multiple communication channels (voice, video and so on), but with the added benefit of leveraging existing infrastructure.

Flexibility and control

VoIP delivers a hassle-free solution that requires very little maintenance or configuration. It’s perfect for businesses that want a reliable and flexible communication system without worrying about managing infrastructure.

SIP trunking offers more control and customisation. This can be especially beneficial for businesses that need to integrate communication services like fax, video conferencing or even SMS into their setup.

Cost considerations

Significant cost savings are a given when comparing SIP trunking vs VoIP. That said, the extent of these savings depends on your current setup. VoIP is generally cheaper for businesses starting from scratch. SIP trunking savings can be bigger for businesses that already have a PBX system and don’t want to replace it.

Which option is best for your business?

Choosing between SIP trunking vs VoIP largely depends on the current infrastructure and future communication needs of your business.

When VoIP works

If you’re a small business looking for a straightforward, cost-effective solution, VoIP is likely your best bet. It’s affordable, flexible and offers a laundry list of useful features like video conferencing and call forwarding. All without requiring any complex hardware.

When SIP trunking works

If your business already has a PBX system and you want to maintain control over your internal communications, SIP trunking could be the better option. It allows you to leverage your existing setup and harness the flexibility and cost savings of internet-based communication.

Elevate your business communications with VS Group

When it comes down to it, both SIP trunking and VoIP give you modern, reliable communication solutions that are flexible, budget-friendly and easy to scale. The right choice really depends on what your business needs. Whether you’re keeping your current PBX system or you’re ready to make the leap to a fully cloud-based platform, both options have you covered.

Still not sure which solution will make the biggest difference for your business? Our experts are ready to help you figure it out. Whether it’s VoIP or SIP trunking, we’ll guide you to the right setup that suits your business goals.

Call us on 0330 0940 170 or email customerservice@vsgcomms.com to find out more about what SIP trunking or VoIP can do for your business.

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