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VoIP vs Virtual Phone Systems: Which is better?

Published on April 10, 2023
Last modified on May 4, 2023
VoIP vs Virtual Phone Systems Which is better - NeoDove

Did you hear about the phone that went on a diet? It lost all its cords and became a virtual phone! 

Speaking of virtual phone systems, have you heard about how popular they’re getting these days. More and more businesses have begun to adapt these kinds of systems and seen many positive results. 

However, you can’t talk about virtual phones without discussing the steadily growing popularity of VoIP as well. In fact, 75% of business owners say they love VoIP for its mobility.

But, how does VoIP compare against virtual phone systems?

In this article, we will examine VoIP systems and virtual phone systems and see which is better. 

What is VoIP?

Voice over internet protocol (VoIP) is a type of technology that allows users to make calls using the internet. With VoIP, you can use the internet to send voice signals in place of landline systems. 

VoIP - NeoDove

Generally, VoIP is preferred over landline as it uses packet switching and requires minimal hardware. In this way, it provides a very useful and cost effective calling solution.

What are virtual phone systems?

Virtual phone systems allow you to make and receive calls using the internet. With virtual phone systems, you can place calls from any device. For example, your desktop, smartphone, softphone, tablet, etc. 

In comparison to traditional phone systems, virtual phones offer much more adaptability and convenience as well. 

Also read, 

VoIP vs Virtual Phones: Which is better for your business needs?

VoIP and virtual phone systems are both useful calling solutions that can help your business run smoothly. As long as there’s an internet connection, they can greatly optimize calling. 

With VoIP, users can easily collaborate via video or chat through its unified communication capabilities. In comparison, virtual phone systems provide a more affordable alternative to VoIP but with limited features.

Let’s now examine some more key aspects of VoIP and virtual phone systems to see which is the best fit for your business.

1) Cost of System

Undoubtedly, when compared with traditional landline phone systems, VoIP and virtual phones are much more affordable. This is because you need little to no hardware for both of these systems. 

VoIP can cost more per user when compared to virtual phone systems. However, they can also completely replace your existing phone services.

With virtual phone systems, the cost per user is lower than that of VoIP. Furthermore, it can sometimes be more cost-effective to add a second virtual line using a VoIP virtual provider than your current landline service.

It’s important to note that virtual phone systems are considered less expensive. However, this is only if you plan to make the majority of calls from a digital device or from a home office. 

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    2) Call Quality

    To provide effective customer support, you must have a reliable phone connection. In order to help your clients and build strong customer relationships, you should be able to listen and be heard. 

    VoIP is largely dependent on the quality of your internet connection. If your internet connection is unstable, then VoIP may not be the suitable choice for your business. 

    In comparison, virtual phone systems operate using existing phone lines and service networks you’re already using. What this means is that you’re less likely to see a change in the quality of your calls. 

    However, whether you use VoIP or virtual phones, your overall call quality will finally depend on your internet connection. 

    3) Call Management Features

    When it comes to features, VoIP services tend to have an edge over virtual phone systems. Simply put, they just have more call handling and management options to offer. From auto attendants, to call forwarding, call queues, call screening and more. 

    VoIP Call Management Features - NeoDove

    However, virtual phones often come with fewer call management features. For this reason, small teams and entrepreneurs experience that virtual systems are only able to handle low call volume. They also lack important advanced features like team messaging, video conferencing and file sharing.

    4) Reliability

    As you may know, the quality of VoIP calls is fully dependent on your internet connection. If your internet connection is weak or your bandwidth too low, your calls will be poor. 

    However, as data centers are part of the transmission process, this isn’t true for virtual phone systems. This is why virtual phones are typically considered more reliable. However, this is not always true.

    5) Scalability

    When it comes to scalability, VoIP is clearly superior. VoIP with its unified communication as a service (UCaaS) capabilities offers users more options to expand their platform. This allows your business to manage multiple communication channels and scale as you grow.

    VOIP scalability - NeoDove

    Moreover, VoIP is also preferable if you already have existing hardware. This is because the majority of VoIP services are quite compatible with various IP devices. 

    If you’ve already invested in hardware, virtual phone systems are not the suitable choice. Typically, virtual phones are best-suited for businesses with an existing landline or cell plan.  


    Overall, both virtual phones and VoIP services have a lot of benefits to offer. It’s also certain that both of these systems are preferable to the traditional landline.

    But, how do you know which one is better? When it comes to VoIP vs virtual phone systems, it truly depends on what your business needs are. 

    VoIP is better suited for teams looking to replace their traditional in-office phone line with a centralized business communications platform. However, a virtual phone system is the cost-effective option for small teams or individuals in want of a portable business phone number.

    As such, it’s worth considering all the above criteria as well as what your business requires when making your final choice. 

    VoIP vs Virtual Phone Systems - NeoDove

    Frequently Asked Questions (FAQs)

    With virtual phones, your users can manage as well as route calls. However, VoIP platforms use their unified communications abilities to allow your business to collaborate, chat or hold video conferences. Another thing to note is that virtual phone systems are less expensive than VoIP services.

    Yes, with VoIP services, you can use the given virtual number to make international calls. However, you may need to enable this feature per user as well as add credits in order to make calls globally.

    For the most part, many virtual phone systems are able to work with IP phones. But, your device should be connected to the internet as well as configured for your VoIP server. 

    You also have the option of forwarding your incoming VoIP calls to a different landline number using your office phone.

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