A business cannot survive without communication, whether it’s about executing client conversations or communicating a task among remote employees. With the advancement of technology, many reliable communication technologies have entered the market—VOIP and UCaaS are two of them.
This article on VoIP vs UCaaS will discuss the similarities, differences and use cases of each. And you’ll see which of them is better for your business.
What is VoIP?
VoIP, or Voice over Internet Protocol, is a communication technology that uses the internet to make and receive calls.
The analogue signals of the speaker are converted into digital signals and transferred to the VoIP service provider via the internet. They are then converted into digital packets before being sent to the receiver. At the receiver end, these packets are converted back into analogue signals, and your voice can be heard.
There are three types of VoIP numbers: toll-free, vanity, and local. Though each is slightly different, they all let employees manage calls from any device and location (as long as there is internet). Moreover, VoIP calls are cheaper than traditional landline calls.
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What are the main VoIP features?
The VoIP system has become quite popular in the UK because of the following features:
- Call forwarding: This feature allows you to redirect incoming calls to another number or device in the phone system. With call forwarding, your staff never miss an important call while being away from the office.
- Call parking: It is like placing a call on hold, but with extra flexibility. A call doesn’t have to be tied to one phone with call parking; instead, it can be placed in a shared spot within the phone system. This means anyone else on the team can pick it up from their device using a specific code.
- Interactive voice response: With this feature, a unique menu system can be integrated within calls, which automatically reroutes them. Callers can press the menu options to reach the right department on their own, without needing a representative to redirect them every time.
- Number sharing: VoIP allows teams to use a single business number across different devices. This way, any linked device can access and attend to calls received on a single number without revealing personal information.
- Voicemail-to-email: It means that whenever someone leaves a voicemail on the phone system, it automatically sends a copy of that message to the team’s email inbox. The voicemail is often attached as an audio file (often MP3 or WAV) to an email. Some systems also provide a written transcript of the message for quick reading.
- Multiple device accessibility: VoIP systems and all their features can be used from both mobile devices and desktops. This provides teams with the flexibility to handle calls from anywhere, with whichever device is most convenient.
What is UCaaS?
UCaaS stands for Unified Communications as a Service. It integrates multiple communication tools on a single platform, including voice calls, video meetings, instant messaging, file sharing, voicemail, and collaboration apps. UCaaS platforms are cloud-based, and teams can connect, organise, and work together easily, no matter where they are located.
One of the major benefits of UCaaS is that it removes the need to learn and switch between different communication tools for different tasks. It also offers a range of other useful features that we’ll cover next.
What are the top features of UCaaS?
Let us now discuss the features that have made UCaaS a preferred communication technology for businesses, which include:
- Video meetings: UCaaS makes it easy to conduct video meetings with face-to-face interactions from any linked devices in the system. This means even remote team members can communicate effectively with the rest of the in-office team.
- In-meeting chat messaging: In addition to video calls, participants can send messages within meetings to instantly share notes, links, and feedback without interrupting the flow of conversation.
- Screen sharing: This feature allows teams to share their device screens during voice calls or video meetings. This turns any call into a presentation and allows members to collaborate on documents in real time.
- Virtual whiteboarding: Team members can brainstorm and visualise their ideas together with digital whiteboards, just like they would on a physical board.
- Task management: Task management applications are usually integrated within many UCaaS systems. With such features, it becomes easier to assign, track and manage tasks in your team.
- Single number reach: With UCaaS, employees can use one phone number across multiple devices. It is ideal for remote teams, enabling communication with team members even when they are not in the office.
Now that we have discussed both technologies and their major features, it’s time to compare their similarities and differences.
VoIP vs UCaaS: Differences in technologies
| Characteristics | VoIP | UCaaS |
|---|---|---|
|
Functionality |
Voice communication |
Voice, video, messaging & collaboration |
|
Cost |
Lower (voice-focused) |
Higher (broad feature set) |
|
Scalability |
Add/remove phone lines |
Expand across channels (voice, video, etc.) |
|
Requirement of tools |
VoIP phones, routers, telephone adapters, softphones |
Extra tools: webcams, headsets, applications, tablets |
The main factor that easily differentiates VoIP from UCaaS is that VoIP focuses only on internet-based calling, while UCaaS goes a step further. It combines calling with video and messaging and provides multiple other collaboration tools in one cloud-based platform to its users. In short, VoIP is just one part of the bigger UCaaS package.
Here are a few more differences:
- Cost difference: VoIP is cheaper than UCaaS because its price only involves the call charges, while UCaaS charges involve an extensive range of features (video, messaging, etc.).
- Scalability: UCaaS is more scalable than a VoIP system because it can be accommodated according to the growth of the business across various verticals like voice calls, video meetings, analytics dashboards, etc. The scalability of a VoIP system is limited to the addition and removal of phone lines (or features related to voice only).
- Required devices: VoIP generally requires only a few devices to function, i.e., VoIP phones, softphones, and routers. UCaaS requires additional devices and software, such as apps, webcams, and headsets, to support messaging, video conferencing, and collaborations.
Similarities between VoIP and UCaaS
| Feature | Similarity |
|---|---|
|
Functionality |
Internet-based communication |
|
Cost |
More affordable than landlines |
|
Scalability |
Easily expandable with business |
|
Advanced features |
Tools for collaboration & productivity |
VoIP and UCaaS are similar in many ways:
- Both rely on the internet to facilitate communication, hence eliminating the need for traditional landline phone lines.
- Both technologies offer cost-effective communication solutions compared to landline phone systems (low call rates and reduced infrastructure expenses).
- Both are highly scalable, which allows your business to easily add or remove users and features as needed.
- Both provide a range of advanced features. VoIP provides features such as voicemail-to-email, conferencing and call analytics, while UCaaS provides features like screen sharing, video conferencing and in-meeting chat messaging.
VoIP or UCaaS: Which is better for your business?
Now that you understand the differences and functionality of each communication technology, let’s see which is better for your business. The use cases for both VoIP and UCaaS will depend on some factors.
When should you choose VoIP?
- Small businesses with limited budgets: Small businesses that can sustain customer support through voice call support alone are ideal for VoIP. When compared with landlines, it provides cost-effective call packages with high audio quality.
- Remote teams: VoIP enables seamless voice communication over the internet, allowing remote teams to stay connected without geographical constraints. One of the biggest advantages of VoIP for them is that they don’t need to have physical desk phones necessarily; softphones or mobile apps can be used to manage calls.
- Customer service centres: VoIP systems provide advanced features like call parking, ring groups, call routing and IVR, which are essential for efficient customer service operations. These features enhance call handling and improve customer satisfaction.
When should you choose UCaaS?
- Medium-large enterprises with complex communication needs: UCaaS integrates various communication tools, including voice, video, collaboration and messaging, into a single platform. This solution meets the diverse needs of large
enterprises that have to handle hundreds of clients and customers every day. - Businesses with high demand for collaboration: For businesses that rely heavily on collaboration, UCaaS provides tools like video conferencing, virtual whiteboarding and task management, making it easier for teams to get their work done in real time.
- Businesses prioritising mobility and flexibility: UCaaS offers mobile and desktop accessibility, allowing employees to access collaboration and communication tools from any device. This flexibility enables remote and in-house workers to stay productive, whether they are in the office, at home or on the go.
After weighing the pros and cons of both systems, many businesses find VoIP to be the more practical choice. If you’re considering VoIP, the next step is to connect with the right provider to utilise all the benefits of VoIP and improve your everyday communication.
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FAQs
The thing that differentiates both technologies is that VoIP only focuses on internet-based voice calling, while UCaaS goes further by combining voice with video, messaging, file sharing, and collaboration tools in a single cloud-based platform.
Yes. VoIP is usually cheaper because its cost mainly covers voice calls. UCaaS is more expensive, as it includes a large set of features such as video meetings, chat messaging, and task management.
VoIP is ideal for small businesses with limited budgets, remote teams that only need voice communication, and customer service centres that benefit from features like call parking, IVR, and call routing.
UCaaS works best for medium-to-large corporations with complex communication needs that prioritise collaboration, mobility and flexibility for their teams.
