Tech Connect: Why tiny packets might be what you need

You probably already know VoIP stands for voice over Internet protocol.

But what is “Internet protocol”? The term represents a large technology made up of many standards, rules and methods to send packets of information over networks and the Internet.

This group of standards and rules is called the Internet protocol.

The first set of protocols were for data. Data was broken down into tiny packets to be sent over a network or the Internet to an address, which is a computer or other device.

When voice packets were first sent using IP, the human ear turned out to be far more sensitive to packet irregularity or loss than computers. This resulted in poor call quality, but better equipment and professional installers now can make a VoIP phone system deliver crystal clear calls.

Speaking of equipment, VoIP systems in small businesses can run on a standard computer. VoIP phones start out under $100 and go up from there.

These phones contain a computer chip that allows the whole VoIP system to work. A good network is required, but the cost may be only minimally higher than a standard computer network.

The biggest cost variable is the software, which is the phone system. This is where shopping around is required.

There are many reasons why VoIP phone systems are great for small businesses. The major reasons are that they can lead to lower costs and improved productivity.

If you use a conventional phone system, an extension number in your office is actually a pair of wires connecting your wall jack to the phone company.

A VoIP system uses the phone itself as the extension. (This is where that chip comes in.)

You can plug your VoIP phone into any Internet jack, anywhere in the world, and use your home office phone system to make calls!

Think about working from home. All you have to do is take your phone home, plug it into your home network and use your phone just like you would in the office.

You can even install a piece of inexpensive software to turn your laptop into a VoIP phone and use your phone system while away from the office.

What about all the times the phone system installer had to be called to move a telephone extension because you rearranged the office or added a new employee? With a VoIP system, you plug a VoIP phone into the appropriate Internet connection and you're done.

If you move to a new office and you already have a VoIP phone system, you pick up your phone system's computer, the phones and go to your new office. Assuming the new office has a good network for your computers and is prepped for VoIP, it is then just a matter of plugging in your equipment.

A VoIP system allows you to cut down on the number of lines (extensions) from the phone company. You can go all VoIP, or put together a mix of analog lines and VoIP lines to get the optimal mix for your company.

You will usually save money here.

In my July 31 column here, I wrote about how technologies were converging. The best example is how the features in a VoIP phone system allow you to transparently connect cellphones within the phone system.

This is now a standard feature on VoIP systems.

With a VoIP system, multiple offices can use one phone system. The new phone systems often offer a window to display the extensions in all of the offices.

Those extensions can be seen by everyone, or by designated employees such as a receptionist. She or he can then transfer calls for all the offices by clicking and dragging calls between the extensions.

The standard VoIP phone system usually offers at least 50 features, so that you can customize the phone system to fit your business. There are multiple ways to answer the calls, transfer the calls, automatically redirect calls to other phone numbers - including cellphones - play music or ads when on hold, etc.

Most of what I have talked about assumes that a phone system was purchased and is on the premises. However, there are some vendors who offer the use of a full featured phone system that resides at the vendor's place of business - this is a virtual or hosted system.

A monthly fee usually covers access to the phone system and all calling.

Check this technology out for yourself.