From its modest beginnings as the experimental Network Voice Protocol in 1973, to 1 billion mobile VoIP users in 2017 (and a projected 3 billion by 2021), VoIP use among both businesses and consumers has skyrocketed. Today's businesses, when asked why they use VoIP services, cite cost savings, the ability to handle conference calling and messages, and the ease of remote work. Today's VoIP services provide an attractive alternative to traditional office phone systems for small business and a way to help corporations cut costs. Learn why savvy businesses should be 100 percent on board with this exciting technology.

What Is VoIP?

Voice Over Internet Protocol (VoIP), also known as IP Telephony, takes portions of a voice conversation and breaks them down into "packets" that include routing information. These packets are transmitted and put back together again at the other end into a complete voice so that it can be received.

The Early Days of VoIP

VoIP developed from technological advances over the past 150 years. This included the first telephone and early switching technology (1870s-1880s), touch-tone phones and digital switching (early 1960s), and the internet in 1968. Time-share computer networks in the 1970s led to online service companies, and TCP/IP (Transmission Control Protocol/Internet Protocol) was invented in 1972. HTTP (hypertext transfer protocol) and the URL (universal resource locator), which enabled the World Wide Web, were introduced in 1989.

In 1995, VocalTec came onto the scene with the first widely available internet phone. It ran on a home computer and was integrated with the sound card, speaker and microphone. This first version of VoIP had no video and required both users to have the same hardware and software.

In the 1990s, entrepreneurs developed VoIP hardware and software, while technology companies built network hardware that could efficiently route and switch VoIP traffic. Even so, VoIP traffic by 1998 only amounted to 1 percent of U.S. voice traffic.

In 1998, VocalTec introduced telephone-to-telephone and computer-to-telephone VoIP, and organizations developed software that connected phones to computers with a VoIP adapter, enhancing call quality and speed. This helped boost VoIP calls to 25 percent of all voice calls by 2003.

In the 2000s, subscription VoIP services offered consumers and businesses low-cost international calling, video conferencing and file transfers. Session Initiation Protocol (SIP) let developers create applications that integrated with nearly any phone system, leading to hosted VoIP services (cloud telephony). The first mobile VoIP app was introduced in 2006. Lower costs and convenience continued to drive the VoIP market and revolutionize office phone systems for small business as well as large corporations.

VoIP of Today and Tomorrow 

Today, companies can quickly ramp-up their capabilities with hosted VoIP contact centers and productivity applications. Advantages include improved efficiency, reduced costs, enhanced collaboration and remarkable flexibility. A VoIP service like OfficePhone offers robust office phone systems for small businesses. Completely scalable, this online phone and communications system is designed for companies that need rapid deployment, yet it can scale to any size to meet your requirements. Features like an enterprise-level data center, exceptional call quality and access to the most advanced phone, messaging and video capabilities makes OfficePhone the best choice for organizations of all sizes.

Future technology trends indicate increased mobility, more sophisticated consumer internet systems and continued advances in workplace video conferencing and team collaboration. It is forecasted that VoIP will become more integrated with a wide variety of connected devices (IoT or Internet of Things), applications and platforms, for a more exciting and seamless online experience. Other advances like 5G technology, artificial intelligence (AI) and Natural Language Processing (NLP) will no doubt push VoIP well beyond its "Internet Telephony" beginnings. Every organization, for future success, needs to be fully onboard.    

VoIP Has Come a Long Way

From its commercial introduction in 1995 and slow adoption, it grew exponentially due to a series of game-changing inventions such as broadband ethernet, robust routing and switching, cloud telephony and mobile VoIP apps. The future of VoIP looks bright, thanks to continuing advances in business communications, home consumer devices and next-generation technologies like 5G and AI.

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