What Exactly Are Virtual Phone Systems & How Do They Work?

Virtual phone systems have grown in popularity alongside VoIP technology, and here’s our overview about them!

Conventional business phone systems often come with bulky hardware, hidden fees, and obscure setups that increase costs and reduce efficiency. Virtual phone systems are essentially the exact opposite in that they streamline a company’s communication strategies and provide cost-effective, modern solutions for today’s workplace needs.

It’s normal for business leaders to be confused about what virtual phone systems technically are, as well as how they can support their daily tasks. Below we’re providing a comprehensive overview about these cutting-edge phone systems that explains the fundamentals and how virtual phone systems can give your organization a huge boost!

What Exactly Are Virtual Phone Systems?

A virtual phone system is pretty much a Cloud-based communication solution that gives businesses the ability to manage their incoming/outgoing calls via the Web.

Virtual systems eliminate the need for traditional telecom hardware, and they also provide a seamless and flexible connectivity through state-of-the-art VoIP technology. There are many popular features associated with virtual phone systems, including:

• Auto attendant
• Call routing
• Analytic dashboards
• Voicemail-to-email
• And A LOT more!

One reason why virtual phone systems have grown in popularity throughout recent years is because they’re great for remote/hybrid teams that need reliable organization and scalability. Because virtual systems essentially replace traditional phone system setups, they subsequently provide modern, cost-effective solutions that streamline a company’s telecom strategies for the foreseeable future!

How Do Virtual Phone Systems Work?

Virtual phone systems typically operate via Voice over Internet Protocol (VoIP) technology, which means that your business will be capable of receiving and making calls using a Web connection—as opposed to traditional landlines.

It’s understandable if you’re not exactly sure how virtual phone systems function, so below is an overview of the basics:

1. Local Area Network (LAN) Connection

You can use many different phone devices within a virtual phone system, but it’ll always be connected to your LAN through a router or switch. Your company’s LAN will ultimately provide the necessary Web connection that allows you to transmit data packets during phone calls.

Your company’s LAN will also ensure that your team’s devices are capable of efficient communication, which is why your LAN connection is essentially the backbone of your entire virtual phone system.

Whether you’re in your office or working from home, your internet access will be how your phone system functions.

2. Dialing Numbers

Once you initiate a call by dialing, your device will send a direct signal to your telecom service provider like Data Talk. Your call request will communicate directly with our servers, and you’ll be informing us that you want to connect with an outbound party.

This server communication is always the first step toward establishing a communication link, and our team is responsible for guaranteeing efficient and correct call destinations.

3. Creating Data Packet & Call Exchange

Once you’ve made your initial connection request, your system’s VoIP technology will exchange data packets and establish the call. These packets are comprised of digital voice data, which makes the communication possible.

Virtual phone systems also ensure proper incoming call management as well through security encryption features like call routing and automatic greetings.

Virtual phone systems don’t rely on physical wires like traditional systems do, and instead they convert data packets and voice signals via the Web. VoIP service providers like Data Talk also often use digital signal processing (DSP) to guarantee call clarity and quality.

4. Digital Signals Converted Back To Sound

Once VoIP data packets reach your call recipient, their phone device will instantaneously convert digital signals back into regular audio. This is by far one of the most important steps, because it helps ensure that every call remains crystal clear.

This is one reason why businesses with virtual phone systems need to take their mobile device and phones seriously, because the better your phones, the more seamless the sound integration process will be.

VoIP codecs are the workhorses of these conversions, because they compress and decompress voice data in a way that transmits audio through the Web at various bandwidths.

Virtual phone systems can easily be integrated with all sorts of communication tools and devices, which gives businesses a Unified Communications solution for all their communication and data storage needs.

5 Common Advantages Of Virtual Phone Systems

One thing that’s important for business leaders to understand is that virtual phone systems truly are a game-changer when it comes to modern telecom upgrades. Because pretty much everything is moving online, your company’s phone system should do the same.

Although there are many incredible advantages associated with making the switch to a virtual phone system, below are 5 powerful takeaways that you should know!

1. Automation Productivity Boosts

There are many time-consuming tasks like voicemail transcription, call routing and appointment scheduling that virtual phone systems easily automate. This type of automation goes a long way to save your valuable employee time, which in turn allows your team to focus on core business objectives.

A common example of this is with automatic call forwarding, which guarantees that none of your customer calls go unanswered—even when your team works remotely. This type of feature helps to simultaneously ensure uninterrupted customer service and work efficiency.

2. Communication Infrastructure That’s Easily Scalable

Virtual phone systems are also known for making business scaling a lot easier, which essentially simplifies the process of adding services or phone lines. A lot of growing businesses understand the significance of this flexibility, and this is especially the case in comparison to traditional phone systems that require complex installations and expensive hardware.

This is why seamless scalability is a huge selling point for small to mid-sized businesses that are expecting future expansion.

3. Improved Team Collaboration

Digital communication and collaboration tools have become increasingly more essential throughout recent years as remote and hybrid work environments have grown. Virtual phone systems do a wonderful job of providing seamless integration across various platforms and devices, which keeps business teams easily connected.

Some popular collaboration features include conference calling, shared voicemail boxes and call transferring. There are also many organizational features like communication channels and call logs that improve your team’s productivity and coordination.

4. Business Analytics

Virtual phone systems also feature incredible reporting and analytics features, which provide valuable insights into your customer interactions, call volumes, and overall customer service strategies.

Businesses can end up making informed decisions by monitoring these analytics, which can in turn provide tangible improvements toward customer engagement, resources and staffing.

5. Cost-Effective Connectivity

International calls become substantially less expensive when your business utilizes VoIP technology, which is very different as compared to traditional phone systems that usually charge high, long-distance rates.

Virtual phone systems can even help you establish local numbers in various countries, which makes your global reach more flexible and efficient.

Contact The Data Talk Experts To Learn More About Our Virtual Phone Systems!

There’s a lot to love about virtual phone systems, because they’re a flexible, cost-effective solution for businesses of all sizes. They also do a great job at enhancing a company’s scalability, reducing maintenance costs, and developing better team coordination.

Data Talk is a telecom service provider based out of Columbus, Ohio that’s supported countless businesses throughout the United States with our industry-leading VoIP services. We’re proud to help companies of all sizes with their virtual transitions and upgrades, and we’re confident that your team will see huge improvements when you choose us as your telecom host.

Reach out to us online or give us a call at 614-784-7100 to get in touch with our specialists today and learn more about our selection of virtual phone systems!