Even with the advent of email, texting, instant messaging, social media and mobile phones, most every organization still needs a phone system. The advent of VoIP (voice over IP) technology has, however, made the selection of a new phone system confusing for many. Truthfully, though, the basic principles of phone systems have not changed.

There are four basic components of any phone system. These are (1) the circuit(s) to a phone company; (2) a system that controls incoming and outgoing calls as well as voice mail; (3) the cabling between the phone system and the phones; and (4) the phones themselves.

Circuits are, and pretty much always have been, relatively simple to figure out. The old-school method of analog circuits is basically wires between your office and the phone company. The more phones you need, the more wires you get. The more wires you get, the more you pay.

VoIP technology has resulted into a new type of circuit, known as SIP (what this stands for is not important). SIP trunks, as they are known, use the same type of technology as internet connections. SIP trunks are typically much less expensive than traditional circuits.

The phone system, often referred to as a PBX in the old days, is a specialized computer at your site. The phone system can communicate with the phone company via SIP or traditional circuits. Most contemporary phone systems are configurable to use either type of technology. Again, SIP technology is typically less expensive.

Similarly, phones can be VoIP-based or old-fashioned analog phones. Such technologies can typically be mixed and matched so you can have VoIP circuits and analog phones, or analog circuits and VoIP phones.

Phones nowadays can be extremely feature-laden when compared to the handsets of yore. Many support internet browsers and custom applications. Typically, however, VoIP phones are the units with more advanced features. Another nice feature with most VoIP phones is that the configuration is programmed with the phone. If you move desks, for example, just pick up your phone and plug it into your new desk and all your extension information, voice mail and customized features will follow you.

Traditional analog phones are still available and supported by most phone systems. Analog phones are typically much less expensive than VoIP phones but also less functional.

The main difference between VoIP and analog phones is the wiring needed to support them. VoIP phones require Ethernet cabling between the phone system and the phone, while analog phones can get by on four-wire or sometimes even two-wire cables, which is much less expensive.

In most contemporary locations, this is not an issue as Ethernet wiring is often already in place. However, in older buildings and residences, going from an analog-based system to a VoIP system will require the installation of Ethernet cabling, which can be expensive.

What about wireless VoIP phones? As of this writing, they’re not quite ready for prime time. Such phones might be useful in spot shots, but not as an overall solution for an organization.

Finally, what about cloud-based phone systems? Such systems are fairly mature and can be cost effective, especially for smaller implementations requiring a couple dozen phones or less. Basically your phones plug into your internet connection and all but the simplest tasks are done (or already set up) by the provider. There are several fairly robust offerings on the market today. Be aware, though, that like other cloud-based services, you will become more and more dependent on a solid internet connection.

John Agsalud is an IT expert with more than 25 years of information technology experience in Hawaii and around the world. He can be reached at johnagsalud@yahoo.com.