The “IP” in IP phone system refers to Voice over IP, or having your phone calls routed over the internet or your local network (LAN). This is great for many reasons. First of all, you don’t have to use the telephone network of your telephony service provider for making calls, which will reduce your costs for phone calls. At the same time you are gaining many technical advantages by using IP technology for your telephony.
Users of an VoIP phone system simply plug their IP phone into the nearest LAN port. Then, the IP phone registers automatically at the VoIP phone system. The IP phone always keeps its number, and behaves exactly the same way, no matter where you plug it in – on your desk, in the office next door or on a tropical island.
All of this works because of the SIP protocol. It is a standard widely used by ISPs, VoIP phone systems and VoIP phones world-wide. It makes expensive proprietary phones obsolete, and helps that all devices can talk to each other.
IP phone systems are usually built on standard PC or embedded hardware which are more cost-effective and powerful than the hardware of the traditional phone manufacturers. At the same time, ip phone systems are scalable, as they are not limited to a certain number of physical phone ports. That means you don’t need to replace your phone system when your company grows.