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Simply put, Voice Over IP (VoIP) technology, or IP telephony, as it is often called, is a system for transmitting telephone calls over data networks, such as the ones that make up the Internet.

While VoIP technology is set to revolutionize communications, and is already being used by a number of traditional telephone companies to connect their regional offices, on a smaller scale it can also be a useful solution for businesses looking to trim their telephone expenses.

The advantages of using VoIP technology are simple: its use can result in huge savings on the amount of physical and resources required to communicate by voice over long distances. It does so by working around circuit switching architecture, one of the fundamental drawbacks of traditional telephone networks.

VoIP technology uses packet switching to minimize the amount of resources used in a telephone connection by exchanging the information in packets over a data network. This allows several phone calls to use the space that just one call would have occupied in a circuit-switched network.

Using either gateway devices, or software applications on computers, VoIP technology can allow users to communicate by voice from computer to computer, computer to telephone, telephone to computer or telephone to telephone. Businesses can take advantage of the technology by using it to route voice data over their existing data networks, or by purchasing VoIP services from IP service providers.

VoIP technology is growing in acceptance, and it seems inevitable that the cheaper, more efficient technology will play an important role in the world’s telephone communications. But it can also mean immediate cost savings and improvement in efficiency for businesses that chose to implement it now.

When you are using PSTN line, you typically pay for time used to a PSTN line manager company: more time you stay at phone and more you'll pay. In addition you couldn't talk with other that one person at a time.

In opposite with VoIP mechanism you can talk all the time with every person you want (the needed is that other person is also connected to Internet at the same time), as far as you want (money independent) and, in addition, you can talk with many people at the same time.

If you're still not persuaded you can consider that, at the same time, you can exchange data with people are you talking with, sending images, graphs and videos.
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