How does voice over IP work?
Instead of using traditional "circuit-switched" technology, where a dedicated path from caller to receiver is reserved for their entire conversation, voice over IP systems treat voice transmissions as data, turning your words into tiny packets of information that are sent over the network.
As it arrives at the receiving end of the call, the data is reassembled into a traditional audio signal that can be received by either VoIP or traditional telephones. All of your voice over IP calls connect seamlessly to any phone user - there are no compatibility issues to worry about.
To set up a business VoIP system, you need several components: a central device to manage the calls, phones, voice mail applications, and a data network.
The central device is a dedicated piece of hardware (an IP PBX) on a server running specialized software. It will work in a similar manner to the private branch exchange (PBX) or key system unit (KSU) in a traditional phone system.
You may be able to use your existing digital phones and computer network to run your new VoIP system with minimal network hardware upgrades; however, there is the possibility you will need to invest in new hardware.

