There are so many new communication technologies available that it’s easy to get overwhelmed by all the acronyms. Fortunately, most current-day purchasing decisions boil down to choosing between two key technologies: UCaaS vs VoIP.
UCaaS (unified communications as a service) combines multiple communication channels into a single platform. Within it, users can manage texts, team chat, faxes, phone calls (via VoIP), video meetings, and social media in one place.
VoIP (voice over internet protocol) is a technology that enables phone calls over the internet.
You can buy VoIP services on their own, but they’re usually sold with other communication channels, technically making them UCaaS solutions. So, the line between UCaaS vs. VoIP isn’t all that big.
The bottom line? VoIP only includes voice, which is a single element of UCaaS. Today, people use both terms to describe the same thing — a UCaaS solution that uses VoIP technology for phone calls.
But if you’re trying to decide between a standalone VoIP service and an all-in-one communications platform, this post is for you.
UCaaS vs VoIP: Comparing features, pros, and cons
VoIP platforms offer cloud-based calling, letting you and your team make and receive phone calls on any device that’s connected to the internet (referred to as softphone technology).
They include standard phone features, you’d expect, like voicemail, transfers, hold music, a number or extension for each person on your team, an auto attendant, call recording, and call routing capabilities. Some may also include text messaging too.
These systems are simple, straightforward, and well suited for basic calling needs.
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With UCaaS solutions, VoIP is just one piece. You’ll get all the same features, tools, and capabilities — but you’ll also get a lot more.
Depending on the provider, you’ll get voice, video, faxing, texting, audio conferencing, team messaging, and file sharing even on the cheapest plan. With each different channel, you’ll get a range of additional features you won’t find with VoIP-only solutions.
For example, you might get whiteboarding, screen sharing, annotations, and fun virtual backgrounds for video conferencing.
With team chat, you might see topic-based channels, group chat, and 1:1 capabilities with emoji reacts and customizable notification settings.
On top of that, UCaaS solutions centralize everything, making it easy to keep track of communication across channels — for example, you may get a centralized inbox that combines social media, live chat, email, and texts your team can work through together as they come in.
When comparing UCaaS vs VoIP, it may help to think of VoIP as the simple option and UCaaS as more complex.
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SEE: Compare RingCentral and Nextiva, two of the leading UCaaS providers.
How to tell if you need UCaaS vs VoIP
It’s difficult to say which is best for you without talking to you and understanding your situation. What I can do, however, is explain what to do in various scenarios to help make your decision as easy as possible.
1. You want your team to use devices they already have (UCaaS)
Either type of system can work well if your users bring their own devices. However, UCaaS is likely the better choice.
Security is an inherent challenge with this type of setup. Everyone has different devices and they may or may not keep their apps up to date. It’s also tough to enforce bring your own device (BYOD) security policies.
However, the beauty of UCaaS is that it’s all in one app. They won’t need to install six apps, manage six logins, or keep them all up to date.
Plus, it’s easier for businesses to set up security protocols within the system, including rules for different types of communication, encryption settings, access to the user’s data, and user access controls. As such, most of the security burden is on the backend, rather than forcing the end-user to to handle it.
2. You have a wide range of communication needs (UCaaS)
If your business communicates across a lot of platforms, like texting, videoconferencing, and team chat, UCaaS offers a more centralized experience.
You can technically get all of these as separate tools, but that may cost more, requires separate subscriptions, and creates a disjointed environment. For smaller teams, all of that alone may be enough of a reason to go with UCaaS.
The same is true for contact centers handling high volumes.
If you only talk to customers on the phone and you already have an app for internal communication, a voice-only call center solution might work well.
But if you also communicate with customers via social media, text, live chat, or videoconferencing, an omnichannel platform makes everything easier to manage. It’s also a good way to consolidate communication channels if you currently feel all over the place.
3. Your team is remote or hybrid (UCaaS)
Remote teams need real-time communication tools — many also rely heavily on videoconferencing to stay in sync. For my team, these two channels are indispensable.
However, we also have employees who need calling capabilities.
UCaaS makes our lives easier all around. Everything’s centralized in one place, everyone on our team has access to every channel they use, and we only have to manage one subscription. From an IT standpoint, it doesn’t get much easier.
We don’t have an IT team at all. No one on our team is experienced, yet we’re able to manage the system on our own.
Whether your team uses their own devices or you provide phones and computers, managing one app is far easier than managing several — especially in a remote environment where you can’t just walk down the hall and troubleshoot issues together.
4. You only need voice capabilities (VoIP)
It’s not uncommon for companies to use Slack for messaging, Zoom or Google Meet for video conferencing, and Google Drive for file sharing.
If you’re one of those companies, you may not need a fully featured UCaaS solution. Switching all of those tools at the same time can be disruptive and confusing too.
As the old adage goes, if it’s not broken, don’t fix it.
There are plenty of voice-only platforms, like Google Meet and OpenPhone, you can add to your tech stack. They’re cheaper, simpler, and more lightweight overall because they only do one thing.
Decentralizing communication channels also means you can get best-in-class solutions. Rather than a UCaaS tool that’s good at phones but frustratingly bad for video or team chat, you can pick and choose which tools work best for your team.
Swapping one out with something else doesn’t break your entire ecosystem like an all-in-one would.
Plus, you get more control without paying for a bunch of features you’re not going to use.
If you’re switching from a legacy phone system, VoIP by itself is more of a one-to-one replacement. It makes more sense to replace a voice-only system with another. VoIP offers many of the same features your users are familiar with, like voicemail, call forwarding, and transfers, without the added complexity of other communication channels.
5. Your budget is small (VoIP)
Although there are affordable UCaaS solutions, you’ll find that VoIP-only platforms are usually cheaper because they don’t do as much. The software is simpler, easier to maintain, and easier to install, thus costing the provider less to offer it.
The more bells and whistles you add to the system, the higher the price becomes.
If your budget is small, an affordable VoIP service is an effective way to give your team calling and voice capabilities without breaking the bank.
Some of the cheapest VoIP systems cost $10 to $15 per user per month. On the other hand, you’ll be hard pressed to find a UCaaS solution any cheaper than $20 to $30 per user per month.
It may not sound like much of a difference, but it’s huge when you’re talking about dozens or hundreds of users.
SEE: Check out the best VoIP solutions for small businesses.
6. You want the simplest option out there (VoIP)
VoIP platforms tend to be more plug-and-play than UCaaS because they have far fewer capabilities. In some cases, all you have to do to implement a VoIP system is sign up, buy a number during the signup process or port an existing number, download the app, and start calling.
Of course, you can dig into all the settings, configure complex call routing rules (if your plan allows), and upgrade for more features as you need them, but you get the option of starting out as simple as it gets.
Both types of systems are designed to be user-friendly, but VoIP wins the battle by virtue of its simplicity — for both administrators and users.