There are so many new communication technologies available that it’s easy to feel overwhelmed by all the acronyms. Fortunately, most purchasing decisions today come down to choosing between two key technologies: UCaaS or VoIP.
UCaaS (unified communications as a service) combines multiple communication channels into a single platform. Users can manage text messages, team chats, faxes, phone calls (via VoIP), video meetings, and social networking in one place.
VoIP (Voice over Internet Protocol) is a technology that allows telephone calls to be made over the Internet.
You can buy VoIP services separately, but they are usually sold with other communication channels, which technically makes them UCaaS solutions. Therefore, the dividing line between UCaaS and VoIP is not that great.
Bottom line? VoIP only includes voice, which is a unique 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: Features, Advantages and Disadvantages Comparison
VoIP platforms offer cloud-based calling, allowing you and your team to make and receive phone calls on any device that is connected to the Internet (known as softphone technology).
They include standard phone features, as you would expect, such as voicemail, transfers, music on hold, 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.
These systems are simple, straightforward and suitable for basic calling needs.
| Advantages: | Cons: |
|---|---|
|
|
With UCaaS solutions, VoIP is just one part. You get the same features, tools, and capabilities, but you also get a lot more.
Depending on the provider, you'll get voice, video, fax, text messaging, audio conferencing, team messaging, and file sharing even with the cheapest plan. With each different channel, you'll get a variety of additional features that you won't find in VoIP-only solutions.
For example, you can 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 reactions and customizable notification settings.
On top of that, UCaaS solutions centralize everything, making it easy to track communication across all channels—for example, you can get a centralized inbox that combines social media, live chat, email, and text messages that your team can review together as they come in.
When comparing UCaaS vs. VoIP, it can be helpful to think of VoIP as the simple option and UCaaS as the more complex one.
| Advantages: | Cons: |
|---|---|
|
|
WATCH: Compare RingCentral and Nextiva, two of the leading UCaaS providers.
How to know if you need UCaaS or VoIP
It's hard to say which option is best for you without talking to you and understanding your situation. What I can do, however, is explain what to do in different situations to make your decision as easy as possible.
1. You want your team to use the devices you already have (UCaaS)
Either type of system can work well if users bring their own devices. However, UCaaS is likely to be the best option.
Security is an inherent challenge with this type of setup. Everyone has different devices and may or may not keep their apps up to date. It's also difficult to enforce BYOD (bring your own device) security policies.
The beauty of UCaaS, however, is that everything is in one app. You won't need to install six apps, manage six logins, or keep them all up to date.
Additionally, it is easier for businesses to set up security protocols within the system, including rules for different types of communication, encryption settings, access to user data, and user access controls. This way, most of the security burden falls on the backend, rather than forcing the end user to handle it.
2. You have a wide range of communication needs (UCaaS)
If your company communicates across many platforms, such as text messaging, video conferencing, and team chat, UCaaS offers a more centralized experience.
Technically, you can get all of these tools separately, but that can cost more, requires separate subscriptions, and creates a disjointed environment. For smaller teams, all of that alone may be reason enough to opt for UCaaS.
The same is true for contact centers that handle high volumes.
If you only talk to customers on the phone and 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 messages, live chat or video conferencing, an omnichannel platform makes it all easier to manage. It’s also a good way to consolidate communication channels if you’re currently feeling disorganized.
3. Your team is remote or hybrid (UCaaS)
Remote teams need real-time communication tools; many also rely heavily on video conferencing 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 in every way. Everything is centralized in one place, all our team members have access to all the channels they use, and we only have to manage one subscription. From an IT perspective, it couldn’t be simpler.
We do not have an IT team. None of our team members are experienced, but we can manage the system ourselves.
Whether your team uses their own devices or you provide phones and computers, managing one app is much 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 are one of those companies, you may not need a full-featured UCaaS solution. Switching all those tools at once can also be disruptive and confusing.
As the old saying goes: if it ain't broke, don't fix it.
There are plenty of voice-only platforms, like Google Meet and OpenPhone, that you can add to your tech stack. They're cheaper, simpler, and lighter overall because they only do one thing.
Decentralizing communication channels also means you can get best-of-breed solutions. Instead of a UCaaS tool that’s good for phones but frustratingly bad for video or team chat, you can choose which tools work best for your team.
Replacing one with another doesn't damage the entire ecosystem like an all-in-one device would.
Plus, you get more control without paying for a bunch of features you won't use.
If you're switching from a traditional phone system, VoIP alone is more of a one-to-one replacement. It makes more sense to replace one voice-only system with another. VoIP offers many of the same features your users are familiar with, such as voicemail, call forwarding, and transfers, without the added complexity of other communication channels.
5. Your budget is limited (VoIP)
While affordable UCaaS solutions do exist, VoIP-only platforms are often cheaper because they don't offer as many features. The software is simpler, easier to maintain, and easier to install, so it costs less for the provider to offer it.
The more details you add to the system, the higher the price will be.
If you're on a budget, an affordable VoIP service is an effective way to give your team calling and voice capabilities without spending a fortune.
Some of the cheapest VoIP systems cost between $10 and $15 per user per month. On the other hand, you'll be hard pressed to find a UCaaS solution that costs less than $20 or $30 per user per month.
It may not seem like a big difference, but it's huge when we're talking about dozens or hundreds of users.
SEE: Learn about the best VoIP solutions for small businesses.
6. You want the simplest option out there (VoIP)
VoIP platforms tend to be easier to connect to than UCaaS because they have far fewer capabilities. In some cases, all you have to do to deploy a VoIP system is sign up, purchase a number during the registration process or transfer an existing number, download the app, and start calling.
Of course, you can explore all the settings, set up complex call routing rules (if your plan allows it), and upgrade for more features as you need them, but you have the option to start as simple as possible.
Both types of systems are designed to be easy to use, but VoIP wins the battle by virtue of its simplicity, both for administrators and users.
