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If you’ve heard of VoIP but you’re not clear on what Voice Over IP is , this post has the VoIP 101 or 411!

Although due credit for the inventor of the telephone is still being hotly debated, (I know; I thought it was hands down Alex Bell too), one thing is clear; the invention and design is still being ubiquitously utilized.

For us today, the latest, cutting edge development in telephone history has undoubtedly been the introduction of VoIP . For those of you who don’t know, VoIP stands for Voice over Internet Protocol, and goes by many names including “IP telephony, Internet telephony and voice over broadband (VoBB)”, which all mean the same thing.

Without making things overly complex, I’d like to dissect VoIP and explain why it is an unbeatable tool your business can benefit from tremendously.

The main point to understanding VoIP, is that instead of all of your standard voice, fax and voice mail being sent over the public telephone network, they are transported via the internet.  In contrast to standard land lines, which utilize copper wiring, VoIP phones present numerous benefits:

• Lower infrastructure costs because with VoIP, your voice and data run on the same network
• Intuitive user interface increases efficiency and productivity
• Expensive conference calling, call forwarding, caller ID and other features are free with VoIP
• Absolute location flexibility; all you need is an internet connection!

Next time you hear the term “VoIP”, don’t get fooled into thinking it’s a reference to some obscure, distant Star Wars planet, because now you know exactly what it is and how VoIP can save you money.

Jesse Braunstein is a Junior at NYU double majoring in Economics and Psychology. Jesse joined Madison Technology and SheBytes.com in May 2011 as a summer intern. Jesse has been instrumental in utilizing his expanding background to come up with creative perspectives on the Marketing, Advertising and Business Development initiatives at both Madison Technology and SheBytes.com. Jesse’s outlook stems from an Economics and Psychology education and a deep understanding of the individual and how the individual acts within and interacts with the market.  Follow Jesse on Twitter and Facebook. Check out his About.me.