SIP vs. VoIP: What’s the Difference?

The telecommunications industry is ever evolving, shifting based on consumer needs and innovating to better navigate the increasingly growing demands of the marketplace. In truth, telecommunications has become the absolute backbone of modern business and everything it stands for.

Innovation and technological development have transformed the way smart businesses operate. Long gone are the days when companies set up a phone system with bulky hardware and functionality residing only in voice communication. Today, businesses are on their toes, constantly being challenged and forced to communicate in new and more productive ways.

Today, businesses have completely gone digital, and businesses must adopt a modern, powerful and scalable communication infrastructure in order to succeed. It’s the only solution.

mobile business communication apps

Each year, the companies who invest significantly into their communication infrastructures in order to stay ahead of today’s communication trends and requirements are the ones coming out on top of their competition.

It’s no secret, really. A company that doesn’t embed a powerful communications infrastructure into their genetic code, are faced every day with challenges that can easily be avoided. They are literally sabotaging their own success by not making their internal and external communications a priority.

So, why are some companies avoiding the conversation? Why are they getting stuck in the mud and unable to make the necessary decision to move with the latest communication trends?

A Long List of Acronyms

Well, buyers are confused. We’ve entered into a time where decision makers must have an acute understanding of every system in the book – ISDN, cloud VoIP, SIP, PRI, IP-PBX, etc. It’s becoming a ridiculous mess of acronyms and trying to make sense of it all is forcing some decision-makers to achieve a master’s degree in acronyms. This is not ideal…

Let’s make it a bit easier and break down two very important modern communication terms to understand the differences between the two of the technologies:

Session Initiation Protocol (SIP)


Cloud Voice Over Internet Protocol (Cloud VoIP)

First, What is Protocol?

SIP and cloud VoIP obviously have the word “protocol” in common, but what does that actually mean?

  • A protocol is a set of digital rules that two or more digital devices must follow to establish a connection and communicate with each other.

Pretty cool, right?

In short, protocols are the big guys responsible for managing technical variables like routing, address mapping, sequence control and more.

For example, think about a movie. Protocols compare to the behind-the-scenes work that no one ever knows about, or even thinks about, but deep down knows a movie wouldn’t exist without. It’s just like that.

Basically, protocols ensure that communication lines are secure, reliable, and guarantee that communication will be compatible across devices and software.

Now, Let’s Talk About VoIP…

Cloud VoIP systems allow for voice communication of the Internet Protocol. There is that word, “protocol”, again.

With a cloud VoIP system, analog voice signals are converted into digital packets that are then transmitted over the internet rather than conventional phone lines.

With every cloud VoIP system, businesses are equipped with VoIP phones. These phones are powerful little devices that connect to the internet and computers by way of an Ethernet connector or by Wi-Fi. It’s literally as simple as plugging the phone in and, voila! You’re hooked up.

So, What is SIP, Then?

Session Initiation Protocol (SIP) is a signaling protocol that is responsible for creating, modifying and terminating a multimedia session over the internet. Simply, SIP manages the relationship between two endpoints of communication like a smartphone or a computer.

What this all means is that in addition to voice, SIP can be used to bring an entirely new and exotic way of communication into the mix. This is where multimedia comes into play.

With SIP, users can communicate, share and collaborate from anywhere, on any device, at any time on all sorts of media – not just voice.

When you add cloud VoIP with SIP application layer protocol, companies are communicating via phone, instant messaging, and video, all from the comfort of their cloud VoIP phone system. Now, THAT is technological progress.

Some argue that SIP was created to remove the necessity of service providers, but this isn’t what happened.

Service providers don’t just connect calls, they also manage resources, keep records, manage change, simplify services, add value, and keep things working for businesses.

SIP does not make these critical tasks for service providers easy to accomplish, due to the philosophy behind the design. SIP protocol is inefficient when used in a cloud VoIP environment and works better when customers select that vendor’s VoIP protocol over SIP.

The Best of Both Worlds: Cloud VoIP With SIP Capabilities

These days, most cloud VoIP hardware is equipped with SIP capabilities, meaning that users are no longer restricted to just making voice calls.

If you’re still behind times and haven’t switched over to cloud VoIP, you’ll be amazed to see just how much you can do when you make the transition. Integrating communication opens up new opportunities for growth and revenue.

Want to learn more? Get started on your journey to cloud VoIP with a DEMO customized to your needs. You won’t regret it.


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