Softphones are web-based apps that mimic the functionality of traditional desk phones. By leveraging Voice over Internet Protocol (VoIP) technology, softphone apps enable you to make or receive calls over the internet – without the need for special hardware.
Alongside this, most softphone apps offer bonus services like messaging and video calls. They’re used across multiple devices, including mobile, desktop, and tablet, and they can easily be integrated with your existing business software. Best of all – they’re affordable solutions that will give your bottom line a boost.
Keen to know more? Read on to find out what these apps can do for your business.
What Is a Softphone?
Like the name suggests, softphones are software-based phones that perform the same function as their hardware counterparts – minus the wires, cords, and clunky equipment.
Rather than tethering the user to a desk, softphones are entirely based around an app, so you can communicate from anywhere and from (almost) any device. With the global VoIP market projected to hit $2.48 billion by 2030, it’s a good time to get familiar with these apps.
Softphones enable calls through a process known as digital compression – in which sound is converted into data packets and transmitted across the internet. Once the user has dialed a number, their VoIP provider connects the call. It then compresses their voice and sends it to the call recipient. In effect, it acts as a conduit between both parties – no matter where they are in the world.
This may sound a little confusing – but the whole process takes less than a second. Softphones are designed to be simple, with a clear, intuitive interface for ease of navigation. No more hurriedly looking for the transfer button while a customer grows impatient on the other end. Most offer drag-and-drop functionality to forward, hold, and screen calls.
And that’s not all – softphones can aggregate your data by easily integrating with your existing software. This creates a powerful all-in-one dashboard for streamlining your business operations. 8×8, for example, integrates with CRM tool Pipedrive to ‘create a single user experience.’
Making a call on the 8×8 softphone app. Image: Tech.co
Softphones vs Hardphones: What’s the Difference?
Softphones differ from hardphones in several important ways. ‘Hardphones,’ or desk phones, are physical objects that you might find on a desk. They’re usually connected to a landline and, owing to their offline status, have limited functionality.
Hardphones have been a mainstay of businesses around the world for decades – and, of course, many businesses still use them.
But the rise of remote and hybrid working arrangements has created a demand for more flexible solutions. Crucially, softphones are not physical devices. They leverage software and VoIP to enable users to make calls, send messages, and conduct video calls, from anywhere in the world, on a variety of devices, such as laptops, tablets, and cell phones.
As they don’t rely on expensive hardware, softphones grant their users an unrivaled degree of freedom.
How to Set Up a Softphone
Setting up a softphone is easy. Choose your provider, install the relevant software, and you’re ready to start making calls.
- Choose your preferred provider and plan.
- Download the softphone app from the provider’s website.
- Follow the installation instructions.
- Configure your speaker and microphone settings.
- Connect your headset and other additional hardware (optional).
- And voila! Your softphone is up and running.
What Are the Benefits of Softphones?
Softphones are a great solution for modern businesses. Check out some of the key benefits.
- Great user experience – With an intuitive interface, softphones are designed to offer flexibility and a high degree of customization. Many apps allow you to pick your on-hold music, for example. Little flourishes like this mark the softphone out as a user-centric solution.
- Reduced costs – Softphones render expensive phone equipment obsolete, sparing you from setup and maintenance costs. Calls are also cheaper than a traditional landline – businesses can save an average of 50-75% on overall phone costs by making the switch.
- Business aggregator – Softphones can be easily integrated with the suite of tools that your business uses. For example, they can access and share important data from CRM tools. This streamlines your work process – so you can run a tighter ship.
- Total flexibility – Softphones allow users to make and receive calls across a variety of channels from anywhere in the world – all you need is an internet connection. This means managers can focus on hiring the best talent from across the globe, as they’re not restricted to exclusively recruiting staff that live within commuting distance of their office.
- Robust security – As softphones are cloud-based, they’re automatically updated with the strictest security protocols. This will save time and resources that you would otherwise have spent on sourcing the latest security software.
What Are Some Common Softphone Features?
In addition to standard features – including making and receiving calls, forwarding, and voicemail – most softphones offer a raft of features to streamline your everyday business management. For example, many have an in-built ‘virtual receptionist’ to greet and direct inbound callers based on their responses.
Voicemail to text, an innovative feature that converts voicemails into text messages, is found on several softphone apps, such as Nextiva (Enterprise subscription only), Dialpad, and GoTo.
During a recent research project, we took a closer look at the major providers in the VoIP industry and found almost every top softphone app included customizable hold music, with Google Voice proving the exception.
The Best Softphones for Small Businesses
We’ve conducted extensive research on the best softphones for your business – so you don’t have to.
In the table below, you’ll find a summary of how the best apps in the industry measure up against each other. If you’re on the hunt for more in-depth reviews, check out our guide to the best softphone apps for small businesses.
Alternatively, you can learn more about our research process here.
| Price from The typical lowest starting price. The lowest price available for your business will depend on your needs. | Our Rating Relative score out of 5 | Best For | Core Benefit | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| BEST OVERALL  |  |  |  |  |  |  |  |  |  |  |
| RingCentral | Zoom Phone | 8×8 | Vonage | GoTo Connect | Ooma | Nextiva | Net2Phone | NUACOM | Dialpad | Google Voice |
| 4.7 | 4.6 | 4.6 | 4.3 | 4.2 | 4.1 | 4.1 | 4.1 | 3.9 | 3.8 | 3.4 |
| Integrations | Value for money | Security | Customer service industries, due to impressive training features | Managing large volumes of inbound calls | Overall customer experience. Also great for retailers, due to strong inbound and outbound communication tools. | Professional services | Great for international businesses | Great customer satisfaction | Startups on tight budgets | Small businesses that prioritize security |
| Large variety of Helpdesk and CRM integrations | Affordable pricing | Integrates with various other communication tools | Staff improve on the job, due to top training and management tools. | Provides call management features at low cost | Flexibility: No contracts, keep your number, and work from anywhere. | Unlimited Calls in U.S. & Canada | Integrates with Microsoft Office, Google and others | Great automation and analytics tools. | High customer satisfaction at low prices | Integration with the Google platform |
| Get Quote | Get Quote | Get Quote | Get Quote | Get Quote | Get Quote | Get Quote | Get Quote | Get Quote | Get Quote | Get Quote |
Final Thoughts on Softphones
In the post-COVID era, hybrid working is the new normal. 54% of US employees reported working in a hybrid model in the first quarter of 2024 alone – with this number set to grow as CEOs relax their views on working remotely. This shift has triggered a surge in demand for business solutions that emphasize flexibility, portability, and innovation. Softphones are one of the main beneficiaries of this switch.
Softphones are an invaluable tool for modern business. Remote and hybrid working is here to stay, and here at Tech.co, we strongly believe that a business model that lets employees choose their working arrangements will bear significant fruit. Small businesses, then, should start to explore potential use cases.
By enabling calls over the internet – alongside a raft of supplementary features – softphones can streamline your workflows and boost your efficiency. Work smarter, not harder.
With moves to replace so-called Plain Old Telephone Service (POTS) systems gathering steam, the days of the desk phone are numbered. Softphones provide a flexible, innovative, and powerful alternative.