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As small businesses consider whether Voice over Internet Protocol is the right option for their voice call needs, there are a number of advantages and disadvantages to be evaluated.

VoIP technology uses the internet's packet switching capabilities as opposed to circuit switching used by the traditional Public Switched Telephone Network. The operating costs for VoIP are significantly lower and the mobility of the technology makes employee moves and changes less expensive as well. Using VoIP will make your phone system more flexible, allowing you to have voice call access as long as there is a broadband connection available. Many services allow you to receive voice mails and faxes in your email inbox, adds Entrepreneur magazine.

One area that causes some concern for those considering VoIP technology is that phone quality is not always consistent and can become distorted or lost as a result of transmission errors.

In the event of a power outage, you will not be able to make calls using VoIP as it relies on wall power. A standard phone, however, runs on power provided over the line from a central office and will continue to work. VoIP is also vulnerable to worms, viruses and hacking, although it is uncommon and developers are currently working on VoIP encryption.

For those considering making the switch, they should consider integrating the technology with standard phone service before getting rid of the original system entirely.