VOIP (Voice over Internet Protocol) allows phone calls to be made over the internet or internal networks using digital signals instead of traditional phone lines. It offers cost savings through better utilization of bandwidth compared to traditional phone systems which require a phone line per phone. There are different types of VOIP systems including traditional PBX systems, IP-PBX systems, and hosted VOIP systems which have no on-premise equipment. Common concerns with VOIP include call quality, reliability if internet is lost, and compatibility with fax machines or paging systems. Transitioning an existing phone system to integrate VOIP can provide cost savings while making a future transition to full hosted VOIP easier.