IP telephony, also known as voice over IP, is a fundamental technology shift in telecommunications. It is the cornerstone of convergence (the integration of data, voice, and video solutions onto a single voice over IP network), promising significant new leaps in efficiency and capability.

An IP telephony solution allows telephone conversations to travel over the same IP networks used for data communications. IP telephony is much more efficient with respect to broadband usage because conversations are "bundled" in the IP networks, making all communication flow through the same circuit. Each bundle is routed by its address of origin and destination; a server-based "call manager" on the end-user side functions as the "switch."

What are the benefits of IP Telephony?
IP telephony technology has become a reliable communication option that has well-established standardized communication protocol. IP Telephony systems have many low cost devices and software application development tools available compared to proprietary telephone systems and services. The use of IP Telephony products and software allows companies to cost-effectively upgrade and eventually replace existing (legacy) telephone systems with more cost effective and easy to use telephone equipment.