Organizational structures in businesses have evolved from being in centralized locations to having offices that are located all across the geography. The concept of network organizations enables employees, who work in groups for a project, to be at different locations. PC-to-PC connectivity has enhanced the capabilities to transfer files and to conduct net meetings by such employees over the Internet.

Before the advent of Internet telephony, businesses with multiple locations and employees always on the move had to incur heavy charges for communications by way of long-distance calls and international calls. This is obvious from the fact that a traveling sales representative once had to report to the corporate office about the sales figures through public phones or mobile phones. With the arrival of local and wide-area networks, connectivity issues between fixed locations became lessened. But the charges incurred for the maintenance of such legacy systems were high because of administration costs and network management.

The components for business Voice over Internet Protocol, or VoIP, are the same as those for any other VoIP applications, except for the ownership of network infrastructure such as IP PBX and other routers for network management. Also, Voice Facilities Managed services are provided by VoIP providers, obviating the need for ownership of infrastructure.

The features available in VoIP are calling extension, caller account information and seamless call transfer, which are essentially the same as those provided by traditional PBX. In addition, the major advantage is for network administrators. As VoIP network and architecture can be managed through web interface, the job has become easier by remote maintenance. Further, the need to call the vendor for configuration in terms of Move, Add, and Change (MAC) is reduced. The other advantage is for the employees, who can make free calls through soft phones with their laptops from any location.

The limitations for IP telephony for businesses are in the form of power outages, as VoIP networks depend upon a power source, unlike PSTN lines, which carry power along the lines. Still, businesses are rapidly adopting the evolving technology, which is illustrated by the fact that the IP PBX market alone will generate $9 billion by 2007.