The concept of the IP telephony solutions is getting popular among big business houses as well as small-medium businesses. As a matter of fact, this latest mode of telecommunication is carrying the essential concept of “communication” to wider vistas. All we can do is thank the internet for the concept of information explosion. As a matter of fact, new and innovative IP telephony solutions are now being promoted in business houses that were earlier using traditional telephone systems or PSTN services.With greater benefits, IP telephony solutions have revolutionized the functioning of large business houses and small-medium businesses.All these have been achieved through a reduction in calling costs, a simplification of the management system and the promotion of real-time collaboration. Moreover, there has also been an improvement in the organizational productivity. With the VoIP solutions, calling over the longer distance or internationally is no more a reason for worry, as it does not show as increase in bills. To say the least, one can save more than 50 percent on the monthly telephone bills, when compared to PSTN services.The VoIP solutions help the business users to gain a strategic advantage in today’s market by simplifying and enhancing voice, video and data communications across the world. Considering this fact, it can be said that, latest VoIP solutions have led to the concept of unified communications, wherein users are able to send and receive the voice, data and video over a single IP network. These solutions provide seamless communication, as they are based on the packet switching technique that allows users to route their calls over the high-speed internet.Depending upon the usage and requirement of the business houses, VoIP solution providers offer business solutions to their users. As a matter of fact, there are two types of VoIP solutions offered by the providers namely- call termination and IP Centrex services These solutions are coupled with the packet switching technique that ensure that users get business-class phone capabilities. Unlike coaxial wires, a solution provides business users with various benefits.1. It allows the business users to make more than one call at a given time.2. It enables them to send images, videos and voice through same IP network.3. It allows the business users to access longer distance as well as international calls at much cheaper rates. As a matter of fact, in VoIP business solutions, the fact that the business user is calling to someone near to him or on other side of the globe is quite irrelevant.The entire VoIP solution is based on the IP process that converts analog signals into compressed IP digital packets. Furthermore, these compressed packets are sent over the broadband internet connections. As matter of fact, high-speed broadband connection is a prior requirement for making the most of the hosted VoIP solutions. For availing the benefits of IP telephony services, one has to avail specialized hardware and software.The users require an additional piece of equipment to augment and support their pre-existing telephone systems which is the Analog Telephone Adaptor (or ATA). This analog adaptor is usually supplied by the service provider, when the users sign-up for the services. Moreover, the advanced telephone system works like any normal phone and one can enjoy calling just like they do using standard phones.To avail the hosted VoIP solutions, one has acquire the services from the VoIP solution providers, wholesalers or resellers. Thereby, while opting for the these solutions, business users must look out for the provider who stresses on delivering excellent voice quality, reliability of services, efficiency in networks, round the clock customer support and security of calls. Furthermore, while availing the services from any internet phone provider, users must look-in for value-added advantages such as voice mail, 3-way calling, caller ID, call forwarding, call waiting and many more.With time, VoIP solutions have gained in importance in various spheres of industries such as telecommunication, finance, insurance, travel and media. In addition, it can be said that these latest applications of IP telephony have almost achieved a complete market penetration, including the residential users.