What Is a Softphone?

What is a softphone?

A softphone is a cloud-based phone system for small businesses that’s used to make phone calls over the internet. You can install softphone apps and software on internet-connected devices — such as mobile phones, tablets and computers — so you and your team can make and receive calls without a traditional desk phone.

Softphone technology is typically part of a VoIP business phone system and requires a monthly subscription or annual contract. Softphones are an increasingly popular tool in unified communications systems that deliver advanced calling features and flexibility for remote and in-office teams.

How do softphones work?

Softphones deliver voice, text and video communications over the web using a cloud-based phone system from a service provider. The software works with most desktop computers, laptops, smartphones, tablets and other internet-connected devices that have a microphone and speaker.

If you’re transitioning from a traditional phone service provider, you can usually port your existing business phone number to your new VoIP system.

How do you set up a softphone?

Installing a softphone application on your computer or mobile device is quick and straightforward. Start by downloading the app from your VoIP provider’s website or your device’s app store. Once the software is installed, allow any required permissions and have your team log in with their account credentials to access a full suite of calling features and tools.

If you’re implementing a comprehensive softphone system for a large business, you’ll also need to address the following setup procedures:

• Configure your call flows.
• Set user groups.
• Integrate the softphone system with one of the best CRM software platforms and other productivity tools.
• Adjust the available features to fit your business’s needs.

Basic installation for making and receiving calls takes only a few minutes. However, your team’s size and the business’s call-routing complexity will dictate your installation time.

What equipment do you need for a softphone system?

To make and receive phone calls on an internet-connected device, you need a microphone and a speaker. You also may need a separate headset if the internet-connected device, such as a desktop computer, isn’t equipped with a speaker and microphone that are conducive to phone conversations.

For most softphone users, a headset is the preferred option for conducting phone calls clearly and professionally. Headsets help you avoid outside noise and improve clarity, especially as many softphone providers now offer high-definition (HD) call quality.

You can also pair softphones with IP desk phones, which look like traditional phones but connect over Ethernet or business Wi-Fi.

What software do you need for a softphone system?

To use a softphone, you need the softphone application provided by your VoIP service provider. This software is typically included with your subscription and gives you access to calling features, messaging tools and account settings.

Most providers offer desktop apps for Windows and Mac operating systems, and Linux support has become more common in recent years. They also offer mobile apps for iOS and Android at no additional cost, allowing you to turn your existing smartphone into a softphone-capable device in minutes.

Some systems also support third-party softphone apps, such as Bria or Zoiper, although features may vary depending on the provider.

What technical considerations are there with softphones?

Softphones and VoIP call quality rely on an internet connection with enough bandwidth to support your communications. In fact, your internet connection is the most important factor because the signal quality directly affects your call quality. Any interruptions to your internet connection can lead to dropped calls.

Large organizations that rely heavily on video conferencing may require business broadband with a fiber-optic internet connection. However, most companies can handle VoIP communications effectively through any of the best business internet service providers.

What are the benefits of a softphone?

There are many compelling reasons to move from traditional desk phones and PBX phone systems to VoIP services with softphones. Consider these benefits:

1. Softphones are cost-effective.

Softphone systems are most often implemented to help reduce operational costs. Companies that want to provide employees with a direct phone line, or even build a robust call center, don’t have to worry about the upfront purchase or lease of desk phone hardware that can cost hundreds of dollars for each handset.

For any company with a “bring your own device” (BYOD) policy, softphone software and mobile apps function well on most modern computers, smartphones and tablets. While basic VoIP services start at just a few dollars monthly, most business-grade providers charge between $20 and $35 per user per month for comprehensive feature sets and enterprise-level reliability.

2. Softphones are flexible.

Softphones offer flexibility in several important ways:

• They support remote and hybrid work. Pew Research Center reports that 75 percent of adults in jobs that can be done from home are working remotely at least some of the time. Nearly half (46 percent) say they’d be unlikely to stay if their employer eliminated remote options. With hybrid and remote work now the norm, businesses need communication tools that travel with employees. Softphones fit the bill, letting users install the software on new computers or cell phones and take calls, browse company directories and access customer information from anywhere.
• They simplify administration. Softphone dashboards make it easy to modify call groups, change individual settings, and add or remove team members on the fly. Administrators can quickly set up or adjust phone systems using drag-and-drop call-flow builders offered by most VoIP providers.
• They work across devices and operating systems. Softphones support a wide range of existing internet-connected devices, from smartphones and tablets to Windows and Mac computers. Most VoIP providers also include free mobile apps for iOS and Android.

3. Softphones help with unified communications.

One of the biggest advantages of softphones is that they support unified communications, letting teams manage calls, messages, video meetings and customer interactions through a single system.

Modern VoIP providers use artificial intelligence to enhance this unified experience by generating meeting transcripts, action items and summaries that sync across your communication tools. This lets employees stay present during calls while ensuring important details are captured and shared with teammates who rely on the same system.

Many providers also offer built-in CRM functionality and integrations with popular third-party CRMs. This brings call data, messages and customer records together in one place, helping employees make the most of every interaction.

VoIP vs. traditional phone systems for business

Here’s a quick comparison of VoIP vs. traditional phone systems for business.

Which should I choose?

Cloud-based softphones and traditional phones serve very different purposes for most companies, so it’s not necessarily an issue of one technology versus another. In fact, many businesses use a combination of softphones and traditional phones throughout their organization.

In many cases, businesses use VoIP-enabled IP phones in the office, while softphone software supports out-of-office communications and keeps call data and features consistent across devices. Traditional phone systems may be kept on hand in case of an internet outage or bandwidth issues, especially for businesses where 24/7 communication is vital.

What features do I need in a business phone system?

VoIP service providers offer a wide range of standard and advanced softphone features to help streamline operations, improve team collaboration, and support unified communications across your team. Many softphone providers include the following key features in their service:

• Unlimited calling: Most providers bundle unlimited U.S. and Canadian minutes into their subscriptions, helping businesses avoid per-minute fees.
• Local and toll-free numbers: Softphone companies typically offer both local and toll-free numbers. Some plans include them, while others charge a small monthly fee.
• Audio and video conferencing: Many softphone platforms support multiparty audio and video conferencing, which is ideal for remote meetings, team collaboration or hosting product demos and webinars.
• Noise suppression: Advanced noise suppression filters help improve call clarity by reducing background noise so both parties can hear each other clearly.
• Auto-attendant (IVR): Interactive voice response systems greet callers and route them to the right person or department. Auto-attendants reduce wait times and improve customer satisfaction.
• Voicemail and voicemail transcription: Softphones accept messages when no one is available, and many systems now use AI to transcribe and summarize voicemail. Messages can be sent via email or text for quick follow-up.
• Advanced caller ID: When your softphone is integrated with your CRM, incoming calls can display a customer’s name, past interactions, order history, survey results and more. This helps teams deliver personalized and efficient service.
• Virtual fax: Many softphone systems include virtual faxing, letting you send and receive faxes without a physical machine. Providers can forward incoming faxes to your email or softphone app.
• Call routing: Softphones let you build detailed call-routing rules based on caller ID, time of day, call type, or department needs. This helps ensure calls reach the right person as quickly as possible.
• Device priority and scheduling: Softphone systems also let you control which devices ring first. For example, you can configure an IP phone to ring twice before your softphone app alerts you on the third ring. This helps prevent missed calls and gives teams flexibility; for example, if front-office staff are away from their desks, a manager can pick up seamlessly.

These features represent only a portion of what modern softphone systems can offer. Higher-tier plans often add capabilities such as call recording, real-time voice analytics, AI-driven post-call summaries and unlimited virtual meetings.