What Is a Softphone and How Does It Work?

Senior Writer: Anant Berge

Updated : September 15, 2025

Have you ever answered a call right from your laptop or phone, without touching a desk phone? That is a softphone. It is just software that lets you make phone calls over the internet. It’s simple. It’s flexible. And it’s growing fast. About 31% of businesses now use VoIP systems, the technology behind softphones.   In this blog, I will explain what is a softphone, how it works, and why it matters for businesses today.

Softphone Meaning and Definition

A softphone software is a tool that lets you make telephone calls over the internet. You don’t need a desk phone. Instead, you use your computer, tablet, or smartphone. It works via a program or app that resembles a phone keypad. Softphone technology is used by apps like Zoom and Skype. From your device, you can make calls and send instant messages. You can even join video conferencing sessions.

How Does a Softphone Work?

Using a softphone is simpler than it seems. It turns your device into a phone that runs over the internet. Let’s break down how it all works:

1.VoIP Technology Behind Softphones

Softphones use VoIP, or Voice over Internet Protocol, to make calls. This means your voice is converted into data and transmitted via the internet. With a VoIP phone system, you can make crystal clear calls. And you don’t require a regular phone line for this. Plus, it lowers expenses, particularly when it is an international or long-distance calls. Over a 1/4th of workers now use VoIP, including 37% of remote employees.

2. Device Compatibility 

Softphones work on multiple operating systems. You can use them on a tablet, computer, or mobile device. It simplifies staying connected no matter where you are.. You just need the softphone apps installed. Plus an internet connection to start calling.

3. Call Setup and Management Features

Softphones come with features that make calling easier. You can hold, transfer, or record incoming calls. You can also access call logs and voicemail messages. Contact lists are available, too. These tools help you manage communication. And there is no need to switch between devices.

4. Integration with Business Systems

Many softphone applications connect with other business tools.

Softphone vs. Traditional Phone Systems

If you are still using conventional phones, you might wonder how softphones compare. Softphones run over the internet. They offer flexibility that the desk phone hardware cannot match. Let’s see how they are different.

1. Cost Comparison

Softphones usually cost less than traditional phone systems. You don’t need extra hardware or complex wiring. Maintenance and upgrades are simpler too. Plus, VoIP calls can be much cheaper. This is especially true for long-distance or international calls. That is why they are ideal for businesses that want to reduce communication costs.

2. Feature Comparison

Softphones are more feature-rich than a normal desk phone. You can forward calls and receive voicemail messages. Also, you can participate in video calls and view call logs. Physical phones rarely give you such choices. Softphones give you the capacity to manage communication more efficiently. You become more engaged with your customers and team.

3. Mobility and Accessibility

Softphones work on multiple devices. This includes PCs, tablets, and mobile apps. You can make and receive calls from anywhere with just an internet connection. Traditional desk phones confine you to one place. But with softphones, you get more flexibility and independence. This is particularly helpful in hybrid or remote work environments.

What Are the Key Features of a Softphone System?

Softphones have features that go beyond simple calling. They make communication better and flexible for both personal and business use. Let’s look at some key features:

1. Voice and Video Calling

You can use Softphone for voice calling in the same way you would with a desk phone. You also have the option to video call if you would like, to speak with someone face-to-face.    This allows you to connect with your teams or clients for real-time conversation. In fact, 91% of businesses use video marketing as a marketing tool.

2. Instant Messaging and Presence

Most softphones also come with instant messaging support. You can easily send a message without even having to start a call. Presence features indicate whether someone is online, busy, or away. This specific data helps you determine the best time and method to reach out to someone.

3. Call Recording and Logging

Softphones often include call recording. This is useful if you want to revisit conversations later. They also keep call logs so you can check who called and when. This makes it easier to stay organized and not miss important details.

4. Contact and CRM Integration

Softphones can connect with your personal contacts and CRM software. This means you can call a customer directly from your CRM dashboard. Integration saves time and ensures all interactions are recorded. It also helps your team provide better customer support.

5. Multi-Device Sync

You can use a softphone on different devices and still stay connected.

What Are the Different Types of Softphones?

Softphones are not all the same. They come in different forms to suit how and where you work. The main types are discussed below:

1. Desktop Softphones

Desktop softphones are apps you install on your computer. They give you a full interface with calling, messaging, and video features. These work best if you spend most of your time at a desk. They also provide better call quality. This is because they depend on stable internet connections.

2. Mobile Softphones

Mobile softphones are categorized as mobile apps. These are designed for smartphones and tablets. They let you carry your business phone wherever you go. This option is perfect if you work on the move. You can call, text, or join meetings from your mobile device with just an internet connection.

3. Web-Based Softphones

Web-based softphones run directly from your browser. You do not need to download or install anything. They are quick to access and work well on shared or temporary devices. This makes them useful when you log in from different locations. Or when you don’t want to install new software.

What Are the Main Benefits of Using a Softphone Service?

Softphones are not just about replacing traditional phones. They bring a set of practical benefits that make communication smoother and smarter.

1. Cost-Effective Communication

Softphones cut out hardware costs and reduce phone costs. You only need the app and the internet to connect. Over time, this makes communication affordable for businesses. This is especially true when compared to traditional phone systems.

2. Flexibility and Remote Work Support

Softphones let employees take calls from anywhere. They only need a laptop or smartphone. This makes it easy to stay connected at home, on the move, or in the office.

3. Scalability for Businesses of Any Size

Softphones can grow with your business. Adding or removing users takes only a few clicks. Whether you are a startup or a large company, scaling up is fast and stress-free.

4. Enhanced Collaboration Features

Softphones often include video calls, chat, and file sharing. These tools bring teams closer and speed up decision-making. It is easier to work together when everything happens in one communications platform.

5. Easy Maintenance and Updates

There’s no complex physical hardware to manage. Updates are automatic, and the service providers handle most of the technical work. This keeps your system up-to-date without extra effort from your team.

Top Softphone Providers for Businesses

Here are some leading VoIP service providers. Each has its benefits and disadvantages. Choose wisely based on your business use case.

	Provider	Best For	Key Features	Pros	Cons	Pricing
1	CallHippo	Small to mid-sized teams	Local & toll-free numbers, Call recording, CRM & app integrations, Power dialer, AI Copilot	Quick setup, Reliable call quality, Strong features in mid-plans	Some advanced tools cost extra, Add-on charges for SMS/specialty numbers	Free – $42/user/month
2	RingCentral	Enterprises needing global coverage	Multi-channel communication, IVR, Large meetings, Strong integrations, Call analytics	Feature-rich & scalable, Excellent reliability, Great for large meetings	Pricey for higher tiers. Some features in premium plans	$20 – $45/agent/month
3	Nextiva	Growing businesses wanting balance	Unlimited domestic calls, Voicemail transcription, CRM integrations, Call recording, Team messaging	Great UX & support, Good value for features, Flexible for growth	Costs rise at higher tiers, Advanced admin may need setup	$15 – $75+/user/month
4	Dialpad	Teams wanting modern AI tools	AI live transcription, Unlimited US/CA calls, CRM integrations, Cross-device sync, Multi-office mgmt	Easy to set up, AI saves time, Good value-based plans	Extra for SSO & advanced, International costs more	$15 – Custom
5	Vonage	Businesses needing global reach & APIs	Voice & video calls, SMS/MMS, Team messaging, APIs, Global numbers	Good global reach, Modular features, Strong reliability	Some features only in premium, Add-ons increase costs	$19.99 – $39.99+/user/month
6	3CX	Businesses with IT support wanting control	Call forwarding, Call analytics, Cloud/on-prem deploy, Call routing, IVR	Very cost-efficient, Strong customization, Full PBX control	Less polished UX, Needs technical know-how	Free – Paid (varies)

1. CallHippo

CallHippo delivers a fast, cloud-based business phone system. You can set up local, mobile, or toll-free numbers across many countries. It works via desktop and mobile apps. It is clean, simple to use, and built for teams that want call quality and instant setup.

Key Features

• Local & toll-free numbers
• Call recording
• CRM & app integrations
• Power dialer
• SMS & phone number porting
• AI Copilot

Pros

• Setup is quick and intuitive.
• Offers reliable call quality & international presence.
• Many features in mid-plans and mobile app works well.

Cons

• Some advanced tools cost extra.
• SMS or specialty number usage can incur add-on charges.

Best for

Small to mid-sized teams who want robust calling with minimal fuss.

Pricing

• Basic: $0 per user/month
• Starter: $18 per user/month
• Professional: $30 per user/month
• Ultimate: $42 per user/month

2. RingCentral

RingCentral is a mature unified communications platform. It bundles voice, video, messaging, and collaboration into one app. It is global, full-featured, and great when you need many integrations. Also, it is very strong on reliability and for scaling.

Key Features

• Multi-channel communication
• IVR
• Large meeting & conference support
• Strong integration ecosystem
• Call analytics

Pros

• The platform is very feature-rich and scalable.
• Excellent global reliability and uptime.
• Strong support for large meetings & collaboration.

Cons

• Can be pricey, especially for higher tiers.
• Some features are locked behind premium plans.

Best for

Enterprises or businesses that want robust features and broad global coverage.

Pricing

• Core: $30 /user/month
• Advanced: $35 /user/month
• Ultra: $45 /user/month

3. Nextiva

Nextiva aims for simplicity with strong features. It offers unified communications tools with voice, SMS, video, and integrations. Their intuitive interface is clean. Onboarding is also very smooth. It is good when you want a balance between features and usability.

Key Features

• Unlimited domestic calling & toll-free minutes
• Voicemail transcription
• CRM integrations
• Call recording
• Team messaging

Pros

• Great user experience and responsive support.
• Strong value for features like SMS, video, and recording.
• Flexible enough for growing teams.

Cons

• More costly as you add higher-tier features.
• Some advanced admin/routing features may need custom setup.

Best for

Businesses that want power plus ease of use in one package.

Pricing

• Core: $15 per user/month
• Engage: $25 per user/month
• Power Suite CX: $75 per user/month
• Enterprise Essential: Starting at $75 per agent/month

4. Dialpad

Dialpad is modern and cloud-first. It leans heavily on AI for things like live transcription, summaries, and intelligent routing. It is lightweight, flexible, and works well on mobile and desktop. Good if you want smart tools built-in.

Key Features

• AI-powered live transcription
• Unlimited calling (US/CA) & messaging
• CRM integrations
• Cross-device support & sync
• Multi-office management

Pros

• Very intuitive & fast to set up.
• AI tools reduce manual work.
• Good value for features in base plans.

Cons

• Features like SSO or advanced controls cost more.
• International calling or specialty numbers may cost extra.

Best for

Teams wanting modern tools plus AI features without heavy complexity.

Pricing

• Standard: $15/user/month
• Pro: $25/user/month
• Enterprise: Custom pricing

5. Vonage

Vonage offers a broad suite of communication tools. It supports voice, video, SMS, and team messaging. It is flexible with add-ons and coverage. This makes it adaptable for different needs. Plus, Vonage offers API options too.

Key Features

• Business voice & video calling
• SMS/MMS & team messaging
• Call forwarding
• Flexible integrations & APIs
• Global numbers & coverage

Pros

• Good global reach and number options.
• Features are modular, so you pay for what you need.
• Strong brand and reliability.

Cons

• Some useful features only appear in premium plans.
• Costs add up if using many add-ons.

Best for

Businesses needing global presence and lots of customization via APIs.

Pricing

• Mobile: $19.99/user/month
• Premium: $29.99
• Advanced: $39.99 and up.

6. 3CX

3CX offers you great flexibility. You can run it in the cloud or on-premises. It is ideal if you want control and cost savings. The system can be more technical to manage. But the good this is that customization is strong.

Key Features

• Call forwarding
• Call analytics
• Flexible deployment (cloud / on-prem)
• Call routing
• IVR

Pros

• Very cost-efficient, especially for on-prem setups.
• Strong control over call flows and PBX features.
• Good for businesses with internal technical capacity.

Cons

• User experience can lag compared to more polished cloud-first platforms.
• Support and documentation sometimes assume technical know-how.

Best for

Businesses that want flexibility and control and have in-house IT.

Pricing

• Free/basic plan for small teams (up to ~10 users)
• Paid plans vary

How to Choose the Right Softphone Service?

With so many options out there, choosing the right softphone can feel tricky. But it doesn’t have to be. Focus on what your business really needs. The decision will become much clearer. Here are some points that will help you make a smart choice.

1. Evaluate Feature Requirements

Start by asking what you need the softphone to do for you. Is it just voice communication? Or do you also need video, SMS, or integrations? Your answer will help narrow the field. Think about the team size also. A small business might need fewer features. On the other hand, a growing one may want scalability features.

2. Check Device and Platform Compatibility

Your team won’t always be tied to one device. So, make sure the softphone works on desktop, mobile, and web. This way, everyone stays connected wherever they are. Also, check the operating systems. Some tools work better on Windows, while others shine on Mac or Android. Compatibility avoids headaches later.

3. Assess Security and Compliance

Security isn’t optional anymore. Look for features like encryption, two-factor authentication, and data privacy controls. These protect both your team and your customers. If you are in a regulated industry, compliance matters even more. Choose a service that meets standards like HIPAA or GDPR. This totally depends on which business you are in.

4. Consider Integration with Existing Tools

Think about the apps your team already uses. Does the softphone connect with your CRM, helpdesk, or project tools? If yes, it can save a lot of time. Integrations mean less switching between apps. Your team can handle calls, track customer data, and work smarter in one place.

5. Compare Pricing and Support Options

Of course, budget is a big factor. Compare plans not only by price but also by what is included. Sometimes a slightly higher plan gives you better value. Do not forget support. A provider with quick, helpful customer service can make a big difference when issues come up.

Migrating from Traditional Phones to a Softphone System

Switching to a softphone might sound overwhelming. But it is actually easier than you think. I have listed a simple roadmap to guide your transition.

1. Assess Your Current Phone System

First, review how your current phone system works. Check how many phone lines you use. What features do you rely on? Where does it fall short? This assessment gives you a clear idea of what to look for in a new system.

2. Plan the Migration Timeline

Moving all at once can be risky. Instead, set up a step-by-step plan with clear timelines. Decide which departments or users will move first. A phased approach makes the process smoother and less stressful.

3. Train Employees on Softphone Usage

Even the best tools are useless if your team does not actually know how to use them. That is why you should organize short training sessions to explain the basics. Encourage employees to practice before the system fully goes live. This will boost their comfort and confidence.

4. Test and Go Live

Run tests before the final switch. Check call quality and softphone functionality. And at last, check if they are compatible on different devices. Once you are confident that everything works well, go live. Having IT or support staff ready during this stage can help fix issues quickly.

5. Monitor and Optimize Post-Migration

Don’t stop after going live. Keep an eye on call quality, feature usage, and employee feedback. Make adjustments when needed. Over time, this would make sure that your softphone system performs at its best.

Common Challenges with Softphones and How to Solve Them?

Softphones make communication easier. But like any technology, they come with some challenges also. Let us see what problems you will probably face and how you can handle them.

1. Network and Connectivity Issues

2. Audio Quality Concerns

3. Security Risks

4.User Adoption and Training

How to Save Costs When Using Softphones?

Softphones can save your business money if you use them smartly. Small tweaks and simple habits can help you cut costs. Let’s see some ways to do it.

1. Evaluate Call Volume and Usage Patterns

Look at how your team makes calls. Which hours are busiest? Which calls are the longest? Knowing this helps you pick the right plan. You avoid paying for unused minutes.

2. Select Cost-Effective Softphone Plans

Not every plan fits every business. Compare features and costs carefully before deciding. Start with a plan that covers your main needs. You can always upgrade if your team grows or needs more features. This approach keeps your budget under control without losing flexibility.

3. Leverage Free or Low-Cost Features

Many free softphone apps offer features like chat, video, or call logging. Make full use of them before buying extra tools. This saves money and keeps your workflow simple. And when you explore all the features, it also helps your team work more efficiently.

4. Reduce Hardware Dependencies

Softphones work on devices you already have. Like laptops, tablets, and smartphones. You don’t need extra phones, PBX systems, or wiring. When you use existing devices, it reduces setup costs. It also makes it easier for teams to get started quickly and stay connected anywhere.

5. Monitor Billing and Usage Regularly

Check your invoices and usage reports every month. Look for unusual charges or features you rarely use. And accordingly, you can adjust your plans and call habits. Regular monitoring helps you avoid surprises. And most importantly, it ensures your softphone service stays cost-effective.

6. Implement Team Guidelines to Avoid Wastage

Set simple rules for call usage. Encourage short calls and mindful use of features. Avoid unnecessary long-distance calls. Because when the team follows guidelines, costs stay under control. Everyone gets used to the rules quickly. This ultimately saves money without affecting communication.

Conclusion

Softphones are changing the way businesses communicate. They let you make calls from any device. You stay connected no matter where you are. At the same time, they save money and simplify workflows. When teams use softphones effectively, productivity goes up. Plus, the communication becomes smoother. With CallHippo, your team can start using softphones quickly. It’s user-friendly and full of useful features. It keeps everyone connected without complicating things.

FAQs

What devices can I use a softphone on?

A softphone works on nearly any device. Like your computer, tablet, or smartphone. It is compatible with major operating systems like Windows, macOS, iOS, and Android. You can place and receive calls from just about anywhere. Simply install the app, connect to the internet, and you are all set.

Do softphones work without the internet?

Not really! Softphones need an internet connection to work. They use VoIP technology. This sends your voice as data over the web. Without the internet, the calls won’t go through. For the best experience, use a stable connection to avoid delays or dropped calls.

Can I use a softphone for video calls?

Absolutely! Many softphones support video calls in addition to voice. You can join meetings, see your team, and share screens. This makes communication more personal and effective. All you need is a device with a camera and a stable internet connection.

Is a softphone system secure for business use?

Yes, it is. Most modern soft phone systems use encryption and secure protocols to protect your calls. Providers also offer authentication and regular updates. However, always use best practices, such as strong passwords and secure Wi-Fi. Your business communications will remain secure and confidential as a result.0

Published : September 12, 2025

Anant Berge

Anant Berge is a B2B SaaS content writer who creates engaging, user-focused, and SEO-driven content for tech businesses. With a knack for simplifying complex ideas and a passion for storytelling, Anant crafts narratives that help brands connect with their audience through blogs and website content.

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