A VoIP switch is a virtual telephone switch that connects phone calls from one phone line to another across an IP network. This type of switch is different from traditional switches, in that, rather than being a complex piece of physical equipment, like a switch board, it is simply a piece of software that can be installed on a general-purpose computer system.

 A VoIP switch contains a database of users and telephone numbers, which is cross-checked against each other when a VoIP call is initiated. If a match is found, the switch identifies the associated IP address and begins the exchange of voice data. If not, it will hand of the request to another softswtich until one is able to provide a match. This data is then shared and learned for future efficient and reliable voice connections. 

There are three unique ways a carrier can implement a VoIP softswitch solution:

1)      Hosted Softswitch – A VoIP switch provider will host a virtual softswitch environment on its own network, consisting of physical servers, virtual machines, and other network devices.   These providers offer inexpensive advanced routing and rating options to customers, with no need for the purchase of additional physical equipment or the installation of complex software on site. Carriers can then configure and administer their softswitch through a remote Web portal or other application interfaces. With a software-as-a-service model (SaaS (News - Alert)), the hardware is managed and maintained at the hosting location, assuring users of the performance and reliability of their softswitch.  

2)      Rental – Many VoIP switch providers offer a rental solution, where companies pay a monthly fee to implement a Class 4/5 softswitch directly into their own network infrastructure.

3)      Ownership – If a company wants complete control over their own VoIP softswitch, there is the option to purchase a fully licensed softswitch. Hosted and maintained on-site, a single upfront investment will lead to long term operating cost savings for VoIP communications. Without monthly fees, these cost savings can be passed along to clients and customers.

With the explosion of VoIP in recent years, the assimilation of softswitches into the Internet and telecommunications infrastructure will no doubt continue to grow. The individual service provider will have to determine which method of implementation is best going forward.