Running a business in the VoIP industry is often a challenging task because of several driving factors for service providers. VoIP solutions are necessary to be considered because the whole business is dependent on the software. Pros and cons of the software also help in identifying whether to run a business in specific areas using that VoIP software or not. As the providers heavily use class 4 and class 5 Softswitch solutions, I will share the major difference between class 4 and class 5 Softswitch specific to providers. 

This Article will help VoIP service providers to understand the benefits and disadvantages related to this VoIP Softswitch solution. 

 Usage 

Depending on the usage of the software, it is bought by service providers. The roles of class 4 Softswitch and class 5 Softswitch solutions are different. They definitely complement each other to complete the ecosystem of VoIP telephony, but the serving area is different. Based on this, it causes pros and cons for the provider. 

The wholesale Softswitch solution is used to cater to the wholesale VoIP market. It is used to provide services to other business phone service providers. Its major feature is call routing strategies and the main use of this software is to provide call routing services for VoIP traffic to international destinations. The advantage of this software is that it can be used to provide wholesale VoIP services and cater to the long-distance calling market. The disadvantage of this software is that it cannot provide any real communication features to the audience such as call hold and retrieve, call mute and un-mute, call transfer, etc. This VoIP Softswitch solution needs to relate to the class 5 Softswitch to provide communication features. 

The retail Softswitch solution is used to cater to the retail VoIP segment with communication features. It has several features that enrich the communication of businesses such as call queues, conference calling, call hold and pickup, attended and blended call transfer, call forwarding, call recording, voicemail, and more. It is used to cater to end users such as enterprises, businesses, etc. It is specifically used to provide communication services to local businesses and enterprises. The advantage of this software is to provide the best communication service to local customers. However, the disadvantage of this software is that it cannot be used to provide long distance calling or call routing. It needs to connect with the class 4 Softswitch to provide that service. 

Investment and returns 

One major difference between class 4 and class 5 Softswitch is the money required to acquire, set up, manage, and maintain these two solutions. The retail Softswitch solution is more expensive than the wholesale Softswitch solution because of the use case of the system, which is the advantage of the former solution and the disadvantage of the latter one. Moreover, the cost of maintenance and management of the software is also high in the case of class 4 compared to its counterpart. 

The only advantage of a wholesale switch over a retail Softswitch solution is that it can deliver much better returns. The wholesale market is huge and the software is used to handle massive call volume. Therefore, the profit generated using the wholesale switch is higher than the retail switch. 

Concluding notes 

Both class 4 and class 5 Softswitch solutions have their own advantages and disadvantages depending on several factors. Two major factors often evaluated to make a decision to buy one of the Softswitch solutions are investment and returns on this investment and the other one is related to use case. Depending on the budget a service provider has and what target audience or segment the provider is interested in target, the Softswitch solution can be selected. Keeping the major difference between class 4 and class 5 Softswitch discussed in this article can help in making the right decision. 

Original Source From : -  

https://medium.com/@astpp.telephonyplatform_83213/pros-and-cons-of-major-softswitch-solutions-for-service-providers-27d580459482