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An Ideal VoIP Softswitch for a Startup or SMBS

  • January 13, 2023

Targeting the VoIP industry can be a great business strategy for any business. Even if you are a startup company just embarking on your business in this lucrative business or if you are a small business dreaming big to make your debut in the voice over IP business, you can think about launching your business as this is the right time. So many inventions are taking place to support this IP telephony industry such as 5G and 6G networks, IoT, AR, AI, and more along with the growing popularity of VoIP based services. There are several options available in each segment of VoIP for a startup or small and medium scale business to launch and succeed their business such as investing in any one type of VoIP Softswitch. There are three major types of Softswitch solutions available to choose from. 

  1.       Wholesale Softswitch
  2.       Retail Softswitch and
  3.       Hybrid Softswitch

These three are major types of Softswitch solutions available in the IP telephony industry. A small or medium business or a VoIP startup can choose any as both wholesale and retail VoIP industries are booming. But, which can be an ideal switch for your business might be a confusing question if you are new in this industry. Don’t fret. We will share a brief about this VoIP solution and whether it can be an ideal switch for your startup or SMB or not. 

Wholesale Softswitch 

The technical name of this solution is class 4 Softswitch solution. As the name suggests, it targets wholesale VoIP businesses and helps them traverse massive call volumes across international destinations. It does not target the volume of service providers, but the volume of calls would be quite high. Thus, the business model can be quite intricate for small businesses and startup agencies. 

It is a bit expensive system because it is sturdy and handles thousands of calls. It also manages international call and data transmission for massive call volume. Thus, it is costlier than the retail VoIP Softswitch solution. 

Types of Softswitch

Retail Softswitch 

The VoIP term used to refer to this VoIP solution is class 5 Softswitch software. It caters to the retail segment of the industry, which means it provides end to end VoIP and communication services to enterprises and small businesses. This Softswitch based communication service enriches communication. Thus, the target market of customers is quite big, but the call volume would be limited as it only targets retail businesses. The increase in the number of users can help in increasing revenue generation. 

This type of VoIP Softswitch is cheaper compared to wholesale and hybrid VoIP Softswitch solutions. It handles local call transmission and similar needs of communication and collaboration. This can be a nice investment for startups and SMBs with a limited budget. 

Hybrid Softswitch 

This Softswitch is a combination of retail and wholesale VoIP Softswitch solution and consists of features of both of these solutions. This hybrid switch can be used to manage both wholesale and retail businesses. However, it is quite expensive as it is a quite huge and complicated switch. However, the advantage is it can be used to target a bigger market. In fact, both wholesale and retail markets can be targeted in one go. 

SMBs or startup VoIP businesses with funds or investments can use this switch. 

Which is an ideal VoIP Softswitch for a startup or SMB? 

All three types of Softswitch solutions have their own benefits and drawbacks as briefly explained in their description. Depending on a few factors a small or medium scale business or startup company can decide to select the right system and launch a new business or scale up an existing business. 


One of the factors to choose the right switch is depending on the capital investment and ongoing operational investment you have in hand. If a startup company or SMB has investors or enough funds, then one can make a choice. If you want to run a business at a bigger level, then a class 4 Softswitch solution is a must. 


Depending on the business needs and vision, you may have a target of running a business in retail, wholesale, or both markets. For this, the right business planning is necessary before making a choice. The best Softswitch provider can help you define the target depending on your business, market knowledge, etc. 

Concluding notes 

In conclusion, the selection of the right type of VoIP Softswitch solution depends on multiple factors. You can use the information shared in this blog post as a base to make the right choice. We are renowned as the best Softswitch provider and we can also help you select an ideal Softswitch for your startup or SMB business. To initiate the discussion, please contact us.