Confusion has come along with the associated taxonomy of VoIP technology and IP telephony. Both of them refer to use the same IP network to send voice messages. But the main difference between VoIP and IP telephony is that VoIP is connecting old fashion analog phones to specific gateway device who are able to convert analog voice data into digital bits and send them across the internet bypassing the expensive PSTN telephone networks. In the case of IP telephony the phones by them selves are digital devices and they are made to record the users voice directly into digital signal and send it across IP network using special Communication manager devices that are enabling this technology to work. IP telephony technology resides on IP network and natively uses the IP network for communication.