Ooma was founded by Andrew Frame, formerly of Cisco Systems. Originally, the company used peer-to-peer technology for a VOIP phone system, which worked via the Ooma Hub and connected to other Ooma clients landline phones. This system was discontinued in 2008, with Ooma phones now strictly using the internet for phone service.
In November 2012, the company released a new handset which included one-touch voicemail, intercom service, as well as a baby monitor.
In June 2014, the company gave every person in West Valley City, Utah, free VOIP service for those with fiber optic systems. In 2015, the company was named one of the fastest growing companies in the San Francisco Business Times.