The modernization of business communications at small, medium, and large offices has become a significant matter for many companies. Traditional phone lines continue to be an important means by which many offices set up their telephone networks. Some of them have long-running contracts they need to fulfill, whereas others simply make use of the infrastructure that is already in place, as they don’t really have the funds to upgrade it.
This is where hosted VoIP systems (Also called hosted PBX) come in. If you’re wondering about the pros and cons of hosted VoIP and whether or not this is a service that can actually benefit your business and save you some money, you’ve come to the right place. This article will go through everything you need to know about hosted VoIP phone systems and make an informed decision.
- What is Hosted VoIP?
- How does Hosted VoIP work?
- Hosted VoIP vs. On-Premise VoIP
- Standard Hosted VoIP features
- Benefits of Hosted VoIP
What is Hosted VoIP?
Hosted VoIP systems provide business communication that does not rely on the on-site hardware but makes use of cloud-based systems to host the telephone network of each particular office. It removes the need to spend a lot of money on installing a whole new private branch exchange system (PBX). Many hosted VoIP solutions enable communication via softphones, allowing start-ups and companies without much capital to get their phone systems up and running without having a single IP phone in the office.
How Exactly Does Hosted VoIP Work?
Hosted VoIP services operate by utilizing a cloud-based infrastructure to handle voice communications. It offers flexibility, allowing users to make and receive calls from anywhere with an internet connection.
Users connect to the service via IP phones or softphones, which transmit digitized voice data over the internet in the form of data packets. These packets travel through the provider’s cloud-based infrastructure, including servers and network equipment, for call routing and management.
Hosted VoIP vs. On-Premise VoIP
When choosing to go with a business VoIP solution, you’ll likely run into two different ways of providing the same service: hosted VoIP platforms (which are cloud-based) or on-premise VoIP systems.
Hosted VoIP Solution
In the case of hosted VoIP, all of the infrastructures that are necessary to carry out your calls are the responsibility of your hosted VoIP provider. They are in charge of maintaining all of the servers and keeping them functional so that you and your employees can enjoy uninterrupted communications.
Hosted VoIP, on the other hand, is a service provided by a third party that takes on the costs and challenges that come with maintaining VoIP servers. There is no setup cost to speak of because you don’t really need any additional equipment to get started. Of course, you’ll need to pay a monthly fee for this kind of service, but it’s significantly smaller than the cost of operating your own on-premise VoIP phone system.
On-premise VoIP Solution
On-premise VoIP, on the other hand, entails your company setting up all of the VoIP systems inside of the office building (or at another location). This means that you’ll be responsible for installing (and paying for) all of the servers needed to maintain the network.
On-premise VoIP is associated with relatively high setup costs. The size and scale of the server infrastructure required to run it depends on the size of your business, but even with a very small office, this is anything but a small amount of investment.
Another “hidden” cost involves your IT resources. You’ll probably have to hire a systems administrator to maintain and upkeep all of this technology and resolve any issues that may arise from time to time.
Main Features and Capabilities of a Hosted VoIP Phone System
Start-ups and small businesses tend to choose hosted VoIP providers for their business communications, as it is a relatively cheap service with a fixed monthly cost. For bigger corporations with excellent communication infrastructure, on-premise VoIP may be the better long-term solution, as it’ll allow them to retain complete control of their unified communications hardware.
Regardless of which one you think would benefit your company more, all the VoIP phone systems have largely the same features and capabilities, which are:
- Phone Calls
- Auto Attendant
- Call Forwarding
- Call Controls
- Audio Conferencing
- Call Routing
- Anonymous Call Blocking
How Can Your Business Phone System Benefit from Hosted VoIP?
A cloud VoIP phone system is a hassle-free, easy-to-use unified communications solution that will allow your employees to make VoIP calls and even use video conferencing features on a single network by just using their computer or mobile device!
Below, you can find some of the main benefits of hosted VoIP features.
1. Lower Price
This is the big one. Using a traditional, circuit-based phone system can eat away at your company’s finances on a monthly basis. Many phone companies hike up the prices without warning their customers about it.
Choosing a hosted VoIP provider guarantees you the same fixed monthly fee for using their phone system services, with the option of upgrading to a variety of premium packages, should you need to expand your UC capabilities.
2. Additional Features
When you pay a phone company to set up a PBX system that uses traditional PTSN communication technology, you pretty much only pay for the possibility of calling people, answering incoming calls, and using phone extensions and call routing for the telephones within your office.
For that same price (or even less), a hosted PBX system will give you access to a wide plethora of additional, advanced features, such as softphones (a mobile app that makes your smartphone part of the office network), audio conferencing, video calling, presence, instant messaging, and much more.
3. Less Clutter
Setting up an on-premise, business VoIP system usually comes with having to deal with a whole lot of hardware and cables being brought into the office. The same goes for traditional PBX – if you run a small business with limited office space, every square inch matters.
One of the biggest benefits of a hosted VoIP service is the fact that all of that unnecessary clutter is hosted on a data center located offsite, and you just need a stable internet connection to use it.
4. Streamlined Office Communications
By using a hosted VoIP phone system, you eradicate the need for complicated call-routing techniques and long waiting times.
All of your company’s communication channels will run seamlessly, and with VoIP softphones, you’ll get all of the same features as you would with traditional desk phones by simply installing an application on your employees’ computers and mobile devices!
Learn More About Yeastar Hosted VoIP Services Today!
Yeastar cloud-based hosted VoIP solution is a unified communication solution that converges voice, video, meeting, applications, presence, instant messaging, call center, and more for organizations of all sizes and industries to keep teams and customers connected and transform business communications.