June 12, 2024
If you’ve been researching ways to upgrade your business phone system and potentially save money, you probably have come across the terms Hosted Voice or Hosted VoIP. Both of these names essentially refer to internet-based voice calling systems.
However, if you’re wondering why this topic is usually so difficult to research online, it’s not just you. So let’s untangle some terminology next.
What Are Hosted Voice Services?
VoIP refers to the technology itself. “Hosted,” “cloud,” or “managed” refer to how it is usually provided — through a third party. That said, you can have your own VoIP system, which you manage yourself. You’ll often hear that referred to as “on-premises VoIP.”
Here are a few synonyms for an internet-based voice calling system provided by a vendor:
- Hosted VoIP
- Hosted PBX
- Hosted telephony
- Cloud PBX
- Cloud phone system
- Cloud telephony
- Cloud voice
How Does VoIP Actually Work?
VoIP technology sounds exotic, but it doesn’t work that much differently from an old-fashioned landline. Landline phones convert your voice into a frequency that is transmitted along a wire. VoIP converts your voice into data so it can be sent via the internet.
Is It Compatible With Other Phone Technology?
VoIP is completely compatible with landlines, so you can use VoIP to call someone who is using a landline without any problems. VoIP technology is also somewhat compatible with desktop phones, although you’ll need a VoIP adapter. You can also keep your own Private Branch Exchange (PBX), but still make the upgrade to VoIP.
Why Would Someone Use VoIP?
Over 90% of businesses around the world now use VoIP technology! Here are the usual reasons why:
1. Access to Advanced Features
Depending on your provider and your needs, with hosted VoIP, most providers typically include the following capabilities:
- Conference calling
- Video conferencing
- Integration with customer management tools
- Auto attendant and call routing
- Instant messaging
- Call screening
- Toll-free numbers
- Voicemail-to-email transcription
- Call recording
- Call analytics and reporting
- Smart call routing
- Presence indicators
- Hot desking
- Do not disturb/call forwarding
2. Workplace Flexibility
With hosted voice, you don’t need to be near your own desk to stay connected. Employees can make and receive business calls from anywhere — whether they're working from home, traveling, or splitting time between locations.
Most hosted voice providers offer a mobile app or “softphone” that lets users access their business number, extension, and voicemail from a smartphone or laptop.
3. Cost Savings
Businesses can save up to 60% on their phone bills by switching to VoIP. That’s because there's no need to maintain expensive landline infrastructure. Expert installation also isn't required for new lines, moves, or additional features.
Also, because calls are made over the internet, there's typically no additional charge for long-distance calls.
4. Better Collaboration
VoIP systems make it easier to see who’s available and get faster answers to questions, so projects can keep moving. Video conferencing with VoIP is also much easier than patching in multiple landline callers. Plus, you'll be able to share files during the call, so you can collaborate in real time.
5. Superior Customer Service
Auto attendants and IVR menus guide callers to the right department without requiring a receptionist, while call queuing ensures no one is simply turned away during busy periods. Voicemail-to-email transcription also means your team can quickly scan and prioritize messages rather than listening to them one by one.
What Integrations With CRM Tools Can Do
Integration with CRM tools automatically surfaces a caller's history and account details the moment the phone rings — so no one is stuck repeating themselves every time they call, and your staff has the context they need to resolve issues quickly.
6. More Productivity
Advanced features aren’t just bells and whistles! As it turns out, better collaboration tools and do-not-disturb features have been found to increase productivity by as much as 77%.
7. Built-in Scalability
With hosted voice, it's easy to add or remove features and lines through an online portal, so you only pay for what you need and aren't stuck maintaining expensive features during lean times.
What Is the Main Disadvantage of VoIP?
As VoIP uses the internet to transmit data, it requires a reliable, high-speed internet connection, which is not always available in rural communities.
Another frequently cited drawback of VoIP is that if an internet connection goes down, a business will also find itself unable to place or receive calls. However, in those rare circumstances, VoIP can still be accessed on other smart devices.
However, no phone system is 100% reliable! Even landlines fail on occasion, and most VoIP providers nowadays will guarantee an uptime of at least 99.99%.
If you do need 100% uptime, redundant lines from different carriers might be an option.
Hosted Phone System FAQs
Find quick answers to common questions here!
What is the difference between VoIP and hosted VoIP?
VoIP (Voice over Internet Protocol) is the technology that allows voice calls to be transmitted over the internet instead of landlines. Hosted VoIP is where a third-party provider manages and maintains the VoIP infrastructure on your behalf, so you get all the benefits of VoIP without purchasing or maintaining your own equipment.
In short, VoIP is the technology; hosted VoIP is a way of accessing it.
What is cloud-based voice?
Cloud-based voice is just another synonym for hosted VoIP, where you can access internet-based calling through a provider. Don’t worry so much about the terminology — a good phone system provider should be able to cut through the jargon to understand what you need.
Is VoIP a security risk?
Like any internet-based technology, VoIP does carry security considerations, including call interception, toll fraud, and denial-of-service attacks. However, reputable hosted VoIP providers should address these risks through encryption, secure data centers, and built-in threat monitoring.
It’s also important to understand that landlines aren’t entirely without risk either.
How much does VoIP cost per month?
Hosted VoIP services typically cost between $15 and $50 per user per month, depending on the provider and the features included. But installation and line changes don’t add to costs, and long-distance calls typically won’t either.
Why would someone use a VoIP phone?
People and businesses tend to switch to VoIP phones because they offer more flexibility and features than traditional landlines, typically at a lower cost.
What Are the Best Hosted Voice Services?
The most obvious answer to this question is that the best hosted VoIP provider is ultimately the one that gives you the features and reliability you need for the best price.
However, phone system technology has come a long, long way, and you have more options now than ever before. Hosted voice is often a great choice, especially for small to mid-sized businesses. But no single tool or service is the best option for every business out there.
Your provider shouldn’t just try to sell you a phone system. They should try to match you with the one that’s the best fit.
We have a wide variety of options to suit most businesses, and we’ve also created a helpful online quiz to guide you in the right direction. Click the link below to get an overview of your options!
