What’s Hosted Voice, and Why Should Your Business Use It?

By: Chris Darr
June 12, 2024

There's just something satisfying about a landline telephone, and unlike the old dot matrix printer, many people still have a fondness for it. The receiver was better designed for the human hand, it couldn't be programmed to play an annoying song when it rang, and you could hang up on a telemarketer with a bit more flair. But landlines are quickly going the way of the phonograph and the icebox, and if your business is still using them, it's time to start talking about better options.

What Exactly Is Hosted Voice? 

Infographifc of how VoIP or hosted voice works, showing how the internet connects remote workers to the office and to their customers.

Hosted voice is a cloud-based phone system managed by a third-party provider, allowing businesses to make and receive calls over the internet. 

Unfortunately, many people use different terms to essentially refer to the same thing. Here are a few of them:

  • VoIP
  • Hosted VoIP
  • Hosted PBX
  • Hosted telephony
  • Cloud PBX
  • Cloud phone system
  • Cloud telephony
  • Cloud voice
  • Managed voice

Words like “cloud” or “hosted” refer to the way the service is provided. VoIP (Voice over Internet Protocol) refers to the technology itself.  

How Does VoIP Work?

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.  And unlike many advances in technology, VoIP is quite compatible with its landline ancestor. You can use VoIP to call someone who is using a landline without any problems. 

If you really love your current business telephones, you can still use them with the help of a VoIP adapter. Finally, if your business has a Private Branch Exchange (PBX) in place, you can still upgrade to VoIP.

7 Benefits Of Hosted VoIP

A female employee uses VoIP (hosted voice) in order to help provide excellent customer service.

Nearly a third of all businesses now use VoIP systems, and there's good reason for that. VoIP offers a lot of additional features, and as more businesses make the switch, this already good deal is expected to get even better.

1. Save Money

VoIP providers charge far less than traditional phone companies, in part because there's no need to maintain the same infrastructure. Expert installation isn't required for new lines, moves, or additional features, which further reduces cost. And because calls are taking place over the internet, typically there's no additional charge for long-distance calls.

2. Improve Collaboration

With one tool, you can also take advantage of instant messaging, whiteboarding, breakout sessions, and more to keep projects 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.

3. Boost Flexibility

VoIP allows remote workers to access an office's fax, voice, and data services through the internet. And should you ever need to move, the entire VoIP system can be easily transferred to a new location. You can also have calls automatically forwarded to other smart devices if they go unanswered after a few rings, so no matter what smart tech you or your employees are currently using, you can ensure the same level of responsiveness.

4. Reduce Inefficiencies

Because VoIP calls allow for better collaboration, research shows that the average business could save 32 minutes of calls per day per employee by making the switch.

5. Add Features

Like the old landline office phone, VoIP will include the basics. But you'll also be able to forward messages with a single click. And if you need to travel frequently, you'll love this one: Your voicemails can be transcribed and sent to your email, so you can respond quickly from just about anywhere.

6. Improve Scalability

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.

7. Increase Compatibility

VoIP is designed to work with a variety of apps, like email and customer record systems. Therefore, you won’t have to put a customer on hold while you look up their purchase history. 

Potential Drawbacks

Two workers assess internet connectivity in rural America.

As VoIP uses the internet to transmit data, it requires a reliable, high-speed internet connection. Unfortunately, 22.3% of rural Americans don't yet have access to that vital infrastructure. Without a reliable connection, for many rural businesses, migrating to VoIP might have to wait. Another frequently cited drawback of VoIP is that if an internet connection goes down, a business will also find themselves unable to place or receive calls. However, in those rare circumstances, VoIP can still be accessed on other smart devices.  

It’s important to note that even landlines fail on occasion, and most providers will guarantee an uptime of at least 99.99%.

Who Is The Best VoIP Provider?

The best hosted VoIP provider is the one that gives you the features and reliability you need for the best price. 

But if moving to a cloud-based phone system is the right direction for your business (and it probably is), you still have a few more decisions to make. Hosted voice may very well be the best option. But if you’re currently using many different communication tools (email, phones, messaging, chat, and teleconferencing), using one more powerful tool may be even better. 

Click the link below to get an overview of your options! 

See All Managed Voice Services 

 

Topics: Phone & Collaboration