What Is Hosted VoIP? Definition, Features, & Benefits
Last Updated
Apr 12, 2024
Published On
Apr 10, 2024
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2046Table of Contents
Looking to modernize your business communication system? Look no further than hosted VoIP.
Hosted VoIP is a cloud-based alternative to the usual phone systems and servers. It offers a reliable, feature-rich, affordable, and integrated solution. It can increase overall corporate communication and help your company save money.
In this blog, we have compiled everything about how hosted VoIP systems help businesses make an informed decision about whether it is the right communications solution for their needs.
As more businesses switch from analog phones, this guide provides an in-depth understanding of the technology and its benefits.
Let’s get started by understanding what hosted VoIP is!
What Is Hosted VoIP?
Hosted VoIP offers business communication without relying on on-site hardware, using cloud-based systems to host office telephone networks.
By using hosted VoIP solutions, you may set up your phone system without an IP phone in the office, which is a great way for start-ups and low-capital businesses to avoid costly PBX installations.
Hosted VoIP Features
Cloud-hosted VoIP solutions are user-friendly, unified communications solutions that will help your business make VoIP calls and use video conferencing on a single network.
The top features of hosted VoIP include:
- Sophisticated call management
- Voice mail
- Video conferencing
- Auto attendant
- Extension numbers and number changes
- Instant messaging
- Online fax services
- Unlimited calling
Looking for a Communication Solution That Grows With Your Business?
Switch to Moon Dialer’s hosted VoIP solutions and experience seamless communication like never before.
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How Does Hosted VoIP Work?
While communicating through traditional mobile telephony, it uses copper wires and POTS to connect calls, sending radio waves to local cell towers.
However, physical distance can interfere with connectivity. Thus, hosted VoIP systems are an upgrade for business communication in which voice signals are transmitted over the Internet.
Hosted telephony simplifies and addresses these issues by converting analog voice sounds into digital signals, which are delivered over broadband connections. This allows for better connections and fewer connection issues.
The digitized voice signals are transmitted over the internet as data packets using IP networks.
The data packets are converted back into analog audio signals once they reach the host location.
Vendors that maintain servers and hardware in their own data centers are in charge of managing hosted VoIP systems. To make phone calls, users need a reliable internet connection, typically through a desktop or mobile app on their device.
How Does Hosted PBX Work?
A hosted PBX is a cloud-based phone system that uses Voice over Internet Protocol (VoIP) and the Internet to make and receive phone calls and replaces landlines or traditional phones in business offices or residential homes. There is no need for server closets or office space because this cutting-edge business phone system is housed off-site.
With a hosted PBX, data can be transported via PSTN, the internet (with VoIP technology), or a combination of both.
A VoIP-enabled modem connects a phone to the Internet, enabling data transmission and transfer. The information travels over the IP network, bounces to the cloud, and is shuffled to the voice provider’s server before being delivered back to the end caller or their network.
It does not, however, provide the same benefits and versatility as a true cloud phone system. An IP-PBX server handles all phone calls, signaling, and feature management at the provider’s location.
Hosted VoIP vs. On-Premises VoIP
Here is what differentiates hosted VoIP and on-premises VoIP:
| Feature | Hosted VoIP | On-premises VoIP |
|---|---|---|
| Deployment Location | Hosted by a third-party provider in the cloud | Installed and maintained on-site by the organization |
| Initial Cost | Lower initial setup costs | Higher initial setup costs |
| Maintenance | Provider handles maintenance and updates | The organization is responsible for maintenance and updates |
| Scalability | Easily scalable, can add or remove users as needed | Scalability depends on the capacity of on-site hardware |
| Reliability | It relies on the provider’s infrastructure and uptime | It relies on the organization’s network and infrastructure |
| Flexibility | Limited customization options | Offers more customization and control |
| Accessibility | Accessible from anywhere with an internet connection | Accessible within the organization’s network |
| Security | Provider handles security measures | The organization manages its own security measures |
| Integration | May offer integrations with other cloud services | Integration depends on compatibility with existing systems |
| Upgrades | The provider handles updates and upgrades | The organization manages upgrades and updates |
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Benefits of a Hosted VoIP Phone System
Hosted VoIP offers several benefits, including lower prices, additional features, less clutter, and streamlined office communications. Let’s take a closer look at a few advantages.
1. Lower Price
A hosted VoIP system can save your business up to 60% in phone costs. Switching to hosted VoIP can provide all the features of a business phone plan without the need for on-site equipment installation and maintenance. It offers unlimited nationwide calling, free online faxing, and call routing.
2. Advanced Features
On typical PBX systems, the only features that are offered are making calls, answering incoming calls, using phone extensions, and routing calls. Hosted VoIP systems offer a plethora of innovative features, including instant messaging, video calling, audio conferencing, softphones, and presence.
3. Less Clutter
With hosted VoIP services, all communication channels are hosted in an offsite data center, doing away with the need for convoluted call-routing procedures and lengthy wait times.
Using a cloud VoIP phone system’s “find me, follow me” capability can help you keep VIP customer relationships more easily. Incoming calls are automatically connected to the right person, whether it’s an office desk phone, a business cell phone, or a home number. The system also allows users to use their office phone numbers from their mobile phones.
4. Streamline Business Communications
All communication channels function flawlessly when utilizing a hosted VoIP phone system, and VoIP softphones, which install an application on staff members’ PCs and mobile devices, offer the same functions as conventional desk phones.
Moon Dialer: Your Trusted Hosted VoIP Partner
Moon Dialer, one of the top hosted VoIP providers, provides unified communications solutions for businesses. Its cloud-based hosted VoIP solution combines voice, video, meeting, applications, presence, instant messaging, and a call center.
Its goal is to help companies of various kinds and industries stay in touch and update their corporate communications. Moon Dialer’s complete onboarding and migration assistance makes the transition to hosted VoIP smooth and uninterrupted.
For an impeccable hosted VoIP experience, switch to Moon Dialer and stop being held back by outdated communication technology.
