When do you need a dedicated VoIP server?

By Catherine Hensley
Updated: March 28, 2011

As business communications become increasingly more global in scope, companies need telecommunications and telephony systems able to meet the demands of the working world. Many business owners have turned to VoIP technology to stay connected with partners and clients around the globe. Though most companies do not house the VoIP phone system in-house, those that do have unique advantages in terms of access and operations.

VoIP (Voice over Internet Protocol) technology transmits voice or other data services (i.e., multimedia files or fax) over a single Internet connection, typically broadband. The process of dialing and receiving calls is very similar to traditional landline telephones, and the flexibility of connecting through voice or data over just an Internet connection enables users to work from multiple locations not specifically in the home office. In addition to this simplicity and versatility, most VoIP service providers offer flat, monthly rate plans with options for a variety of add-on features. Some of these features include call transferring and unified voicemail.

Most VoIP phone systems are physically housed in the service provider’s location, freeing up space for the businesses that use the system. Business owners who choose to host the VoIP system in-house, however, will have a few interesting options those with the traditional VoIP service do not (http://www.voipeasy.org/what-is-really-a-dedicated-server.html). First, the activity and behavior of the VoIP “dedicated server” will be controlled in-house by the business owner and/or any relevant personnel assigned to its maintenance and upkeep. The business will be leased a server box devoted only to the business itself and no other customers. Second, some package options for dedicated servers offer subscribers exclusive rights to options like bandwidth, memory, and disk storage.

A dedicated VoIP server system is most often very appealing to large companies that need to run many different websites on a single server. Likewise, high-traffic sites can also benefit from this type of system. Operations across multiple sites can be managed and customized through the in-house server. These capabilities make dedicated VoIP servers attractive for many gaming websites and database management companies. There are disadvantages, however, to the dedicated VoIP phone system. Such a system is not particularly suited for smaller businesses, primarily because of its functions and higher costs. Those running singular personal websites, for instance, are better off securing VoIP service through a provider who houses the equipment. But for larger companies with high-traffic sites and the need for customization, a dedicated VoIP server may be just the way to go.

Featured Research
  • How UC Can Help Your Business Survive the Holidays

    The holiday season is filled with frenzy and excitement for businesses and consumers alike. Consumers prepare gift lists, compare brands and prices, and begin shopping with a vigor that is not present most other times of the year. For many businesses, the holiday season accounts for a large profit bump at the end of each year, and companies strive to exceed their goals and keep customers happy during this rush late in the year. more

  • [Infographic] Switching Phone Systems

    There are a lot of possible reasons you might want to switch to a new phone system. The old one might cost too much or be too troublesome to operate and maintain. It might not be flexible enough. It might not be reliable enough. Or it just might not have the kinds of features and capabilities that you need in today’s competitive business climate. more

  • Business VoIP on a Budget

    Voice over Internet Protocol (VoIP) phone systems represent the next innovation of telephone connection and communication by making it possible to conduct calls over a broadband internet connection, rather than an analog phone line. more

  • [Infographic] The Advantages of Unified Communications

    Did you know that according to 8x8, the tangible ROI of a unified communications solution for a 10,000-person enterprise is approximately $15.5 million? This isn't the only way unified communications can improve your business. more

  • The New 2016 Phone Systems Comparison Chart

    Check out our latest Q4 Phone Systems Comparison Chart complete with new vendors, products, and features! Our free chart compares over 40 business phone solution providers, including PBX and business VoIP systems, on over 20 performance metrics. more