Reasons to Buy Hosted VoIP

By Robin Wilding
Updated: July 07, 2011

There is a reason that Hosted VoIP is the fastest growing element of telecommunications since the invention of the short-wave radio. It's cheap, it's high-tech, and readily available. It also works in a variety of verticals.

Small to medium businesses across the world are leveraging the technology that has been used by enterprise corporations for years, thanks to the cost-effective, easy implementation of Hosted VoIP. Multiple verticals are leveraging the expandable/collapsible technology:

  • Medical
  • Industrial
  • Commercial
  • Retail
  • Offices
  • Call Centers/Contact Centers
  • Education
  • Financial Services
  • B2B
  • Consumer
  • Insurance
  • Telecommunications
  • Transportation

Each company and vertical choose Hosted VoIP for their own plethora of reasons, which range from costs to implementation to skill to maintenance.


Let's start with the big one, cost. Hosted VoIP solutions have a low total cost of ownership, but more importantly have low-cost implementations (no need to buy an expensive IP-PBX), which allows businesses to get state-of-the-art technology without the upfront price tag.

Another selling point on price is the pay-as-you-grow model. The ability to pay for additional users as they join your network is a godsend. The expandable/collapsible services can grow or shrink with your business, without buying expensive trunk lines. Also you don't have to spend so much money on manpower trying to track down who the mystery employees are making long-distance phone calls on the company dime.

Apart from TCO, Hosted VoIP solutions also provide a steady, reliable cost structure that can be budgeted for.

Space Saving

Despite the cheap real estate made available by the real estate market collapse post-recession—its still expensive. Many offices have a small footprint which means you need technology with the same—so avoid the space-hogging PBXs.


Many small and medium businesses do not have the technical know-how to install their own services, not even mentioning the maintenance know how (oops, too late). Hosted solutions require little setup, and its all done for you. Poof, its done. Usually in just a few days.


After setup comes maintenance. Maintaining your own system takes valuable resources, often causes unneeded downtime, and means delays in technology upgrades.


Being on the cutting-edge of technology is critical, but who has the time to keep track of new and emerging technologies for your phones...and computers...and phones...and essentially everything else. Much simpler to leave it to the experts.

Future Proof

Technologies grow exponentially. Many Hosted companies will not only keep you abreast of new technologies coming to market, but will also automatically upgrade you. Hosted solutions insulate you from buying an expensive system, only to have to re-haul it a few years down the road—that's the hosted company's problem.

Featured Research
  • The New SMB Phone Systems Comparison Guide

    Does your small or medium-size business need a new phone system? Then you're in luck! Our new, updated comparison guide helps you cut through superfluous information and narrow down your list of solution providers. Get the latest data on phone system features, pricing, and performance metrics in an easy-to-use format. more

  • 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