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.

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