Hosted VoIP for Beginners

By Catherine Hensley
Updated: August 09, 2011

VoIP technology has made it faster and easier than ever to connect with business partners and clients around the globe. With VoIP, voice and data communications operations can be streamlined and simplified, reducing labor and equipment costs in the process. Because of its multifunctional abilities, general ease of use, and relatively low service fees, VoIP is one of the most popular telecommunications technologies available on the market. A hosted VoIP system is one option many businesses are turning to because it’s usually hassle-free and quite reliable.

As a telecommunications technology, VoIP (Voice over Internet Protocol) is a tool used in managing voice and data communications. Over a single Internet connection, VoIP transmits voice and data operations such as telephone calls, email, video chatting, and faxing, among other services. The single network connection juggles multiple operations at once, demonstrating its efficiency as a business communications tool.

Hosted VoIP systems are reliant on both the equipment and services of a host vendor ( The vendor’s hosted-PBX equipment routes voice and data operations for a company. The host vendor routes incoming and outgoing calls through the PTSN (public switched telephone network) directly to the hosted-PBX system. This way, the company doesn’t have to house the equipment on their premises, which eliminates the costly fees that are sometimes related to maintenance and upkeep. This has made hosted VoIP especially popular with small to medium-sized businesses.

There are many advantages to choosing a hosted VoIP system for your business. One of the most significant is hosted VoIP’s adaptability. With hosted VoIP, a company can add or remove features at any time. Unexpected fluctuations in business may necessitate a reduced telecommunications budget, for instance, and hosted VoIP allows for the scaling back of services. Likewise, for a growing business, new features like mobile access can be easily added on at any time. Other advantages of hosted VoIP include remote maintenance and technical assistance provided by the vendor and an easy transition from older telephony equipment.

Some drawbacks for hosted VoIP do exist, however. Regular fees may add up to a higher price overall for hosted VoIP services, as opposed to the cost of having an on-site system. Also, upgrades in systems may take longer due to a backlog of updates being filed. On-site upgrades generally take shorter amounts of time.

To expand your company’s telecommunications reach, hosted VoIP technology is a strong tool to consider. Easy to use, multifunctional, and adaptable, hosted VoIP is helping companies around the world stay in touch faster and more reliably.

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