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What is Hosted VoIP?

Last updated: 02 May 2023

You might have heard the term “VoIP” thrown around in discussions about modern business phone systems. But what exactly does it mean?

Let’s explore what hosted VoIP is, how it works, and how it can benefit you in optimizing your business communications.

What is VoIP?

VoIP stands for Voice over Internet Protocol, a technology that enables voice calls to be made and received over the Internet as opposed to traditional phone lines. Hosted VoIP, also known as cloud-based VoIP, takes this technology to the next level. It allows you to manage all your business communications through a simple web-based platform.

It’s like a virtual phone system that offers advanced features, including:

  • Call Recording
  • Voicemail
  • Voicemail-to-email
  • Texting
  • Conferencing
  • Call Accounting
  • International Calling
  • DID

This communication system runs over the Internet, so you don’t need to set up telephony equipment. Your service provider will handle the technical tasks remotely, managing the hardware and software from secure data centers.

To access VoIP services, you need a softphone (app) or a VoIP desk phone connected to any broadband connection such as DSL, cable, fiber, and 4G/5G cellular data.

How Does Hosted VoIP Work?

Here’s how it works: hosted VoIP utilizes your existing Internet infrastructure to transmit voice data. Unlike traditional phone systems, it doesn’t require dedicated phone lines.

When you initiate a call, the voice data is processed into digital packets and transmitted to a secure data center. These servers then route the call to its destination: another VoIP device, a traditional landline, or a mobile phone. The digital transmission ensures high-quality voice calls with clear sound and minimal disruptions.

Difference between Hosted VoIP and Traditional Phone Systems

Traditional phone systems have been the go-to option for businesses for a long time. It uses copper wiring and on-premises hardware like PBX systems. In contrast, hosted VoIP eliminates the need for extensive on-premises equipment, simplifying maintenance.

Moreover, hosted VoIP is known for its high reliability and uptime. This is due to its redundant data centers and failover mechanisms. On the other hand, traditional phone systems may suffer from outages and disruptions caused by physical infrastructure issues or natural disasters.

Difference between Hosted VoIP and On-Premise VoIP

A third-party provider manages hosted VoIP. This means you don’t have to install any hardware or software on your premises. You don’t have to worry about managing complex configurations because the provider handles system management, software updates, security patches, and troubleshooting.

On-premise VoIP, on the other hand, requires you to buy and install your PBX hardware, servers, and other equipment. You must also manage and maintain your phone system, which requires dedicated IT resources and expertise to ensure its smooth operation.

Benefits of Switching to Hosted VoIP

As SMBs strive to keep up with new technologies, a growing number of them are opting for hosted VoIP services. In this section, we will tackle the benefits of using hosted VoIP for your business.

  1. Cost savings: Hosted VoIP eliminates the need for costly on-premise hardware and maintenance, reducing upfront investment and ongoing expenses. It also offers a subscription-based pricing model, which is particularly helpful for businesses with limited budgets.
  2. Advanced features: Hosted VoIP systems have many advanced features and capabilities, such as call forwarding, voicemail-to-email transcription, auto-attendants, and conference calls. These features are often unavailable with traditional phone systems.
  3. Scalability: Hosted VoIP systems are highly scalable. It lets you add or remove users, features, and locations as your needs change without incurring costly hardware upgrades or installations.
  4. Remote work: A hosted VoIP system allows employees to stay connected even in different locations with an Internet-enabled device. This flexibility supports remote work arrangements and distributed teams without compromising communication quality.
  5. Integration with other systems: Hosted VoIP systems integrate with business applications like CRM, email, and collaboration tools.
  6. Business continuity: Hosted VoIP providers offer redundant data centers and failover mechanisms to ensure uninterrupted communication and operations during network outages or hardware failures.
  7. Future-proofing: By leveraging cloud technology, hosted VoIP future-proofs your communication infrastructure. Access to the latest features and updates allows your business to adapt to its changing needs and technological advancements.

The BlackPoint Difference

Find out why businesses prefer BlackPoint as their hosted VoIP system provider.

  • Premier Customer Service: BlackPoint provides personalized solutions to improve business communication. Our team tailors the experience to meet each business’s unique needs, from the initial consultation to ongoing support. We prioritize precision and excellence throughout the process to ensure a seamless and customized experience.
  • Full Deployment: Unlike some providers that leave the setup and deployment process to the client, BlackPoint takes care of everything from the ground up. This means we handle everything to ensure a seamless transition from your previous phone solution and minimize disruptions.
  • All-in-One Service: BlackPoint goes beyond traditional telecom providers by offering a comprehensive suite of IT, telecom, and carrier services under one roof. We can handle all your communication and technology needs without requiring you to deal with multiple vendors. This integrated approach streamlines operations, reduces complexity, and promotes better synergy between different parts of your business’s infrastructure.

Ready to unlock communication efficiency and cost savings for your business? Explore how hosted VoIP can revolutionize your operations. Contact BlackPoint today for a free consultation.