Hosted VoIP (Voice over Internet Protocol) is a service that enables you to make and receive phone calls over the internet. The service is hosted by a third-party service provider using hardware and equipment they manage and maintain.
Business communications have transformed rapidly in recent years. Forget traditional desk phones; today, business phone calls are made from web browsers, mobile apps, and tablets. Hosted VoIP phone systems are at the forefront of this evolution, and research indicates the VoIP market will exceed $229 billion in 2028 (from $119.14 billion in 2023).
Businesses globally see the tremendous advantages of hosted VoIP services, including reduced costs and reliable, quality calls. In this article, we’ll explore hosted VoIP services and break down their many exciting benefits, uses, and features.
What are Hosted VoIP services?
Hosted Voice over Internet Protocol services enable voice calls over the internet using hardware and servers located outside the user’s office. This saves businesses the cost and stress of purchasing, maintaining, and installing the system themselves.
The VoIP infrastructure and equipment are typically housed in remote data centers and cloud environments maintained by the provider.
Organizations buy a hosted VoIP solution or service by opening an account and paying a monthly (or annual) subscription. Most providers offer various subscription plans based on the number of users and features. The package usually includes a certain number of free local, national, and sometimes international calls.
The VoIP service provider handles all of the following for you:
- System maintenance – maintaining the servers and cloud assets.
- Professional support – setup support and ongoing guidance to help maximize your system’s benefits.
- Software updates – providing the latest features and benefits.
- Scaling – enabling you to add new lines, users, and offices.
- Security – cybersecurity firewalls, encryptions, and protection upgrades.
How Hosted VoIP Works?
Let’s take a brief look at how hosted VoIP works from a technology and business standpoint.
Technology
When you make a call, VoIP technology converts your voice audio into a digital signal. The digital signal is transmitted in data packets over the internet to your hosted VoIP provider. These data packets are then reassembled into voice audio which is routed to the receiver. The transmission happens in microseconds, meaning you can speak with zero noticeable delay.
Business
How does hosted VoIP work from a business perspective? It’s quite simple. VoIP is a monthly subscription service. Once you’ve opened your account, your employees will download the software app, connect, and configure their devices.
Small teams can be operational within an hour, while larger organizations may take a day or longer to set up, especially if there are many users spread across different time zones.
Most VoIP apps have intuitive control panels, allowing for easy management. Functions like adding or removing phone numbers, adjusting call forwarding, or setting up voicemail usually don’t require any technical expertise, making this service especially user-friendly to non-technical users. These platforms are also built with a firm focus on being accessible to small and medium businesses.
One of the biggest draws of this technology is that virtually every device can be a phone. VoIP business phones are typically:
- IP Phones: Specially configured for VoIP usage, these units look much like a traditional office desk phone.
- Softphones: This is an app on your laptop, tablet, or smartphone that enables you to call from these devices.
What are the Main Features of Hosted VoIP?
VoIP solutions boast a ton of handy features, with the most popular being:
Auto-attendant
This automated feature answers incoming calls and streamlines call handling. It provides callers with a virtual menu of options to assist them in reaching the right person or resource.
This is an invaluable call-handling function for businesses that receive high query volumes.
Call forwarding
Call forwarding allows you to redirect incoming calls to an alternate number or device. The idea is to ensure the call is answered even if you’re unavailable. You can set up call forwarding rules to route calls to different numbers using filters like time of day or caller ID.
Automatic call distribution
Automatic call distribution (ACD) intelligently directs incoming calls to specific agents or departments based on availability, skill level, or the caller’s inquiry. The feature enables efficient call handling, reduced wait times, and improved service.
Interactive voice response
Interactive voice response (IVR) enhances efficiency and service by using automated menus to guide callers to the right department or information. By interacting with voice prompts, customers can move more quickly and efficiently through call queues or receive answers to routine queries.
Advanced voicemail
Advanced voicemail features allow for voicemails to be sent directly to your email and voicemail transcription. The objective is to support a swift, informed response after a caller leaves a voicemail.
Call recording
Call recording allows automatic recording of all incoming and outgoing calls, which can be used for training purposes and performance monitoring. Call recordings may also be required for legal compliance and are frequently used to settle disputes or as evidence in court.
Call whispering
The call whispering feature lets a supervisor speak privately to an agent (a “word-in-the-ear”) during a live call without the customer hearing. It offers support when the query is complex or the customer is difficult. Call whispering is also used to train new or inexperienced employees.
Call barging
Call barging allows a supervisor to enter a live call between an agent and a customer. The senior effectively “barges in” to assist or take over the conversation. This is especially useful when a call is challenging or is approaching the “I want to speak to your manager” point.
Conferencing
Virtual business meetings involving multiple parties occur every second around the world. Video conferencing features provide a convenient and cost-effective way to connect with colleagues, clients, or partners, regardless of location. However, keep in mind that conferencing is not a standard feature of all plans.
Integration with other applications
Some VoIP systems are simple telephone services, while more advanced VoIP setups are often part of a larger communication system. Think CRMs, collaboration spaces, and other business tools to power productivity, teamwork, and profit.
Benefits of Hosted VoIP Services
The benefits of hosted VoIP range from convenience to cost savings. Let’s take a closer look at the top advantages.
Easy installation and maintenance
Hosted VoIP phone systems are quick and easy to set up. This allows businesses to avoid the stress and inconvenience of installing a bulky phone exchange system and necessary supporting equipment. Since VoIP operates over the internet, setup can be done remotely and for widely dispersed remote workplaces.
Your VoIP provider manages the entire infrastructure off-site (and out of sight).
As part of the package, your provider takes care of your system’s maintenance, including software updates, security upgrades, and hardware upkeep. Your provider can also offer professional guidance on how to make the phone system work effectively for you.
Cost savings
With no need to invest in on-premise hardware, there are no hefty upfront costs. Additionally, the ability to conduct cheaper calls over the internet, especially long-distance and international calls, makes the financial benefits even more compelling.
System maintenance and updates are usually included in the subscription, allowing you to save on these expenses too.
Additionally, hosted VoIP solutions and services bundle several features, such as voicemail, call forwarding, and IVR, under one monthly fee, negating the need to pay for these costly services separately.
Flexibility and mobility
Hosted VoIP is perfectly suited to remote working environments and provides connectivity on the move. Your team can make and receive calls on cell phones, desktops, laptops, and other devices from anywhere worldwide (provided they have an internet connection).
VoIP’s mobility allows you to flexibly, efficiently, and cost-effectively support remote employees.
Improved customer service
Hosted VoIP often offers features to improve the customer experience, including:
- Customer analytics: These analytics provide insights into customers’ needs, satisfaction levels, and employee performance. This data can be used to improve service quality and implement a client-focused strategy.
- Multiple connection paths: Features like voicemail to email, simultaneous ringing, and call forwarding help ensure no customer call is left unattended.
- Call routing: If you are unavailable, a customer’s call can be swiftly routed to a colleague who can assist.
- Call recording: Recordings can be used as a valuable training resource to improve service levels.
Seamless scaling
VoIP systems are designed to scale with your business. As your business expands and new employees join, you simply add a new phone line to the account and invite them onboard.
Using a hosted VoIP service as part of a Unified Communications platform allows access to a suite of advanced features, including Customer Relationship Management (CRM) apps and AI tools, potentially supercharging productivity and growth.
Reliable connectivity
Leading hosted VoIP providers guarantee over 99.9% uptime in their Service Level Agreements. Reputable providers also operate multiple centers and failover systems to ensure service is delivered with minimal disruption to your operations.
As mentioned, your provider deals with system updates, including security upgrades, which ensures security patches and features are always current.
Plans also often have disaster recovery and backup provisions that route calls to stable locations or mobile devices, keeping your service running.
Productivity and collaboration
VoIP systems often include conferencing and team collaboration features that support smooth communication between departments and team members. Accessing the phone system from anywhere empowers productive sales and support teams around the clock.
As a result of streamlined communication, collaboration, and responsiveness, productivity is boosted all around.
Toll-free and local numbers
VoIP plans often let you subscribe to toll-free numbers. Besides encouraging more customer calls, a toll-free number helps present an image of an established business. This is a useful tactic when competing with major, well-established corporations. However, keep in mind thatyou will be charged for incoming calls when using a toll-free number.
You can also buy local numbers to create a local business presence, even if you don’t have an office in the region. For example, a New Jersey company can acquire a local number in Manchester, England. This helps create trust with customers in various areas and makes it more likely they will connect with your business.
Uses for Hosted VoIP Services
Hosted VoIP solutions have many uses, including:
Unified Communications
Hosted VoIP is a core component of Hosted Unified Communications (UC) systems. Unified Communications combines all your organization’s communication tools – voice, video, messaging, and video conferencing – into one user-friendly platform. CRMs, project management tools, and AI can often also be plugged in.
VoIP forms the foundation for integrating the various communication channels. When combined with insights from CRM and other business tools, VoIP becomes even more potent.
Customer service
VoIP services are widely used in customer service departments and call centers. Hosted VoIP features like ACD, IVR, and call recording help improve client experiences.
This service also allows organizations to provide 24/7 customer assistance delivered by support teams in different time zones.
Sales and lead generation
Sales teams use Hosted VoIP for outbound calls and lead generation. Features like call recording and monitoring also provide the ability to track team members’ performance. Additionally, when used with CRM tools, VoIP can leverage data about customer interactions to target effective sales and marketing initiatives.
A VoIP function lets you add a unique phone number to a marketing campaign that redirects calls to your main line. This allows you to track the campaign’s leads, deal size, and ROI.
Remote and hybrid work
Hosted VoIP is excellent for remote and hybrid working business environments.
Using VoIP capabilities, remote and mobile employees can connect with customers and colleagues from wherever they are. Incorporating features like group chat, instant messaging, and file sharing enables dispersed teams to collaborate in real time.
International calling
Since internet voice data is generally cheaper per minute than alternatives, using VoIP for international calling is sensible, especially if your business serves global customers or has international offices.
Another win is that business VoIP services often treat calls within the company’s internal network as local calls, regardless of geographical location. This means colleagues on different continents can speak to each other without paying an international calling premium.
What Is the Difference Between Hosted and Cloud VoIP?
Hosted VoIP and cloud VoIP are sometimes seen as one and the same because both provide telephony services over the internet. However, there is a difference:
- Hosted VoIP is a specific type of cloud VoIP in which the provider’s infrastructure manages the voice service.
- Cloud VoIP is a broader term that refers to any voice service delivered via cloud technology. Cloud VoIP typically offers a wider range of flexible and advanced features.
There is also unhosted VoIP, which allows you to employ the technology without third-party support (or cloud hosting). Sometimes called “on-premises VoIP”, this setup is housed and managed on your business premises. It allows you to enjoy all the features and flexibility of VoIP technology while bearing the cost and responsibility of administering the system yourself.
On-premises VoIP is more common in large organizations that can afford VoIP hardware and software and have the technical expertise to run the system.
How Homefield IT Can Help You with Hosted VoIP Solutions?
With extensive experience in managed communication solutions, Homefield IT provides dynamic hosted VoIP solutions to clients nationwide.
Featuring leading-edge communication technology, our hosted VoIP services are tailored to suit your communications needs. We believe in walking that path with you, which entails working together to understand your business environment and then designing the best system to reach your goals.
Whatever VoIP package you choose, you can be assured of the following:
- Streamlined communications: Our flexible and convenient systems elevate team collaboration and client interactions. Our seamless integration of features, like voicemail to email, messaging, and conference calling, supports dynamic, on-the-go working environments.
- Robust security: We understand the critical need to protect your data, team, and customer communications. In a world where hacking attacks and data breaches are rising, protecting your system is paramount. High-level encryption, firewalling, intrusion detection, and other cybersecurity shields safeguard both our infrastructure and your system.
- Affordability: Utilizing cloud technology lowers infrastructure and operating costs. These efficiencies allow us to make your business phone system highly affordable. Re-sizing the system is equally efficient and inexpensive.
- Scalability: You no doubt have aspirations to expand your business and possibly open offices in other parts of the country. We’re right there with you. Our hosted VoIP systems are seamlessly scalable to expand your connectivity as demand grows. If you need to scale down (due to seasonal demand, for example), that can be easily accommodated too.
- Convenient setup and support: Unlike traditional Private Branch Exchange systems, hosted VoIP doesn’t require extensive technical installation. Setting up and configuring the system is relatively quick and straightforward. Additionally, we don’t step away once you’re up and running. We’re here to support you throughout with expert guidance, system maintenance, software updates, and scaling.
- Comprehensive solutions: Our hosted VoIP packages are a part of Homefield IT’s larger managed communication services, which include:
- Managed cloud security
- POTS phone line replacement
- Unified Communications as a Service (UCaaS)
- Microsoft Teams Calling Services
- Contact/Call Centers (CCaaS)
- SIP Trunks Solutions
- Interactive Voice Response (standalone service)
- Automatic Call Distribution (standalone service)
FAQ’s
What is the difference between VoIP and hosted VoIP?
- VoIP (without hosting) refers to a non-cloud setup in which the user maintains the VoIP servers and other equipment on their premises. The business administers the VoIP system in-house and handles maintenance, scaling, software updates, and security itself.
- A hosted VoIP service is provided by a third party using the provider’s infrastructure. The provider handles updates, maintenance, and security for the user or subscriber.
What are the drawbacks of VoIP?
The main drawback of VoIP is its dependence on a stable internet connection. Crashes and non-existent or patchy connections compromise service availability and call quality. Some security issues, like unauthorized intrusions on phone lines, are also a concern. It’s, therefore, important to choose a reputable provider with stringent security and recovery protocols.
Can I host my own VoIP?
Yes, you can host your own VoIP system if you have the necessary expertise, server space, and budget for the upfront costs. You will need to purchase the hardware and software to set up. You must also manage all software updates, system maintenance, and security. The ease and cost-effectiveness of a hosted VoIP solution make it a more attractive option for many businesses.
Can I keep my existing number when switching to hosted VoIP?
Yes, you can keep your existing phone number when switching to a hosted VoIP service by porting it to the VoIP provider. Porting transfers your number from your old provider to the hosted voice service.
What are the two types of VoIP phones?
The two main types of VoIP telephones are hardware-based and software-based.
- Software-based phones, sometimes called softphones, support calls from your web browser, tablet, and desktop.
- A hardware-based VoIP phone resembles a traditional desk telephone, with a speaker or microphone, touchpad, and caller ID display.
Ready For a Hosted VoIP Phone System?
Given the dynamic demands of modern business communications, traditional phone lines are a thing of the past. Today’s consumers expect more than rote assurances that “your call is important to us.” They want quick responses and reliable channels to engage you.
Homefield IT provides hosted voice systems that allow you to exceed your customers’ expectations and improve productivity and collaboration within the office (or offices). A hosted VoIP solution is an agile, scalable, and cost-effective service built for our digital world.
to learn more about a hosted VoIP service and how its benefits can transform the future of your telecoms.
Contact us to get started
Find out how Homefield IT can turbocharge your technology.