Hosted voice over internet protocol (VoIP) is growing rapidly, especially in this new era of remote work due to its affordability, efficiency and flexibility. Hosted VoIP also can solve your mobile communications challenges.
VoIP is simply a telephone service that uses the internet—the sound is converted into a digital signal and sent across the internet in packets, instead of over the traditional analog public switched telephone network (PSTN). A hosted VoIP system is managed by a service provider with equipment based off-site in their data center. You don't own the system; instead you typically pay a monthly recurring subscription fee per user or seat.
What's so great about hosted VoIP?
It's impossible to know where your business will be a few years down the road. Hosted VoIP is like an insurance policy against unexpected changes in your organization's size. A hosted solution lets you scale up and down the number of users or seats you pay for as needed. You can also add or remove features from individual seats as your employees needs and business requirements change.
Hosted VoIP is cost-efficient because of its predictable, subscription-based pricing model. Because hosted VoIP is fully managed by a service provider, there is no need to upgrade or replace costly on-premises private branch exchange (PBX) equipment. This means that hosted VoIP also has a lower total cost of ownership.
More predictable costs
With traditional on-premises PBX systems, there are always unexpected costs for upgrades, maintenance, services and more. But one of the main benefits of a hosted VoIP solution is its simple, predictable subscription-based pricing model without any surprises or unforeseen investments.
Level the playing field
The right hosted VoIP service can give small businesses all the bells and whistles that much larger organizations get with an enterprise-grade communications service including toll-free numbers, individual employee phone numbers, call transfers, virtual receptionists, message alerts and many others. Such solutions also provide actionable analytics that rival what/s available to large companies.
Your IT department is already stressed and overworked. Hosted VoIP is a fully managed solution where upgrades, maintenance, and management of the solution is the responsibility of your service provider.
Dealing with natural disasters and other unforeseen events is challenging enough; you don't want to risk having your phones go down for potentially long periods of time or of sustaining damage to any equipment you have on-site including PBX hardware. One of the main advantages of a hosted VoIP solution is that, because the phone system is in the cloud, it supports business continuity and disaster recovery.
However, there are a few downsides to VoIP: Unlike the traditional PSTN telephony system, VoIP requires electricity and a connection to the internet to work—when the power or your internet connection is out you can't use your VoIP phones or phone system. Potential security issues are another concern some businesses have with VoIP.
Migrating to VoIP isn't the right choice for every company. But for those that want an affordable, easy to implement and use cloud-based solution that offers business continuity and disaster recovery, it will likely be the right decision.