Hosted VoIP Business Phones: Everything You Need to Know

Ever wonder what hosted VoIP is? You’re not alone. Hundreds of businesses are looking for ways to bring their communications into the 21st century and have discovered hosted VoIP along the way.

But many are still unsure about making the switch. So, if you need to know what it is, how it works, and if it’s the right choice for your business, you’re in the right place. This guide will break it all down in simple terms so you can make a truly informed decision.

Table of Contents

• What Is Hosted VoIP?
• How Does Hosted VoIP Work?
• Key Features You’ll Love with Hosted VoIP
• The Big Benefits of Hosted VoIP for Businesses
• What are the Drawbacks of VoIP Phone Systems?
• Got More VoIP Questions? UBT Can Answer Them

What Is Hosted VoIP?

Hosted VoIP is a virtual business telephony solution that allows you to send and receive calls online. Instead of maintaining bulky phone systems on-site, everything is hosted online by a third-party service provider, saving you money and giving you more flexibility. But more on that later.

We’re going to clarify some terms first.

Some providers refer to hosted VoIP phone systems as “Hosted PBX systems” or “Cloud VoIP services.” This has led to a lot of confusion in the corporate world, which we’re going to try to clear up right now.

Is a PBX a VoIP?

No, because “PBX” and “VoIP” aren’t the same thing. Let’s explain.

A PBX, or “Private Branch Exchange,” refers to the actual system that manages and routes all the calls made within a business. VoIP (short for Voice over Internet Protocol) is the technology that allows those calls to be made over the internet instead of traditional phone lines. Basically, VoIP makes a hosted PBX system possible.

So, when choosing between the two, you’re choosing between different names for the same excellent service.

Is hosted VoIP the same thing as cloud VoIP?

Not quite. The term “hosted VoIP” usually means that a third-party provider manages your VoIP phone system for you. “Cloud VoIP” is a broader term for any VoIP phone system that operates in the cloud, whether you manage it yourself or a provider does it for you.

This may lead you to another question we’ve heard asked quite a bit.

Can I host my own VoIP solution?

The short answer is, yes, you can. But do you really want to? Hosting your own VoIP solutions means buying and maintaining your own servers and dealing with ongoing maintenance and upgrades.

Unless you have a dedicated IT team, it is far more practical and cost-effective to let experts (like United Business Technologies) host your VoIP services.

We hope these answers help clarify some things for you. Now, let’s move on to how this kind of business phone system works.

How Does Hosted VoIP Work?

A hosted VoIP phone system uses VoIP technology to transform your voice into digital data. Here’s a simplified breakdown of how that works on a per-call basis:

• Voice Conversion: When you speak into a VoIP phone, or your phone system’s mobile app, the system converts your voice into digital data.
• Data Transmission: These data packets travel through your office’s internet connection and are routed to the servers owned by the hosted VoIP provider.
• Call Management: The provider’s servers process and manage the call, determining its destination and connecting it to the intended recipient via the public switched telephone network (PSTN) or directly to another VoIP line.
• Voice Reassembly: When the data packets reach their destination, they’re put back together into a sound signal. This way, the person on the other end hears your voice just as clearly as if you were talking on a regular phone system.

Want a deeper dive into how VoIP services work? Drop the UBT experts a line, and we’d be happy to share our knowledge with you.

Key Features You’ll Love with Hosted VoIP

We’ve talked about how hosted VoIP solutions work; let’s talk about what they can do. Hosted VoIP business solutions are packed with features that go beyond simple phone calls:

• Advanced Call Handling: Whether you need call forwarding, auto-attendants, or call queues, hosted VoIP has all the tools to manage your calls efficiently.
• Voicemail Transcription: No more listening to voicemails on repeat. Voicemail transcription sends your messages straight to your email, so you can read them at a glance.
• Mobile Access: Take your office phone with you. Thanks to softphone apps, you and your teammates can easily access your phone system from your smartphone, laptop, or any other internet-connected device. This way, you can stay connected even if you have to travel.
• Contact Center Capabilities: Running a customer support center? Hosted VoIP can help you manage your customer interactions quickly and professionally with features like call analytics, automated call distribution, and agent performance tracking.

These features should come standard. But some hosted VoIP providers, like UBT, will go above and beyond to make sure you have the features you need to succeed. And speaking of success…

The Big Benefits of Hosted VoIP for Businesses

Now that you know what hosted VoIP is and how it works, let’s discuss what advantages hosted VoIP offers to businesses like yours. Hosted VoIP business systems:

• Save You Money: Hosted VoIP systems can help you cut down on costs. There’s no need to buy expensive hardware or deal with the headaches of maintaining a traditional phone system. Plus, the monthly fees for a hosted VoIP service are usually much lower than what you’d pay for a traditional phone line.
• Give You Room to Grow: Is your business growing? No problem. Hosted VoIP scales right along with you. Need to add a new line or upgrade your service? It’s as easy as a few clicks.
• Allow One-Stop Communication: Hosted VoIP isn’t just for phone calls. It can become an all-in-one communication hub that can handle voice, video, and messaging. UBT offers all kinds of integrations, so you’re not juggling different systems when communicating with customers and teammates.
• Let You Work from Anywhere: Remote work is trending to be more commonplace in the near future. Whether you’ve got a remote team or you just want the flexibility to take calls from anywhere, hosted VoIP has you covered. Thanks to UBT’s softphone app, you can log into the phone system and access all the necessary features from a wide variety of mobile devices. As long as you have an internet connection, you’re in business – literally.
• Are Loaded with Advanced Features: All those features you read about in the previous paragraph are just the beginning! VoIP providers like UBT make sure your phone system has all the capabilities you need to stay effective, productive, and connected.

We could go on, but we know you don’t have the time to read a list as long as your right and left arms. Even though a hosted VoIP solution is incredible and features are extensive, there are some things you should be aware of before you sign on for a VoIP service.

What are the Drawbacks of VoIP Phone Systems?

While the drawbacks of switching to hosted VoIP services are minimal, they still exist. After all, no system’s completely perfect. When it comes to VoIP, the two biggest drawbacks are:

1. Internet Dependence: Your VoIP service is only as good as your internet connection. If your internet goes down, so does your phone system.
2. Data Security: When you use a business VoIP system, all your call recordings, voicemails, and other important information are stored in the cloud. And if you don’t have the proper security measures in place, you run the risk of a data breach.

However, the right VoIP provider will have systems in place to overcome these hurdles, like:

• Automatic data backups so if something goes wrong, your call recordings, voicemails, and other important data can be restored ASAP.
• Redundant (a.k.a “backup”) servers and data centers across the nation, so if one experiences an issue or an outage, your business communications will still be up and running as usual.
• Advanced encryption, secure data storage, multi-factor authentication, and other security measures protect your sensitive data from being accessed by cybercriminals.
• Regular security audits to keep their security measures as up to date as possible.

If you’re wondering how to find the right hosted VoIP business provider among a sea of VoIP providers, check out this blog!

Got More VoIP Questions? UBT Can Answer Them

VoIP can feel like a whole new world, but you don’t have to explore it alone. Whether you’re curious about how it works or ready to make the switch, United Business Technologies is here to help. Connect with our team today to start your VoIP journey.