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United Business Technologies, Inc.

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  • Cedar Rapids, IA 52405
  • 319-298-9056

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    What Is Hosted VoIP? Definition, Features, & Benefits

    If you’ve ever been puzzled by the term “hosted VoIP,” you’re not alone. Communication technology evolves so quickly that it’s easy to feel overwhelmed – especially if you’re just starting out. But we’re here to help. Our team is here to break down this innovative solution step by step. Starting with a simple definition.

    What Is Hosted VoIP?

    In the simplest terms, hosted VoIP is a way to make voice and even video calls using the internet. Unlike the conventional telephone system, which relies on physical lines and hardware, VoIP (Voice over Internet Protocol) converts your voice into digital signals, transmitting them through the Internet to reach the intended recipient.

    “Hosted” VoIP means that this platform doesn’t need to be housed on-site. Instead, the infrastructure and maintenance are outsourced to a third-party provider. That provider keeps everything on their servers, taking care of day-to-day maintenance and infrastructure upgrades for you. This simplifies your setup and opens the door to a world of benefits.


    How Does Hosted VoIP Work?

    Now that you’ve got a basic definition let’s discuss how this kind of communication system works. And don’t worry, you won’t need an IT degree for this. We’ve condensed the process into three simple steps.

    Step 1: Voice to Data Conversion. When you speak into a VoIP-enabled device, like a VoIP phone or a computer with VoIP software, your voice is transformed into data packets. These packets contain information about the sound, ensuring a smooth and clear transmission.

    Step 2: Data Packet Transmission. The data packets travel over the internet to a server maintained by your service provider. These servers act as the central hub for call processing by managing data exchange between callers.

    Step 3: Call Processing. The digital information is processed at the server, and the recipient’s data packets are identified. The server then unpacks and reassembles the packets into the original voice signal, making it possible for the person on the other end to hear you.

    Having a stable internet connection is crucial here. If you don’t, these packets may experience delays or interruptions, leading to a less-than-stellar calling experience. For the best call experience, we’d recommend using high-speed, wired internet.

    Some of you might be wondering about your landline and non-VoIP contacts. Can this system reach them? Absolutely. A VoIP phone system easily integrates with the Public Switched Telephone Network (PSTN), allowing you to make and receive calls to and from traditional landlines and mobile devices.

    basic overview

    Features of Hosted VoIP

    This solution isn’t just about making calls. It’s about making your communication better than ever. That’s why so many of these solutions boast a smorgasbord of services, like:

  • Unlimited calling
  • Auto attendant
  • Extension numbers
  • E911 capabilities
  • Instant messaging
  • Voicemail with additional features
  • AI-driven call management
  • Video conferencing
  • Online fax services

  • But here’s the catch: to enjoy these features, you’ve got to choose the right provider. The best ones offer seamless service and extensive customization options. It’s like having a tailor for your communication suit – the fit matters.

    Benefits of Hosted VoIP for Businesses

    With all that in mind, it’s time to discuss why a hosted VoIP is the top choice for many companies. It’s time to talk about benefits.

    Security and Straightforward Implementation. Are you worried about the security of your communication? Hosted VoIP has you covered with advanced encryption, turning your calls into impenetrable code. Plus, installation is a breeze, taking as little as two days, and you can start using the service immediately.

    Drastically Reduced Costs. Because it’s entirely based online, these VoIP solutions slash infrastructure and equipment costs. Long-distance and international calls have become more affordable. You don’t need specialized hardware, and there are no maintenance and support fees.

    Customer Service and Technical Support. When you need help, hosted VoIP providers have your back. Routine maintenance and technical support are included in most packages, saving you the hassle of finding – and paying for – specialized IT or telephone repair services.

    Unified Communications (UC) Integration. UC services are software platforms that bring all your communication tools under one roof, and they’re quite appealing to many businesses. Well, UC depends on VoIP systems to function! Why? Because a hosted VoIP system digitizes traditional voice calling, allowing UC platforms to easily combine that capability with other communication services. Starting with a hosted VoIP solution is like laying the groundwork for a smooth UC integration later.

    What’s the Difference Between UC & Hosted VoIP?

    Many providers use Hosted VoIP and UC interchangeably but that’s not entirely true. “Hosted VoIP” refers to platforms that have typical phone system capabilities (calling, internal chat, etc.). UC refers to platforms that encompasses a broader range of communication tools for additional collaboration (video conferencing, business texting, etc.).

    Supporting Long-Term Business Growth. Are you a small business dreaming big? Hosted VoIP is your partner in growth. Its features and cost-effectiveness pave the way for expansion, ensuring your communication system keeps up with your company as it changes and grows.

    More Info with United Business Technologies

    When it comes to Hosted VoIP, this was just your crash course! If you would like to learn more about how hosted VoIP works, please reach out to a trusted hosted VoIP provider. If you want better communication, extensive savings, and a hassle-free system that grows with your business, it’s time to contact United Business Technologies. We can set you up with a solution that works like a dream and fits like a glove. All you have to do is give us a call!