What Is Hosted VoIP?

By: Chris Darr
July 29, 2022

If you’ve been researching ways to upgrade your business phone system and take advantage of cost savings, you probably have come across the term Hosted VoIP. VoIP stands for Voice over Internet Protocol, which is a technology that facilities voice calling over the internet. To access this technology for your organization, you can either set up your own on-premise VoIP server, or contract with a VoIP provider, or “host."

VoIP vs. Hosted VoIP

While some organizations are well served with an on-premise solution, hybrid work has made hosted VoIP and other cloud-based solutions far more attractive. With Hosted VoIP, your provider can offer the VoIP technology you need quickly and easily. You can access enterprise-scale solutions and cybersecurity without the upfront costs and responsibilities that come from maintaining your own equipment. You also aren’t tied to an on-premise solution, which can be less accessible to remote workers. However, if you’re on the fence about whether on-premise or hosted VoIP is right for you, this 10-question survey can help point you in the right direction.

Hosted VoIP goes by many other names, which can make this topic confusing. So in this blog, I’ll do my best to simplify Hosted VoIP and give you an overview of its technology and terminology.

How Does Hosted VoIP Work?

Instead of using a physical landline, VoIP and Hosted VoIP use your office’s existing internet connection to make voice calls. Instead of your phone company routing and connecting calls, either your on-premise server or your hosted VoIP provider will provide these same services for both incoming and outgoing calls.

Obviously, you’ll need a stable internet connection to use Hosted VoIP. Additionally, you should have a secure, private network with enough bandwidth to accommodate good call quality before you consider switching.

What Do VoIP Phones Look Like?

An IP phone looks identical to a standard office phone. But if you’d rather stick with the office phones you already have, you can get an adapter to enable analog telephones to access VoIP technology. You can also access VoIP capabilities from an app on your computer or another smart device.

Features of Hosted VoIP

In addition to making and receiving voice calls, hosted VoIP offers a variety of features while saving you a significant amount of money on your monthly phone bill. Depending on your provider and your needs, with hosted VoIP, your service can include the following capabilities:

  • Conference calling
  • Video conferencing
  • Integration with other customer management tools, including chat
  • Auto attendant and call routing
  • Call screening
  • Toll-free numbers
  • Voicemail-to-email transcription

Benefits of Hosted VoIP

More businesses are making the switch to VoIP because the technology offers far more for less money. However, in the future, you may not have much say in the matter. Landlines are rapidly becoming obsolete. Cutting the cord can feel like a big decision, but it’s best to make it on your own terms instead of facing a possible future disruption. Some day, the one doing the cord-cutting may very well be your provider.

But hosted VoIP offers so many incredible advantages, it may be the easiest big decision you’ve ever made.

It’s Easier

You don’t need a professional technician to install your equipment or add features and lines. Because there’s no physical wiring required, you will be able to do these things through your provider’s online portal.

It’s Cheaper

With Hosted VoIP, you’ll get a huge step forward in terms of your capabilities for a low upfront cost. Organizations that switch typically save around 30% on their monthly bills. However, if you tend to make a lot of international calls, you’ll save much more. On average, VoIP offers a whopping 90% savings on international calls.

You Can Access Enterprise-Scale Call Center Features

Because VoIP technology can integrate well with other apps, you will be able to handle calls much more efficiently and access customer profiles, purchase histories, and more without delays.

It’s More Flexible

Hosted VoIP makes it easy for staff to work seamlessly from home or on the go, as you can access all of your organization’s VoIP services from any smart device.

It’s More Professional

If you’re out of the office, you can still make calls from your recognized number, and you won’t have to give out your personal cell phone information to business partners and customers. They won’t be able to see from your caller ID whether you’re working in the office or from your own backyard.

You Have Fewer Responsibilities

You don’t have to maintain any special equipment with hosted VoIP. So if you’re switching from an on-premise solution, you’ll be able to get rid of those servers and free up space.  

You’ll Get Better Quality and Reliability

As with most things internet-related, call quality has come a long way. VoIP calls now offer more clarity than traditional landlines. Let’s be honest --- landlines aren’t perfect, and various signals could interfere with call quality. Today’s top VoIP providers typically guarantee 99.99% uptime, so if you have a reliable internet connection, there’s no good reason not to switch.

Ready To Cut the Cord?

Between hybrid and remote work challenges and the somewhat related rise in cybercrime, many businesses have had to make significant changes to their equipment and tools in the past few years. Making another big change might feel overwhelming. However, this change will most likely save you quite a bit of money while freeing up your IT department, and it’s a relatively easy one to make.  

If you’re ready to make the switch, finding the right provider is your next step. In that respect, Marco is unique. We’re not just a hosted VoIP provider — we provide comprehensive technology solutions, and we’ll get to know your organization and its goals to make the best recommendation. Hosted VoIP might be the right solution for you, but another communication platform may be even better. Marco’s experts will double-check that you’re headed in the right direction and can get you started as soon as you’re ready.

Learn More About Voice Over IP Contact a Marco Rep

Topics: Phone & Collaboration