In the simplest terms, hosted VoIP is a system that allows you to make calls over the Internet. While the technology has been around since the 90s, hosted VoIP’s popularity has increased more and more as businesses realize the plethora of benefits. A lot of companies are switching to hosted VoIP, but there are still a lot of questions out there about this technology. Below are answers to common questions about hosted VoIP.
#1. What’s the difference between VoIP and hosted VoIP?
Voice over Internet Protocol is a system that converts analog audio signals into digital data so that it can be transmitted through the Internet. This allows users with a working broadband connection to make phone calls, just like they would on any traditional phone line. Both VoIP and Hosted VoIP provide telecommunications via the internet.
But there is an important distinction between hosted VoIP and VoIP. Hosted VoIP means all the functionalities are available in the cloud instead of housing everything in-house. Hosted VoIP is often the most cost effective and efficient of these two options because a third-party provider takes responsibility for all the equipment, hardware, updates, and security of the service.
So when you’re searching on google, make sure you’re using the right term.
#2. What functionalities do I get?
One of the many questions about hosted VoIP is functionality. Hosted VoIP is very functional. In fact, easy and cost-efficient communication is a primary benefit of hosted VoIP.
With hosted VoIP, teams have access to the excellent HD voice quality and useful features. Many providers have over eighty features which are critical to a business’ operations. More comprehensive providers also offer integration with Single Sign Ons and common office software—like popular CRMs.
#3. How much do I have to spend?
The great thing about hosted VoIP is that it significantly reduces the cost of your business communications.
On-premise VoIP solutions will require initial software and hardware investment as well as maintenance costs, which can go from $400 to $1000 per seat. For this reason, companies prefer to use hosted VoIP services.
By using hosted VoIP services, you’re essentially removing the overhead cost and maintenance of physical equipment. You’re also removing the need for a dedicated team to manage and maintain that complicated equipment. And in terms of calls, you no longer have to financially invest in long distance calling rates as hosted VoIP is very cost-effective. SMS/ text features are also a more cost-effective alternative to traditional texting rates.
Ultimately, your investing costs will mainly focus on the hosting service—which can be scaled up or down, depending on your business needs. (For a more detailed comparison between a legacy PBX and hosted VoIP business phone system, check out this helpful Total Cost of Ownership analysis).
#4. What kind of equipment do I need?
Other popular questions about hosted VoIP revolve around equipment. It’s probably because you’re used to buying equipment for a legacy phone system, and that’s expensive! Well your investment in equipment is minimal with hosted VoIP.
As a business that’s looking to invest in a hosted VoIP, you’ll need a reliable broadband connection. Apart from that, if your company supports the current trend of BYOD (bring your own devices), then the only other equipment you have to consider are IP phones your team will use in the office.
#5. Should I make the switch?
A lot of companies are reluctant to let go of their traditional office phone system. However, many businesses are switching over because of the numerous benefits available with hosted VoIP. Companies can easily save 50-70% with hosted VoIP systems versus traditional PBX.
Now that these five basic questions about hosted VoIP are answered, you may have some follow up questions. That’s great! If you have any additional questions about hosted VoIP, chat with a Jive representative. We’re more than happy to provide answers. And if you’re considering the switch from traditional landlines to a cloud-based phone system, contact Jive today for a free quote.