Hosted VOIP: A Thorough Guide to Voice Over IP

Hosted VOIP: A Thorough Guide to Voice Over IP

Article by DesignRush DesignRush
Last Updated: August 18, 2022

As businesses grow, solutions also need to align to create ways for firms to be innovative. Since communications in business are essential, the technology required for the same is required to follow suit.

With this pace, modernization is required for small, mid, and large-scale enterprises.

Seamless communication with employees located in varied locations is substantial. While communication is the pulse of a business, it turns out to be a boon for a hybrid business model.

Before diving into details, let’s start with the basics of what a VOIP Service is.

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What is VOIP Hosting?

Hosted Voice-Over-Internet Protocol is a secure and cost-effective internet-based communication system. A third-party provider offers it to a business which makes up for unified solutions for the businesses’ communication needs. In the long run, this can lift firms' excess management burden.

A more straightforward way to understand the conventional and the VOIP system is that the VOIP system uses the internet rather than a telephonic network to make calls.

This replaces the traditional networks of communication with a cloud-based phone system. The calls are converted into digital data packets and are sent to the receiver via the internet. Firms are only required to subscribe to a VOIP hosting provider that already uses secure servers that are not set up on-site.

A server should be capable of handling all the data a business generates. For a non-hosted VOIP, the same should be installed on-site.

A VOIP system includes all the business requirements, making it perfect for businesses that want to scale.

What is a VOIP Business Phone?

A VOIP business phone works with Voice over IP. It is available in the following forms:

IP Phone

An IP phone is similar to a standard landline but connects to a VOIP phone system instead of POTS.

Softphone or VOIP App

This software can be downloaded on a personal computer or a smartphone. It can also be accessed through the VOIP service on multiple mobile devices.

Features of Hosted VOIP

A VOIP hosting offers an array of features. One such feature is conference calling. However, the services a firm requires depend upon the provider and the amount businesses are willing to pay.

Although advanced VOIP hosting offers multiple features that add more value with a myriad of plans and services. While some are standalone solutions, some are unified, making up for combined services as well. This helps businesses customize their plans so they don’t end up paying more for services they won’t use. Extra features might also complicate workflows.

Additional VOIP Hosted features include:

  • Call management (with routing and screening)
  • Instant messaging
  • Auto attendant
  • Video conferencing
  • Voice mail
  • Online fax services
  • Extension number and number changes

Enterprises should also note that these features may not be limited to only these. As technology advances, so will the solutions.

Other features include – a PBX system that gives access to more advanced features, softphones – an app that makes up for the smartphone part of the office network, audio conferencing, and others.

How Does VOIP Hosting Work?

A hosted VOIP works on similar methods and infrastructure as one that distributes information on the internet.

VOIP systems convert analog voice sounds into digital signals instead of radio waves. These signals are then delivered to the receiving end via data over a broadband connection.

The call connects to the internet via the router, which then transfers it to the remotely hosted VoIP servers. It processes and manages the call and connects it to the relevant digital destination. It is vice versa when receiving a call.

This can also be done with landlines, but it may include the additional step of PSTN (Public Switched Telephone Network) to connect. The cellular connectivity that a traditional phone uses can have multiple factors affect its quality. One example is the distance between you and the closest cell tower.

Although, VOIP hosting comes with fewer connection issues, as it is much simpler and comes with lesser connectivity issues.

Since it requires a secure and stable internet connection, businesses must have a secure IP address for the best call quality and performance. Another vital requirement is high bandwidth. Being low on bandwidth results in difficulty in connections and low-quality calls.

Benefits of VOIP Hosting

Modern-day connections require more than the fundamental aspects. And a lack of performance can only make operations difficult.

By Opting for VOIP Hosting, businesses are outsourcing the equipment and infrastructure. Companies simply need to connect to the VOIP hosting provider to manage uninterrupted communications.

If you are still wondering, "Why Hosted VOIP?” Here’s how it can help:

Enhanced Security

25% of the world’s hotspots don’t use encryption, which could be a matter of concern. The calls through VOIP servers go through encryptions, which offer superior security for messages and calls.

The installation process takes approximately 13 days to complete, depending upon the complexity. Once installed, you can begin using it immediately.

This can also make communications smoother by reducing complicated call routing techniques and cutting down on waiting times.


Routine maintenance and technical support are a part of the customer service offered by the VOIP providers. Usually, these services are offered regardless of the chosen package. Another added advantage is that the professionals working on the maintenance will be well-versed with the technology used.

This saves the cost of hiring an IT expert to work on repairs or updates.

Actively Supports Unified Communications (UC)

Unified communications are a group of applications that comprehensively help with real-time or non-real-time communication. It is built off of an existing VOIP infrastructure, as unified communication isn’t possible without a VOIP.

In simpler terms, it integrates all communication channels in a single dashboard. This fits in various aspects such as voicemails, online portals, helpdesks, emails, etc., which can sky-rocket productivity levels. This approach can considerably boost productivity. And we are backing it with a claim. A study suggests that 77% of remote employees report greater productivity with VOIP hosting.

Advanced Contact Center Tools

Companies expect firms’ customer support solutions to be available round the clock. Having customers wait in the queue might not be ideal. This makes it crucial for businesses to have customer centers that respond to emails, texts, and calls promptly.

Moreover, as per previous requirements, firms don’t need to maintain physical central offices. The same can be done at low costs and with less hassle. Furthermore, it offers no additional costs for call forwarding or recording.

Besides low costs and reduced hassle, a VOIP can save considerable time for customer services professionals. According to a study, VOIP can help save 32 call minutes per day.

These features also help to segregate the customers based on memberships, records, complaints, and others.

Helps Scale in the Long-Run

VOIP hosting is a great tool for businesses that focus on scaling. An array of features, the ability to support a remote or a flexible workforce, and other benefits denote that businesses can handle the challenges of the coming times.

Scaling can be much easier with features such as easy call management and caller ID for incoming calls.

It can be flexible with no additional costs to either party regardless of the location and doesn’t require additional hardware to scale, making it a more accessible, faster, and cheaper tool.

Further, when the business scales, it will be easy to integrate the UC with the current VOIP foundation.

Less Clutter

An outsourced VOIP hosting can scale down the hardware and cables within an office space. This can be quite beneficial if the office functions in a limited space. This space can be used to accommodate some other essential aspects of a business.

This additional equipment is usually located in an offsite data center, which can be accessed with a stable internet connection.

This service is also compatible with mobile devices, personal computers, and IP phones.

Cost Effective

The traditional methods require companies to pay for international telephonic calls, which is quite economical with VOIP hosting. Businesses can invest less capital in infrastructure and equipment, which can lead to significant savings compared to a non-hosted VOIP or other communication systems that require installations.

VOIP shared hosting doesn’t include maintenance or extra support fees but rather annual or monthly payments, which are only for a firm's services.

Fixed pricing that remains the same despite long-distance calls is another reason this service is cost-effective.

VOIP Hosting – Key Takeaways

Despite the requirements, the endless options that VOIP hosting has to offer can make businesses spoiled for choice.

Private and public businesses are heading towards VOIP hostings due to the significant benefits it has to offer. Taking insights from your stakeholders, IT and data security professionals, before choosing plans can significantly help. This ensures that everyone in the workspace feels comfortable using the service.

Some providers even offer free trials before businesses make the final purchase. Hence, it is best to look for services with no hidden costs, reliable customer services, and an excellent brand reputation.

With the introduction of Artificial intelligence, Network Mobility, and 5G integration, VOIP will further improve in the coming times.

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