Hosted voice-over-internet protocol (VoIP) is a technology that allows organizations to facilitate calls using internet connectivity. It’s important for businesses because it offers flexibility, cost savings, and advanced features. Leveraging this technology can make communications smoother and more efficient.
With the help of our experts, we’ve prepared a short guide explaining how hosted VoIP works, its main features, and tips for choosing the right provider. Additionally, we provide an overview of the top five platforms for hosted VoIP solutions.
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What Is Hosted VoIP?
Hosted VoIP is a phone service managed by a third-party provider that allows businesses to communicate over the internet. This service uses cloud technology to handle all voice communications, eliminating the need for traditional phone lines or bulky on-site equipment.
In a hosted setup, the service provider manages the VoIP server off-site and takes care of all call processing and routing. This allows organizations to get started simply by having a reliable internet connection and VoIP business phones or software. This setup reduces hassle, as the provider handles all technical details and maintenance.
Hosted VoIP also provides enhanced reliability and security. A dedicated provider managing the VoIP server ensures high uptime and implements robust security measures to protect communications. This gives peace of mind from potential downtime and data breaches, allowing companies to focus on their core activities.
What Is a VoIP Business Phone?
A VoIP business phone is a communication system that uses internet connectivity for calls instead of traditional phone lines. Its technology works by converting voice into digital transmissions so it can be sent over the internet.
VoIP business phones come in the following forms:
- IP phone: An internet protocol (IP) phone resembles a standard landline but connects to a VoIP phone system instead of a traditional phone line (POTS).
- Softphone or VoIP app: This software can be downloaded onto a personal computer or a smartphone. It can also be accessed through the VoIP service on multiple mobile devices.
Hosted VoIP vs Cloud VoIP
Hosted VoIP and cloud VoIP both enable internet-based voice communications but have distinct focuses. Hosted VoIP operates through a third-party provider that handles the infrastructure and maintenance off-site, ensuring a hassle-free experience for businesses. However, cloud VoIP highlights the use of cloud technology for enhanced scalability and flexibility.
Both options offer advanced features, cost savings, and simplified management compared to traditional phone systems. Hosted VoIP focuses on ease of use with dedicated support and maintenance from the provider, while cloud VoIP emphasizes the adaptability of cloud services.
Hosted VoIP vs PBX
Hosted VoIP and private branch exchange (PBX) differ significantly in their infrastructure and management. Hosted VoIP operates via the internet, with a third-party provider managing the system off-site, offering flexibility, cost savings, and easy scalability.
In contrast, a PBX is an on-premise phone system that requires substantial upfront investment and ongoing maintenance by the business. While PBX systems can offer high reliability and control, they come with higher costs and less flexibility.
How Does Hosted VoIP Work?
Hosted VoIP works by transmitting voice calls over the internet instead of traditional phone lines. It leverages cloud-based servers managed by a third-party provider to handle call processing, routing, and management.
Here’s an overview of how it works:
- Voice conversion: Your voice is converted into digital data using an IP phone or softphone.
- Data transmission: The digital data is sent over the internet to the VoIP server.
- Call processing: The VoIP server processes and routes the call to the recipient’s phone.
- Signal conversion: The digital data is converted back into voice signals at the recipient’s end.
This process allows for efficient and flexible communication, as the VoIP server in the cloud does most of the work. It lets businesses benefit from lower infrastructure expenses, allowing them to scale their communication systems easily.
Hosted VoIP solutions also integrate seamlessly with other internet-based applications to enable unified communication platforms that enhance productivity and collaboration.
7 Main Features of Hosted VoIP
VoIP solutions offer an array of features, with advanced VoIP hosting providing multiple options that add value. Some VoIP solutions are standalone solutions, while others are unified. Moreover, you can customize your plan, so you don’t have to pay more for services you won’t use. Unnecessary features on a business phone system might also complicate workflows.
That said, here are some basic features you should look for in a hosted VoIP provider:
- Advanced call management: This feature helps you manage incoming calls by allowing you to route, hold, or prioritize calls to improve customer experience.
- Call routing: With a hosted VoIP phone system, your business can choose how to direct incoming calls. You can route them based on customer type, the purpose of the call, or any other criteria.
- Auto attendant: This is ideal for businesses that are swamped with calls. Having a virtual receptionist helps you save time, keep agents focused, and increases customer satisfaction.
- Voicemail to email: A good hosted VoIP provider provides this feature to help busy professionals stay on top of their messages. Voicemails are automatically sent to your inbox, so you don’t miss any important messages, and allows you to respond quickly.
- Call recording: Companies that operate in regulated industries will find this feature useful. It allows you to record phone calls for quality assurance and training purposes.
- Toll-free number: A toll-free number allows customers to call for free. Taking this extra mile will let your customers know that you’re putting their convenience and satisfaction first.
- Call transfer: This useful feature transfers phone calls easily. You can either make a quick cold transfer or a warm transfer where you introduce the caller to the person they’re being transferred to.
These are just some of the many useful features of VoIP services. As technology advances, so will these solutions.
Why Your Business Needs VOIP Hosting Services? 5 Key Benefits
Business owners can benefit from a VoIP phone system in numerous ways. Here are five advantages of hosted VoIP:
1. Cost-Effective
Hosting VoIP is generally cheaper than traditional phone calls. You can find a plan or service that can halve your business’s phone expenses. If you’re looking to cut your company’s IT costs, VoIP is a great way to do that. Just make sure to read the fine print, as some hosted VoIP providers may increase their rates after the introductory period.
2. Flexible
A significant advantage of VoIP solutions is their compatibility with any device that has an internet connection. If you’re out and about, you don’t have to worry about missing important calls and appointments. Simply download the VoIP app designated by your provider, and you can make and receive phone calls or check your voicemail from with cell service or internet access.
3. Easy To Use
Aside from having a user-friendly design, VoIP solutions offer ease when technical issues arise. Companies have attested to how much easier it is to get ahold of tech support for VoIP services compared to traditional phone systems.
4. Advanced Features
With VoIP, you have access to traditional calling features and a caller ID. You can make, forward, hold, transfer, or record calls. And since the calls are already digitized, you can easily get a digital copy of the call. You can even integrate tools that are critical to your business. For example, you can add VoIP services like chats, email, and video conferencing.
5. Scalable
Because hosting VoIP is internet-based, it’s easier to add new lines to your phone system when you hire new staff. Just send a request online, receive the hardware (phone) a few days later, plug it into an Ethernet port, and you’re good to go!
How To Choose a Hosted VoIP Provider
If you’re looking for a hosted VoIP provider but aren’t sure which one suits your needs, we’ve got you covered. Follow the steps below to pick the right provider for your business.
- List the VoIP needs of your business
- Come up with a budget
- Look for VoIP providers
- Read the fine print before signing anything
1. List the VoIP Needs of Your Business
First, you should have a clear idea of your business requirements. To determine this, consider asking questions like: What features do you need? Do you need three-way calling, video conferencing, call recording, or just the basic call features?
If you plan on making international phone calls, you can look into VoIP hosting providers that include free minutes to countries you frequently contact. Alternatively, you can get an international calling plan upfront instead of paying for your international calls by the minute.
2. Come Up With a Budget
With any business purchase, you must consider your budget. VoIP solutions typically cost $25 to $35 per month per user, so it's important to factor that in along with the features you want. Setting a clear budget lets you narrow down your options and find a hosted business VoIP provider that offers the best value for your investment.
3. Look for VoIP Providers
Once you know what features you need and what your budget is, you can search for VoIP solutions that fit your specifications. Read reviews of the VoIP plans that interest you and compare them. You should investigate their customer support, sound quality, and service reliability. If you can’t find a plan that checks all the boxes, aim for one that comes close.
4. Read the Fine Print Before Signing Anything
Before committing to any plan, make sure you read the terms and conditions to avoid any surprises. Contact customer service to gather as much information as you can before signing up. For example, you can ask about the cost of the equipment and whether it’s provided for free by the provider.
Top 5 SSE Platforms for Hosted VoIP Solutions
Since VoIP solutions rely on cloud-based communication, you’re going to need an extra layer of security to prevent sensitive information from leaking out. A Security Service Edge (SSE) can enhance data security, network monitoring, access control, and threat protection.
We’ve compiled a list of the top five SSE platforms you can rely on:
1. Cisco Umbrella
Cisco Umbrella is a unified and cloud-based security solution that provides a secure web gateway, firewall, CASB, and DNS-layer security. It also provides a dashboard where users can see any emerging threats.
Moreover, it scans IPs and internet domain files to help detect anomalies and future threats. Cisco Umbrella provides additional security by blocking malicious domains, cloud applications, and IP addresses before a connection is established.
Pricing: The pricing for this SSE solution will depend on your business needs and is available upon request. Additionally, Cisco Umbrella provides a 14-day free trial.
2. Cloudflare
Cloudflare implements Secure Access Service Edge (SASE) through Cloudflare One. It delivers two out of three core SSE components: Zero Trust Network Access (ZTNA) and Secure Web Gateway (SWG). ZTNA ensures secure remote access based on user identity and device context, while SWG protects users from web-based threats by filtering and monitoring internet traffic.
The cybersecurity features you get with Cloudflare One include application control, web content filtering, remote browser isolation, DNS security, secure socket layer (SSL) inspection, and DDoS mitigation.
Pricing: Cloudflare offers a free plan for up to 50 users. However, you can also choose a pay-as-you-go plan at $7 per user or a custom contract plan.
3. Forcepoint ONE
Forcepoint ONE is an all-in-one, cloud-native SSE platform that simplifies cybersecurity and combines ZTNA, CASB, and SWG. Its top features include remote browser isolation, Content Disarm and Reconstruction, and zero-day sandboxing. The platform also boasts a 99.99% uptime, low latency, a patented and agentless reverse proxy, and global connections.
Pricing: This information is not disclosed on their site. You can contact Forcepoint ONE directly to get information on their current pricing.
4. Zscaler
Zscaler is an SSE platform that unifies CASB, SWG, and ZTNA via a cloud-first architecture. This solution brings together Zscaler Internet Access and Zscaler Private Access to provide APIs that offer policy creation automation and machine learning technology.
Other noteworthy features include cloud sandboxing, digital experience monitoring, firewall, and cloud browser isolation. Admins can also control the access of users and monitor what is being accessed by who via user logs.
Pricing: You can get quotations upon request via the website.
5. Skyhigh Security
Skyhigh Security is a single SSE solution that enables users to apply consistent threat protection and web security policies on devices. Skyhigh SSE combines SWG and CASB technologies to protect sensitive data from device to cloud and prevent cloud-native security breaches that aren’t always visible to the corporate network. The platform also ensures service availability of 99.99%.
Pricing: You can contact Skyhigh SSE’s pricing to get a quote.
Hosted VoIP: Takeaways
Despite the requirements, the endless options that hosted VoIP has to offer can make businesses spoiled for choice. Private and public businesses are increasingly adopting hosted VoIP due to its significant benefits.
Gathering insights from stakeholders, IT, and data security professionals before selecting a plan can be invaluable. This ensures that everyone in the workspace feels comfortable using the service.
Now that you know the main features and benefits hosted VoIP has to offer, see if this technology is the best choice for your company. Assess your needs, consult with your team, and explore available options to find the perfect communication solution.
Hosted VoIP FAQs
1. What Is a VoIP Host?
Certain servers and algorithms are necessary to route incoming phone calls to business phone lines via VoIP. A VoIP host is a platform that provides the infrastructure to make this happen. However, they also help with integrating existing software with your VoIP phone system.
2. Can I Host My Own VoIP?
It is possible to host your own VoIP phone system, but it's a lot of work. You can host your own VoIP by purchasing a dedicated server. If you already have a web hosting provider, they may offer free VoIP hosting as part of their package. However, for most businesses, it's usually not worth the time and resources required to set up and manage your own server for your phone system.
3. Does VoIP Need a Server?
Yes. A VoIP server is necessary to connect calls to telephone networks. It’s generally built on dedicated servers and helps to store, receive, and distribute data
