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What is hosted VoIP? Complete guide for 2024

VoIP phone service background
VOIP

Are you tired of the high costs and rigidity of your traditional phone system?

Hosted VoIP is the business phone solution that’s revolutionizing how you communicate.

This article explores the benefits, workings, and best practices of this innovative solution, which is transforming the global business landscape.

Get ready to discover how Hosted VoIP can be the key to taking your business to the next level.

What is hosted VoIP?

In simple terms, Hosted VoIP is like having a full-fledged phone system in the cloud. Forget physical phones, cables, and complex installations. Instead, you make and receive calls over the Internet, enjoy advanced features, and pay only for what you use.

How does Hosted VoIP work

Growth of the hosted VoIP market

Market statistics on VoIP, according to data from an article published by Enterprise Apps Today.

  • Companies can reduce telecommunication costs by up to 50% when switching to VoIP. For international calls, savings can reach up to 90%.
  • VoIP can save small businesses an average of 32 minutes per day. Unified communications can save 191 hours per day for an organization with 100 employees, improving overall productivity.
  • Approximately 82% of companies reported saving money after switching to a cloud communication system.
  • 94% of businesses reported increased security after moving to cloud-based systems, which often include VoIP services.

These figures show the rapid adoption of VoIP and integrated communication services, driven by their potential to cut costs and enhance efficiency.

The notable rise in projected market trends reflects the global shift toward digitalization and the need for flexible communication solutions.

Expert tip

Opt for a Hosted VoIP system for your business communications. You’ll cut costs, gain flexibility, and enjoy advanced features that will revolutionize your company’s communication.

How does hosted VoIP work?

Hosted VoIP works by converting voice communications into digital data transmitted over the Internet instead of using traditional phone lines.

This system leverages existing network infrastructure to provide clear and efficient communication, eliminating the need for complex and expensive hardware.

Here’s how a Hosted VoIP call works:

  1. Voice to digital data conversion: When you make a call, your voice gets converted into digital data through encoding, allowing the info to be sent over the Internet..
  2. Packet division: The digitized voice data is split into small packets that can travel efficiently across the network. Each packet contains a portion of the conversation and information about its origin and destination.
  3. Transmission over the Internet: The data packets are sent to the person you’re talking to. The data network enables fast and efficient transmission, ensuring no noticeable delays.
  4. Reassembly and decoding: At the destination, the data packets are reassembled in the correct order and decoded back into sound. It lets the person receiving the call hear your voice just as you spoke.
  5. Communication protocols: Specific protocols are used, like the Session Initiation Protocol (SIP) for setting up and ending calls and the Real-time Transport Protocol (RTP) for transmitting audio. These protocols ensure stable and high-quality communication.
  6. Security and encryption: Voice data can be encrypted to protect your communications. It ensures that only authorized people can access the conversation, safeguarding the privacy and security of your VoIP calls.
  7. Remote maintenance and updates: Your hosted VoIP provider maintains and updates the hosted VoIP system remotely, so you always have access to the latest improvements and features without worrying about the technical infrastructure.

This process ensures that business communications are efficient, transparent, and secure, allowing you to focus on your business without worrying about the technical details.

What are the advantages of hosted VoIP?

Adopting this technology can significantly transform your company’s communications. This technology reduces costs, improves flexibility, boosts productivity, and facilitates VoIP integration with other business systems.

Here are the most important advantages for a business using this service:

Reduction in operational costs

  • Elimination of costly infrastructure: No need to invest in PBX equipment or traditional phone lines.
  • Economic calls: Call rates, especially international ones, are much lower since they are made over the Internet.
  • Maintenance and updates: Maintenance and update costs are integrated into the service, providing better budget control.

Flexibility and scalability

  • Real-time adjustments: Add or remove lines and services according to your business needs without the physical limitations of traditional systems.
  • Adaptability to growth: Ideal for growing businesses or those with fluctuating call volumes.

Improvement in mobility and productivity

  • Remote work: Your employees can make and receive calls from anywhere with internet access.
  • Advanced features: Features like voicemail-to-email transcription and mobile app integration make managing communications easier.

Ease of implementation and maintenance

  • Simple and quick setup: No complex hardware or extensive installations are required.
  • Technical support: The provider manages the initial setup, ongoing maintenance, and updates, reducing the workload for your IT team.

Integration with other systems and applications

  • CRM and productivity tools: Easy VoIP integration with CRM systems and collaboration platforms.
  • Workflow optimization: Calls can be automatically logged in your CRM, improving the tracking of interactions with customers and prospects.

Quality of Service (QoS)

  • Voice traffic prioritization: Implementing Quality of Service (QoS) policies allows voice traffic to be prioritized over other data types, ensuring clear and uninterrupted calls.

Comparison between hosted VoIP and hosted PBX

Hosted VoIP and Hosted PBX are two solutions for managing business communications. However, key differences can influence which is the best choice for you.

  • Hosted VoIP is a technology that allows making and receiving calls over the Internet, offering flexibility and cost savings.
  • Hosted PBX is a complete cloud-based phone system that provides more advanced call management functionalities.

Here’s a comparative table to help you better understand these options:

hosted VoIP vs Hosted PBX

Is hosted VoIP right for you?

This technology is the ideal choice for businesses looking for an efficient, cost-effective, and flexible communication solution.

This system eliminates the need for expensive equipment and allows you to make calls over the Internet, significantly reducing phone costs.

It’s highly flexible. Add or remove users as your business needs change, supporting growth and adaptability.

The advanced VoIP features improve internal efficiency and project a professional image.

Practical example: A service company could use IVR to automatically direct incoming calls to the appropriate department, enhancing customer experience and operational efficiency.

Working from anywhere with an internet connection also facilitates remote work, boosting productivity with VoIP.

How to choose the best hosted VoIP provider

Choosing the right provider can seem daunting, especially if you have little experience with this technology. However, with a few key points, you can make an informed decision and ensure your business benefits the most.

Here are some important considerations for choosing the best VoIP provider:

Evaluate your company’s needs

  • Number of users: Consider how many employees will use the service. Some providers have specific plans for different company sizes.
  • Necessary features: List the features you need, such as voicemail, call forwarding or CRM integration.

Quality of Service (QoS)

  • Reliability: Look for providers with high reliability and guaranteed uptime.
  • Call quality: Ensure the provider can offer precise, uninterrupted calls, even during peak hours.

Costs and budget

  • Transparent pricing: Choose a provider that offers clear VoIP pricing without hidden fees.
  • Value for money: Compare the features and services you get for the price.

Technical support

  • Availability: Ensure the provider offers 24/7 technical support.
  • Support effectiveness: Look for VoIP providers with good reviews about their customer service and technical support.

Security and reliability

  • Call encryption: Verify that the provider uses encryption to protect your communications.
  • Security measures: Ask about their measures to secure the network and data.

Scalability and flexibility

  • Ease of scaling: The provider should allow you to quickly add or remove users as needed.
  • Adaptability: The service should be flexible to adjust to changes in your business.

Trials and evaluations

No single VoIP provider is best for everyone, but many competitive options, like VoIPstudio, meet the criteria of an ideal VoIP provider.

Below, you can check out the top VoIP providers in the U.S. and their Trustpilot ratings.

VoIP providers Truspilot

VoIPstudio: quality, price, and advanced features

If you’re looking for a balanced option that combines quality and price, VoIPstudio is an excellent choice.

VoIPstudio is recognized for its reliability, ease of use, and a wide range of advanced features that cater to the needs of any business, from small startups to large corporations.

  • Transparent pricing: Offers clear and competitive plans without hidden fees, allowing you to manage your budget effectively.
  • Technical support: With 24/7 customer service, you can be sure to receive help whenever you need it.
  • Call quality: Its robust and advanced infrastructure ensures high-quality calls.
  • Security: Uses state-of-the-art encryption methods to ensure all your communications are protected.
  • Scalability: VoIPstudio allows you to quickly scale as your business grows, adapting to your changing needs.

Advanced features of VoIPstudio

VoIPstudio offers a range of advanced features that make managing your communications more efficient and effective:

  • CRM integration: Integrate your VoIP system with CRM platforms like Salesforce or others to facilitate interaction tracking and improve customer service.
  • IVR (Interactive Voice Response): Set up automatic menus that guide customers to the correct department without human intervention, enhancing efficiency and customer satisfaction.
  • Call recording: Automatically record calls to monitor quality, comply with regulations, and provide training for your team.
  • Voicemail transcription: Convert voicemail messages into text and send them to your email, making it easier to manage messages when you can’t listen to audio.
  • Videoconferencing: Organize virtual meetings with high-quality video and audio to improve collaboration among teams, especially if you work with remote employees.
  • Analytics and reports: Access detailed reports on system usage, call quality, and other key indicators, which will help you make informed decisions.
  • Call forwarding and ACD queues: Manage how incoming calls are distributed, including setting up waiting queues and forwarding to different extensions or external numbers through automatic call distribution.

VoIP Free trial

How much does hosted VoIP cost?

The cost of Hosted VoIP can vary depending on the provider and your specific business needs. VoIPstudio offers excellent value for money, with flexible and affordable VoIP plans.

VoIPstudio plans and pricing

  • Free trial:
    • 30 days free with no credit card. No commitment.
    • Includes 200 minutes of calls and unlimited users.
  • Pay as You Go:
    • Cost: From $4.99 per user/month.
    • Ideal for companies that make few calls, paying only for the calls made at very competitive rates (from 1p/minute).
  • 2000 Plan:
    • Cost: $16.99 per user/month.
    • Includes 2,000 minutes per month per user for calls to over 45 countries.
    • It provides one number per user and access to all of VoIPstudio’s advanced features.
  • Enterprise Plan:
    • Cost: Customized according to the specific needs of large businesses.
    • Ideal for companies that require a large number of users or phone numbers.

Hosted VoIP frequently asked questions

How expensive is a Hosted VoIP system?

VoIPstudio’s Hosted VoIP is very affordable. VoIPstudio offers a highly cost-effective business communications solution, with plans starting at just $3.99 per user per month. Unlike traditional phone systems, VoIPstudio significantly reduces costs by eliminating the need for expensive equipment and dedicated phone lines.

How reliable is Hosted VoIP compared to traditional phone lines?

Hosted VoIP is highly reliable and has a stable internet connection. Providers like VoIPstudio guarantee high uptime uptime, ensuring your business communications remain active and efficient.

What equipment do I need to implement Hosted VoIP in my company?

Implementation typically requires compatible IP phones or adapters for existing phones and a high-speed internet connection. VoIPstudio handles the initial setup, making the process simple and quick.

How long does it take to migrate to a Hosted VoIP system?

Migration to Hosted VoIP is quick and simple, depending on the size of your company. VoIPstudio provides support throughout the transition to ensure a smooth and hassle-free process.

With these insights, you can leap and transform your business communications with Hosted VoIP!

Ready to get started with VoIPstudio?

Start a free 30 day trial now, no credit card details are needed!

Thousands of businesses across the world trust VoIPstudio for all of their most vital business communications. Why not be the next?

Thousands of businesses across the world trust VoIPstudio for all of their most vital business communications. Why not be the next?

Start a free 30 day trial now, no credit card details are needed!