Instead of creating and maintaining a collection of servers, a hosted VoIP solution uses your data centres to take care of everything. It means you need far less on-premises hardware and gets far more maintenance-free calling capabilities.

These are not the only advantages! This article will explain how hosted VoIP works, its main features and what it can do for your business.

How Does Hosted Telephony Work?

In analogue phone systems, one phone connects to another through a PSTN (public switched telephone network). The phone uses electrical signals to create audio in the speaker at the receiving end.

Hosted VoIP phone schemes, on the other hand, transmit voice data over the Internet.

It all starts with an IP phone that converts your live voice communications into data packets. Unlike a local VoIP solution, the data packet is first routed to one of several data centres. If the recipient’s phone is in the telephone network, the VoIP service provider takes care of the data conversion and transmission.

How Does A Hosted PBX Work?

A PBX, or private switchboard, is a business telephone system. PBX solutions come with features like call queuing, extension numbers, voicemail, etc.

These functions are supported by a complex hardware solution that IT professionals must manage.

Unlike a traditional PBX, a hosted PBX package remains entirely different positively.

You get the same functionality, but only one company manages the hardware answer for you. Your phones do not attach directly to an internal server. Instead, they connect through VoIP servers hosted securely in the cloud. In addition to typical PBX functionality, you can also integrate first-class inter-office telephone service.

Hosted VoIP Architecture

The basis of VoIP is a reliable, fast, wired Internet connection. Usually, your wireless router is not ideal for your phone system.

It would help if you had a modern business router to connect every phone to your local network. We recommend bandwidth of at least 100 Kbps per line from your ISP. Be sure to speak our in-depth guide to understand how much data VoIP consumes.

Is Hosted VoIP Right For Your Business?

There are already 64 million VoIP lines in the United States. However, the number of strings increased by 20% between 2014 and 2017. Almost half of these lines are for minor businesses.

If you are looking for a long-term solution, hosted VoIP is a good choice.

Hosted VoIP offers business phone system features for businesses at an affordable price.

VoIP is much cheaper than outmoded landlines. The added flexibility can remain a competitive advantage for onboarding new employees (including remote workers).

Nextiva’s hosted VoIP platform is secure, HIPAA compliant and offers 99.999% stable uptime.

Benefits Of Hosted VoIP

1) Significant Savings

Businesses save an average of $1,727 per month by using VoIP softphones. You can save big by switching if you’re currently using a business landline solution. Hosted VoIP springs all the features of a professional phone plan at a lower cost.

Nextiva’s rudimentary plan starts at $20 per line per month and contains unlimited domestic calls, free online faxing, call forwarding and more.

You can also save on other business uses because Nextiva provides a full suite of gears, including sales and package CRM, surveys, analytics, website conversation, and more.

2) International Calls From $0.01

If your employees make many international calls, you can save a lot on your company’s phone bill.

Linked to traditional phone lines, hosted VoIP calls tend to be higher than conventional calls. It  is because while analogue calls travel over local phone lines, VoIP phone calls travel most of the distance.

Also Read: What Is Market Segmentation? – Features, Examples, Benefits, And More

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