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What Is Hosted VoIP? Features & Benefits Explained

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Are you thinking about giving your office phone system an update? If you are looking into Hosted VoIP systems, you are on the right track. Today, we will look at what it is, how it works, and how your business can take advantage of such a great new system.

It will allow you and your staff more options, but it can also be much cheaper and more secure than your regular ground lines. Hosted VoIP is jam-packed with extra features and is a great idea to switch to if you are trying to take your business to the next level. 

Hosted VoIP lets your business have a complete phone system using a reliable VoIP provider over the internet. With hosted VoIP, you will have tremendous calling capabilities with hardly any maintenance required.  

Let’s jump right into the specifics and hosted VoIP and how it works.

What is Hosted VoIP?

Hosted voice-over-internet-protocol (VoIP) is a technology that allows a business to make phone calls using the internet vs. having to use a traditional telephone line. More specifically, it’s a phone system that works on the cloud and uses your internet connection.  

This allows employees to use the phones easily either in the office or working from a home office. These hosted VoIP telephone systems are usually managed by a third party and are a great way to save money for your business.

Typically businesses enjoy hosted VoIP, but they can also choose to host it internally through their own servers. This is considered “on-premises” VoIP versus a “hosted PBX” configuration. Please note that if host you host your own phone network, unless you have an experienced IT representative on staff and a lot of money for the network, it’s not recommended. 

How Does Hosted VoIP Work?

How does hosted voip work?

As you know, a traditional phone will have copper wires to connect calls. If you look at mobile phones, they will use cell phone towers to emit radio waves. 

There are lots of things that can interrupt a transmission between those towers and the phone, which is why you sometimes get dropped calls and spotty reception. 

When you employ VoIP technology, connecting calls is super simple and cuts down on any type of connection issues that you may get with cell phones.

Essentially VoIP systems take your analog voice sounds and convert them into digital signals instead of radio signals. These signals come over to the person on the other end of the line in the form of data through your broadband connection.

Related Links: Clear Clouds Phone System Explainer Video

Features of hosted voip

There is an endless amount of features that come with hosted VoIP. No matter what you choose, they are designed to benefit your business. 

Hosted VoIP features can include, but are certainly not limited to:

  • Unlimited calling from anywhere
  • Auto-attendant for better customer service
  • Extension numbers and number changes anytime you need 
  • Instant messaging capabilities
  • Voice mail that includes voice mail to text or email
  • Video conferencing
  • Online fax capabilities
  • Advanced call management
  • Call analytics
  • Conference call bridging
  • Caller ID
  • Toll-Free Numbers
  • SIP Trunking
  • Priority Alerts

The list goes on and on, but it will depend on what your VoIP provider can offer in the end. 

Benefits of Hosted VOIP

What is hosted VoIP and its benefits?

There are a plethora of advantages to upgrading your traditional phone system to a hosted VoIP system.  

Decreased Costs/Increased Savings

One of the biggest reasons companies switch from traditional phone systems to VoIP is cost. Of course, you will have to invest a little upfront for headsets and other equipment, but since you pay a flat fee for a month for each phone line, it quickly erases that upfront cost.

According to statistics reported by, the average small business owner can reduce their phone costs by up to 40% each month on local calls by switching to a VoIP phone system.

Super low international call rates are another reason companies use VoIP because prices are fixed. Anyone doing business overseas is bound to eventually switch to VoIP for the immense amount of savings it can provide. 

Unified Communication Makes Your Life Simpler

As our world continually evolves technologically, so do the devices and the way we manage those devices as well. The term Unified Communication (UC) refers to how we connect using different communication systems and also how we collaborate using those tools. 

Hosted VoIP falls into this category. With VoIP, you can experience advantages such as higher employee productivity, better customer satisfaction, and the ability to troubleshoot faster because you are putting your phones, your internet connection, data, and any add-on services onto one network.


One of the nicest things about hosted VoIP is that it’s super simple to make changes such as adding phone lines or changing extensions, or canceling phone lines. That’s because you will typically have an online portal you can work through instead of having to wait for a technician to come out and spruce up your phone lines so they can accommodate any additions. 

Having a VoIP phone system makes it much easier to manage phone lines if you have a lot of seasonality in your workers or any type of fast growth that is taking place.

Software Integration Capabilities

There are excellent apps and software out on the marketplace that allows businesses to operate easily and flexibly. Customer service is vital in any business, and when you have hosted VoIP phone systems, these systems can integrate with a variety of different applications related to social media, emails, voicemails, and chat software that allows customers to communicate with you. 

These tools can provide a fantastic customer service experience for your clients.  

By choosing hosted VoIP services that tie together with your customer relationship management tool, you can develop awareness about every client your company interacts with over time. 

24/7 Support Capabilities

Having a stellar customer service team is paramount when running a business. When you use a Hosted VOIP system, you can have customer service agents that can connect through email, chat, and SMS 24/7.  

This is because your phone system is using your internet network, and just like your mobile phone or laptop computer, the internet can run seamlessly 24/7 with only a flat monthly fee.

Related Links: Make and receive calls in Teams anywhere using your existing phone service


If you are considering a hosted VoIP phone system for your office, you will experience a world of difference once you get your new phone system in place. Most businesses get VoIP to decrease their phone costs, unify their communication efforts, and increase customer service skills.

Growing your business requires that you have the best technology in place, and by adding a hosted VoIP phone system, you will be taking your business to the next level.

Request a free demo today! 

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